This eliminates the high cost of firing workers without reducing the payout to sacked employees.
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Moving workers from one place to another is expensive, and the cost of firing them, though now reduced for future recruits, is still much higher than in most parts of Europe.
With Directed Energy, the cost of firing is negligible.
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And they show little appetite for more than blowing life into an existing but rarely used special contract that reduces the cost of firing permanent employees from 45 days pay per year worked to 33 days.
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The complexity and cost of firing people in Europe is a big concern for American venture capital, says Georges Karam, the chief executive of Sequans Communications, a French chipmaker for smartphones which went public on the New York Stock Exchange last year.
Importantly though, even after taking into account the higher required compensation, he argues that performance based firing policies would be more cost effective than than reducing class sizes.
Another big reason not to invest is the cost of hiring and firing workers.
Using various indicators to gauge the stringency of product-market regulation and the cost of hiring and firing workers, the study finds strong evidence that heavy-handed regulation reduces productivity.
The red tape involved in starting a new company, the cost of hiring and firing in a protected labour market, and the stigma that is still attached to those who go into business and fail, complete the picture.
Short of such blatant behavior or an actual firing, it is tough for sexual harassment plaintiffs to argue that alleged harassment has cost them income and benefits, explains Golden.
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