Severance pay programmes in South-Eastern Europe
by Primož Dolenc; Suzana Laporšek; Igor Stubelj
International Journal of Sustainable Economy (IJSE), Vol. 7, No. 2, 2015

Abstract: The paper provides an overview of severance pay regulation in the South-Eastern Europe (SEE) countries. We found that in general severance pay schemes are very similar among the SEE countries, but vary significantly in their modalities. Severance pay programmes are rather generous, especially when compared to more developed OECD and EU-15 countries. Moreover, several countries in the region complement already generous severance pay with mild legislation on minimum tenure required to be eligible for benefit and rather long notice periods before dismissal. The issue of traditional severance pay schemes raises a question about the need of reforms; however, the inventory among the SEE countries shows that until now no serious debate on the issue took place.

Online publication date: Wed, 08-Apr-2015

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