In Defence of (Efficiently Administered) Just Cause Dismissal Laws

Abstract:     
This article provides justifications for "just cause" laws that are constantly under attack in many European countries, while arguing that in some cases amendments might be necessary to ensure the possibility of swift, non-expensive dismissals when a just cause indeed exists. The security provided to employees by "just cause" laws is justified on two main grounds: preventing unnecessary injuries to the social/psychological well-being of workers who depend on a particular relationship for such purposes; and ensuring a fair "price" in terms of security in return for workers' submission to a democratically deficient regime. A number of considerations to the contrary - the impact on outsiders, potential inefficiencies and the infringement on employers' autonomy - are discussed but shown to be rather insignificant in magnitude (with the exception of small employers who are indeed usually excluded from the scope of just cause laws).

Number of Pages in PDF File: 20

Keywords: just cause, employmet protection, dismissals, labour law, labor law, unjust dismissals, employment at will

Accepted Paper Series