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Breach Penalties in Labour Contracts: Advance Notice and Severance Pay

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  • Cristina Pita

Abstract

This paper analyses the determining factors of advance notice and severance pay provisions that appear in collective bargaining agreements. The theoretical model constructed is a simple bargaining model in which advance notice and severance pay play the role of breach penalties that the firm must pay for breaking the employment relationship. The hypotheses are tested on data gathered from collective bargaining agreements from different industries that were signed between 1970 and 1989. Copyright Fondazione Giacomo Brodolini and Blackwell Publishers Ltd. 1997.

Suggested Citation

  • Cristina Pita, 1997. "Breach Penalties in Labour Contracts: Advance Notice and Severance Pay," LABOUR, CEIS, vol. 11(3), pages 469-495, November.
  • Handle: RePEc:bla:labour:v:11:y:1997:i:3:p:469-495
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    Cited by:

    1. Christian Grund, 2006. "Severance payments for dismissed employees in Germany," European Journal of Law and Economics, Springer, vol. 22(1), pages 49-71, July.
    2. Laszlo Goerke, 2002. "Redundancy Pay and Collective Dismissals," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(1), pages 1-68, February.
    3. Miguel Malo, 2001. "European Labour Law and Severance Pay Determination in Collective Redundancies," European Journal of Law and Economics, Springer, vol. 12(1), pages 73-90, July.
    4. Christian Grund, 2004. "Severance Payments for Dismissed Employees Severance Payments for Dismissed Employees in Germany," Bonn Econ Discussion Papers bgse4_2004, University of Bonn, Germany.
    5. Parsons, Donald O., 2017. "Voluntary Employer-Provided Severance Pay," IZA Discussion Papers 11067, Institute for the Study of Labor (IZA).

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