Joerg said:
Ouch! I definitely don't want to live there, let alone start a business.
It's not all bad - the reason it's there is so people can't just start
firing people at will. Someone must have abused the system badly years ago.
It just makes it hard to get rid of unproductive/bad employees fast. An easy
way to avoid problems is to hire on contracts. If the employee is no good,
then don't renew the contract. If after several years of working on a
contract basis and are proven good, they get hired on permanently.
Unfortunately a lot of people don't want to work under contract, as they see
it as a tempory job.
Laying people off also has another downside of not getting subsidized wages
(new grads/students (we'll likely use this a bit), people with disabilities
but are very employable for some things, etc), which is a help see below.
This is because people will let the new person go once they are off of the
subsidy, or get rid of someone else, so that someone with a subsidy program
can take their place.
You can lay people off at any time, but there are many negative aspects to
it (as mentioned above and in other posts in this thread), and a lot of
people associate it to the business is not doing well and has a need to
downsize.
Makes me wonder why people in your area don't move their business ideas
to a more entrepreneur-friendly region. Or maybe they already do...
It's actually not too bad for the most part. The really not so friendly
thing here is the huge taxes on just about everything.