The Cost of Firing: A Comparison of Severance Packages

With cost-cutting and downsizing on peoples’ minds, The Economist compares the cost of firing people around the world.

America, New Zealand and Tonga are among the most company-friendly countries, requiring no penalties or compensation to fire a full-time employee of 20 years. By contrast, a business in Zimbabwe must shell out well over eight years’ worth of pay to sack a worker. But companies in Venezuela and Bolivia are even more tied—workers there cannot be fired at all.