Sharp drop in dismissal cases

The number of dismissal procedures decreased by more than a quarter in 2006 compared with the previous year. The number of applications for dismissal permits by the Centre for Work and Income (CWI) in particular fell sharply.

Largest fall for CWI

If an employer wants to dismiss an employee, he can do so either via the cantonal court or via the CWI. In 2006 a total of 103 thousand applications for dismissal were submitted to the cantonal judges and the CWI, 28 percent fewer than in 2005. The total number of applications has dropped sharply since 2002. The fall was largest for applications to the CWI. 

In 2006 employers submitted nearly 49 thousand applications for dismissal to the CWI. This is 35 percent fewer than one year previously. The number of requests for dismissal permits via the cantonal courts fell by 20 percent to just over 54 thousand.

Dismissal applications

Strong correlation with business cycle

More than one fifth of the applications to the CWI were connected with disablement, but by far most (more than two-thirds) were submitted for business economic reasons, for example general economic recession or declining business activity. Business economic reasons were also cited in dismissal cases at  cantonal courts.

There is a strong correlation between the number of dismissal procedures and the business cycle. The number of dismissals shows a clear interaction with the unemployed labour force.

Dismissal cases and unemployed labour force

Smaller decrease in dismissal permits

The number of dismissal permits granted by the CWI has dropped sharply since 2004, although by less than the number of applications. Indeed the percentage of granted requests for dismissal has increased: in 2006 in 82 percent of the applications were granted, compared with 77 percent in 2004.

The decrease in the number of dismissals via the CWI has also continued in 2007. In the first five months of 2007 the CWI granted 9 thousand dismissal permits, half the number in the same period last year.

The number of cases granted by the cantonal courts is not known exactly. It is plausible that in by far most cases the employee is dismissed.

Dismissal permits requested from and granted by the CWI

Arno Sprangers and Nic Steenbrink