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Doing Business 2015 Going Beyond Efficiency Labor market regulation data Employment regulations are unquestionably necessary. They are needed to protect workers from arbitrary or unfair treatment and to ensure efficient contracting between employers and workers. They increase job stability and can improve productivity through employer-worker cooperation. They benefit both workers and firms. 1 Labor market regulations encompass a wide spectrum, from rules governing individual employee contracts to those relating to collective action, and can have a significant impact on economic growth and competitiveness. 2 That impact can be negative where regulatory interventions are insufficient or excessive, so finding the right balance is essential. The World Bank’s World Development Report 2013 uses the term plateau to describe that balance, which can differ among economies depending on the economic or political context. Consistent with the plateau effect, regulations that are too loose or too strict can be counterproductive, leading to losses of employment in an economy or to its missing out on job-supporting agglomeration effects and knowledge spillovers. 3 Doing Business measures flexibility in the regulation of employment as it affects the hiring and redundancy of workers and the rigidity of working hours. This year it also covers additional areas of labor market regulation, including social protection schemes and benefits as well as labor disputes. NOTES 1. Pierre and Scarpetta 2007. 2. Nataraj and others 2012. 3. World Bank 2012.
232 DOING BUSINESS 2015 LABOR MARKET REGULATION DATA Afghanistan Albania Algeria Angola Antigua and Barbuda Argentina Difficulty of hiring Armenia Rigidity of hours Australia Difficulty of redundancy Austria Redundancy cost Azerbaijan Fixed-term contracts prohibited for permanent tasks? No Yes Yes Yes No Yes Yes No No No Maximum length of fixed-term contracts (months) a No limit No limit No limit 12 No limit 60 No limit No limit No limit 60 Minimum wage for a full-time worker (US$/month) b 0.00 209.86 229.42 151.07 570.10 1,462.19 113.29 2,397.02 1,555.92 133.35 Ratio of minimum wage to value added per worker 0.00 0.37 0.35 0.18 0.36 1.00 0.25 0.29 0.26 0.16 50-hour workweek allowed? c Yes Yes No Yes Yes Yes Yes No Yes Yes Maximum working days per week Premium for night work (% of hourly pay) Premium for work on weekly rest day (% of hourly pay) Major restrictions on night work? Major restrictions on weekly holiday work? 6.0 5.5 6.0 6.0 6.0 6.0 6.0 7.0 5.5 6.0 25 50 0 25 0 13 30 87.5 17 40 50 25 0 100 0 100 100 100 100 150 Yes Yes Yes Yes No No No No No Yes No No No Yes No No No No No No Paid annual leave (working days) d 20.0 20.0 22.0 22.0 12.0 18.0 20.0 20.0 25.0 17.0 Maximum length of probationary period (months) e 6.0 3.0 6.0 3.0 3.0 3.0 3.0 6.0 1.0 3.0 Dismissal due to redundancy allowed by law? Third-party notification if 1 worker is dismissed? Third-party approval if 1 worker is dismissed? Third-party notification if 9 workers are dismissed? Third-party approval if 9 workers are dismissed? Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes No No No No Yes No No No No Yes No No No No No No Yes No Yes Yes No No No No Yes No Yes No No Yes No No No No No No Retraining or reassignment? f No No Yes No Yes No Yes Yes No No Priority rules for redundancies? Priority rules for reemployment? No No Yes Yes Yes No No No Yes Yes Yes Yes No Yes No No No No Yes No Notice period for redundancy dismissal (weeks of salary) d 4.3 10.1 4.3 4.3 3.4 7.2 6.0 3.0 2.0 8.7 Severance pay for redundancy d dismissal (weeks of salary) 17.3 10.7 13.0 26.7 12.8 23.1 5.0 8.7 0.0 13.0 Research questions g Unemployment protection scheme? Health insurance for permanent employees? Courts or court sections specializing in labor disputes? .. Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes No No Yes No No Yes Yes No No Yes No Yes Yes No Yes Yes No
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12th edition Doing Business 2015 Go
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12TH EDITION Doing Business 2015 Go
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Doing Business 2015 Going Beyond Ef
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vi DOING BUSINESS 2015 wish and tha
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viii DOING BUSINESS 2015 of such an
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6 DOING BUSINESS 2015 TABLE 1.2 The
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12 DOING BUSINESS 2015 • Cumberso
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14 DOING BUSINESS 2015 This process
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18 DOING BUSINESS 2015 containerize
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20 DOING BUSINESS 2015 in defining
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22 DOING BUSINESS 2015 than 600 reg
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26 DOING BUSINESS 2015 cities in la
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30 DOING BUSINESS 2015 Enforcing co
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32 DOING BUSINESS 2015 FIGURE 3.8 C
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34 DOING BUSINESS 2015 affecting th
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36 DOING BUSINESS 2015 FIGURE 4.1 C
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38 DOING BUSINESS 2015 system now a
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40 DOING BUSINESS 2015 FIGURE 4.6 K
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42 DOING BUSINESS 2015 Tobago creat
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44 DOING BUSINESS 2015 TABLE 4A.1 W
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STARTING A BUSINESS 49 To implement
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STARTING A BUSINESS 51 FIGURE 5.4 C
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ZONING AND URBAN PLANNING 55 barrie
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ZONING AND URBAN PLANNING 57 one pr
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ZONING AND URBAN PLANNING 59 mixed
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REGISTERING PROPERTY 61 HOW TO PROV
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REGISTERING PROPERTY 63 FIGURE 7.5
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REGISTERING PROPERTY 65 for losses
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GETTING CREDIT 69 FIGURE 8.2—How
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GETTING CREDIT 71 nonincorporated c
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GETTING CREDIT 73 improvement in cr
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GETTING CREDIT 75 FIGURE 8.8—Econ
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PROTECTING MINORITY INVESTORS 77 Sp
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PROTECTING MINORITY INVESTORS 79 as
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PROTECTING MINORITY INVESTORS 81 FI
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PAYING TAXES 85 decline. Its averag
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PAYING TAXES 87 period. The next mo
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PAYING TAXES 89 FIGURE 10.6 Among o
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ENFORCING CONTRACTS 91 FIGURE 11.1
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ENFORCING CONTRACTS 93 been reached
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ENFORCING CONTRACTS 95 FIGURE 11.3
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RESOLVING INSOLVENCY 97 of insolven
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RESOLVING INSOLVENCY 99 FIGURE 12.1
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RESOLVING INSOLVENCY 101 FIGURE 12.
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HIGHLIGHTS FROM THE DOING BUSINESS
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REFERENCES 111 Aggregate, and How t
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REFERENCES 113 Rathinam, Francis Xa
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DATA NOTES 115 METHODOLOGY The Doin
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DATA NOTES 117 Doing Business respo
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DATA NOTES 119 Although procedures
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DATA NOTES 121 TABLE 14.4 What do t
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DATA NOTES 123 is allowed to submit
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Data Notes 125 TABLE 14.6 What do t
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DATA NOTES 127 entities is in opera
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Data Notes 129 Figure 14.11 Protect
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DATA NOTES 131 from the company. A
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DATA NOTES 133 mandated (at any lev
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DATA NOTES 135 TABLE 14.10 Type of
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Data Notes 137 TABLE 14.11 What do
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DATA NOTES 139 FIGURE 14.19 Resolvi
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DATA NOTES 141 TABLE 14.14 What do
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DATA NOTES 143 pay, night work, pro
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DATA NOTES 145 TABLE 14A.1 Cities c
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DISTANCE TO FRONTIER AND EASE OF DO
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SUMMARIES OF DOING BUSINESS REFORMS
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Country tables Reform making it e
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COUNTRY TABLES 169 Reform making i
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COUNTRY TABLES 173 Reform making
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Page 244 and 245: LABOR MARKET REGULATION DATA 233 LA
Page 264 and 265: ACKNOWLEDGMENTS 253 of Aart C. Kraa
Page 266 and 267: ACKNOWLEDGMENTS 255 ALGERIA DELOITT
Page 268 and 269: ACKNOWLEDGMENTS 257 Gerald Mittereg
Page 270 and 271: ACKNOWLEDGMENTS 259 Siarhei Khvasto
Page 272 and 273: ACKNOWLEDGMENTS 261 Muhidin Karši
Page 274 and 275: ACKNOWLEDGMENTS 263 Sydney Simonagg
Page 276 and 277: ACKNOWLEDGMENTS 265 Laurence Idelet
Page 278 and 279: ACKNOWLEDGMENTS 267 Aurora Barroso
Page 280 and 281: ACKNOWLEDGMENTS 269 Marius Doh CIE
Page 282 and 283: ACKNOWLEDGMENTS 271 Lars Lindencron
Page 284 and 285: ACKNOWLEDGMENTS 273 Astrud María M
Page 286 and 287: ACKNOWLEDGMENTS 275 Josette Cadie O
Page 288 and 289: ACKNOWLEDGMENTS 277 Ioannis Sarakin
Page 290 and 291: ACKNOWLEDGMENTS 279 Patrick Wong MA
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ACKNOWLEDGMENTS 281 Mirza Karim KAR
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ACKNOWLEDGMENTS 283 Enrica Maria Gh
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ACKNOWLEDGMENTS 285 Milly Jalega IS
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ACKNOWLEDGMENTS 287 Guna Paidere RE
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ACKNOWLEDGMENTS 289 Dragica Tasevsk
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ACKNOWLEDGMENTS 291 Cheikh Sall ETU
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ACKNOWLEDGMENTS 293 Vitalie Zama AS
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ACKNOWLEDGMENTS 295 Marcel Kettenis
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ACKNOWLEDGMENTS 297 Adeola Sunmola
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ACKNOWLEDGMENTS 299 Ernesto Velázq
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ACKNOWLEDGMENTS 301 Nuno Gundar da
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ACKNOWLEDGMENTS 303 Vadim Kolomniko
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ACKNOWLEDGMENTS 305 Ivana Ajdanic P
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ACKNOWLEDGMENTS 307 Paul Lategan SH
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ACKNOWLEDGMENTS 309 Tariq Mahmoud E
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ACKNOWLEDGMENTS 311 Kanok Jullamon
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ACKNOWLEDGMENTS 313 Begum Durukan O
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ACKNOWLEDGMENTS 315 Sreekumar Sivas
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ACKNOWLEDGMENTS 317 Bruno Paredes L
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Smarter Regulations for Small and M
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