The impact of the hiring and firing decision of employment protection legislation on unemployment in South Africa

The impact of strict employment protection legislation (EPL) on unemployment is still uncertain. However, evidence in literature points to the hiring and firing provisions of EPL being the source of some of the labour market rigidity in South Africa.Hiring and firing provisions comprise a number of elements such as severance pay, dismissal procedures, probationary employment and temporary work arrangements. This research investigates the impact of these measures on the hiring and firing decision through a survey questionnaire distributed to approximately 20 000 small business respondents, who were also tested on the impact of EPL on small business in creating new jobs.The purpose of the research was therefore to contribute to the literature on the role which EPL plays in the hiring and firing decision, and ultimately on unemployment.The results of the research point to a still strong perception that EPL in South Africa is strict despite evidence to the contrary, and that small business respondents believe procedural elements play a significant role in their hiring and firing decision, but some uncertainty with regard to the role of severance pay. The strongest indication was the perception of the regulatory burden of EPL faced by small businesses.

Grantor dc:publisher

University of Pretoria

Year dc:date.issued

2012

Advisor dc:contributor.advisor

• Taft, Trevor

• UCTD
• Hiring and firing decision
• Unemployment
• Employment protection legislation

Statement dc:rights

• © 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Dc Identifier Other

F13/4/195/zw

OAI identifier oai:identifier

oai:repository.up.ac.za:2263/30622