Recent trends in employment protection legislation

Regulations affecting the hiring and dismissal of workers – i.e. employment protection legislation (EPL) – affects the ability of companies to adapt to fluctuation in demand and structural changes as well as people’s job security and hiring opportunities. This policy brief presents recent reforms in EPL in OECD countries, based on the latest update of the OECD EPL indicators. It highlights a clear trend towards harmonising the protection of workers on open-ended contracts and strengthening the regulations of temporary contracts since the onset of the COVID 19 crisis, marking a break with the trends of easing regulation for open-ended contracts observed during the previous decade.