In these countries, staff can be sacked without warning

Despite the inflation shock and cost of living crisis that has impacted the economy, the UK unemployment rate has been around 4% since mid-2021, the lowest rate since the mid-1970’s. Even so, parts of the economy’s performance has led to jobs cuts in sectors like technology and retail.

Losing a full-time job is stressful and makes people worry about their future prospects, ability to pay bills and look after their family. Fortunately UK redundancy rules protect workers more than in many countries.

In this article we will outline the rules in five countries where job security is a myth and employers can fire workers easily, and compare them to UK redundancy laws.

Not every country can be like Sweden where, according to the OECD, around 90% of laid-off workers return to work within a year.. But the laws in these five countries might make you glad you work in the UK!

1. United States

The US has an ‘at will’ employment law which makes it relatively easy for companies to fire workers. It means both employers and employees can end employment at any time, for any legal reason. The only conditions under which one party cannot fire or leave is retaliation, discrimination or other illegal activities.

This long-standing law gives employers flexibility but creates an insecure environment for US workers who must consider healthcare insurance. If they lose a job that includes healthcare benefits, this adds an extra layer of anxiety and cost. Affected employees may have to pay for additional healthcare insurance.

If a US worker loses a job through no fault of their own, they may qualify for unemployment benefit, but this is dependent on which state they live in.

2. Netherlands

The Netherlands has relatively robust employee protections for full-time workers, but it has high levels of temporary employment which have fewer employment protections.

According to data from Eurostat, the Netherlands had the highest share of people aged 15 – 64 working under temporary contracts in the EU in 2022, at 23.2%. Probation or trial periods are also very common.

It is easier to fire employees working under temporary contracts or on a trial period. In the Netherlands you can be fired if the employer feels it is not in their interests to continue employing you. This could be due to poor performance or for financial reasons.

Although the frequency of temporary employment and trial periods makes it easier to fire employees, Dutch employers have to take several steps to fire staff. If you don’t agree with the employer’s decision, the employer must apply for permission to fire an employee at the Employee Insurance Agency (UWV).

3. India

India is one of the fastest growing economies in the world, illustrated by the country almost halving its unemployment rate from 7.9% in 2020 to 4.2% in 2023, according to Statista.

There is no standard process to fire employees in India, because of its size and because Federal laws are filtered through the different states, which can amend them and/or introduce their own employment legislation.

Rules often depend on the terms of the individual contract signed between the employee and the employer.

Firing staff became easier for small and medium-sized businesses in India after the Industrial Relation Code Bill was introduced in 2020. This allowed employers with 300 or fewer staff to fire staff without the permission of the government. Previously this rule only applied for companies with 100 or fewer employees.

In general, India does not recognise the ‘at will’ law that makes it relatively easy for American employers to fire staff.

However, trade unions are restricted to certain sectors such as manufacturing and Indian employment laws vary depending on the nature of the job. Social security benefits depend on various factors.

4. Turkey

Turkey is probably the easiest country in Europe to fire staff and is the only European country to feature in the 10 worst countries for working people.

In Turkey, there are two different ways an employer can sack an employee, via ordinary termination or extraordinary termination.

With ordinary termination, an employer does not have to give a reason if they employ less than 30 staff and the staff member has been with them for less than six months.

Employees benefit from “employment security provisions” if they work for an employer with 30 or more employees and have worked for them for at least six months. In these cases, the employer must supply a valid reason for firing the employee.

Extraordinary terminations give even more power to employers. They can fire an employee immediately without having to comply with notice periods and in some cases, without having to pay severance pay.

5. Saudi Arabia

Saudi Arabia is an extreme example of where employers’ rights dominate and many employees don’t even have basic workers rights. However, there are some rules to protect employees if they have a permanent contract.

Article 80 of Saudi Labor Law is the primary piece of legislation. It contains the rules under which an employee’s contract can be terminated, often without receiving any accrued benefits. These include failing to perform your duties, misconduct, persistent absenteeism and forging documents.

The firing process does depend on the way the employer is set up and the type of employment contract. Workers on probation can be fired without notice and with no rights to unemployment benefits. Employees on fixed term contracts can be sacked when the term ends. Workers on a permanent contract must be given 30 days’ notice by employers and are entitled to end of service benefits based on length of service.

Can staff be fired without warning in the UK?

Although a UK employee can be fired without notice for gross misconduct or illegality, normally employers give out at least one written warning. The other valid reasons are redundancy, capability, and the vague ‘some other substantial reason’ (SOSR).

Even if an employee is fired without cause, the organisational culture that governs the UK means they are still entitled to rights and notice.

Some of the examples of rules around hiring and firing we’ve seen from around the world seem harsh. They illustrate how the same scenarios can be treated differently in certain cultures. For instance, the US has a history of minimal government intervention, hence the ‘at will’ law.

In the UK, employees are usually given notice, a redundancy package and help looking for new employment. This is normally the procedure SME owners should follow.

Startup owners should also be aware of new laws on employment rights unveiled by the government in October 2024, including the banning of some zero-hours contracts.

Find out about UK employment rights in our in-depth guides to employee law, including firing someone on their probation period.

Benjamin Salisbury - business journalist

Benjamin Salisbury is an experienced writer, editor and journalist who has worked for national newspapers, leading consumer websites like This Is Money and MoneySavingExpert.com, business analysts including Environment Analyst, AIM Group and written articles for professional bodies and financial companies. He covers news, personal finance, business, startups and property.