Case study. In my country, most individuals do benefit from a severance on a permanent contract. Getting a permanent contract happens after working for a year if you're lucky or in a high demand job. In other cases, companies will use their power to stall as long as possible where beneficial. Temporary contracts do not have the same severance benefits, just wait the year and they are gone.
Severance itself varies case by case. Younger people with permanent contracts aren't getting multiple years in salaries for getting fired. Most older employees don't, either.
The entire premise also requires a largely immobile workforce. Workforce mobility in The Netherlands is actually pretty decent, with most younger people switching jobs every few years. This inevitably means these people have temporary contracts for a large part of their career, with much weaker severance packages. Top comment also discounts the obvious, trying to get individuals to quit themselves through e.g. legal bullying or bad benefits.
For the majority of countries, your entire point rests on the premise individuals are choosing to largely be immobile. Tenure length isn't that different from the US, all things concerned. Significant, especially given some countries, but not nearly as dramatic as "impossible to fire".
The moment you introduce mobility, most of the safety is gone for a large portion of time. What we are seeing, is that younger people are hit disproportionately since job hopping tends to be the far better choice, and younger people do not start at incomes that get them comfortable. It is primarily the elderly that benefit from the current structure.
And changing jobs means you now no longer have the vast amount of protection you used to and have to build them back up.
...unless you negotiate a better contract for the next job ? It is primarily the elderly that benefit from the current structure
Agreed :-(Permanent contract means the employer does not have the exit condition of "wait it out" to get rid of an employee. Additionally, permanent contracts tend to have bigger benefits attached to them, both legally and infrastructurally (e.g. getting a mortgage on a fixed term contract is nigh on impossible for most individuals).
Legally, employers can only offer so many fixed term contracts before they are forced to hire permanently or cut off the employee. In practice, you will see more exploitative companies look for ways to extend this (alternative legal structures), whereas fields with more balance in power (like IT) tend to present permanent contracts after a single temporary contract.
First of all, you have a trial period of 3 to 6 months where you can fire someone without even giving a reason.
Second of all, you can have fixed-term contracts, like 1 or 2 years - also with the trial period.
Third, you can still fire people after the trial period, you just can't go Trump-yelling at someone "YOU'RE FIRED!!!" because of some small mistake or if you don't like their face. It's not an easy process, but also not impossible. I very much prefer it this way.
I'm seeing this at the company where a friend works. They have an american branch that completely changed the employee roster twice (!!!) in the last two years. Everything they do is a mess, every new person that comes brings a different point of view of how things should be done. In the end, they always end up falling back to implementing what their colleagues in Europe did. The europeans have been working together for 6 years now
PS: for my current job, where I have a permanent contract, the interview in-all took 55 minutes. About another 15 minutes of talking to HR on the phone and bam, here I am.
In Germany very small companies can fire people at will. It's effortless and requires minimal bureaucracy. Same for firing people in their long trial periods.
In other cases, the difficulty depends heavily on the situation. The easiest way is to simply negotiate with the employee. The other options involve more work