According to the World Bank’s methodology, the Ease of Doing Business Rank of a country in the World Bank’s annual Doing Business reports averages the country’s rankings on 10 topics, made up of a variety of indicators: Starting a Business, Dealing with Construction Permits, Employing Workers, Registering Property, Getting Credit, Protecting Investors, Paying Taxes, Trading Across Borders, Enforcing Contracts, Closing a Business.
According to the World Bank’s definition, the Employing Workers Indicator reflects flexibility of the labour legislation, notably those difficulties which employers have to face when hiring and discharging workers. According to the methodology, the Employing Workers Indicator is calculated on the basis of the Rigidity of Employment Index and the Redundancy Cost Indicator.
The rigidity of employment index is the average of 3 subindices: a difficulty of hiring index, a rigidity of hours index and a difficulty of redundancy index.
The difficulty of hiring index measures whether fixed-term contracts are prohibited for permanent tasks; the maximum cumulative duration of fixed-term contracts; and the ratio of the minimum wage for a trainee or first-time employee to the average value added per worker.
The rigidity of hours index has 5 components: whether there are restrictions on night work; whether there are restrictions on weekly holiday work; whether the workweek can consist of 5.5 days; whether the workweek can extend to 50 hours or more (including overtime) for 2 months a year to respond to a seasonal increase in production; and whether paid annual vacation is 21 working days or fewer.
The difficulty of redundancy index has 8 components: whether redundancy is disallowed as a basis for terminating workers; whether the employer needs to notify a third party (such as a government agency) to terminate 1 redundant worker; whether the employer needs to notify a third party to terminate a group of 9 redundant workers; whether the employer needs approval from a third party to terminate 1 redundant worker; whether the employer needs approval from a third party to terminate a group of 9 redundant workers; whether the law requires the employer to reassign or retrain a worker before making the worker redundant; whether priority rules apply for redundancies; and whether priority rules apply for reemployment.
The redundancy cost indicator measures the cost of advance notice requirements, severance payments and penalties due when terminating a redundant worker, expressed in weeks of salary.
In the World Bank’s Doing Business 2009 report the Republic of Belarus was ranked 49 overall for Employing Workers. In 2009 the World Bank introduced changes to the methodology of the Employing Workers Indicator. As a result the Republic of Belarus moved up from the 49th to the 40th position in the ranking on the Employing Workers Indicator.
With the view of improving the ranking of the Republic of Belarus on the Employing Workers Indicator in the World Bank’s Doing Business 2010 report the Ministry of Labour and Social Protection has made alterations to the procedure of notification of labour, employment and social security authorities about redundancies (the difficulty of redundancy index).
In the World Bank’s Doing Business 2010 report the Republic of Belarus is ranked 32 overall for Employing Workers.