Note 3-9

9 Basically, this is an indicator of (1) conditions that firms are required to meet with respect to the procedures when dismissing an employee, (2) the time period of notice when an employee is dismissed and the condition of pecuniary payment for the purpose of terminating the employment contract, and (3) the provision regarding penalty such as fines in the case of an unfair employee dismissal. For a detailed method to prepare this indicator, refer to OECD (2004).