In an interview, Verena Pausder calls for a relaxation of protection against dismissal for highly qualified high earners in young companies. The current rules would restrict startups too much.
The chairwoman of the German Startup Association, Verena Pausder, calls for a relaxation of protection against dismissal for highly qualified high earners in young companies. In an interview with the Frankfurter Allgemeine Zeitung, she argues that the current regulations place too many restrictions on young companies.
“The cost of mistakes is too high in this country,” said Pausder. Founders sometimes hired the wrong person, especially in the start-up phase. The separation then costs a lot of money and energy.
The central problem: “One of the main problems of German startups is that they cannot breathe enough,” said the head of the association. The lack of flexibility in personnel hinders the growth of young technology companies.
Read too
Pausder is targeting a specific group with her initiative. She suggests relaxing dismissal protection for top earners who can financially afford a career change. This group could “easily bridge a few months” and “move from right to left fairly freely.”
Tie to company age instead of loosening it across the board
The entrepreneur rejects a general reduction in protection against dismissal. “I am not in favor of abolishing protection against dismissal across the board,” she made it clear.
Instead, she proposes a temporary regulation. “You could, for example, tie this to the number of years after the company was founded,” explained Pausder. This means that startups in the critical growth phase would have more leeway when it comes to personnel decisions.
The head of the association warns of the consequences if Germany remains unattractive for startups. “If companies prefer to hire people elsewhere instead, nothing is gained,” she said.
With material from dpa/sr
