With this proposal the cabinet is enforcing the agreement made during the autumn consultation. The cabinet is of the opinion that this will result in the costs of compensation awarded in the event of dismissal being limited for employees who enjoy a good employment market position.

The maximization only applies where the magistrate rules on the employee's dismissal. It does not apply to agreements made between employers and employees in an employment agreement, nor to agreements in a social plan in the event of company reorganization or collective dismissal. The magistrate can deviate from the maximum if, for example, the employer has acted inappropriately or if the grounds for dismissal are his own fault.

The Council of Ministers has assented to the bill being submitted to the Council of State for advice. The text of the bill and of the Council of State's advice will not be made public until submitted to the Lower House.