Cost Benefits Analysis for Employment Justice in Tunisia

The report describes the costs and benefits of developing and implementing an Employment Justice Platform addressing work-related legal problems in Tunisia. The analysis outlines the most likely situation if the initiative is not realized: Business as Usual (or BaU): in other words, what happens if there Is there no platform? Subsequently, it looks at what happens if the Platform exists: Project Alternative. Finally, it calculates the differences between the BaU and the Project Alternative result in the expected (social) effects, which form the basis of this CBA.

In Tunisia, a significant portion of the population, approximately one-third, grapples with legal issues on an annual basis, with a notable emphasis on the severity and prevalence of work-related problems. Compounding this situation is the vulnerability of informal economy workers, constituting 44% of the Tunisian workforce, who lack sufficient protection from economic shocks. Against this backdrop, the country faces challenges such as high unemployment rates, constrained job growth in the private sector, and a system marred by inefficiency, fragmentation, and inequity, impeding effective legal and social responses.

To address these issues, the Hague Institute for Innovation of Law (HiiL) in Tunisia is committed to empowering both employers and employees, with a primary focus on reducing work-related legal problems and enhancing overall justice outcomes. Central to this mission is the proposal for an innovative Employment Justice Platform designed to cater to the needs of employees, employers, and justice practitioners alike. The platform encompasses a comprehensive array of features, ranging from providing essential information on labor rights to implementing a referral system, offering best practice guidelines, and incorporating online dispute resolution tools.

In undertaking a meticulous approach to evaluating the viability of the proposed Employment Justice Platform, a socio-economic cost-benefit analysis has been conducted. This assessment involves a thorough comparison of the platform’s costs against its anticipated benefits, seeking to determine its economic feasibility. Notably, the analysis delves into the potential effects of the platform, juxtaposing a scenario in which it exists with one where no such intervention takes place. The underlying assumption is that the platform, by improving the capacity, tools, and knowledge of the target audience (comprising employees, employers, and justice practitioners), can substantially decrease work-related legal problems, ideally resolving them out of court.

Conclusively, the results of the cost-benefit analysis paint a positive picture, indicating that the benefits associated with developing the Employment Justice Platform outweigh the associated costs. While the specifics of the analysis cover the period from 2022 to 2037, the overall findings underscore the potential for this innovative platform to bring about positive socio-economic impacts in Tunisia.