In Brazil, layoffs are generally treated as terminations without cause, for which firms are required to provide 30 days' notice plus an additional three days' notice for every year the employee has worked for the company. In addition, employees are entitled to their wages, holiday pay, and access to severance funds. In addition, Brazilian Labor Courts have held that the employer should also inform and negotiate the conditions of any collective redundancy with the employees' union beforehand so that additional severance payments are possible. What is the effect on the firm and market equilibrium of these labor laws?