Two weeks notice

At the dinner party I went to last night, there were 2 people who worked in the Icelandic banking sector, and have therefore lost their jobs. But it turns out here in Iceland that that means something different than in the U.S. In the U.S., when someone looses their job, there is no law about how much notice an employee is given ahead of time. I guess most employers try to give two weeks warning, just as an employee is supposed to give two weeks notice before quitting. But it can also be that people show up to work one day to find the establishment simply closed, no warning what so ever. Then it is up to the employee to apply for unemployment from the state, which usually lasts 3 months. In Iceland, employers are legal obliged to keep their employees on the payroll for 3 months after they have been told their position has been terminated. And then it seems after that, the government gives people unemployment payments for an extended period of time thereafter. It is therefore a process, giving both parties time to finish things up, get things in order. I never thought to question the American system, but now it seems pretty harsh.