Your paycheck?
You can still be fired on the spot if you are not doing your job. Though it might require a warning depending on the jurisdiction.
> Aren't you in a weird limbo for months/years on end where you don't know if your position will be terminated?
At least in Finland the legal requirement for the negotiations is 2 weeks and usually they take exactly that long. It can be even shorter if both sides agree.
The 2 week period also works well in a lot of low paying fields where you are paid every 2 weeks. Basically meaning that everyone knows they are getting their next paycheck in full (outside of a proper bankruptcy which is pretty much the only way out of these rules)