Employee Benefits For Layoffs?

Employee Benefits For Layoffs?
Employee Benefits For Layoffs?
Video: Employee Benefits For Layoffs?
Video: How To Properly Handle Mass Layoffs | Management Tips 2023, February

The employer has the right to dismiss an employee on his own initiative. This happens if the given enterprise is completely liquidated or there is a decrease in its production capacity. Then it turns out, the so-called reduction in the number of workers. This procedure must be carried out strictly according to the law and adhere to the Labor Code, namely: Art. 81, 178, 179, 180.

Employee benefits for layoffs?
Employee benefits for layoffs?

What are the benefits for reductions?

When reducing the number of workers, the law provides for the following payments: this is the so-called severance pay, which is calculated in the amount of the average monthly wage. It, in turn, may be increased if such a clause is spelled out in the collective agreement.

Also, for the period of employment for a period of not more than 2 months, the employee retains the right to maintain his average monthly earnings. In some cases, the average monthly wage can be paid to the employee for 3 months. This happens if such a decision is made by the local employment service. To receive these payments, the employee must apply to the employment service himself within two weeks after the layoff, and must not be employed in any other place of work.

After it became known at the enterprise that layoffs would begin soon, the employer is obliged to notify its employees at least two months in advance of this event and take a receipt from the employees that they have been notified of this. Workers do not have to wait for the layoff date and quit their jobs in advance of their own free will. In this case, early dismissal is filled in in writing, and the employee is entitled to the payment of the size of the average monthly earnings for the period that remained until the date of reduction.

It is always worth remembering that a layoff due to termination of an employment contract is never subject to income tax. This situation also applies to those citizens who left the enterprise in advance, without waiting for the date of reduction. All other payments due to employees are subject to personal income tax on a general basis.

Also, the amount of the paid severance pay includes the wages of employees for the hours actually worked and money for unused vacation.

Additional rights of an employee dismissed by layoff

A completely dismissed employee can, within 30 calendar days from the date of full settlement, come back to this enterprise and demand from the former employer the payment of a temporary disability certificate. By law, the former employer is obliged to comply with the request of the former employee as soon as possible.

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