When reducing the number of employees, it is especially important not only to correctly carry out the dismissal procedure, but also to make all due payments to employees. Payment requirements are spelled out in various articles of the Labor Code
How do I pay severance pay?
If an employment contract is terminated due to a reduction in staff, the employee is entitled to timely severance pay. Usually, its size does not differ from the size of the average monthly salary of the dismissed employee. Sometimes the amount of increased severance pay may be prescribed in the employment contract. In such a situation, the employer must pay exactly this amount.
Payment of wages
In addition, when the employee is laid off, the average earnings for the period of employment are fully retained. The period of employment should not exceed a couple of months from the date of dismissal. At the same time, the amount of severance pay is often included in the average earnings. Sometimes the size of the average earnings for a dismissed employee can be maintained even for the third month from the date of dismissal. Such a decision can only be made by the body of the employment service. But this is real only if the employee applies to this body within two weeks from the date of dismissal.
In special cases, the employee can also receive the established "compensation" compensation. There is a general rule about upcoming layoffs due to staff reductions, according to which the employee must be notified two months before the layoff. If the employee does not refuse early termination of the employment contract, he may also receive additional compensation upon dismissal. In this case, the amount of compensation should be equal to the size of the average earnings.
What other payments are possible
With the employee who was decided to be laid off, it will be necessary to carry out a final payroll calculation, as well as compensate for unused vacations. As for the calculation for unused vacation, it is made in accordance with Article 127 of the Labor Code. In the process of calculating monetary compensation for vacation, the same rules apply as when calculating vacation pay.
Sometimes, in practice, there are situations when an employee who has already received a full payment, some time after dismissal, again comes to the organization for an accrual. But such treatment is justified if the employee is injured or sick. By the way, this should have happened within 30 calendar days from the date of dismissal. In such a situation, the employer is obliged to accept the employee's disability certificate and calculate it.
