How To Pay Redundancy Benefits

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How To Pay Redundancy Benefits
How To Pay Redundancy Benefits

Video: How To Pay Redundancy Benefits

Video: How To Pay Redundancy Benefits
Video: Redundancy Payments and Options 2024, November
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The Labor Code of the Russian Federation provides for the payment of compensation to each employee of the company in the event of a reduction in staff. It is paid in the form of average monthly earnings for several days preceding dismissal.

How to pay redundancy benefits
How to pay redundancy benefits

Instructions

Step 1

Calculate the reduction benefit amount by calculating your average monthly earnings. To do this, you need to be guided by Regulation N 922, approved by the Decree of the Government of the Russian Federation of December 24, 2007. First, calculate the employee's average daily earnings.

Step 2

Determine the amount of wages that were actually accrued for the days worked in the billing period, including remuneration and bonuses. Divide this value by the number of days actually worked in this period (paragraph 9 of Regulation No. 922). Thus, the last 12 calendar months are taken as the settlement period, and the days worked are considered to be the periods from the first to the thirty-first day of each month, during which the employee retained the average wage.

Step 3

Determine the start and end dates of the month for which the employee will receive benefits and the number of work days (for example, 16 work days in January). Calculate your average monthly earnings by multiplying your average daily earnings by the number of working days in the first and then the second month after you leave.

Step 4

When calculating average earnings, take into account all types of payments that are provided for by the remuneration system. The only exceptions will be the days on which the employee did not go to work of his own free will (with an application), was on sick leave, on vacation, or took time off for a certain period of time to care for a child. Make the payment no later than 5 days before the actual termination of the employee's duties.

Step 5

Please be aware that in the High North and related areas, workers laid off due to layoffs may be paid average earnings for the fourth, fifth and sixth months. A prerequisite for this is the lack of employment of a person and his timely appeal to the employment service.

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