Termination allowance

The recent crisis has brought a lot of people into the state of stupor, who are engaged in business in our country. In order to save it, sometimes you have to sacrifice something: cover up some type of activity, merge several companies into one, carry out the bankruptcy of an already unprofitable firm, reduce the salary or reduce the staff of employees.

And if all these anti-crisis measures are carried out correctly and, most importantly, on time, you can stay afloat and build new plans.

If the employer still decided to reduce the number of employees of his organization, then he is legally obliged to warn at least two months before they are dismissed, and at the end of the employment relationship to pay them a mandatory severance pay.

Thus, having made a decision to reorganize or liquidate its enterprise, the employer first issues an order to reduce the number of employees, justifying the necessity in it. Then, two months later, the head issues another order, in which the specific names of those who fall under the reduction should be indicated. On the same day, they receive severance pay, as well as work books and copies of the reduction order.

In addition, the dismissed employee retains the right to receive average monthly earnings for the period until he is employed, but no more than two months. Sometimes this period is extended for another month, a decision on this is taken by the relevant employment office.

The severance pay, paid to the employee by the contracting organization, is his monthly salary. If immediately after the dismissal the citizen is arranged for a new job, and within a month, then he does not retain the average earnings issued for the period of employment.

Calculation of severance pay is carried out as follows: first, the daily average earnings are calculated, for which the total amount that has been paid to the employee for the year is divided by the number of days actually worked during the same period. The resulting daily average earnings are then multiplied by the number of working days in the month following his dismissal.

Having determined the severance pay, the employer must, at the final calculation, pay the abbreviated employee and compensation for all unused days of his leave. However, in this case, the average daily earnings are calculated somewhat differently.

At the same time, during the payment, the amounts that were given to the employee according to the Regulations on the specifics of the procedure for calculating the salary, namely remuneration depending on the level of the employee's qualification, the complexity of the work performed, its quantity and quality, additional payments having a compensatory character, incentives And incentive amounts. Sometimes a labor or collective agreement provides for an increased amount of benefits, in which case the employer is obliged to pay it exactly in this equivalent.

The severance severance payable to the employee who was dismissed before the due date will be longer. This citizen in such a case, in addition to the payments mentioned, will be entitled to additional compensation, the amount of which should be equal to the average earnings, which should be calculated from the actual day of dismissal to the day indicated in the notice of reduction.

If the organization reduces the person who has reached the retirement age, then all compensations and guarantees are also retained. This is stated in the Labor Code of our country. A pensioner also theoretically has the right and the opportunity to try to get a job in a particular period of time, so all compensations and guarantees should be paid to him, just like the rest of the employees.