During the economic crisis, many enterprises lay off their employees to optimize operations. In this regard, for most people, both for the heads of organizations and for their employees, the question of what severance pay should be paid in the event of a layoff and how to calculate it is very relevant.
Reduction
According to the Labor Code of the Russian Federation, one of the reasons for the cancellation of an employment contract is a reduction in the staff or number of employees of the enterprise.
A workforce reduction is a reduction in the number of workers in one position. For example, the reduction of three accountants out of eight. And staff reduction is the disbandment of a department or the elimination of identical staff units (i.e., for example, all engineers or all controllers). In both cases, the employer must follow the law: provide sufficient grounds for carrying out these procedures, provide the employee with all the guarantees and compensations required upon termination of the employment contract (pay severance pay when the employee is laid off, ensure a preferential right to remain in office, etc.) .p).
The reduction procedure involves the following steps:
- issuance of an order;
- notifying employees and offering them other job vacancies;
- informing the Employment Center and the trade union;
- dismissal of workers (as well as prescribed by law payment of severance pay upon layoff).
Issuance of an order
As soon as the manager decides to make reductions at the enterprise, he must issue a corresponding order. The mandatory form of this order is not established by law, but the boss must take full responsibility for its preparation.
The order to carry out reduction measures at the enterprise must indicate the date of the upcoming procedure and the changes that are expected to be made to the staffing table.
Notification to employees
After the manager has issued a layoff order, he must notify each employee in writing of the upcoming dismissal. However, this must be done no later than 2 months before the workers are removed from work.
A separate notice is drawn up for each laid-off employee, which is handed to him personally against signature. This document indicates the date and reason for dismissal.
Along with the notice of layoff, the employer is obliged to provide the employee with a list of available jobs (if any). If the worker agrees to switch to new position, the boss formalizes his transfer. The manager is obliged to offer available vacancies as they become available until the day the employee is dismissed.
Informing the employment service and trade union
In addition to the fact that employees must be informed about the dismissal directly, the employer notifies the Employment Center and the trade union of this fact. The boss two months before the proposed dismissal (and in cases of mass layoffs - three months) is obliged to notify the organization about the upcoming event.
At the same time, the trade union must be informed both about the reduction of employees included in it, and about all other dismissed workers.
Dismissal of an employee due to reduction
After two months from the date of notification to employees, their immediate termination is carried out. labor activity. To carry out this stage the head of the organization issues dismissal orders, usually in Form No. T-8. In this order, in the “Grounds” column, reference is made to the reduction order, and, if available, to the document in which the employee expressed his consent to dismissal before the end of the warning period.
On the last working day, the worker must be paid severance pay upon layoff and must be given a work book. As for the entry in it, a corresponding note is made with reference to Art. 81, part 1, clause 2, Labor Code of the Russian Federation.
Severance pay
Severance pay in case of reduction, this is a material payment to an employee of an enterprise upon his dismissal due to a decrease in the number of employees or staff of the organization. This type of compensation includes the average monthly salary, as well as the average monthly salary retained by the employee for the period of employment, but not more than 2 months from the date of dismissal (taking into account severance pay).
In some cases, such payments can amount to three average monthly salaries: in situations where the employee registered with the Employment Center within a period of up to two weeks from the date of his layoff and was not employed after 3 months.
Severance pay when personal income tax is reduced is not taxed according to Art. 217, clause 3 of the Labor Code of the Russian Federation. The exception is payments exceeding a three-month amount wages.
Collective or employment contract the amount of compensation for redundancy may be set higher than that established by law.
Benefit calculation
Since the payments in question amount to several average monthly wages, the amount of severance pay in case of reduction is calculated in accordance with Art. 139 of the Labor Code of the Russian Federation and Decree of the Government of Russia No. 922 of December 24, 2007, regulating the calculation of wages.
The average salary of an employee under any working regime is calculated on the basis of funds actually accrued to the employee and data on the time practically worked by him for the 12 previous calendar months.
The calendar month in this case is the period of time from the 1st to the 30th/31st day of the month inclusive, and in February - to the 28th/29th.
The calculation of wages includes all forms of payments permitted by the wage system, which are used by the employer in question, regardless of their sources. The average salary of an employee cannot be less than the minimum subsistence level established by law.
The amount of cash payments to employees does not depend on their age, length of service or skill level. So, for example, severance pay when a pensioner is laid off is accrued at general principles.
Period and charges included in the calculation
In cases where an employee works at an enterprise for less than 12 months, the time during which the person was registered in the organization is taken to calculate the average monthly salary and, accordingly, severance pay. If the worker has not worked even a month before being laid off, then the tariff rate or salary established for him is used for calculation.
When calculating the average salary, the following are not taken into account:
- the time when the employee retained the average wage, except for breaks for feeding the child, which are provided labor legislation RF;
- days on which the employee was on sick leave or received maternity benefits;
- the period of failure by the employee to perform the required work for reasons beyond his control;
- the time of a strike in which the employee did not participate, but could not perform his direct duties in connection with it;
- additional paid days off to care for disabled children;
- other periods during which the worker was exempt from performing his duties job responsibilities with full or partial retention of wages or without it.
It should also be taken into account that when calculating salary, bonuses received by the employee during the reporting period are taken into account. If these remunerations were received by a person who did not work for 12 full months, the amounts of such receipts are taken into account in proportion to the time actually worked (with the exception of those bonuses that were accrued for the practically worked period, for example, monthly or quarterly).
Additional compensation
In addition to the fact that the employee must be paid the required severance pay upon layoff, at the time of dismissal the worker is also entitled to other payments.
So, for example, an employer can, with the written consent of an employee, dismiss him earlier than the deadline established by the redundancy order. In this case, the boss is obliged to pay the subordinate additional compensation, constituting the employee’s average salary, calculated in proportion to the time remaining before the end of the notice period for dismissal. Such compensation does not imply that the basic severance pay will not be paid in the event of a layoff.
Along with the specified material compensation, the employee receives a salary for the period worked and compensation for unused vacation.
Severance pay for certain categories of citizens
The Labor Code of the Russian Federation and other legislative acts provide for a different size of severance pay upon layoffs for certain categories of employees that differs from the general amount.
So, for example, compensation for employees working at enterprises located in the Far North or territories equivalent to them is the average monthly earnings, as well as the average monthly salary for the period of employment, but not more than 3 months from the date of dismissal (taking into account the benefit). These employees may be paid compensation for subsequent months for up to six months by decision of the employment service if the employee applied to the specified body within a month from the date of dismissal and was not employed by them.
In situations where seasonal workers are laid off, the benefit in question is two weeks' average earnings.
Other guarantees for employees upon layoffs
At the same time, that an employee is given severance pay in the event of a reduction in staff, the Labor Code of the Russian Federation also provides other guarantees for employees in the event of a reduction. These include, for example, the priority right of certain categories of workers to remain in their workplace.
Thus, a manager, when choosing from several candidates for dismissal, must take into account that:
2. Preference is given to those employees who have greater labor productivity and qualifications. In cases where these indicators are equal, the following is left at the workplace:
- employees if they have 2 or more dependents;
- workers in whose family there are no other people earning money;
- workers who received injuries or occupational diseases at work;
- disabled military personnel;
- employees who improve their qualifications at the direction of the employer on the job.
To summarize, we can note the following:
- in the Russian Federation, the reduction procedure is regulated at the legislative level;
- The Labor Code of the Russian Federation and other regulations establish the rules by which staff reductions, severance pay and other compensation to dismissed employees are made;
- established by law minimum dimensions severance pay and additional payments, but other, larger amounts may be established by a collective or employment agreement.
Situations often arise in a company's activities when it has to reduce its staff. However, dismissal at the initiative of the employer requires compliance with a number of important formalities, including providing the employee with all necessary payments in case of layoff: salary, vacation and severance pay, and due compensation.
Compliance with the frequency of such payments also plays an important role. This article will discuss the procedure and terms of settlement with an employee in 2019 who was fired due to a reduction in the company's staff.
Mandatory payments
Issues related to the reduction of a company's staff are discussed in detail in Articles 178-180, as well as in Article 81 of the Labor Code of the Russian Federation. This part of the document establishes that any employee of an enterprise who loses his position at the initiative of management, due to the fact that the company has decided to reduce the scale of its activities, has the right to receive:
- Salaries for that part of the month that was worked before the official dismissal;
- Vacation payments, based on the number of hours worked during the current year;
- Severance pay;
- Average salary during the period until the employee finds a new job.
Employees personnel service are required to prepare all necessary papers at the time of dismissal, including filling out the employee properly. However, all the above payments are not made at once, but over a certain period.
The procedure for paying an employee
An order to dismiss an employee is sent to the accounting department. Its specialists are obliged to accrue the following types of payments to the dismissed person:
- Salary. Accrual is carried out exactly according to the number of days worked in a month in the usual manner (Article 140).
- Vacation payments. Most often, dismissed employees have compensation, which the organization is obliged to pay. Accrual is carried out based on the number of days that the employee actually worked in the current year (Article 127).
- Severance pay. This payment is equal to the employee’s average monthly income (Article 178).
The amount of all the above payments is handed over to the employee along with the work book at the time of dismissal.
In addition, if during the course of work the employee’s health was damaged or other incidents occurred that required compensation from the enterprise, then these payments are also provided to the employee at the time of dismissal.
Payments for the period of employment
If within two months an employee is unable to find a job and presents the employer with a work book without employment records, then the company that fired him will be obliged to pay him his average monthly salary.
In this situation there is important nuance: if a citizen finds a job in the middle of the month, then payments are made only for those days when he was unemployed.
As for the third month of absence from work, an employee dismissed by the company can count on compensation only if the following conditions are met:
- Within two weeks from the date of dismissal, he registered with the employment service at his place of residence;
- Throughout the entire period, the employment service failed to find a job for the dismissed person.
As a result, after three months, the citizen receives a document from the employment service, which indicates that he is still in the position of unemployed. Together with him and the work book, the employee goes to his former employer and receives his due payment in the amount of average monthly earnings.
The payment of funds for the duration of employment does not necessarily have to coincide with the dates of salary payment: it is carried out on days agreed upon with the employee individually.
Thus, staff reduction is the reason for depriving an employee of his place of work at the initiative of the employer, which means that the citizen must receive the necessary compensation to allow him to find a new place of activity. In 2019, according to the norms of the Labor Code of the Russian Federation, the employer is obliged to pay the dismissed employee the vacation and severance benefits due to him, salary, as well as funds for the duration of employment.
An agreement between the parties is one of the ways to dismiss employees. The employee ceases to perform his duties on the day it is signed and on another specified date.
If the employment contract is terminated by agreement between the employee and the employer, then one of the stages of this process is payment severance pay upon dismissal according to the Labor Code of the Russian Federation. Its value is indicated when drawing up an order, which is signed by the management of the organization.
It is important to understand that the article describes the most basic situations and does not take into account a number of technical issues. To solve exactly your problem, get legal advice by hotline numbers:
The payment of benefits is regulated in the concluded agreement. If there is no such indication in the document, then the payment of funds is prescribed in a separate resolution.
The amount of such a benefit can be fixed, tied to the employee’s salary or average monthly earnings. Labor legislation states that the amount of payment should be from two weeks salary and above (from three months’ salary for managers).
If the calculation includes average earnings, then it is necessary to take into account the period specified in the agreement. For example, severance pay upon dismissal can be calculated as average monthly earnings. Then you need to divide the entire amount of payments for the last year by the number of days actually worked during this time, and then multiply the resulting value by the number of days worked per month.
Severance pay upon layoff
In case of reduction staff can also count on severance pay. The payment is made to all employees for whom this organization is the main place of employment. If a citizen works part-time, then no payment is made.
The amount of transfers is determined as the employee’s average monthly earnings, unless otherwise specified in the employment agreement.
Average earnings are calculated based on all transfers received by the employee in the last 12 months work in the organization. This includes salary, benefits and other amounts.
When calculating not used material support that does not relate to wages (transfers to transport costs, educational services, accommodation). Here not included transfers for vacation or vacation, as well as cases when an employee is on legally received average earnings, but in fact fulfilled labor responsibilities was not carried out (downtime, inability to work).
Severance pay upon liquidation of an organization
If the company is liquidated, the employee is entitled to basic and additional severance pay.
Basic allowance required for compensation the employee's earnings for the period spent searching for a new job. This period lasts 3 months. However, for special categories of personnel it may differ. For workers hired for a season, this period is taken equal to 2 weeks and when conducting activities in the northern regions - up to 6 months.
The amount of severance pay in 2017, which is supposed to be paid per month upon liquidation of the company, is equal to the average monthly earnings of the employee. The calculation is made individually, taking into account the income received.
Staff can receive funds for the first month on the day of dismissal. Further benefit payments are made upon completion of the following: requirements:
- the citizen registered with the employment authorities within 2 weeks after dismissal (for those working in northern areas this period was extended to a month);
- the dismissed person is not employed.
If before the end of the period under review the citizen began working, then severance pay in case of layoff is due only days before employment.
Additional benefits are calculated in cases where the employment contract is terminated before the employee’s notice period for liquidation ends (2 months). Payments are made by mutual agreement of the parties. How is severance pay calculated in 2017? Its amount is determined for the period from the moment of actual dismissal until the end of the two-month period allotted for warning the employee.
Severance pay in other situations
Payment of benefits is carried out under the following circumstances:
- due to conscription military service;
- if an employee whose duties were temporarily performed returns to his place;
- if an employee refuses to be transferred to another position due to health problems;
- the employer cannot offer another job;
- refusal to move if the employer changes its place of business;
- and failure to perform duties as determined by a physician.
Calculation of severance pay is made on the basis of average earnings, which are due to be received within a two-week period. If there is a violation of the provisions of the employment contract on the part of the organization, then the amount of the benefit is equal to the employee’s average monthly income.
Persons occupying leading posts, the benefit amount will be at least triple volume from average monthly earnings. The reason for dismissal is taken into account here: a resolution of the authorized body of the company or a change in the owner of the company’s property. Benefits are not awarded if dismissal was due to disciplinary reasons.
The amount of management benefits can be increased according to the employment contract. However this opportunity is not provided for managers of companies owned in whole or in part by the state, employees of municipalities and budgetary institutions.
Conclusion
- If the parties agree, the employee is entitled to severance pay, the amount of which is specified in the concluded agreement.
- Payment of severance pay in case of staff reduction is made in the amount of average monthly earnings.
- In case of liquidation, the benefit is assigned until employment in a new place, but not more than three months.
- Payment of benefits is possible in special cases stipulated by law.
- For persons on leadership positions, a separate procedure for calculating benefits is provided.
The most popular questions and answers regarding severance pay
Question: Upon dismissal, personal income tax was deducted from my severance pay. Is this legal?
Answer: This type transfers are subject to Personal income tax in cases where its value exceeds 3 average monthly earnings (for the northern territories, 6 monthly earnings are taken into account). Tax payment is made only in case of dismissal by agreement of the parties. In case of liquidation of a company, reduction of staff and other cases when the assignment of benefits is due, tax is not deducted.
Similar rules apply when paying insurance premiums from this benefit, regardless of the reason for dismissal.
In case of deduction from severance pay, it is possible only for children under 18 years of age. Child support may be paid by agreement between the parents or by court decision.
Dismissal due to staff reduction is a situation from which no one is immune. If the relationship between the employee and the employer is officially registered, the procedure is carried out in accordance with the norms of labor legislation, and the dismissed person is entitled to special payments upon layoff.
Payments upon layoff
In case of forced dismissal, the law protects the rights of the citizen. First, employees must be notified of the upcoming event 2 months in advance so that they have time to look for a new job. Secondly, the employer is obliged to provide financial assistance in the form of certain payments.
Salary and vacation pay
The first thing that is awarded to a fired person is payment for the actual hours worked, which he did not receive. In some cases, bonuses are issued if this is supported by local documentation.
If the employee does not exercise the right to annual leave, based onArt. 127 Labor Code of the Russian Federation. The total amount depends on:
- on the duration of the vacation period;
- time elapsed since the last vacation;
- wages.
IMPORTANT! Compensation for unused vacation is calculated as for whole year, if in the year of layoff the citizen worked from 5.5 to 11 months. The situation is regulated recommendation Federal service employment and labor dated 04/19/2014.
A tax of 13% will be withheld from both payments.
Severance pay
Such financial support is not always provided. The benefit is paid only in cases established in paragraphs 1 and 2 of Art. 81 Labor Code of the Russian Federation.
Its size according to Art. 178 Labor Code of the Russian Federation, corresponds to average monthly earnings, but not lower than the minimum wage. And according to clause 2 art. 217 Tax Code of the Russian Federation not subject to 13%. If an employee has not worked for the organization for one year, the amount due is determined taking into account the days actually worked.
IMPORTANT! The employer must pay this compensation to the citizen, even if he has a new job.
Second and third month
Payments in case of layoff of an employee during these periods are accrued if he/she registered for unemployment within two weeks after the termination of the employment contract and objective reasons didn't find a job. Compensation is made at the expense of the employer in the amount average salary or a fixed salary.
An employee on his own initiative does not have the right to demand a third redundancy payment. This can only be done by the Employment Service and only for persons registered with it. Payment for the third month of absence from employment is the last one.
Calculation procedure
Severance pay is calculated in two stages. At the first stage, average earnings (Avg) are determined. Art.139 Labor Code of the Russian Federation The calculation algorithm is installed:
Srz =Vрп / Nfact, Where:
Vрп– employee income for the pay period.
Nfact– actual shifts worked by the employee.
The billing period is 12 months preceding the month of layoff. For example, if the dismissal occurred in February 2018, then the period of time from 02/01/2017 to 01/31/2018 will be taken for calculation.
The indicators do not take into account the time spent on vacation or sick leave, as well as their payment.
The second stage - the amount of severance pay due to the issue is calculated.
Pvyh=Srz * Nworking shifts, Where
Nworking shifts– the number of working days in 1-3 months after dismissal.
REFERENCE! Wages for partial months are calculated in proportion to the days worked.
Example:
Petrov N.A. worked in the company for 2 years. By official order it was reduced from 01/01/2017. On January 9, he registered with the employment service. As of April 1, 2017, Petrov remains unemployed.
He worked on a standard five-day working week. According to production calendar for 2016, the number of work shifts was 247, of which he was on vacation from July 1 to July 28. Monthly earnings were constant and amounted to 30,000 rubles.
The procedure for calculating severance pay upon dismissal due to staff reduction:
Actual shifts worked in 2016: 247 – 19 = 228 Srz for the period from 01/01/2016 to 12/31/2016: = 331428.57 / 228 = 1453.63 rubles. Amount for January 2017: 1453.63 * 17 = 24711.71 For February: 1453.63 * 18 = 26165.34 For March: 1453.63 * 22 = 31979.86
Payment of severance pay Petrov is due for January even if he is employed. If he found new job in February or March, compensation would be calculated in proportion to days of unemployment.
For individual categories
Depending on the nature and conditions of work, the amount of compensation varies. Some categories of employees often face the fact that they are denied severance pay when staffing is reduced. However, the provisions of the Labor Code of the Russian Federation protect their interests.
For pensioners
A person receiving a pension is dismissed with the same rights as an ordinary employee. Pensioner status, position, qualification level, work experience and age do not affect the amount of severance pay upon reduction.
The issue of issuing a third benefit to a pensioner is controversial. On the one hand, it is provided on a general basis. On the other hand, a pensioner is considered a socially protected person and cannot be called unemployed. If there are significant facts, the employment center may issue a certificate on the basis of which the third payment will be made.
Part-timers
Severance pay upon dismissal is paid in the same manner as to main employees. However, preservation of average monthly earnings in the second and third months is no longer provided.
If an employee working part-time quits his main place of work before the reduction, which is confirmed by an entry in work book, he has the right to receive payment for these months.
Seasonal worker
A seasonal worker is notified of planned dismissal 7 days in advance. Severance pay in case of layoffs is paid according to Art. 296 Labor Code of the Russian Federation in the amount of average wages for two weeks. Other types of financial assistance in this category are not provided.
Residents of the Far North and areas equated to them
Northerners apply for redundancy benefits for 4-6 months at the request of specialists from the employment service, if they apply there within 30 days after dismissal.
Additional compensation
Payment of severance pay is not the only financial assistance to employees due to staff reduction. Depending on the situation, additional financial support is assigned.
For early dismissal
Employees are warned about layoffs two months in advance, but sometimes it is necessary to terminate the employment relationship early. The Code provides for early dismissal due to staff reduction, but only by agreement of the parties and with the accrual of compensation payments.
Its purpose is to compensate for lost income for the period during which the employee could have continued working. The size directly depends on the number of days between the dates of early and official termination of employment. An agreement or other documentation of the organization may establish increasing coefficients.
There are benefits to laying off early. Firstly, the dismissed employee receives additional compensation. Secondly, the period for searching for a new job is increasing.
Payment of the 13th salary upon layoff
In many organizations, at the end of the year, a special type of bonus is provided - the 13th salary. If the provision on it is officially established, when an employee is laid off, it is also issued. It does not matter in what month the dismissal occurred. Required condition– work experience in the workplace for at least one year.
Sick leave payment
A redundant employee has the right to. Basic conditions:
- the citizen fell ill before the official day of dismissal. The amount of payment depends on the insurance period and average salary;
- sick leave received within 30 days after layoff. The benefit is equal to 60% of the average wage for the last two years. If a citizen is registered with the employment service, it is equivalent to unemployment benefits.
- a certificate of incapacity for work was issued to a pregnant woman who was officially recognized as unemployed within a year after dismissal.
REFERENCE! Payment of sick leave is not a basis for refusing to issue other payments for dismissal due to staff reduction.
Early retirement
Based on Art. 32 Law of the Russian Federation “On employment of the population in Russian Federation" dated 04/19/1991, a citizen has the right to claim early retirement subject to the following conditions:
- Insurance (work experience) of at least 25 years for men and 20 years for women.
- The employee being laid off is under the age limit retirement age for 2 years. The rule also applies to citizens entitled to a preferential pension.
- Reasonable lack of employment opportunity for a new job. Confirmed by the employment center.
Early pension is assigned only with the consent of the citizen and is paid from budget funds. Upon employment or official retirement, payments stop.
How to receive payment
A staff reduction carried out in accordance with all the rules is a guarantee of receiving severance pay. The employee is advised to carefully study all the documents that he signs and familiarize himself with labor legislation in order to prevent violation of his rights.
Registration
The employer's accounting department handles the registration and calculation of redundancy compensation and other accruals. The benefit is paid on the basis of an order indicating its amount and the reason for dismissal. A corresponding entry is made in the work book with reference to article of the Labor Code of the Russian Federation.
Where are they paid?
All due payments dismissal due to staff reduction is carried out by the former employer. However, to receive benefits for the third month, a citizen must contact the employment center and obtain a certificate confirming the absence of work. The document is submitted to the accounting department, and only after that compensation for the third month is calculated.
REFERENCE! Payment of sick leave after layoff is carried out by the Social Insurance Fund.
Pregnant women receive maternity payments through the employment center in accordance with By Order of the Ministry of Health and Social Development dated December 23, 2009 No. 1012n.
What is the time frame for calculations?
On the last work shift (day of dismissal ), according to Art. 140 Labor Code of the Russian Federation, pay: salary with vacation pay and first benefit. If the employee did not work on that day, payment is made after receiving the request for payment no later than the next day.
IMPORTANT! If on the day of layoff the employee is absent without a justified reason, the employer has the right to reconsider the terms of layoff.
The timing of payments of the second and third severance pay in case of reduction is agreed upon by both parties.
Liability for non-payment
Delays in issuing compensation or incorrect accrual (less than required) are considered as non-compliance with standards labor law. In this case, the employee must adhere to next plan actions:
- Submit a written claim about the violation of your legal rights to the manager and the trade union of the organization against signature.
- Write a complaint to Labor inspection on the inaction of the boss or violation of the deadlines for eliminating the problem.
- Contact the prosecutor's office with a request to check the legality of the employer's actions.
- File a claim with the arbitration court if other authorities have refused to consider the case or if no problems have been found.
If any violations are detected, the employer can be brought to financial liability according to Art. 236 Labor Code of the Russian Federation.
Severance pay in case of staff reduction is financial support for involuntary unemployment. The receipt and procedure for payments are established by labor standards in force in Russia. Along with mandatory financial assistance, the employee receives cash for the time worked. At the request of the employer, additional compensation is provided.
According to the Labor Code of the Russian Federation, employees are guaranteed redundancy payments. This means that the employer cannot get away with compensation for layoffs in the organization. If the dismissal is made precisely due to a reduction in the organization’s staff, and not by agreement of the parties, for example, then the employee has the right to demand redundancy allowance his position, and the employer is obliged to pay it.
In what order is it paid? severance pay in case of layoff? When is it produced? calculation for reduction?
How is it calculated severance pay in case of staff reduction? How much is paid? severance pay seasonal workers? What is the procedure for payments for layoffs to employees in the Far North?
You can read a separate article about the order itself, but here we’ll talk specifically about redundancy payments, which you have the right to count on.
In what order is severance pay paid in the event of a layoff?
Redundancy benefit in the amount of one average salary, you, as a dismissed employee, must receive on the day of dismissal along with wages and compensation for unused vacation. This is a reduction payment for the first month of unemployment.
For example, you are fired on April 22, 2013. All payments must be made on this day. If you are laid off, you receive compensation for the first month of unemployment: from April 23 to May 22.
If you have not been paid wages or compensation for vacation or severance pay upon dismissal, then you need to go to court. Don't wait! Don't miss out! You have only 3 months to go to court from the date of dismissal. As stated in a separate article. Contact us, your interests will be protected. Expenses for legal services we will recover from the employer!
According to labor code you have the right get average earnings and for the second month, if you don’t find a job. In our example, the second month of unemployment begins on May 23 and ends on June 22. Second redundancy compensation you can receive after June 22nd. To do this, you need to provide the employer with a work book that contains no records of a new job.
You also have the right to receive average earnings for part of the second month. For example, you get a job on June 10th. You should be paid benefits for the period of unemployment from May 23 to June 9. To do this, you will only need to provide a copy of your work record, certified by the new employer after the date of employment.
You may retain the right to average earnings and for the third month of unemployment, but only if you contact the employment service within 14 days after dismissal and you will not be employed. Since you do not know in advance how long you will be looking for a new job, I advise you to contact the employment service during this period in order to be able to receive compensation in the event of a layoff and for the third month.
In our example, the third benefit must be applied for after July 22, that is, after 3 months after dismissal. In this case, you will need to provide the employer not only with your work book, but also with a certificate from the employment service.
For part of the third month, you also have the right to receive compensation. If you get a job, for example, on July 1, then the benefit must be paid for the period from June 23 to July 1. Then, instead of the original work book, you must bring a copy certified by the new employer. An entry in the work book must have already been made by the employer so that it can be seen on what date you started work.
How is severance pay paid to seasonal workers?
Seasonal workers are paid severance pay in the amount of two weeks' average earnings. And the employer has no obligation to pay benefits for subsequent periods of unemployment (Article 296 of the Labor Code of the Russian Federation).
How is severance pay paid to employees in the Far North?
Employees of the Far North regions have the right to benefits in case of staff reduction within 3 months without contacting the employment service and during the fourth, fifth, sixth months if the employment service was contacted within a month after dismissal (Article 318 of the Labor Code of the Russian Federation).
How is severance pay calculated in case of staff reduction? Who pays the benefit?
Severance pay is calculated and paid by employers with whom the employment contract has been terminated.
Individual entrepreneurs may not pay benefits, since the amount of severance pay is established by the employment contract concluded with him. There are no instructions for severance pay, they may not pay anything (Article 307 of the Labor Code of the Russian Federation)
Severance pay is calculated using the following formula:
Average daily earnings per working day * number of working days in the period for which benefits are calculated.
Average daily earnings are calculated per working day, not per calendar day. What is taken into account to calculate average earnings, how to find out the average if there was no earnings, read in a separate section.
To calculate average earnings, you need to take 12 months' salary. up to the month of dismissal without taking into account vacation pay, sick leave and divide by the number of working days in these months according to the production calendar. Days falling on vacation and sick leave are not taken into account, since the employee did not work.
The number of working days in the period for which severance pay is paid is determined according to the production calendar. The fewer working days in a month, the more days off, the less severance pay. Benefits for different months may be unequal.
For example, for the period from April 23 to May 22 there are only 17 working days, and from May 23 to June 22 there are 21 working days, respectively, the benefit for the first month in our example will be significantly less.
No income tax is withheld from severance payments.
That, in general, is all that concerns severance pay during layoffs. Remember that the second and subsequent average earnings are not paid automatically. To do this, you need to write an application to the employer and provide him with documents confirming your unemployment.
If he doesn’t pay, we’ll go to court. The deadline for going to court in case of non-payment of benefits is 3 months from the day you learned about the violation of your right.
Legal assistance and representation in court.
St. Petersburg: lawyer for labor disputes Rumyantseva Valentina Yurievna
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