Is compensation due upon dismissal? How is compensation calculated upon dismissal? Compensation compensation for traveling work conditions

Among different types benefits there is a so-called severance pay upon dismissal. This cash equivalent is not paid to everyone who decides to quit, but only to those who are forced to do so due to current circumstances.

Severance pay

Article 178 of the Labor Code of the Russian Federation informs in what cases, upon termination of work, an employee is entitled to monetary compensation. Severance pay upon dismissal is a sum of money to the person receiving the payment, assigned in accordance with the requirements of the law in the amount of average monthly earnings or earnings for 2 weeks. Benefits in large amounts are assigned in certain cases regulated by the code (Article 181 of the Labor Code of the Russian Federation).

The manager also has the right to issue a local order within his organization to pay the resigning person financial support.

In what cases is severance pay paid?

Payment of severance pay upon dismissal is assigned if the employment contract is canceled for the following reasons:

1. liquidation of the organization;
2. reduction in the number or staff of the enterprise;
3. conscription for military or alternative service;
4. reinstatement by the court of the employee who previously held it;
5. refusal of another position (for example, upon the onset of disability);
6. the employee’s reluctance to move to another locality;
7. registration employment contract with mistakes made by the employer;
8. change of contract;
9. dismissal of the company director by order of the founders;
10. change of owner and termination of the contract with the manager and other leading specialists.

In case of liquidation of an organization, reduction of number and staff (does not apply to temporary workers), the benefit is assigned in the amount average monthly earnings. The average monthly salary is also paid to those hired under an employment contract drawn up with violations due to the fault of management. Moreover, these conditions do not allow you to move to another job within the same enterprise or continue to work.

In all other cases, two weeks' severance pay is paid upon dismissal.

Cases when a dismissed person loses benefits:

1. the worker violated the work schedule (drunkenness, etc.);
2. the reduction procedure coincided with the probationary period;
3. dismissal due to at will or by agreement of the parties;
4. the employment contract was concluded for 1-2 months.

Upon dismissal for any of the above reasons, he receives all other payments required by law, including wages, vacation pay (if the vacation was not used), etc. Payment occurs the next day after the application.

What does the benefit amount depend on and how is it calculated?

The amount of severance pay upon dismissal depends on the average earnings for the pay period. The calculation period in this case is the year preceding the dismissal.

The amount of compensation is calculated according to the formula:

Compensation = average salary x work shifts during the pay period (month).

The accrual of severance pay upon dismissal is consistent with the accepted rules:

1. compensation is accrued only for working days of the period for which it is issued (30 or 14 days);
2. sick leave, vacation pay, benefits, etc. cannot be included in your total annual earnings;
3. The rules for calculating the amount of benefits do not depend on the type of remuneration;
4. the calculation period includes the month of dismissal when the date of dismissal coincides with the last working day of the month; if the dismissal does not occur on the final day of the month, it does not fall into the billing period.

The subsidy is issued on the day of dismissal by written order (order) of the manager, issued earlier to justify the reason for dismissal from work.

No additional order is required.

If the day of dismissal is a working day, the settlement, along with severance pay, is paid on the next day. If the employee did not work on the day of dismissal, the payroll must be received no later than the day following the day the employee submitted a demand for payment of money (Article 140 of the Labor Code of the Russian Federation).

Payment of severance pay upon liquidation or layoff

Labor Code Art. 178 secured the right for those dismissed to liquidate or reduce their average monthly earnings during the search period new position. How this happens in practice.

A person dismissed due to layoff (liquidation) may not immediately find a suitable position, so he is entitled to financial support while looking for a job, but no more than two months from the date of dismissal.

The video below will tell you about the payment of benefits upon dismissal due to staff reduction:

If the employee is not employed after a month, he brings a statement to the previous employer and work book(copy) as proof of absence of work. These documents are enough to receive a second (he received the first on the day of dismissal) payment in the amount of the average monthly salary.

It is also paid after the second month after dismissal if a job is not found. If employment occurs before the end of the second or subsequent months after dismissal, the amount is adjusted in proportion to the days of unemployment of the paid month.

This is done on the basis of an application and a copy of the entry from the work book made by the new employer. It is not necessary to receive payment immediately after moving to a new place. The right is retained for the redundant person for a year.

If the employee has not found a job 3 months after dismissal, he also provides a written statement, a copy of the work book without a record of employment and a certificate from where the dismissed person should have registered as unemployed in the first 2 weeks after dismissal. If he does not do this, there will be no payment for the third month.

For workers in remote areas, benefits are provided for six months after dismissal, subject to timely registration at the labor exchange.

Dismissal benefits by agreement of the parties

The procedure for terminating an employment contract is regulated by Art. 78 Labor Code of the Russian Federation. She explains that such termination can be made at any time if both parties do not object. They sign a termination agreement, which is legal confirmation of the legality of termination by the employee labor activity.

In this case, the employer must indicate what payments and compensation the employee will receive upon dismissal by agreement of the parties (if the receipt is specified in local regulations), as well as the date of their receipt.

The Labor Code does not regulate this issue. Severance pay upon dismissal by agreement of the parties is accrued on a voluntary basis and depending on the capabilities of the employer. By agreement of the parties, a worker of any category can be dismissed, including pregnant women, people with children, disabled people, etc.

To resign on this basis, it is enough to write a statement (in the employee’s own handwriting) and draw up an agreement (Article 77 of the Labor Code of the Russian Federation). The calculation is made as usual.

The law allows not to pay severance pay. The employer has the right to make the payment on his own initiative or refuse. There will be no penalties for non-payment.

Payments must be paid on the day of dismissal. If the employer decides to provide financial support to the quitter and assigns severance pay, the deadline for its payment is indicated in the text of the previously signed agreement.

Benefit upon dismissal at your own request

An employee may at any time refuse to fulfill an employment contract, that is, resign of his own free will (Article 80 of the Labor Code of the Russian Federation). According to the law, severance pay is not provided for voluntary dismissal. The employee is entitled only to estimated payments accrued according to general rule. This is salary for days worked before dismissal, vacation pay, benefits sick leave, if any.

Sick leave after dismissal

An employee who stops working for an organization has the right to sick pay after dismissal. The legislator stipulates that in case of loss of ability to work, the employer pays sick leave within 30 days from the date of dismissal (Federal Law No. 255).

Any questions you may have can be asked in the comments to the article.

Leaving work on your own initiative is one of the most common reasons for terminating a contractual employment relationship. According to the law, the head of the organization does not have the right to interfere with such a decision of the employee - there are no motives that could interfere with this process.

The administration’s task is to fire a person in compliance with all the rules and requirements regulated by state regulations, the main one of which is the country’s Labor Code.

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If the employee changes his mind about leaving, within 14 calendar days he has the right to withdraw his application. The only thing that can prevent this, and the contract will be terminated, is an official invitation to another person for the vacancy.

In progress two-week work, which under current legislation is mandatory for this method of dismissal, the employee must fulfill his official duties in full, otherwise, the director may sign an order for early dismissal.

On the date on which this event occurs, the now former member of the team must be given all the documents, in addition, a full settlement must be made with him.

If at this moment the citizen is on vacation, he is obliged to interrupt his vacation and come to the enterprise to formalize the termination of the employment contract.

Any delays in payments or issuance of a work book are an administrative offense and can be appealed to the courts. Based on this fact, you can demand financial compensation for the inconvenience caused.

The work book must contain a record of the fact of leaving, the reason and the date. It completely duplicates the content of the main paragraph of the internal order for this event. The employee is introduced to him against his signature.

Which ones are required?

Payments upon dismissal of one's own free will must be given to the person in full and within the period established by law. An employee is entitled to wages only for the period worked during the reporting month following the period when the last accruals were made.

In accordance with Article 127 of the Labor Code of the Russian Federation, which is relevant in 2020, a person has the right to demand payment of material compensation for unused vacation, or part of it.

If this situation suits both the employer and the employee, he can first go on annual paid leave, immediately receiving a monetary payment for it, and only then resign from his position.

Moreover, in order to receive payment in full, the total number of days remaining after rest should not be less than 56.

According to the law, a person can also apply for payment of a certificate of temporary incapacity for work if the sick leave is opened no later than the date on which the fact of termination of the employment agreement was registered. This type benefits are issued in full.

In addition, the Labor Code of Russia allows situations in which a citizen must receive severance pay equivalent to the amount wages for two weeks.

The reasons for such a decision may include:

• leaving work due to employer relocation;
• failure to comply job responsibilities for health reasons;
• conscription into the armed forces;
• reinstatement of the previous employee to this position.

Payments to an employee upon dismissal at his own request

The main condition for a competent, from the point of view of the law, termination of an employment contract is the correct accrual material resources and their timely payment. It is important for a person to receive all the money at once - in one payment and in full.

Let's look at how this happens in practice below.

Calculations

Any full-time employee has a legal basis for receiving payment for his work in the period following the settlement period. In order to issue them, the employer needs to accrue them correctly.

The main thing that is taken into account is the type of salary. It may have the form official salary and be a fixed value, but may look like a percentage or have a piece-rate or piece-bonus nature.

In addition, you should definitely take into account all possible tax deductions, additional fees, deductions and compensation.

Example. The employee wrote a letter of resignation from his position on November 19. His average monthly salary is 40,000 rubles.

During the current period, a person went to work only 12 times out of the required 21 days per month:

40,000: 21 = 1,905 rubles;

Thus, the average daily equivalent of remuneration for labor is determined. In this case, their unpaid quantity is 12.

Therefore, the employee is entitled to:

1,905 x 12 = 22,860 rubles.

Deadlines

The main thing that primarily concerns a person who has decided to change jobs is how quickly he will receive the payments due to him by law.

You won’t have to wait long - the payment of all monetary accruals, compensations, and bonuses must coincide with the date of signing the dismissal order.

If this time falls on a day officially considered a day off, or the person is absent due to illness, he must receive all the money due to him no later than 24 hours after contacting the employer.

Pay attention! Timely payment is not a broad gesture of “good will” from the enterprise, but the direct responsibility of the boss.

If for any reason this does not happen, you should immediately write written request to the district prosecutor's office or the labor inspectorate.

As practice shows, funds are available instantly, because every director understands that this situation threatens him with considerable fines, inspections and litigation.

Vacation compensation

In order to understand what specific sizes we are talking about, you need to have the following data on the basis of which charges are made:

• number of days worked from the previous date annual leave, for which the full calculation was made;
• what is the duration of the holiday period according to the staffing regulations;
• the average salary of an employee per month in accordance with his position.

The algorithm for calculating compensation is as follows. Let's say the length of the weekend is 30. The average salary is 35,000 rubles per month. This will be about 1,167 rubles per day.

It turns out that during a period of 12 days a person is entitled to one day off, which must be compensated financially. He worked for three calendar months, which amounted to 91 days. You need to divide that figure by 12 (that’s how much was earned according to the calculations).

The resulting number should be multiplied by 1,167. In this example, for 91 days the amount will be 8,849.75 rubles. This will be compensation for unused vacation.

It should be understood that the example given and the formulas presented are of a conditionally individual nature. They are useful for the most complete reflection of additional cash payments to the dismissed person.

Depending on personal labor characteristics employee accounting can use other options and formulas as a basis. The main thing is that they comply with regulations.

Video: What is required by law

Rights

Leaving work on one's own initiative is an opportunity regulated by the country's labor legislation and its constitution, which guarantees respect for the rights and freedoms of citizens regarding labor relations between employee and employer.

From the moment of expressing his desire, the boss has the obligation to issue an internal order or instruction, accrue and pay the person all the required types of payments in accordance with the laws, norms and rules approved - based on his labor merits and exactly within the agreed period of time.

In addition to everything that is required, a person has the right to incentives, bonuses, and salary regulated by local regulations. If we are talking about public service, this guarantees an increase for length of service, rank, confidentiality, if these facts occurred in a specific situation.

Imposing a 13% tax on these income items is a legal action, and also applies to accruals upon dismissal at one’s own request.

Payments of salaries, unused vacation, overtime schedules, etc. We will talk about this in more detail later in the article.

Two ways to voluntarily change employer

The Labor Code provides for two articles of leaving work without negative consequences for the employee:

1. At your own request.
2. Dismissal by agreement of the parties.

Payments, provided for by law without fail, they will be the same.

Legal differences

Dismissal by mutual agreement in most cases implies that there is some conflict in the workplace between the employee and the employer. As well as other situations when an employee must leave his place of work:

• selection of fresh personnel by the new director;
• the specialist no longer meets the requirements;
• the conditions for the profitability of the enterprise have changed;
• reorganization and much more.

But if the employee does not intend to write or, as provided in the Labor Code, terminate the contract on his own initiative, then he is offered dismissal by agreement of the parties. Payments in this case are somewhat different from other methods of terminating the contract. That is, such an employee is entitled mandatory payments, as with any other method of dismissal, but he is also offered additional payments.

This is the fundamental difference. A mutual agreement, as a rule, is always supplemented by some kind of “indemnity” from the side former employer. This could be a one-time benefit equal to the annual salary, a lifetime discount on products, a permanent share of profits, and more. Thus former employee provide compensation for voluntary dismissal.

In case of voluntary dismissal, this is not provided, even if the employee is psychologically pressured and forced to leave the organization.

Judicial practice shows that it is almost impossible to recover after mutual agreement. But it is possible to cancel at the initiative of the employee. It is enough to provide arguments that will be proven by the administration.

It is important to know what payments are required by law and the deadlines for voluntary dismissal. Thus, when terminating a contract on his own initiative, an employee may receive:

• wages;
• compensation for unused vacation;
• other transfers in accordance with the law.

Deadlines for voluntary dismissal: will payments be made immediately or will you have to wait?

The main question that worries employees the most is how long to wait for the due payments? The law does not provide for “toleration.” Payment of dismissal benefits and all payments must be made on the day of dismissal. But what to do if the employee is absent for any reason (sick leave, day off)? In this case, all payments must be made no later than the next day after the application.

The employer doesn't know what to do?

It should be noted right away that the final payment on the day of dismissal is not a gift from the company, but an obligation.

If this does not happen, you must immediately contact either the prosecutor’s office or labor inspection. After this, as a rule, the organization always has money. And the managers themselves pay considerable fines for violating labor laws.

How to calculate compensation for unused vacation

In order to find out what amount of payment will be discussed, you need to know the following:

• Number of days worked since the last annual paid leave.
• How many days per year is an employee supposed to be on vacation (for example, teaching staff have about two months).
• Average salary.

Calculation examples

Suppose an employee has the right, according to labor contract, for 30 calendar paid days per year. His average salary is 20 thousand rubles per month. This is approximately 670 rubles per day. Divide the number of calendar days by 30.

It turns out that for every 12 days of work, one day of paid leave is provided. The employee worked for 3 months, that is, 91 days. It is necessary to divide this number by 12 (the number of vacation days the employee has earned).

Let us multiply the resulting result by 670. Therefore, in our example, for 91 days worked, an additional payment of just over 5,080 rubles is due for unused annual paid leave.

This calculation formula is conditional. It is provided for a better understanding of the additional payment. Depending on the individual work characteristics of the employee, the accounting department may use another method. In any case, all formulas and payslips must be requested from the enterprise.

Labor Code of the Russian Federation (LLC): dismissal in compliance with the law

It is important to know that many cases arise when an employee is fired “under the article” and not at his own request. Of course, this is all conditional, since in any case the basis for this is one of the norms of the labor code.

But by “article” many people mean dismissal not at the initiative of the employee. The synonym here is the word “kicked out.” And in order to avoid a negative “article”, it is necessary to carry out all legal procedures when dismissing at your own request. Of course, the employer is obliged to make payments in any case, regardless of the reason, but the employee also has a number of responsibilities. And the most important of them is to notify the administration 2 weeks before the planned dismissal. Many people mistakenly call this period working off.

Main feature

Working off is the mandatory performance of labor duties for a certain period. The Labor Code of the Russian Federation does not imply this in this case. It is enough to give written notice that the employee is going to leave work two weeks in advance.

You can go on vacation, sick leave, etc. In this case, no work is provided. This was not in the Labor Code (Article 32 also provided for a warning), nor in the new Labor Code (Article 80).

Common mistake of the “smartest”

Some employees know that there is no detention, and they conclude from this that they can write and stop any day labor relations. But this misconception very often leads to dismissal for absenteeism, which has a negative impact on subsequent employment.

Therefore, it is very important to know when dismissing what payments are due, and how correctly, from the point of view of legislation, to change the employer.

Features of calculating payments for sick leave

There are times when an employee is sick for a long time. During sick leave he decides to resign and gives formal notice. for wages in this case they are required to do it on the last day of the two-week period, despite the fact that it falls on sick leave.

There is simply a note in the order that it is impossible to familiarize the person with the contents of this document. Although you can send documents or notifications by registered mail.

As for sick leave payments, they are calculated within 10 days from the date of submission of a certificate from a medical institution and are made on the general day of transfer of wages to employees.

Severance pay is monetary compensation paid to an employee on the last working day, determined by the Labor Code of the Russian Federation or the terms of a collective agreement. The amount of the benefit is not specifically indicated; it depends on the grounds for dismissal of the employee. Naturally, in addition to severance pay, the resigning employee must be paid wages and compensation for vacation days that he did not take off. But that's a completely different story.

Grounds for dismissal and amount of accrued severance pay

If the reason for the dismissal of an employee is termination of the employment contract associated with staff reduction or liquidation of the organization, then he must be paid average earnings within two months (for the first month is mandatory, for the second in the event that the employee cannot find a job at that time). If an employee applies to the employment service within two weeks after dismissal and they cannot find him a job for the next month and a half, then he will be paid the average salary for another month.

Payment to an employee of severance pay in the amount of two weeks’ earnings is provided in cases where he is dismissed for the following reasons:

The employee is not suitable for the position held or the work performed due to health reasons;

Conscription of an employee to serve in the army or alternative service replacing it;

If the employee refuses a transfer related to the employer’s move to another region.

All these grounds are spelled out in the relevant paragraphs of the articles of the Labor Code of the Russian Federation.

The legislation provides for the payment of severance pay to an employee in the amount of his monthly earnings in the event that the employment contract is terminated due to a violation of the rules for its conclusion. But only in cases where such violations do not allow the employee to perform job responsibilities, and it is not his fault for allowing such violations.
An employment or collective agreement provides for other cases for the appointment and payment of severance pay, and also allows for the establishment of increased amounts.

Severance pay for certain categories of employees

Separate rules and procedures for paying severance pay are established for certain categories of employees. Thus, a civil servant must be paid the average salary for the last three months for the position he holds in cases where the dismissal is related to liquidation government agency, where he served or downsizing. This does not include severance pay. Moreover, if a civil servant could not be provided with a job corresponding to his profession and qualifications, then he will be listed in the reserve register of civil servants, and his civil service experience will be considered continuous for one year.
It must be added that collective agreements can only improve legal status employee, but not in any way worsen it in relation to those provided for in the Labor Code and other regulatory labor legislation regulations and provisions.

This means that the Labor Code of the Russian Federation and other legislative acts regulating a specific area of ​​labor activity establish the minimum acceptable amount of severance pay. A maximum size benefits are determined collective agreement or by separate agreement.

In conclusion, it should be noted that severance pay equal to three months’ average earnings is not subject to personal income tax. If the payment amount exceeds this value, then income tax is charged on the amount exceeding the established limit.

For the category of workers performing labor duties in regions of the Far North and equivalent regions, the non-taxable limit has been doubled and amounts to six average monthly salaries.

Severance pay upon dismissal - reasons for payments

In what cases is severance pay paid upon dismissal? A benefit in the amount of average earnings (per month) is paid to a dismissed employee upon termination of the contract due to a reduction in the organization's staff or in connection with the liquidation of this organization. At the same time, the employee retains the average salary for the duration of employment (for a period of no more than two months, starting from the date of dismissal).

And severance pay, the amount of which is equal to two weeks’ earnings, is paid to the employee upon termination of the contract under such conditions as:

Refusal of an employee to be transferred to another job.

Conscription for military service.

Reinstatement of the employee who previously performed this work.

Recognition of disability.

Refusal of an employee to continue working.

Severance pay in case of layoff - what does the Labor Code say?

The Labor Code of the Russian Federation guarantees each employee severance pay in case of staff reduction. That is, the employer has no right to “get out” of benefits. When dismissed for this specific reason, and not, for example, by agreement of the parties, the employee has every right to demand payment, and the employer is obliged to pay benefits.

Severance pay is paid for staff reduction in an amount equal to average earnings. As for the second severance pay, it can be received for the second month if the employee is not employed.

An employee who is engaged in seasonal work must receive severance pay from the Labor Code of the Russian Federation in an amount equal to two weeks’ earnings.

An employee with whom an agreement was concluded for a period of up to 2 months does not receive severance pay, unless otherwise established by the agreement.

Calculation of severance pay upon dismissal or layoff

Upon dismissal (downsizing), severance pay is calculated according to a certain formula:

Average earnings per working day are multiplied by the number of working days included in the benefit accrual period. As for the average daily earnings, it is calculated not per calendar day, but per working day. The number of working days is calculated according to production calendar(the more days off, the less the benefit will be). Taxes are not deducted on this type of benefit.

Average earnings are calculated as follows: salary for the year before the month in which the dismissal occurred (and excluding sick leave/vacation pay, etc.) is divided by the number of working days for a given period, according to the production calendar.

Payment of severance pay - how to avoid being deceived?

Employers are reluctant to pay severance pay. Many organizations even ask their employees to write a statement confirming their resignation of their own free will, so as not to pay benefits. It is worth remembering that you are not required to write such a statement. You should also know that:

Upon dismissal, severance pay is not subject to personal income tax (neither type compensation payment), according to paragraph 3 of Article 217 of the Tax Code of the Russian Federation.

If an employee agrees to dismissal due to reduction before the expiration of the period specified in the notice of reduction, he is entitled to additional compensation. Its size is equal to the average salary, calculated according to the time remaining before the expiration of the employee’s immediate notice of dismissal. At the same time, the right to receive average earnings during employment and to receive severance pay is retained.

Welcome to website. In the article we will tell you everything about severance pay upon dismissal: in what cases it is provided, when payment may be refused, and we will consider various situations of dismissal.

All working citizens receive severance pay upon dismissal. The calculation procedure, as well as the provision of payments, are provided for by the Labor Code. The amount of compensation provided depends entirely on large quantity factors.

According to labor code, this benefit is compensation for the very fact of dismissal from the workplace, therefore payment is made directly on the last day of work.

Payment is made on the basis of an order indicating all the reasons for the reduction. A separate order for the assignment of payments is not created.

Severance pay upon dismissal is paid to each citizen with whom the employment relationship is terminated. All grounds for making payments are prescribed in the relevant legislation, as well as in internal regulations, collective and labor agreements.

Severance pay is not always assigned, but only in cases established by law.

In what cases is the benefit provided?

Labor legislation obliges employers to make the necessary payments upon dismissal of an employee if the contract is terminated in the following cases:

• Liquidation of the organization.
• Downsizing.
• Conscription of an employee for military service.
• Reinstatement by decision of the court or labor inspectorate.
• Refusal to move to another locality.
• Refusal to transfer to another position medical indications.
• Recognition of an employee as incapacitated for medical reasons.
• Refusal to work when working conditions change.
• Reduction of a manager due to the fault of the founders.
• Termination of an employment contract upon change of ownership.
• The employer made mistakes when concluding an employment contract, in which the employee could not move to another position for medical reasons, a court decision for citizens who do not have educational documents or were deprived of the right to engage in this activity.

In the next two months after termination of the contract, the person is paid compensation, the amount of which is the average salary. If a person is registered with the employment center, the payment of compensation is extended to three months.

The average monthly salary is paid to those employees whose dismissal was caused by a violation of the contract. The manager and chief accountant who were fired are paid compensation in the amount of three average salaries. In other cases, the payment is the amount of two weeks' salary. Citizens who are employed in seasonal work are also included in this category.

In what cases can the manager refuse payment?

Severance pay upon dismissal is not paid in the following cases:

• If the employee violated labor discipline.
• If the employee was laid off during a probationary period.
• If the dismissal occurs at your own request or by agreement of both parties.
• If the employment contract was concluded for a period of less than two months.

If termination occurs by mutual agreement, then the employee is entitled to payments. Severance pay upon dismissal by agreement of the parties may contain vacation days that were not used, wages for working days, and bonus payments. The benefit may include payments that are not provided for by law or regulations; they are assigned at the discretion of the employer.

According to the law, compensation must be paid upon such termination of the contract, since the initiator of this is directly the employer. But employees should be attentive to proposals of this kind. Most often, dismissal occurs due to imminent liquidation, and when this proposal, employers are trying to save money on payments.

Redundancy allowance

In accordance with the labor code, if an enterprise plans to carry out a reorganization that will entail a reduction in the number of employees, then they are entitled to severance pay upon dismissal due to staff reduction.

The size of such payments is equal to the average monthly earnings, and the payment is made to a current account or bank card on the day of the official layoff.

Dismissal at your own request

Every citizen has the right to voluntarily terminate an employment contract; the employer is notified of this 14 days in advance. If an employee leaves the company of his own free will, then he is not entitled to any benefits.

All he can receive is payments upon dismissal of his own free will, which include compensation for unused vacation and wages for days worked. An exception in this case would be an employment contract that stipulates additional payments upon dismissal.

Recognition of an employee as disabled

If medical commission recognized the employee as disabled, he must provide the accounting department with the appropriate certificate. After this, the employer must offer the employee another position. If a person refuses and decides to terminate the employment relationship, then this will be a voluntary dismissal and no additional payments will be made.

But if the employer does not have a suitable position for such an employee or the person becomes incapacitated, then he will be assigned and paid compensation in an amount equal to the average salary for two weeks.

Dismissal if the company is liquidated

If an employer terminates employment contracts with employees due to the ongoing liquidation of the enterprise, then he is obliged to pay severance pay to all employees. The amount of this payment must be no less than one average salary per month, but not more than for two months.

If an employee contacts the employment center within two weeks, the payment period will be extended by another month, and will be 3 months. That is, the increased amount calculated from the salary will be paid only for three months, but here is what is described in the link provided.

How does dismissal occur during staff reduction or liquidation of an enterprise?

If the dismissal of employees occurs due to staff reduction, or the company is liquidated, payment of compensation upon dismissal occurs as follows:

• On the last working day, the employee is paid a lump sum benefit for the first month. This payment is not affected by possible early employment.
• At the end of the first month after the contract has been terminated, the company makes no more payments.
• At the end of the second month, the dismissed person will be paid the average salary while looking for a new job. The payment will be made if the person wrote an application for payment and provided a work book that does not contain a record of new employment. If a person goes to new job in the middle of the second month, the payment will be accrued for the time when he did not work.
• After three months, payments will be made to those citizens who registered with the employment center in the first 14 days after dismissal.
• After 4, 5 and 6 months, payments are made only to citizens who work in the Far North.

The Labor Code applies to all organizations, including individual entrepreneurs. The amount of dismissal payments depends entirely on the position of the dismissed person and his salary and is equal to the average salary for one month.

If the dismissal occurs due to staff reduction or liquidation of the enterprise, then the amount of payment must be at least 1 salary. An increase in payment is made only by decision of the manager. Also, at the discretion of the manager, payments upon dismissal are made by agreement of the parties. Compensation is issued on the day of dismissal and can be paid for no more than 3 months.

Dismissal of management positions is carried out under different conditions. That is, if dismissal is carried out at the request of the owner of the enterprise, then payment is made in three times the salary. But the payment can be canceled for a number of special reasons, such as: the manager’s guilt is proven - theft, tardiness, absenteeism, or the terms of the contract were violated.

Severance benefits vary

Let's look at the types of benefits and what payments are due upon dismissal. The size and type of benefits depend entirely on the reasons for dismissal. If a person applies for resignation of his own free will, then he will only be paid wages and compensation for vacation that was not used.

If the contract is terminated by the employer, then in addition to these payments, the employee is entitled to severance pay. When concluding the contract, the employer could indicate additional payments that will be paid upon dismissal.

Managers of enterprises who are fired during the transition of the enterprise to another owner or under other circumstances also receive severance pay. But if the contract is terminated by the manager himself, then no payments will be made.

Law enforcement agencies, courts and public services are dismissed under other conditions. These categories of workers have their own regulations, which indicate the amount of benefits and under what conditions the recalculation takes place, depending on the case.

If the contract is terminated due to staff reduction or liquidation of the enterprise, then the dismissed employees will be paid wages. But this condition does not work for seasonal workers and those who work part-time.

For each region, the payment amount is set, which is the average monthly salary; the payment can increase, but not more than three times. If the enterprise is located in the Far North, then the increase can occur no more than six times.

If a company makes a massive layoff, the employer is obliged to notify all employees with whom cooperation will be terminated 60 days before the start of the layoff.

But there is early dismissal, that is, it is carried out without warning. In case of such dismissal, additional compensation is paid. The benefit is calculated based on the average salary. The payment is made in proportion to the time during which the notice of reduction occurred.

The Labor Code provides for special payments leadership positions. There are a number of cases in which compensation is paid to top managers, these include:

• Change of owner at the enterprise, compensation upon dismissal is paid to the chief accountant, management and deputies.
• Dismissal of a manager without explanation, but only if he did not violate company rules and did his job efficiently.

Payment of compensation to managers is made in the amount of three times the average monthly salary. It is worth knowing that other payments for TOP managers are not established by law. But the employment contract may stipulate additional points.

Calculation of severance pay upon dismissal

The payment of compensation upon dismissal is calculated in a certain way and is influenced by the average monthly salary.

The following formula is used to calculate the benefit:

Benefit calculation = SZ*RD, where:

• SZ is the average wage.
• RD is the number of working days that are included in the payment.

The average salary is the ratio of the entire salary for the past year to the number of days that were actually worked.

To calculate wages, the following formula is used:

SZ=ZP/OD, where:

• Salary is the salary for the pay period.
• OD – number of working days.

When calculating severance pay, a number of important points are taken into account:

• Compensation does not include weekends and holidays, only those actually worked.
• Social payments, that is, material payments, vacation pay and others, are not taken into account.
• The month is taken into account only if the employee quits on the last day of the month; in other cases, only the period of days before the dismissal is taken into account.
• The remuneration system does not affect the amount of compensation.

Insurance premiums from these payments

The calculation of insurance premiums is not established at the legislative level, with the exception of the following cases:

• The manager makes additional payments to the employee that are not provided for by law.
• The payment amount is above the established limit.

Is it taxable?

All expenses of an enterprise that are aimed at paying employees are subject to determination of the taxable base, and this also includes severance pay.

Additional payments are taken into account only if they were specified in the collective agreement.

Few people know what payments upon dismissal are not subject to taxes; these are payments that were indicated in the consent to dismissal; taxes are not levied on them.

Personal income tax is not collected from compensation only if the amount is not more than three average salaries; for residents of the Far North, no more than 6 salaries.

How to apply and when is severance pay paid?

Upon termination of an employment contract, the employer is obliged to make all necessary payments to employees. The timing of payments upon dismissal is established by law; they are made on the day of dismissal.

If the day of dismissal was a weekend, then payments are made on the first working day. If a dispute arises, payments must be made promptly for those amounts that are not in dispute.

The grant is processed as follows:

1. Preparation of the basis for payment, that is, an order.
2. Familiarization of employees with documents.
3. Creation of a reporting document form T-61.
4. Payments to dismissed employees.

Some employees may not use vacation for several years. But it is worth knowing that by law it is impossible not to provide vacation for more than two years in a row. Before dismissal, you can receive vacation or compensation for it. When calculating compensation, the employee’s length of service, position, category, availability of additional leaves, absence from work without good reason and other factors.