When you get laid off, you get paid. Severance pay for redundancy

Question

One of the grounds for dismissal is dismissal due to staff reduction. What are the benefits for the employees?

Answer

In the event of liquidation (termination of activities) of the organization and reduction in the number or staff of employees, the employer may dismiss the employee on his own initiative. When reducing the number or staff of employees, it is important not only to clearly follow the dismissal procedure, but to accurately determine the cash payments due to the employee for the reduction. The procedure and due payments in the event that redundancy layoff, are stipulated in articles 81, 178-180 of the Labor Code.

Reduction payouts

Dismissal on reduction states, in accordance with paragraphs 1 and 2 of part 1 of article 81 of the Labor Code, assumes that the employee is entitled to social benefits for reduction. We list what payments are due upon reduction:

• severance pay in case of staff reduction in the amount of the average monthly earnings of the dismissed employee. If the collective agreement or the employment contract provides for a redundancy allowance in an increased amount, then the employer is obliged to pay the redundancy allowance in this amount upon dismissal;
• maintaining average earnings for the period of employment, but not more than two months from the date of dismissal. At the same time, the entire amount of severance pay in the event of a reduction in staff is included in the average salary of an employee (part 1 of article 178 of the Labor Code of the Russian Federation). See how to calculate.

In some cases, the average monthly salary is retained by the dismissed employee for the third month from the date of dismissal by decision of the public employment service. But only on condition that the employee applied to the employment service within two weeks after the dismissal and was not employed by him. So prescribes part 2 of article 178 of the Labor Code of the Russian Federation.

The countdown of the two-week period begins the next day from the calendar date indicated in the order for dismissal to reduce staff. Non-working days are included in the two-week period.

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Payments in cases where redundancy layoff, may be more. So, in a certain situation, the employee is entitled to the so-called “compensation” compensation when the staff is reduced.

As a general rule, employees must be notified about the upcoming dismissal due to a reduction in the number or staff at least two months before the dismissal (see sample notification below). In the event that an employee leaves without waiting for the date of reduction, upon dismissal, he has the right to count on additional compensation.

The amount of additional compensation in case of redundancy is equal to the average earnings, calculated in proportion to the time remaining until the expiration of the notice of dismissal. An early termination agreement must be in writing.

Additional compensation that is paid to an employee upon termination of an employment contract for a reduction in staff before the expiration of a two-month period, like the “basic” payments upon reduction of staff, is not included in the personal income tax base (Article 217 of the Tax Code of the Russian Federation).

The provisions of article 178 of the Labor Code in relation to other cases of payment of severance pay or the establishment of increased amounts of severance pay are permissive. Such payments cannot be exempt from personal income tax, since these payments, when reduced, cannot be attributed to the benefits specified in Article 217 of the Tax Code. Thus, payments in an increased amount in the case when there is redundancy layoff are subject to personal income tax on a general basis.

There are situations when an employee who received a final settlement on the day of dismissal and does not claim any other payments, after some time again applies to the organization with a request for additional accrual of money. This is possible if the former employee fell ill within 30 calendar days after the termination of work under an employment contract (clause 2, article 7 of the Federal Law of the Russian Federation of December 29, 2006 No. 255-FZ “On compulsory social insurance in case of temporary disability and in connection with with motherhood). In this case, the employer is obliged to pay a temporary disability certificate.

The organization is obliged to notify employees of the dismissal in connection with the liquidation at least two months in advance against signature. Employment contracts with employees can be terminated before the expiration of a two-month period. In this case, they must obtain written consent to such dismissal. This is established by Article 180 of the Labor Code of the Russian Federation.

Mandatory payments upon liquidation of the enterprise:

• severance pay;
• maintaining average earnings for the period of employment. This is stated in part 1 of article 178 of the Labor Code of the Russian Federation.

An employee who is dismissed before the deadline will receive more payments upon liquidation of the enterprise. In addition to the severance pay and average earnings for the period of employment, such an employee is entitled to additional compensation. Its size is equal to the average earnings calculated for the time from the day of actual dismissal to the day earlier indicated in the notice of liquidation of the organization. This follows from the provisions of Part 3 of Article 180 of the Labor Code of the Russian Federation.

Today in Russia there is a difficult economic situation. A crisis. Some enterprises are forced to close, while laying off all their employees, or to continue operations, reducing the number of workers. Regardless of the reason for the dismissal, each employee of the organization must know what the organization owes him after the reduction.

How much should be paid upon reduction, what compensation should the employee expect upon reduction?

According to articles 178, 180 of the Labor Code of the Russian Federation, upon dismissal, an employee of any organization must pay:

1. severance pay.
2. Its size is the average monthly salary.
3. Salary per month worked.
4. Remuneration - 13 salary. For the year worked, the employee is required to pay remuneration. By law, many employers take advantage of the ignorance of their employees and do not pay 13 salaries upon dismissal.
5. Vacation. If the employee did not use his due vacation, he has the right to demand compensation from the employer. Payments must be provided upon dismissal, even to the employee who wrote the application for the transfer of vacation to the next year.

By law, all cash payments must be made on the employee's last working day. But the timing of compensation payments can be agreed with the former employee in words.

Notice the employer is obliged to inform you of the dismissal two months in advance (part 2 of article 180 of the Labor Code of the Russian Federation). The employee must complete this period. But if you find a new job earlier, then the head of the organization may fire you earlier.

How many months or salaries are redundancy benefits paid?

severance pay the employee should definitely receive for the first month after dismissal. The employer may not pay it if they offer you a new job that suits you.

Remember the organization is obliged to pay you the due compensation until you get a formal job. In addition, on the day of dismissal, you are required to pay other compensation.

As soon as a month has passed since the day of dismissal , the organization has the right to refuse an employee a severance pay. However, you can change your mind. For the period of the second month, you should contact the employment center of your city or district. There you will be registered and may later confirm that you have not found a job. After the second month, you are required to provide a certificate from the CZN, as well as your work book without a record of employment.

Note if you got a job in the middle of the second month , then you are required to pay benefits for two unemployed weeks.

If during the third month you also remain unemployed , then you can count on severance pay again. The employer must provide a document confirming the fact that you could not get a job.

During the reduction, they did not pay the entire salary - what if part of the salary was gray?

Downsizing payments: 2 main reasons for layoffs + 7 categories of employees who need to be least afraid of being fired + 3 types of payments + 5 useful tips.

Reduction of staff is an unpleasant procedure for both employers and employees themselves.

But sometimes you have to go to such unpopular measures to save your business, extend the life of a state-owned company and get the opportunity to get back on your feet.

The minds of employees who have learned that they will soon lose their jobs are worried about redundancy payments.

How much money can you get and will it last until you find a job again.

In principle, enough, but only on the condition that your search does not drag on for many years or you do not squander the entire amount in one evening with friends in a nightclub.

Downsizing: what is it and what payments can you expect?

Usually, the most common reasons for downsizing are two:

1. Financial problems that lead to the fact that you need to lay off some of the employees in order to save money and save the company.
2. Reorganization of the enterprise, for example, there is a merger of two companies or production is transferred to another city.

There may be other reasons, for example, the mechanization of the production process. Remember from the history lesson the riots and sabotage of factory workers, when the owners began to install equipment and refuse manual labor?

Now, of course, most industries are already mechanized, but the processes of improvement in good enterprises never stop.

Whatever the reason for the downsizing, it is very unpleasant for those who are blacklisted.

If the management conceives mass layoffs, it must issue an order in writing:

This type of order is drawn up without mentioning the names of employees who are subject to reduction. This is most likely a paper that informs that changes are coming in the company and not everyone will survive the "troubled times" in their workplace.

Of course, the publication of such a document will lead to unrest among the state. Everyone will begin to think what exactly to expect: the preservation of the workplace or the order to dismiss.

• irreplaceable specialists who have made a great contribution to the development of the company;
• centenarians of the working collective (with the exception of pensioners, who are usually the first to be laid off);
• mothers on maternity leave (they can only be fired when the company ceases to exist altogether);
• those who are the sole breadwinner in the family (this is provided that you are a good worker and your superiors have a conscience);
• those who received an occupational injury at this place of work;
• combatants;
• inventors, developers of strategies, rationalization proposals, etc.

Everyone else should be worried. You won’t have to worry for long, because soon the management should issue the following orders for each of the employees who were laid off:

Such an order is drawn up two months before the upcoming dismissal.

Each of the specialists who was familiarized with such an order drawn up in their name can count on cash receipts.

What are redundancy payments and are they taxed?

There are three main types of cash payments that those workers who have been made redundant can count on.

Downsizing Payment #1: Severance pay.

In article 178 of the Labor Code of the Russian Federation, you can find information about to whom and in what amount:

If you have been laid off, you will definitely receive such benefits.

Its amount will be different for different categories of workers and it depends on:

Your official salary.

Let's say you get 20,000 rubles, and your boss - 40,000 rubles. So you both got laid off, which means that the amount of severance pay for you will be 20,000 rubles, for the boss - 40,000 rubles.

Labor contract.

Sometimes the employment contract indicates the amount of severance pay for an employee if he falls under a reduction without reference to his salary.

If you signed an agreement that states that your payment will be 30,000 rubles, then you will receive so much. And your salary of 70,000 rubles will not affect anything.

Downsizing Benefit #2: Salary.

This is not about the standard salary that you should receive for the period worked, but about wages as part of the payments that are due to people who have been laid off.

You will be paid for 2 months from the date of dismissal.

Did you receive 15,000 rubles a month? This means that you will receive 30,000 rubles in your hands.

It is important to remember that you can count on a longer period of cash receipts if you become registered with the employment service within two weeks after your dismissal from your previous place of work, and do not immediately rush to look for a new job.

If the employment service cannot find you a job within two months, you will also receive assistance from the state.

So, forced idleness has its advantages.

Downsizing Payout #3: Extra Compensation.

Ancillary benefits are money you receive on top of your last 2 months salary and severance pay.

There are three types of such additional payments:

Taxation of redundancy payments

You can often hear the question of whether the amount that the employee receives without his consent will be taxed?

There are two answers to this question:

Your finances are not taxed.

This happens if your severance pay is not more than the average monthly salary you received at that company.

This often happens when, wanting to save money, the employer specifies a small amount of severance pay in the employment contract and pays in an envelope. Another reason why you will receive all the money in your hands without taxation is the early termination of the contract that the employer concluded with you.

Funds are subject to standard taxes.

Who can and who cannot count on redundancy payments?

I don’t know if you will be surprised or not, but the fact remains: not every person can count on financial assistance during the reduction.

Sometimes the workers themselves are to blame for having to leave for a new place of work without a penny in their pocket.

1. Downsizing payments and labor laws

According to the labor legislation of the Russian Federation, cash payments must necessarily be accompanied by a reduction in staff in the company.

But we know that not all employers comply with labor laws. Sometimes they need to be reminded that you, as an employee, have rights that must not be violated.

1. Be sure to get documentary evidence that you are being fired precisely for redundancy: demand an order drawn up by management in writing.
2. Do not agree to a compromise (“Come on, you will leave on your own accord”), otherwise you will not see the money you are due. If they want, let them cut it.
3. Make sure in advance that you are officially settled, otherwise you will not be able to prove that you worked here, which means that you are entitled to payments.
4. Receiving payouts upon dismissal is your legal right, which must be protected by all means, including litigation.
5. Do not get into trouble with the authorities if you are on the "black" list, but the employer is ready to pay you severance pay. After all, the situation is vital and should be perceived as new opportunities, not punishment. If you scream and demand special treatment, you may be left without the additional bonuses that some employers offer their employees.

And in general, you need to say goodbye to any team and management in a human way, and not in a state of euphoria from the fact that you no longer work here, scandal and rowdy.

Think better about the fact that the manager, whom you have time to annoy before leaving, can easily ruin your reputation and certainly will not give his positive recommendations.

Layoff for downsizing. Action algorithm.

What payments are due upon reduction? False compensation.

2. “Where is my redundancy payout?”

Inga worked as one of 6 bowling club administrators.

So far, the owner has only promoted the business, arranged all his employees for the minimum wage.

After, when the club became popular in the city, he offered all employees to receive a “white” salary.

Some agreed, some refused. Among those who refused was Inga, who did not want to pay taxes to the state.

3 years have passed. The bowling alley had a new owner who decided to reorganize the newly acquired business.

Some workers were made redundant, Inga is among them.

Those who received a “white” salary received normal payments. Inga, on the other hand, received her minimum wage in the amount of 7.8 thousand rubles.

Indignant: “Why did they pay 50,000 rubles to Anya, and only 20,000 to me ?!”, she heard in response: “Because you didn’t have to be such a fool and agree to legal employment.”

So, sometimes the desire to deceive the state hurts like a boomerang.

But Inga received at least something, but if you are not officially employed at all, then no redundancy payments will shine on you. The employer will wave goodbye to you and send you with empty pockets to look for a new job.

Measures of social protection of the able-bodied population are enshrined at the legislative level. That is why if a person falls under a layoff at work, then a number of compensations and payments are assigned to him, which the employer is obliged to pay on time.

Payments in case of reduction are made from the funds of the organization.

General provisions

An employer who lays off a position in production is obliged notify the employee holding such a position 2 months before dismissal.

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Ban on dismissal

Labor law provides for some prohibitions on layoffs. So, a person who is on sick leave or on legal leave cannot be reduced.

It is noteworthy that if the employer decided to reduce a certain position, then the employee who occupies it will still be reduced. For example, when sick leave or vacation ends. Temporary disability only postpones the period of dismissal.

According to labor law, pregnant women or women who have dependent children under three years of age cannot be made redundant. Employees are either transferred to another position, or retain their position until the “immune” period ends.

Downsizing compensation

Reduction payments are made on the last day of the employment contract. The employer is obliged to issue to the employee a full calculation, a work book, a certificate in the form of 2-personal income tax.

Amount of compensation

Labor legislation provides for the payment of severance pay and compensation for reduction from the employer's funds. So, severance pay is calculated on general grounds, regardless of the reason for dismissal.

Severance pay

Severance pay in 2019 is calculated according to the general formula:

VP \u003d RD * NW,

where VP is the severance pay,

RD - working days in the month following the dismissal,

SZ - average daily earnings.

The average daily earnings are calculated by the formula:

SZ=GD/730,

where GD is the total annual income for two years.

For example, an employee received a total of 900,000 rubles from the employer in two years. The average daily earnings will be: 900000/730=1232 rubles.

In the month following the dismissal, there should be 25 working days.

Then the employee will receive a severance pay in the amount of: 1232*25=30800 rubles.

The employer must pay this amount in a lump sum on the last working day. The reduction allowance is not taxable if its amount does not exceed three times the average monthly earnings.

If the employee did not take paid leave, then the organization is obliged to compensate him in monetary terms. This amount is added to the severance pay but is subject to income tax.

Amount of compensation

Compensation paid by the organization to the laid-off worker implies monthly payments, the amount of which is equal to the average monthly earnings.

Such earnings are calculated on the basis of the average daily income and the number of days actually worked.

For example, if the average daily earnings are 1,232 rubles, and in fact a person worked 25 days in the last working month, then the average monthly salary will be 30,800 rubles. It is this compensation that the citizen will receive after the reduction.

If the employment contract provides for the payment of bonuses for a certain period of work or the “13th salary”, then when calculating the severance pay, these amounts are also taken into account and paid to the employee.

The amounts that the employee independently calculates for compensation may differ from those calculated by the accounting department. First of all, because for an accurate calculation, the number of actually worked days is taken, excluding all the days when a person was sick or on vacation.

Compensation periods

Labor legislation provides for a fairly clear deadline for payments. So, the employer is obliged to transfer the average monthly salary to the account of the reduced employee within two calendar months after the dismissal.

If a person got a job in a new position in another organization, then the right to compensation payments does not remain with him.

If within two months a citizen has not found a new job, then the period of payments from the previous employer for him can be extended.

How to extend compensation

After the reduction, the citizen is recommended to contact the employment center at the place of residence for registration.

If this is done within two weeks after the dismissal, then there are chances for an extension of compensation.

The Employment Center may draw up a decision on the need to extend the payment of benefits from the previous employer for another month if it cannot find a job for a citizen in a new place.

Additional payments

Labor legislation provides for a different procedure for reduction, different from the generally established one.

So, the employer may offer the person to terminate the employment relationship ahead of schedule (before the deadline for the notice of reduction). If a citizen gives his written consent, he receives compensation in the amount of average earnings.

Article 180 of the Labor Code of the Russian Federation:

The employer, with the written consent of the employee, has the right to terminate the employment contract with him before the expiration of the period specified in the notice of reduction, paying him additional compensation in the amount of the employee's average earnings, calculated in proportion to the time remaining before the expiration of the notice of dismissal.

In this case, the person receives severance pay and compensation for early termination of employment.

At the same time, compensation for the reduction is not saved for him, since the basis for dismissal is either the agreement of the parties, or the employee's own desire.

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One of the grounds for termination of an employment contract at the initiative of the employer is a reduction in the number or staff of employees (clause 2, part 1, article 81 of the Labor Code of the Russian Federation). We will tell you about the payments due to the laid-off employee in our consultation.

What will the employee get with the reduction

In addition to the standard payments due to the employee, regardless of the reason for terminating the employment contract (salary for hours worked,), upon dismissal for reduction, the employee is entitled to severance pay.

The amount of severance pay upon reduction

When terminating an employment contract due to a reduction, the dismissed employee must be paid a severance pay in the amount of the average monthly earnings (part 1 of article 178 of the Labor Code of the Russian Federation).

The question of how much salaries are paid during the reduction is not entirely correct, because they are different.

It must be borne in mind that when terminating an employment contract for a reduction, the employer must notify the employee in writing of the upcoming dismissal of the employee no later than 2 months (part 2 of article 180 of the Labor Code of the Russian Federation). However, if, with the written consent of the employee, the employment contract for reduction is terminated before the expiration of these 2 months, the employee is entitled to additional compensation in the amount of average earnings. Such average earnings are calculated in proportion to the time remaining until the expiration of 2 months from the date of the notice of dismissal (part 3 of article 180 of the Labor Code of the Russian Federation).

If the employee did not get a job after a month after the dismissal

If the second month has already gone after the dismissal, and the employee has not been able to get a job, he will be able to claim additional payment:

• if by the end of the second month the work has not appeared, the employee will need to pay the average monthly earnings for the second month that the employee spent without work. This fact will be confirmed by a work book, where there will be no employment record;
• if the employee nevertheless got a job during the second month, the average monthly salary should be paid in proportion to the "unemployed" time in the second month after the dismissal. The documentary justification here will be a copy of the work book, certified by the new employer.

In the event that within 2 weeks after the dismissal the employee registered with the employment service and was not employed by it, the employee, based on the decision of the employment authority, will be entitled to the average monthly earnings for the third month following the day of dismissal (