Payments with reduction. Guarantees of legislation

Today, the topic of dismissal and staff reduction is quite relevant. A large number of citizens lose their jobs every day, while few of them know the legal framework of labor legislation, and not all are familiar with the elementary norms of the labor code of the Russian Federation.

So, staff reduction is one of the reasons for canceling an employment contract, which implies a reduction in the number of staff members in relation to a certain position or a complete exclusion from the state of positions held.

The reduction in the number of employees obliges the employer to make a full calculation with each of the dismissed employees.

The supposed payments under the reduction are stipulated by the labor legislation of the Russian Federation. They include:

Full payroll calculation

In respect of each employee being dismissed (regardless of the reasons for dismissal), a final payroll calculation is made. When the staff is reduced, the employee is expected to maintain an average salary for the period of job search, but this period should not exceed two months from the date of dismissal. With few exceptions, payments with reduction are retained by the dismissed employee for up to three months, provided that, within fourteen days after the dismissal, the dismissed person applied to the employment service, but for reasons beyond his control, he was not employed.

Charging severance pay

Severance pay is the amount of material assistance necessary for further employment, which is accrued due to the dismissal of an employee without his fault. If the employment agreement is canceled due to staff reduction, the employee who is dismissed is entitled to the severance pay. According to the established norms of the TC, its size should be equal to the size of the average salary of the person being dismissed.

The accrual of payment with a staff reduction of fourteen days' average earnings is due to the employee in the event that the employment agreement is terminated due to:

• Refusal to transfer to another position (due to medical contraindications or due to the lack of suitable unoccupied places);
• Refusal to transfer to an enterprise (organization) located in another locality, together with the employer;
• Recruitment of an employee for military or alternative service;
• Restoration at work of a person who previously performed this work;
• Recognition of the employee as incapacitated (in the presence of an appropriate medical report);
• Refusal of the employee from the proposed work in connection with significant changes in the content of the employment contract ;
• Other cases stipulated by the content of the labor or collective agreement.

For seasonal employees or employees who work in the Far North, the size of the payment, with reduction, is equal to the monthly average earnings with a stay of up to three months, however, the employment service is competent to extend this period to six months.

Other payments with reduction

The above payments with a reduction in staff are not exhaustive. The accrual of other monetary compensation is due:

• In the event that a dismissed employee has an unused leave;
• If the employment agreement has been terminated within a period not exceeding two months from the date of notification (the employer is obliged to pay the employee a cash payment in the amount of the average salary, which is calculated in proportion to the working time, until the termination of the notice of termination).

After receiving the final payments, as well as after the issuance of the work record card and other personal documents, the dismissed employee will decide further employment issues only with the employment service.