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What is required upon dismissal? Compensation upon dismissal - what payments are due?

The resigning employee is obliged to receive the required compensation upon dismissal. Basically, these are payments upon dismissal of one's own free will, payments upon dismissal for health reasons. But even knowing about their right, some employees do not know exactly what their severance payments will be, the payment period and other important details.

Labor legislation regulates in detail the rights of workers upon dismissal of their own free will, what payments they are entitled to and all the nuances of personnel policy that can affect both the increase in payments and their abolition.

The amount of compensation and its types depend on the reason for the employee’s departure from the enterprise and the amount of time worked. The subordinate receives the money and documents allotted to him on the last working day at the enterprise, which is considered the working day.

The procedure for dismissing an employee includes the following steps:

  1. Filing a petition for dismissal, provided that the initiative comes from himself.
  2. The administration issues a dismissal order.
  3. Full settlement with the subordinate, including issuing him a work book, which indicates the reason for leaving the organization.

And it is no longer so important what factors influenced the dismissal of the employee; all the same, the day of issuing the documents and the due remuneration should be the last day of work at this enterprise.

Factors for receiving compensation upon dismissal

The main factor in assigning the necessary payments to the departing employee is explained by the administration’s guarantee of the material well-being of the former subordinate.

This is fundamental for making payments to extra-budgetary assets throughout the entire duration of the employee’s work in this structure. A kind of cash reserve will help the employee stay afloat for some time if he loses his job.

An equally important factor in issuing the due material remuneration is the employer’s obligation to pay the staff when canceling the employment contract. The obligation is considered fulfilled only when the employee has received the money due to him, and extra-budgetary funds have received payment for it.

The state Labor Code sets out the procedure for payments that an employee is entitled to upon leaving the structure:

  • dismissal due to poor health;
  • initiative of the employee himself;
  • cancellation of an employment contract by mutual consent;
  • reduction of production staff.

Any of the above reasons is a good reason for the administration to pay workers for unrealized annual leave. If the subordinate’s action occurs according to a message from the administration, he is entitled to exit assistance. It is paid in addition to salary for documented time worked in the organization.

The amount of monetary remuneration depends on the hours actually worked, the form of payment established in the organization, and the existing tariff rate. A significant increase is provided by staff allowances for hazardous working conditions and bonuses for high-quality performance of professional duties.

Early termination of an employment agreement begins with the administration notifying the employee of the upcoming severance of the employment relationship. This document is presented to the employee no later than 60 days before the date of his release from work.

Of course, the initiative in this case must come from the administration, which does not have the right to force a subordinate to file an application of his own free will. The latter would be beneficial to the management of the institution, since payments upon dismissal at one's own request do not imply severance pay.

Reduction of staff appears to be a special circumstance for the departure of an employee. The law prohibits indicating a reason for this on your own. Of course, it is quite beneficial for the administration to have such an entry appear in the work book of the person who quit; this will protect it from providing severance pay and further concern about his fate.

It is more profitable for the employee to have the reason for dismissal stated in the work book as redundancy. This will help him in finding a new job and realizing ambitious opportunities, which is important during a period of temporary absence from work.

The procedure for such dismissal is as follows:

  1. The company employee receives written notice, to which he gives prior consent.
  2. The administration instructs the accounting department to carry out a calculation with him on the amount of severance benefits and accrued payments for annual leave not realized in a timely manner.
  3. The hired worker receives coverage for losses for early suspension of professional duties.
  4. Additionally, compensation is assigned for the period remaining before the expiration of the notice period.
  5. The result will be receipt of an appropriate salary with all due allowances, assistance for unfulfilled days, severance assistance with a salary for the period that the employee could still be employed. The latter is the price for his agreement to leave early.

In this case, the purpose of issuing severance pay is to provide the former employee with the benefits of existence, who had to leave production not on his own impulse. The money received will be useful while the person is looking for a new employer.

A worker who has been laid off should be especially careful during the notice period. The slightest violation of the technological process, a minute late for work or the same premature departure will result in dismissal of his own free will or article. The administration will use the employee’s miscalculations for its own purposes.

It doesn’t matter for what reasons the employee leaves the organization, in addition to basic payments, he is entitled to compensation for unused annual vacation. If he has two or more unrealized annual holidays, the employee will receive double or more compensation.

Of course, such a prolonged failure to provide leave is an illegal action on the part of the employer. The absence of the required vacation can only occur through the fault of an employee who is dishonest in his production duties.

If a subordinate leaves the organization due to his violation of professional duties, he is not provided with compensation for unrealized annual vacation. On the last day of work, a disciplined employee will receive all compensation for unused rest. Labor legislation secures this right for the worker.

For questions regarding accrual, calculation of vacation days that an employee has earned, and calculation of the period for which it is necessary to issue compensation for unused vacation, please refer to the vacation regulations. The document also stipulates the rules for determining the period of annual and additional rest.

Compensation for dismissal in the first working year is possible. Labor legislation states that upon dismissal of an employee who has not used his legal right to annual rest, he is obliged to compensate him in monetary terms.

  • These include those employees who have worked for the current employer for at least 11 months;
  • The reason for leaving is not particularly important.

This factor gives the right to receive compensation in full for 28 calendar days of vacation not taken in a timely manner.

Of course, the administration can save money when a subordinate leaves on compensation for days not taken off. This is expressed in the mandatory provision of a month's rest to the employee, which will prevent possible disagreements and claims on the part of government labor relations control bodies.

Failure to provide annual rest is considered a violation of the employment contract, as is refusal of compensation due to the worker:

  1. The judicial authorities of any instance will defend the departing employee and make a decision to recover money from the defendant.
  2. However, it should be remembered that the court will recover funds due to the worker only for the previous 33 months.

This period is determined by the subjective working year of the departing employee, for which rest is due. The previous 18 months are added to it, which are also intended to provide annual paid rest and a limitation period of three months. This period can be used to file a claim in court.

The statute of limitations for filing a claim is calculated from the moment of dismissal. The employer who loses the case will be forced to pay not only compensation for unfulfilled days of rest, but also legal costs with interest on the delay in payments due. The employer should consider what will cost him less.

Such an action does not depend on the motives of the administration of the enterprise and its employees. Various extra-budgetary funds are developing social programs that are aimed at providing for citizens fired without their own initiative.

This category receives a salary for some time with due allowances and bonuses for a documented period in the workplace. Here there are payments for unrealized vacation, if any, compensation allowance. The latter occurs in the following cases:

  • closure of a production unit;
  • reduction of staff of subordinates.

The average monthly salary or earnings are retained by the departing employee until he is re-employed. The legislation stipulates this period as three months. Part-time workers who have left are not entitled to compensation assistance due to the presence of a second job.

If the second part-time job is also cancelled, the employee is registered with the Employment Center within the next 14 days with the intention of finding a new job. If it is impossible to provide him with such, the citizen will receive his average earnings from the second former employer over the next three months, and not instead of the required two.

Labor legislation specifies that if an employment contract is terminated due to the liquidation of an enterprise, the departing worker is entitled to severance compensation in an amount not less than the average monthly salary. An average salary is added to it, which is paid within two months from the date of dismissal.

Law enforcement employees are entitled to monetary compensation for individual unused time off in a timely manner before January 1 of the calendar year in which the employee resigned. Here the circumstances of his departure also do not matter. His compensation payments will be accrued:

  • due to length of service, when the employee has the right to retire, reach the maximum age limit, redundancy, or payment upon dismissal due to poor health;
  • for other reasons.

The benefit for annual unrealized vacation is calculated in full; its other types are equal to 1/12 of vacation for one current month of official duties. Other reasons also imply the above allowance for calculating the average monthly salary.

When a law enforcement officer leaves, he is guaranteed:

  1. Salary for past years of service.
  2. Quarterly bonuses calculated based on the actual period served.
  3. Compensation is equal to two salaries per year.
  4. One-time cash reward based on the results of the last 12 months.
  5. Compensation for vacation not taken before leaving.

To all of the above, one-time assistance of the following amount is added:

  • 5 average monthly salaries for care based on age, health impairment, illness, layoff, 10 years of service;
  • 10 salaries - 14 years of service;
  • 15 salaries - 20 years of experience;
  • 20 - with more than 20 years of experience;
  • 40% of the above amounts - care due to other factors;
  • the above amounts are combined with two monthly salaries if the employee has an order or honorary title.

Payments are calculated from the salary that existed in the month of dismissal. Partial years of service are not increased to full years. Upon subsequent employment and the same dismissal, monetary assistance is accrued taking into account previously paid benefits. Removal from service of a police officer without subsequent payment of a pension, who has less than 15 years of experience, is subject to the preservation of his annual salary.

Compensation compensation for traveling work conditions

Compensation for traveling work conditions should be classified as a special category. Labor acts have only recently been supplemented with such information. According to the labor legislation of the Russian Federation, the employer is obliged to compensate certain categories of workers for types of costs caused by business trips. This includes:

  • transport costs;
  • rental housing during a business trip;
  • field allowance, daily travel expenses due to temporary accommodation on a business trip;
  • other service costs that are imposed on the employee with the permission of the administration.

Of course, not all types of expenses are present on a business trip. For example, meals are prescribed only when working in the field - on archaeological, geodetic and other expeditions. Apparently, all traveling compensation expenses upon dismissal were combined into a common item due to ease of use.

The calculation of payments due to a departing employee involves the use of the remuneration scheme in the given organization, bonus incentives and other available supplements, and the amount of daily time worked. Early termination of an employment agreement involves taking into account the period of time that applies to notice of dismissal.

Unrealized rest days are calculated based on the actual annual working time spent. Severance pay is directly proportional to the number of days intended for rest during work.

  1. The principle of calculating the average daily remuneration is SDZP = FZP: FTD,

where SDZP is the average daily earnings;

FZP - actually assigned salary,

FTD - actual working days.

  1. Calculation of the average monthly salary - SRZP = SDZP x TD: 2,

where SRWP is the average monthly salary,

TD - the number of work shifts for the previous 2 months.

  1. Calculation of payment for unrealized rest - KZO = SDZP x ChDO,

where KZO is compensation for unrealized rest,

NDO - number of days of rest.

  1. Calculation of the length of annual rest - NDO = 2.33 x NIM,

where 2.33 is the average number of rest days due per month of work,

NLM is the number of full months of work.

Reimbursement for unrealized annual vacation is subject to income tax, but is exempt from the unified social tax.

Compensation upon dismissal does not require tax contributions. Additional compensation from the administration will be subject to all of the above fees.

If there are no transfers of the unified social tax, money does not go to the Pension Fund for the specified employee. No payments are made for insurance against accidents or occupational diseases.

To cancel an employment agreement, the following documents will be required:

  • a subordinate’s petition to the administration regarding his intention to resign;
  • agreement between counterparties on severance of labor relations;
  • notice of cancellation of the continuation of a fixed-term employment agreement.

For its part, the enterprise administration prepares documents for the employee’s upcoming departure:

  • A unified form of order for the dismissal of one or more employees, T8 and T8a, respectively, which contains the grounds for their departure, paragraphs of labor legislation.
  • A work record book indicating the circumstances of leaving the organization.
  • A universal unified form of settlement note with the presence of amounts already paid by the structural unit.

The list ends with a unified personal card of a state or municipal employee with a notice of dismissal.

Entries in the work book and card

Depending on the circumstances of the employee’s departure, the work book and unified card contain the following registration entries.

Suspension from work before or after the completion of the probationary period is characterized by the mark “dismissed during the probationary period.”

Liability for non-payment of compensation

If the regulatory authorities detect violations of the calculation upon dismissal, the administration is obliged to pay the worker a penalty, which is equal to 1/300 of the point of the Central Bank rate for each day of delay. Tariffs are accepted for calculation according to current indicators on each day of delay.

Calculation of compensation for delayed benefits - CH = ST: 100 x 1:300 x SZ x NDP,

where CH is the amount of compensation,

ST - Bank tariff,

SZ - amount of debt to the employee,

NDP - number of days of delay.

When calculating penalties, the form of remuneration existing in the organization is not taken into account.

In addition, if you dismiss at your own request, no matter what payments are made, the employer may incur penalties from 1,000 to 50,000 rubles, depending on the form of business.

An enterprise or organization will still be fined even if compensation is fully issued to the employee, if only it took place outside the deadlines established by law. A subordinate who quits will have the right to receive compensation for each day of delay.

Upon dismissal, the head of the organization pays the employee wages, and in some cases, severance pay and other payments.

What is the procedure for these payments, and within what time frame is payment to the employee made?

We will deal with these and many other questions in our detailed article.

General rules for calculation upon dismissal

  • salary for actual time worked;
  • other payments due to the employee. For example, if he was on sick leave, he is paid.

In addition to cash payments, on the last day of service the employee receives a work book, a certificate of calculation of the amount of benefits, and also, at the employee’s written request, management must give him all documents related to his activities at this enterprise (on hiring, transfer to another position and etc.).

Wage

If there is a dispute regarding the final amount of the salary settlement, the employer undertakes to pay the employee the amount that is not in dispute.

In case of violations regarding the timing or amount of salary payment, the employee has the authority or.

When paying wages, the employer must take into account bonuses, allowances, and additional payments; all these incentive payments must be taken into account when determining the final salary amount.

Vacation compensation

Moreover, the labor legislation (Article 127) clearly states that upon dismissal, absolutely all unused vacations are taken into account if they were not previously paid.

Vacation for a year worked must be at least 28 days. At the request of the employee, his vacation can be “broken” into parts, but one of its parts must certainly be at least 14 days.

According to the rules established in labor legislation, vacation must be granted to each of the enterprise’s employees at least once every two years of work.

If no vacation has been provided for two years, in the event of dismissal, monetary compensation is provided for unused vacation days.

If, on the contrary, the employee did not work for a working year, then he will be paid vacation pay only for the time actually worked.

Moreover, the employee needs to work more than half the month in which dismissal is planned, otherwise the period, which is less than half a month, will not be taken into account in the calculation.

When calculating vacation, all time worked and periods are taken when:

  • the employee did not work, but his position was retained. This applies to vacation days, weekends, holidays;
  • vacation at your own expense, but not more than two weeks.

After determining the period for which vacation is due, it is necessary to calculate the amount of average earnings per day.

To determine this indicator, the total income for the period required for calculation is taken, which then needs to be divided by 12. And then this amount is divided by 29.3 - the number of days in a month on average.

Let's look at the calculation of vacation pay using a simple example:

Upon dismissal of Fedorov I.S. he has 20 days of unused vacation. His monthly salary is 25 thousand rubles.

KO (vacation pay compensation) = Salary for 12 months / (12*29.3)* per number of vacation days

KO = 25 thousand rubles. /29.3 *20 = 17064.84 rubles.

Another example:

Sidorov V.S. I worked at the company for only 6 months. The total annual amount of his salary is 200,000 rubles.

KO= (200000 /29.3) /12*14= 7963 rub.

What to do if settlements are not paid

If all due payments were not paid by the employer on the day of dismissal, the employee can appeal the actions of the former manager. You can appeal to the court, the labor inspectorate and...

A complaint can be made either or if, for example, several workers at one company did not receive payments. If the employee decides to file a claim, the period for filing a lawsuit is only three months.

Severance pay

In addition to wages and vacation pay, when employees are dismissed due to reduction or when the company is completely liquidated.

The amount of this compensation is set at the average earnings of a certain employee and is paid over a period of 2 months.

Payment of benefits for 1 month is carried out on the day of dismissal.

For the second month after dismissal, a laid-off employee can receive a compensation payment only if he has not yet found a job.

As an exception, it is possible to receive compensation for the third month, but this is only possible by decision of the employment service, provided that the citizen began working no later than two weeks after dismissal.

To calculate severance pay, the following is taken into account:

  • average earnings are calculated based on 12 months;
  • the amount received is divided by the amount of days actually worked during the year;
  • days of temporary disability, weekends and holidays are not taken into account.

Labor legislation establishes that severance pay in the amount of 2 weeks’ earnings is paid for the following reasons for dismissal:

  • conscription;
  • unfit for service for medical reasons;
  • upon refusal to transfer to another position;
  • refusal to work in another region;
  • the employee does not want to continue working due to the fact that working conditions have changed.

A benefit in the amount of two weeks' income is also provided in the event of liquidation or reorganization of a company, if we are talking about seasonal work.

Example:

Semenov I.S. receives 30 thousand per month. He worked all the working days for the year in a five-day week. The reason for dismissal was conscription for military service.

To obtain the amount of severance pay, the salary is multiplied by 12 and divided by the number of working days in the year and multiplied by 10 (this coefficient is established for a 5-day working week).

VP = 30 thousand * 12/156 * 10 = 23076.92 rubles. That is, the benefit in the amount of two weeks' earnings will be 23,076 rubles. 92 kopecks

According to Russian law, the employer is obliged to pay various monetary compensations to the employee upon dismissal.

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They are subject to calculation in accordance with the requirements established in the Labor Code of the Russian Federation. Their size depends on many factors.

What do you need to know?

Dismissal occurs in several stages, the last of which is the receipt by the employee of a work book, as well as monetary compensation.

An employee can mainly claim:

  • wages for days worked after the last payment;
  • compensation paid if available.

Also, if the company’s local act indicated the presence of the so-called “thirteenth salary”, then it must also be provided to the employee.

The legislative framework

In 2020, the availability of compensation for unprovided leave after the dismissal of an employee has been established.

In addition to this compensation, the employee, depending on the situation, may be provided with:

  • the amount specified as ;
  • salary for days worked at;
  • compensation in case of dismissal due to poor health.

In some cases, the employee must be paid. For example, if the dismissal occurred due to layoffs.

  1. To do this, it is worth calculating the number of months that have been worked since the end of the last vacation.
  2. The resulting number is multiplied by a factor of 2.33 and rounded to the nearest whole number.

It is worth clarifying that this formula is only effective for those organizations that provide employees with 28 days of vacation. The rest need to turn to the labor inspectorate for help.

If the employer pays the employee on time, then instead of the amount of payments, the boss is obliged to provide compensation.

To calculate it, you need to know the refinancing rate from the Central Bank (C), as well as the amount of debt (S) and the number of days that have passed since the end of the day of dismissal (D).

After all the circumstances have been clarified, it is enough to substitute the values ​​into the formula: “C/100% × 1/300 × S × D.”

Is it subject to personal income tax?

For working employees, income and compensation for unused vacations are taxed, as well as severance pay amounts, the amount of which exceeds the established ones several times. Those who quit are exempt from taxes.

Among the different types of benefits, there is the 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 into the army 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. employee’s reluctance to move to another locality;
  7. drawing up an employment contract with errors 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 at one's own request 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 month of dismissal is included in the billing period 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 according to a 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 of those dismissed to liquidate or reduce their average monthly earnings during the period of searching for a 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 the previous employer an application and work record book (copy) as confirmation of lack 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 position. 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 did 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 a legal confirmation of the legality of the employee’s termination of employment.

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 the general rule. This is salary for days worked before dismissal, vacation pay, sick leave benefits, 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.

There are situations in life when, due to unforeseen circumstances, you have to leave your permanent place of work. This does not always happen at the employee’s request: they have to quit for various reasons. According to the Russian labor code, an employee must receive monetary compensation when leaving his official place of employment. Severance pay upon dismissal is provided so that the citizen is not left without money to live after losing his job. Let's look at what severance pay is, who it is intended for, and how to calculate severance pay.

Severance pay upon dismissal: what is it and what are the grounds for calculating it?

Severance pay upon dismissal is a one-time compensation that is accrued to an employee upon leaving a permanent job. It is intended only for officially employed citizens (those who work on a work book). Payment of severance pay does not always occur: if the employee quits on his own initiative, the payment is not accrued.

Cash payment upon dismissal by agreement of the parties

The Labor Code of the Russian Federation provides for compensation in the event of an employee’s dismissal by mutual consent of the employee and the employer. This is the most common method of early termination of an employment contract, since it does not bring large financial losses to the employer or employee. Let's consider what kind of dismissal payments a person can claim in this case:

  • Salary for the current month. The company is obliged to pay the employee the money he earned over the last month;
  • Payment that is specified in the employment contract. When signing a contract for employment, the employer and employee must agree on the amount of severance pay upon dismissal. The Labor Code of the Russian Federation states that such compensation cannot be less than two weeks' salary of an employee (for managerial positions - at least three months).

The amount of salary that is provided to an employee in the event of dismissal by agreement of both parties is negotiated individually with each candidate for the position before signing the employment contract. Upon termination of the employment contract, the person receives the salary that was originally agreed upon in the document.

Cash payment upon liquidation of an enterprise

Liquidation is a process during which a company completely ceases its activities, settles accounts with employees and closes. According to the legislation of the Russian Federation, dismissal during the liquidation of an organization is a reason for payment of benefits, since leaving a place of work does not occur at the initiative of the employee. Let's look at what payments are due upon dismissal during the liquidation of an enterprise:

  • Salary for the last month - regardless of what caused the closure of the organization (bankruptcy, a large number of debts, etc.), the employer must pay his subordinates for the work they performed;
  • In addition, the company must compensate for the period of time spent by the employee searching for a new job. On average, a person spends about three months searching for a position, but this period also depends on the specifics of the profession. For example, for seasonal employees this period is 2 months, for people who work in the far north - 6 months.

The calculation of severance pay upon dismissal is based on the amount that the citizen receives monthly. For each month during which a person is expected to look for work, the employer must pay him one month's average salary. Thus, the average citizen will receive 1 salary for the last month worked + three additional salaries.

The procedure for receiving severance pay upon liquidation of an enterprise

A person can receive a salary for the last thirty calendar days that were worked on the day of dismissal. Further benefits upon dismissal are paid only in the following cases:

  1. The employee registered with the labor exchange within two weeks from the date of the official severance of employment relations with the former employer;
  2. The employee is disabled (has a disability group or diseases that may prevent him from finding a job as soon as possible).

The payment period for benefits is one day from the date of submission of a document confirming registration with local employment authorities.

This topic is discussed in more detail in our article.

How is compensation calculated in other situations?

Above, we examined what dismissal payments are due to Russian citizens in the three most common cases (downsizing, dismissal by agreement of both parties, and reorganization of the enterprise). But there are also cases in which a person leaves his place of work not on his own initiative, so the company must pay compensation to the resigning citizen. The following situations can be distinguished:

  • The employee was called up for military service;
  • Obtaining a disability group, as a result of which the employee cannot work;
  • An employee does not want to move if the company changes its location of activity.

In the above situations, termination of the employment contract occurs for reasons that do not depend on the employee, so the employer must pay compensation so that the person has something to live for while looking for a new job. In this case, the employee may qualify for the following severance benefits:

  • Salary for hours worked;
  • The average two-week salary of an employee. A human resources accountant calculates the average monthly salary using the formula presented above and subtracts two weeks’ earnings from the amount received. The remaining amount is paid to the dismissed employee.

As we see, severance pay is paid to a citizen of the Russian Federation in all cases if the dismissal did not occur on his initiative or not under the article.

What to do if the employer does not pay compensation on time?

Depending on the grounds for dismissal and other nuances, the timing of payment of compensation differs. As a rule, an enterprise must credit compensation to a citizen’s card within 30 days from the date of termination of the employment contract. According to , a citizen can appeal to the judicial authorities, the prosecutor's office of the Russian Federation or the labor inspectorate regarding non-payment of compensation upon dismissal.

Important! Before contacting the authorities, you should notify the employer that you intend to recover the due payment in court, since in the future representatives of the organization may state that you did not apply for payment.

After written notification to the former employer, you can apply with a work book or employment contract:

  • To the court - no later than thirty days from the date of termination of cooperation with the employer;
  • To the labor inspectorate - no later than ninety days from the date of termination of cooperation with the employer.

The authority is obliged to consider the issue of the employee whose rights have been violated within a month.

Common Questions

Here we present some common questions regarding the payment of dismissal benefits.

Is personal income tax deducted from severance pay upon dismissal?

The income tax of citizens (individuals) can be deducted from the severance pay if the dismissal occurred by agreement of the employee and the employer, and only if the amount of the salary is equal to or exceeds three salaries of a citizen.

Is it necessary to join the labor exchange after dismissal at the initiative of the employer?

Registration at the labor exchange is the main condition for receiving payment upon liquidation of an enterprise. In other cases, the procedure is not necessary.

Can an employee resign on his own initiative and receive compensation from the employer?

Compensation is paid only to those people who lost their jobs against their own will. It is assumed that if a citizen independently terminates a contract with an employer, he has funds for his future life, so benefits are not accrued in such a situation.

If you have any questions about the topic of this article, be sure to write in the comments below.