Dismissal of an employee due to job reduction

What is dismissal due to reduction

A reduction in the number or staff of an organization’s employees is one of the grounds on which an employer can terminate a contract on its own initiative (Clause 2 of Article 81 of the Labor Code of the Russian Federation). It is worth distinguishing that in the first case, the company reduces the number of employees in one position (for example, instead of 8 lawyers there are 4 left), and in the second, certain categories of positions are completely excluded from the staffing table.

Contrary to popular belief, the employer can make such a decision at any time without any justification or explanation to employees, the trade union or third parties, which is confirmed in the Resolution of the Plenum of the Armed Forces of the Russian Federation dated March 17, 2004 No. 2. Which is quite logical, since the issue of staff reduction concerns organization of activities within the enterprise and depends on the success of business. It is also not mandatory for company management to obtain the consent of a citizen or trade union. However, notifying the employee and obtaining the opinion of the trade union are one of the conditions for maintaining the legality of the dismissal procedure for staff reduction. In addition, payment of all compensation required by law is required.

Seasonal workers and conscripts

The legislation provides for specifics in the procedure for laying off seasonal workers and workers who have entered into a fixed-term employment contract of up to 2 months. Please note that for other employees with whom a fixed-term employment contract has been concluded for other reasons, the reduction procedure is similar to that provided for employees with whom an employment contract has been concluded for an indefinite period.

The specifics of laying off seasonal workers and workers with whom a fixed-term employment contract of up to 2 months has been concluded relate to the timing of delivery of notice and payment of benefits.

Thus, an employee engaged in seasonal work must be notified of his upcoming dismissal due to a reduction in the number or staff of the organization’s employees at least 7 calendar days in advance.

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For employees who have entered into an employment contract for a period of up to 2 months, the period is even shorter - they must be notified of the upcoming layoff at least 3 calendar days in advance.

As for the payment of severance pay to these categories of employees upon dismissal under clause 2, part 1, art. 81 of the Labor Code of the Russian Federation, then for seasonal workers the amount of benefits is equal to the amount of two-week average earnings. And employees who have entered into an employment contract for a period of up to two months are not paid severance pay upon dismissal as a general rule, unless otherwise established by federal laws, a collective agreement or an employment contract.

Dismissal procedure: list of actions

Since the legislator seeks to protect the interests of workers as much as possible, the reduction procedure is quite strictly regulated. A certain algorithm must be followed:

1. Issuance by the manager of an order to reduce staff and approval of a new staffing table or changes to be made to it.
2. Notification of the employment service and trade union.
3. Determining the circle of persons who have the right of priority to remain at work.
4. Delivery of layoff notices to staff against signature.
5. Offering laid-off employees free vacancies, that is, other jobs.
6. Requesting the union's opinion on the dismissal of an employee who is a member of it.
7. Termination of the employment contract.
8. On the day of dismissal due to staff reduction, a settlement is made with the employee, and a work book is issued with a note of dismissal due to staff reduction on the basis of clause 2 of Art. 81 Labor Code of the Russian Federation.

Grounds for changing conditions at the initiative of the employer

The legislator does not prohibit the management of the enterprise from making changes to the organizational and staffing table. But this solution should be:

• Reasonable;
• Documented.

Validity is a subjective category. No one will ask the employer how fair his conclusions regarding the need to reduce the number of staff are. He has the right, at his discretion, to make changes, increase or reduce staff.

He can explain this in one phrase, which will be included in the administrative document. This is an order to reduce numbers or staff. It serves as the basis for starting the procedure for dismissing employees.

Changes in numbers or staffing - differences

As stated above, the abbreviation may vary. It concerns changes in numbers or staff, the differences between which are fundamental. In the first case, the number of personnel is abolished, while the job unit itself remains on the staffing table . If there is a reduction in a position, then all employees who were hired for it are fired.

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For example, the company employs 12 drivers. As a result of optimization and outsourcing of a certain amount of transportation, 4 drivers become unnecessary and are fired due to reduction in numbers. After some time, management comes to the conclusion that it would be advisable to outsource all transportation. An order is issued to reduce the driver's position, resulting in the dismissal of the remaining 8 employees.

Rights and guarantees for an employee in Russia

The employment relationship with an employee can be terminated in accordance with the Labor Code (hereinafter referred to as the Code) and the procedure for each case. The legislator stipulates that laid-off personnel will have from 3 to 5 months to find a new place of work . This time will be paid at the expense of the previous place of work.

As surveys and legal practice have shown, every eighth company manager lays off workers without paying them anything.

Violations of rights and non-compliance with worker guarantees in Russia are not isolated, but are widespread. This can be countered by:

• Legal literacy;
• Knowledge of the dismissal procedure;
• Requirements that the head of the enterprise must comply with;
• The amount of payments due and the procedure for issuing them.

If a violation is detected on the part of the employer, he must be held accountable and the violated rights of the employee restored. But even in this case, the statute of limitations must be adhered to. More on this below.

Step-by-step instruction

Step 1. Before issuing an order to reduce staff or number of employees, it is necessary to make such a decision in accordance with the procedure established in the organization. It is necessary to identify positions that are subject to reduction, make sure that the list of those being dismissed does not include citizens who cannot be dismissed on this basis, and identify persons who are granted benefits by law. It is necessary to take into account that employees with higher qualifications have a preferential right to retain their jobs. When deciding who exactly will be laid off, the presence of dependents, injury at work or occupational illness, and the presence of other breadwinners in the family are taken into account. The order must indicate which staffing units and in what quantity are subject to exclusion from the staffing table, the reason for making such a decision, describe in detail the upcoming reduction procedure, indicating all activities and the timing of their implementation, as well as provide a list of responsible persons at all stages. All responsible persons are familiarized with the order and signed.

Step 2. All notifications to interested parties are sent on time in the approved or recommended form. It is imperative that all notices be dated so that there is evidence that deadlines have been met. It is possible to dismiss employees before two months only with their written consent with the payment of additional compensation for average earnings according to the remaining time of work, according to the notice.

Step 3. Before issuing a notice, you need to offer another job. Moreover, the legislation does not indicate that the proposed workplace must correspond to the previous one or the qualifications of the specialist. If you are being made redundant, you can also offer a low-paying job, lower in position, this is allowed. Of course, all notifications and refusals of offered work, which the employee also does not have to explain, are documented in writing. It is a mistake to think that in any case you can limit yourself to one sentence. If new vacancies suitable for health reasons appear within a two-month period, the employer is obliged to offer them to the dismissed employee.

Step 4. The notification to the employment service must indicate the positions, professions and specialties of the dismissed workers. In addition, you need to notify the employment service about their level of qualifications and the conditions of payment for each employee. The employment service must be notified of mass layoffs three months in advance. The employment service is obliged to inform the prosecutor's office about all enterprises that have not sent a notice of staff reduction.

Step 5. Based on the general order, a specific order is issued for each employee with whom he gets acquainted with signature. The contract is terminated after the expiration of a two-month period (the period is counted from the next day after receipt of the notification) and after changes are made to the staffing table. Moreover, there should be no similar vacant positions left in the staffing table, otherwise the legality of the employer’s decision may be challenged. The order is issued in a unified form, the work book is drawn up in accordance with the Labor Code of the Russian Federation.

Step 6. Payment of compensation.

How is it going?

The reduction procedure is quite strictly regulated by law and depends on a number of factors. However, reductions always begin with the preparation of an order. A reduction order is a document that records the basic data on the procedure itself - the number of places, positions being reduced and, most importantly, the date of the reduction itself. It is the day specified in the order that will serve as the main reporting point for notifications and other operations.

After the employer prepares a layoff order, several departments and individuals will need to be notified about it. So, it’s worth starting with the employment authorities. If a standard staff reduction is planned, then notification is sent two months before the effective date of the order. If mass layoffs are planned, then notice must be sent three months in advance.

In addition, notices are also sent to employees who have been laid off. It is also sent two months before the date specified in the order. If such a possibility exists, the employer attaches to the notification a list of places to which the employee can be transferred. We will tell you more about this below. The employee must notify the employer in writing that the employee has received the notice and has read its text.

Also, when laying off and issuing an order, the trade union must be informed. It must be notified even if none of its members are affected by the order. The notice deadlines are similar to those for the employment service - two months for standard layoffs and three for mass layoffs.

Who should not be fired

To avoid negative consequences and fines, the employer must remember which employees, due to their special situation, cannot be laid off, in accordance with Article 261 of the Labor Code of the Russian Federation:

• pregnant women;
• workers with children under three years of age;
• single mothers with a disabled child who has not reached the age of majority;
• single mother with a child under 14 years old;
• other persons who raise such children without a mother.

Also, an employer cannot unilaterally dismiss an employee who is on sick leave or on vacation (Article 81 of the Labor Code of the Russian Federation).

Mass layoff

In order for an employer to understand whether he has a mass layoff, he should refer to industry and (or) territorial agreements. Part 1 of Art. speaks about this. 82 Labor Code of the Russian Federation.

So, for example, in Moscow, according to the Moscow tripartite agreement for 2016-2018 between the Moscow Government, Moscow trade union associations and Moscow employers' associations, the criteria for mass dismissal are considered to be the indicators of the number of dismissed employees of organizations registered in the city of Moscow, with a workforce of 15 or more people for a certain period of time:

1. dismissal within 30 calendar days of more than 25% of the total number of employees;
2. dismissal of employees in connection with the liquidation of an organization of any organizational and legal form;
3. reduction in the number or staff of the organization's employees in the amount of:

• 0 or more people within 30 calendar days;
• 200 or more people within 60 calendar days;
• 500 or more people within 90 calendar days.

Features of dismissal of pensioners, pre-retirees, part-time workers and other categories of workers

Pensioners are dismissed due to staff reduction in the same manner, with the same compensation being paid. The only controversial issue remains the payment of the third benefit, since a pensioner cannot register with the employment service and receive benefits, since he receives a pension. However, if there are circumstances worthy of attention, employment centers provide pensioners with the certificates necessary to receive the third benefit.

Rostrud recommended that employers separately consider the issue of providing pre-retirees with a preferential right to retain their jobs in case of staff reduction. This is logical, because if there is a suspicion of dismissal due to reaching the appropriate age, the administration may be held criminally liable.

The part-time worker is paid the average monthly salary for the second and third months only if he provides evidence in the form of an entry in the work book about dismissal from the main place of work before dismissal from the part-time job.

A seasonal employee is notified 7 days in advance of a planned dismissal, and is paid compensation in the amount of two weeks' average earnings. No other compensation is provided for them.

Northerners, or residents of the Far North, can qualify for average earnings for 4-6 months of unsuccessful employment if they provide the appropriate documents from the employment service, provided that they are registered within 30 days from the date of dismissal. The third allowance is issued even in the absence of registration.

Algorithm for making job cuts

So, the dismissal procedure begins with the identification of positions or employees who are subject to reduction. At this stage, the need for optimization is only being considered. If management comes to the conclusion that changes are necessary and determines what exactly needs to be optimized, an appropriate order is issued . It contains the following:

1. Staff positions that are planned to be eliminated.
2. Justification for the changes being made.
3. Orders to responsible persons who are obliged to carry out the necessary measures.
4. Deadlines that must be observed during the dismissal procedure.

The further reduction algorithm at work may undergo some changes. Firstly, a check is carried out on persons with whom the contract cannot be terminated or they have a preferential right to remain in the workplace. The issue of upcoming personnel changes is resolved with each of them individually. For example, a pregnant employee may agree to another position, and one of the employees may agree to be transferred to a branch of the company.

General information about the procedure for dismissal due to staff reduction or headcount reduction is described in this article.

Secondly, displaced workers should be offered vacant jobs . They don't have to be equivalent. If there is a reduction, lower paid positions may also be offered.

In addition, after issuing an order, a mandatory point that cannot be missed is notification of interested parties. Conducted in writing, information about the upcoming reduction is communicated to:

• Directly laid off employees;
• Employment Service;
• The trade union, if it is active.

Notification is carried out 2 months before termination of the employment agreement, and in case of mass layoffs, this period is increased by 1 month.

Directly on the day of dismissal of the employee, a full payment is made. They receive the required redundancy payments and a work book. This concludes the staff reduction procedure.

Calculation example

Ivanov I.I. worked as a manager for two years and was dismissed due to staff reduction on 01/01/2018. On January 10, he contacted the employment center and was registered, but could not find a job until 04/01/2018, that is, until that moment he retained his unemployed status. Ivanov I.I.’s work schedule was standard with a 5-day work week. Initial data: for 2021 Ivanov I.I. he worked 247 days, 28 calendar days and 19 working days he was on vacation: from 08/01/2017 to 08/28/2017. The salary of Ivanova I.I. was unchanged for the entire 2021 and amounted to 30,000 per month.

Formula for calculating severance pay by Ivanova I. upon dismissal due to staff reduction:

• actual shifts worked: 247 - 19 = 228;
• average salary per day: 331,428.57 / 228 =1453.63;
• amount for January: 1453.63 × 17 = 24,711.71;
• February amount: 26,165.34;
• amount for March: 31,979.86.

Ivanov would be entitled to benefits for the first month, that is, payment of compensation for January, even if he was employed. But benefits for February and March, if you start a new job during these months, would be calculated in proportion to the days of unemployment.

What severance pay (compensation) is calculated?

When completing the dismissal of an employee due to staff reduction, it is necessary to make a full settlement with him no later than the last day of work. At this moment, the employer accrues and pays:

• Remaining salary;
• Calculate compensation for vacation or make deductions for days used in advance;
• Unconditional severance pay in the amount of average monthly earnings, Art. 139 TK.

However, the payment of compensation for workers affected by layoffs does not end there. Article 178 of the Labor Code provides for several more types of benefits, depending on the further development of the situation.

It should be taken into account that the maximum amount of financial support from the employer will not exceed the average payments for three months, since the accrual takes into account the amount that was unconditionally issued on the last day of work.

Additional guarantees

In addition, current legislation establishes another guarantee for employees - preservation of wages during the period of employment. According to Article 178 of the Labor Code of the Russian Federation, a dismissed employee retains his average monthly earnings for a period not exceeding two months. In exceptional cases, a salary can be issued for the third month of unsuccessful job search (if the citizen registered with the employment service within two weeks from the date of dismissal), but the employee must provide confirmation from the employment service that he applied to this body and was not employed.

Longer terms for maintaining the average wage are established for those who work in the Far North and equivalent territories. For such categories of workers, the paid period of employment can be up to six months after layoff (Article 318 of the Labor Code of the Russian Federation).

Categories of employees not subject to layoffs

Despite the personnel policy of the enterprise and the desire to dismiss some employees for a number of reasons that are not always justified, there is a category of workers who are practically impossible to reduce in accordance with the procedure established by law, namely, it is prohibited to lay off a pregnant woman when reducing staff on the basis of Article 261 of the Labor Code of the Russian Federation , the only exception is the complete liquidation of the enterprise.

Also, employees who have children under three years of age or fathers who are raising children themselves cannot be fired due to layoffs.

Single mothers or single fathers raising a disabled child or a child under 14 years of age are also not subject to reduction.

You cannot fire employees who are the sole breadwinners of a family if they have at least three children, the youngest of whom is under 3 years old.

However, the stipulated article also allows for exceptions, that is, the specified categories of employees may be dismissed due to staff reduction if a number of violations are committed.

In particular, they were brought to disciplinary liability in connection with repeated violations of labor discipline or failure to fulfill their immediate duties, and, possibly, committed an immoral act.

Some nuances of staff reduction

Often, even with a clearly defined procedure for dismissal due to layoffs, situations arise when it is not possible to dismiss an employee within the period specified in the notice, in particular, if the employee is ill at the time of dismissal and, in accordance with Article 81 of the Labor Code of the Russian Federation, he cannot be fired .

In this case, the company is obliged to retain the employee’s workplace until full recovery, and accordingly pay for all days of incapacity for work and only after dismissal.

By the way, the law establishes a minimum notice period for an upcoming layoff, namely two months, but nowhere is there a ban on dismissal at a later date, again, which is applicable in the case of temporary disability.

A similar dilemma during dismissal due to redundancy may arise when an employee is granted annual leave. In particular, the norms of Article 123 of the Labor Code of the Russian Federation oblige both the employee and the manager to comply with the vacation schedule, so the laid-off employee, at the time of layoff, may not work, but rest, and again, on the basis of Article 81 of the Labor Code of the Russian Federation, he may be fired during this period it is forbidden.

How to open an individual entrepreneur on your own? Step-by-step instruction. - there is more useful information here.

In this case, there are two options for further action that are legal. The employee will need to be given annual leave in accordance with the schedule and, at the end of the vacation, be dismissed due to staff reduction with the provision of the required payments. Or annual leave can be postponed to an earlier date by additionally issuing an order to amend the vacation schedule.

Staff reduction, legal advice, video:

Retirement

Russian legislation also has such a concept as early retirement. According to Art. 32 Federal Law “On Employment...” dated April 19, 1991, persons have the right to apply for early retirement if the following conditions are met:

• at least 20 years of experience for women and 25 for men;
• age is 2 years less than the established retirement age;
• lack of employment opportunities for another job. This circumstance must be confirmed at the employment center.

When such persons are laid off, they have the right to retire early, but only with their consent. After employment or retirement, payments stop.

Payments upon layoff

In case of forced dismissal, the law protects the rights of the citizen. First, employees must be notified of the upcoming event 2 months in advance so that they have time to look for a new job. Secondly, the employer is obliged to provide financial assistance in the form of certain payments.

Salary and vacation pay

The first thing that is awarded to a fired person is payment for the actual hours worked, which he did not receive. In some cases, bonuses are issued if this is supported by local documentation.

If an employee does not take advantage of the right to annual leave, he is entitled to monetary compensation on the basis of Art. 127 Labor Code of the Russian Federation. The total amount depends on:

• on the duration of the vacation period;
• time elapsed since the last vacation;
• wages.

IMPORTANT! Compensation for unused vacation is calculated as for a whole year if the citizen worked from 5.5 to 11 months in the year of layoff. The situation is regulated by the recommendation of the Federal Employment and Labor Service dated April 19, 2014.

A tax of 13% will be withheld from both payments.

Severance pay

Such financial support is not always provided. The benefit is paid only in the cases established in paragraphs 1 and 2 of Art. 81 Labor Code of the Russian Federation.

We recommend reading: Payments and compensation upon dismissal by agreement of the parties

Its size, according to Art. 178 of the Labor Code of the Russian Federation, corresponds to average monthly earnings, but not lower than the minimum wage. And according to clause 2 of Art. 217 of the Tax Code of the Russian Federation is not subject to 13%. If an employee has not worked for the organization for one year, the amount due is determined taking into account the days actually worked.

IMPORTANT! The employer must pay this compensation to the citizen, even if he has a new job.

Second and third month

Payments in case of layoff of an employee during these periods are accrued if he registered as unemployment within two weeks after the termination of the employment contract and for objective reasons did not find a job. Compensation is made at the expense of the employer in the amount of the average salary or established salary.

An employee on his own initiative does not have the right to demand a third redundancy payment. This can only be done by the Employment Service and only for persons registered with it. Payment for the third month of absence from employment is the last one.

Calculation procedure

Severance pay is calculated in two stages. At the first stage, average earnings (Avg) are determined. Art. 139 of the Labor Code of the Russian Federation establishes a calculation algorithm:

Срз = Vрп / Nfact , where:

Vрп is the employee’s income for the billing period.

Nfact – the employee’s actual shifts worked.

The calculation period is 12 months preceding the month of layoff. For example, if the dismissal occurred in February 2021, then the period of time from 02/01/2017 to 01/31/2018 will be taken for calculation.

The indicators do not take into account the time spent on vacation or sick leave, as well as their payment.

The second stage - the amount of severance pay due to the issue is calculated.

Pout = Average * Nworking shifts , where

Nworking shift – the number of working days in 1-3 months after dismissal.

REFERENCE! Wages for partial months are calculated in proportion to the days worked.

Example:

Petrov N.A. worked in the company for 2 years. By official order it was reduced from 01/01/2017. On January 9, he registered with the employment service. As of April 1, 2021, Petrov remains unemployed.

He worked a standard five-day work week. According to the production calendar for 2021, the number of work shifts is 247, of which he was on vacation from July 1 to July 28. Monthly earnings were constant and amounted to 30,000 rubles.

The procedure for calculating severance pay upon dismissal due to staff reduction:

Actual shifts worked in 2021: 247 – 19 = 228 Srz for the period from 01/01/2016 to 12/31/2016: = 331,428.57 / 228 = 1,453.63 rubles. Amount for January 2021: 1453.63 * 17 = 24711.71 For February: 1453.63 * 18 = 26165.34 For March: 1453.63 * 22 = 31979.86

Petrov is entitled to severance pay for January even if he is employed. If he had found a new job in February or March, compensation would have been calculated in proportion to the days of unemployment.

For individual categories

Depending on the nature and conditions of work, the amount of compensation varies. Some categories of employees often face the fact that they are denied severance pay when staffing is reduced. However, the provisions of the Labor Code of the Russian Federation protect their interests.

For pensioners

A person receiving a pension is dismissed with the same rights as an ordinary employee. Pensioner status, position, skill level, length of service and age do not affect the amount of severance pay upon reduction.

The issue of issuing a third benefit to a pensioner is controversial. On the one hand, it is provided on a general basis. On the other hand, a pensioner is considered a socially protected person and cannot be called unemployed. If there are significant facts, the employment center can issue a certificate on the basis of which the third payment will be made.

Part-timers

Severance pay upon dismissal is paid in the same manner as to main employees. However, preservation of average monthly earnings in the second and third months is no longer provided.

If an employee working part-time quits his main job before the layoff, which is confirmed by an entry in the work book, he has the right to receive payment for these months.

Seasonal worker

A seasonal worker is notified of planned dismissal 7 days in advance. Severance pay in case of layoff is paid in accordance with Art. 296 of the Labor Code of the Russian Federation in the amount of the average wage for two weeks. Other types of financial assistance in this category are not provided.

Residents of the Far North and areas equated to them

According to Article 318 of the Labor Code of the Russian Federation, this category of citizens claims to receive three times the compensation payment. However, it is not necessary to register for unemployment.

Northerners apply for redundancy benefits for 4-6 months at the request of specialists from the employment service, if they apply there within 30 days after dismissal.

Additional compensation

Payment of severance pay is not the only financial assistance to employees due to staff reduction. Depending on the situation, additional financial support is assigned.

For early dismissal

Employees are warned about layoffs two months in advance, but sometimes it is necessary to terminate the employment relationship early. The Code provides for early dismissal due to staff reduction, but only by agreement of the parties and with the accrual of compensation payments.

Its purpose is to compensate for lost income for the period during which the employee could have continued working. The size directly depends on the number of days between the dates of early and official termination of employment. An agreement or other documentation of the organization may establish increasing coefficients.

There are benefits to laying off early. Firstly, the dismissed employee receives additional compensation. Secondly, the period for searching for a new job is increasing.

Payment of the 13th salary upon layoff

In many organizations, at the end of the year, a special type of bonus is provided - the 13th salary. If the provision on it is officially established, when an employee is laid off, it is also issued. It does not matter in what month the dismissal occurred. A prerequisite is at least one year of work experience in the workplace.

Sick leave payment

A laid-off employee has the right to sick pay. Basic conditions:

• the citizen fell ill before the official day of dismissal. The amount of payment depends on the insurance period and average salary;
• sick leave received within 30 days after layoff. The benefit is equal to 60% of the average wage for the last two years. If a citizen is registered with the employment service, it is equivalent to unemployment benefits.
• a certificate of incapacity for work was issued to a pregnant woman who was officially recognized as unemployed within a year after dismissal due to the liquidation of the company.

REFERENCE! Payment of sick leave is not a basis for refusing to issue other payments for dismissal due to staff reduction.

Early retirement

Based on Art. 32 Law of the Russian Federation “On Employment of the Population in the Russian Federation” dated April 19, 1991, a citizen has the right to apply for an early pension subject to the following conditions:

• Insurance (work experience) of at least 25 years for men and 20 years for women.
• The age of the employee who has been laid off is 2 years less than the established retirement age. The rule also applies to citizens entitled to a preferential pension.
• Reasonable lack of employment opportunity for a new job. Confirmed by the employment center.

Early pension is assigned only with the consent of the citizen and is paid from budget funds. Upon employment or official retirement, payments stop.

To whom compensation is not paid?

In Article 349.3 of the Labor Code of the Russian Federation, the legislator established a restriction on the provision of severance pay for managers, their deputies, chief accountants, as well as members of executive bodies:

• state corporations;
• organizations in whose authorized capital the share of participation of the Russian Federation is more than 50% of state extra-budgetary funds;
• state and municipal institutions.

However, if the payment of compensation is provided for in an employment or collective agreement, then it is still paid, but in a limited amount - no more than three average monthly salaries.

How to resign more profitably: by layoff or by agreement of the parties

Let's conduct a small comparative analysis of the two types of dismissal. Since employees quite often ask specialists this question, it is worth paying attention to its consideration. And we will present the results in the form of a table.

Table 2 . Comparative analysis of types of dismissal

How profitable it is to quit is up to everyone to decide for themselves. You can rely on the criteria given in the table, or you can ignore them. In any case, you need to focus on the situation that has developed for a particular person.

Responsibility for violation of payments

For violation by the employer of labor legislation and failure to pay statutory deductions on time, Part 6 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation provides for the following fines:

• for officials - from 10,000 to 20,000 rubles;
• for persons carrying out entrepreneurial activities without forming a legal entity - from 1000 to 5000 rubles;
• for legal entities - from 30,000 to 50,000 rubles.

Order to reduce staff

Order to dismiss an employee

Order for payment of benefits

Legal documents

• Art. 81 Labor Code of the Russian Federation
• Resolution of the Plenum of the Armed Forces of the Russian Federation dated March 17, 2004 No. 2
• Labor Code of the Russian Federation.
• Art. 392 Labor Code of the Russian Federation
• Art. 24 Code of Civil Procedure of the Russian Federation
• Art. 394 Labor Code of the Russian Federation
• Resolutions of the Plenum of the Supreme Court of the Russian Federation dated March 17, 2004 No. 2
• Article 261 of the Labor Code of the Russian Federation
• Article 178 of the Labor Code of the Russian Federation
• Art. 296 Labor Code of the Russian Federation
• Art. 292 Labor Code of the Russian Federation
• Art. 307
• Art. 347 Labor Code of the Russian Federation
• Decree of the Government of the Russian Federation dated December 24, 2007 No. 922
• Article 178 of the Labor Code of the Russian Federation
• Art. 318 Labor Code of the Russian Federation
• Federal Law “On Employment...” dated April 19, 1991
• Article 349.3 of the Labor Code of the Russian Federation
• Article 5.27 of the Code of Administrative Offenses of the Russian Federation

Registration procedure

If the manager’s order to reduce the number of employees triggered the procedure for releasing employees, then it ends as follows:

1. Issuing a dismissal order.
2. Payment of due funds.
3. Making the necessary entries in the work book and issuing it to the dismissed person.

Do you have any doubts about the procedure for processing payments during redundancy?

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All this must be completed no later than the day of termination of the employment relationship between the dismissed employee and the enterprise. A delay in issuing a document that confirms the work activity of a laid-off employee obliges the employer to pay for all days of forced absence until it is issued. The countdown starts from the next day after the day of reduction.

Deadlines to be met

If everything is clear with the notice of layoff, the day of dismissal and related payments, then the situation with severance pay for the second and third months is not simple. Both payments are used as social support for a dismissed employee; the grounds for receiving them are indicated above.

To pay severance pay for the second month, you must:

1. Submit an application from an employee to the HR department.
2. Make a decision on issuing money after first checking the truth of the information in the application through the employment service.
3. Issue an order (done in free form) to transfer severance pay for the second month.

A special material has been prepared on the topic of when an employer does not pay compensation upon dismissal - we recommend you read it.

As a rule, this takes 1-2 weeks. It’s more difficult with payments for the third month. Firstly, the law does not stipulate the timing of its issuance. Secondly, a certificate from the social service, which serves as the basis for payments, is issued by an inspector who decides on its feasibility. It is subjective in nature; the discipline of the unemployed in attending events and meetings with a service employee, and the validity of his refusals from offered vacancies are taken into account.

Additional employer expenses

The employer is obliged to pay interest (monetary compensation) to an employee dismissed due to staff reduction if the amounts due to him are not paid on the day of dismissal or the next day after the employee submits a request for payment.

The amount of interest is calculated according to the norms of Art. 236 of the Labor Code of the Russian Federation: not less than 1/150 of the current key rate of the Bank of Russia of amounts not paid on time for each day of delay. The period for which interest is calculated begins from the next day after the due date for payment until the day of actual payment, inclusive.

An increased interest rate may be provided for by a local regulatory act, a collective or labor agreement (Articles 140, 236 of the Labor Code of the Russian Federation).

Four tips for calculating compensation

Hint 1 . Calculate average earnings in accordance with Art. 139 of the Labor Code of the Russian Federation, Regulations on the specifics of the procedure for calculating average wages (approved by Government Decree No. 922 dated December 24, 2007), and in 2020 also taking into account clarifications from the Letter of the Ministry of Labor dated June 11, 2020 No. 14-1/10/B- 4638.

Hint 2 . If there are non-working holidays in the calculation period, then it is also advisable to pay the average earnings for such days (Appeal ruling of the St. Petersburg City Court dated November 29, 2016 No. 33-23589/2016 in case No. 2-5694/2016).

Hint 3. There is no need to accrue the regional coefficient for severance pay during a layoff, since it is already taken into account when determining average earnings (subparagraph “l”, paragraph 2 of the Regulations, approved by Government Resolution No. 922).

Tip 4. If an increased amount of severance pay in the event of a layoff is provided for in an employment or collective agreement (Part 8 of Article 178 of the Labor Code of the Russian Federation), this must be taken into account when calculating.