Labor legislation defines a list of areas in which the employer is obliged to make a payment of severance pay if termination of employment is made.For example, it may be a benefit in reducing the state or the number of employees at the company's liquidation and other similar cases.In the Labour Code provide for other types of payments in case of dismissal or collective employment contract.Sometimes
company agrees to pay the employee an additional lump sum severance package, and its size is set in the agreement to terminate the contract of employment.This type of payment is not provided for either in the list of mandatory labor law nor the collective or in the employment contract.The courts take the view that an agreement on the termination of the contract can not be a part of it.It does not regulate the relations regarding the implementation of the employee's direct functions.In this case, you can not reduce the income tax base for the amount of compensation to the employee severance.But the company has the opportunity to enter into an additional agreement with the employee, which would provide for payment of vacation pay severance terminate the contract by mutual agreement of the parties.
Tax and Ministry of Finance in his letters gave an explanation that the cost in the form of severance payments can be accounted for as an expense, allowing to reduce the base for profit tax.Such severance payment shall be provided by the employment or collective agreement or an additional agreement to the contract.The text of this agreement shall be provided an indication that it is an integral part of the basic contract, or may challenge the tax treatment of costs associated with the payment of the compensation.
calculation of severance payments is not particularly difficult, because there is only need to multiply a couple of factors: the average salary for a day with the number of unused vacation days.Calculate the average salary per day is possible, if we use the data on the actual payment for three months worked, it is required to divide the number of days that were actually worked.
now is to deal with the fact of how many days need to be considered?It is worth remembering that the compensation should be paid, in any case, that is, it does not depend on who has initiated dismissal.For those who worked less than 15 days, it is not necessary to take it to everyone else - is necessary.Full 28 vacation days will be paid to those who worked at least 11 months, that is a calendar year, if you include the holiday.If it is a smaller amount of time worked, then there should be calculated in proportion to the time the holiday has been worked out.
Payment of wages for dismissal
In the event of termination of the employment contract for each employee has the right to choose: to receive payment for vacation or was done on it.If an employee chooses was done on him, then he will be paid a salary, and if he chooses compensation in addition to paid wages and will add another payment for unused leave.There are a number of situations that are already regulated by the jurisprudence and regulations, that is, in this regard there should be no controversy.
For employees who do not use additional leave for work one year, it is expected a refund.If there leaves a few years they should be compensated.In the case of dismissal of an employee during the probation period or if he worked for less than six months, it must be granted compensation, the amount of which is proportional to the number of vacation days.
Now you know what could be the payment of severance.
