Severance pay while reducing staff

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economic crisis does not give to live in peace.Companies, organizations, companies and individual entrepreneurs who are experiencing economic difficulties, finding no other way out of the situation, begin the massive downsizing.This procedure is accompanied not only by a large document, but rather a serious cash flow.

known that in Russian Labour Code protects the rights of workers.Therefore, the reduction of staff manager can not just drive out to the street worker.The Labor Code defines the procedure for the dismissal of employees.

First, about the upcoming reduction of staff in writing, the employer must notify the employee against signature no later than two months before the dismissal.

Secondly, we can not dismiss all in a row.Redundancy procedures are not subject to single mothers, pregnant women, ill workers, union members without the consent of the trade union committee or who is on leave, etc.In addition, there is a certain group of people who have the advantage of further reducing the continuing work at.This highly skilled workers, family men who have two or more dependents, those who received injury or occupational disease for the employer, and other categories.

Third, under the Labour Code, all laid-off employees to mandatory severance pay is paid at a staff reduction.

is therefore necessary to know exactly to whom and how the payment of benefits in the reduction.Moreover, a reduction should be present, or laid-off workers can apply for an employer to court and recover.

If your organization is really going to reduce the number of employees, the dismissal of employees on the day you need to pay all due to them under the law of money: wages and compensation for vacation, the employee is not used, and the severance pay while reducing staff.

How is it calculated?Head of the Labour Code obliges to pay to lay off employees to reduce benefits, the amount of which is equal to the average monthly earnings.In addition, for the entire period of employment, which should not be more than two months, the dismissed employee shall be paid the average monthly salary.If an employee after his dismissal in the period of 2 weeks, contact the employment service, but for him and could not find work, average earnings and may pay for a third month.

Severance pay while reducing the state is defined as follows: received for the settlement period is divided by the number of working days.So one-day average salary is calculated.He was then multiplied by the number of days in the period for which the employee receives the calculation.

calculation of benefits seems to matter quite simple, it requires a simple mathematical calculation.But in fact, it may give different results.For example, if the Rating month a lot of holiday or weekend, the employee receives a much smaller amount.

Change billing period can be in the following cases:
- if an employee in the organization has not worked for 1 year.Then it considered only the period when the person actually worked in the organization;
- if an employee took a job in the same month was reduced.And then really worked them now considered accounting period.

In determining the average earnings do not include the time when the employee abbreviated:
- getting sick or maternity leave;
- was on leave, unpaid leave or a business trip;
- did not work due to the fault of the head;
- considered the first pluralist, and only then was admitted to the state institutions;
- during the strike could not work, though he there and did not participate;
- had paid extra for weekend care for children who are disabled;
- I worked part-time, and others.

Absolutely all employees receive severance pay while reducing the state, that is, even those who, for example, is on leave to care for a small child.Such benefits paid to employees at reducing, not subject to personal income tax and unified social tax.

Of course, not every company will be glad to give the money to dismissed employees.However, in this case, the savings are rarely justified.After all, the employee may apply to the courts, the judges in the majority of cases are on the side of the dismissed.