Severance payment

recent crisis has led to a state of stupor so many who are engaged in business in this country.In order to save it, sometimes you have to sacrifice something: to cover any type of activity, some companies to merge into one, to carry out the bankruptcy already unprofitable firms to reduce salary or reduce staff workers.

And if all these anti-crisis measures carried out correctly, and most importantly - on time, it is possible to stay afloat and make new plans.

If the employer nevertheless has decided to reduce the number of employees of the organization, it is required by law to notify, not later than two months before their dismissal, and at the end of the employment relationship to pay them mandatory severance pay.

thus deciding to reorganize or liquidate his company, the first thing the employer issues an order on the reduction in staff, justifying it this need.Then, two months later, the head of the other issues the order, which should provide specific names of those who were laid off.On the same day they are given severance pay and employment records and a copy of the order on the reduction.

In addition, fire workers retain the right to obtain the average monthly salary for a period as long as it is to seek employment, but not more than two months.Sometimes this term can be extended for another month, the decision shall be taken by the relevant employment office.

Severance pay which the employee pays to reduce his organization is his monthly salary.If immediately after the dismissal of a citizen gets a new job, and within a month, then it is not stored for average earnings, issued for the period of employment.

Calculation of severance pay in the following manner: first, the average salary is calculated daily, for which the total amount that has been paid to the employee for the year divided by the number actually worked in the same period of days.The resulting daily average wage is then multiplied by the number of working days in the month following his dismissal.

determining the severance pay, the employer must pay the final payment in the reduction of workers and compensation for any unused days of his vacation.However, in this case, the average daily wage is calculated somewhat differently.

Thus while payments should be accounted for and the amounts that were issued to the employee according to the Regulation on the procedure for calculating salaries, namely compensation, depending on the skill level of the employee, the complexity of the work, its quantity and quality, surcharges, which have a compensatory nature, stimulating- bonuses and incentive amounts.Sometimes employment or collective agreement provides for increased family allowances, in this case the employer must pay it in this terms.

Severance pay while reducing issued to the employee, who was fired earlier than the statutory period, there will be more.This citizen in this case, apart from the mentioned benefits, will rely more compensation, the amount of which shall be equal to the average wage, which must be calculated from the actual date of dismissal until the day specified in the notice of reduction.

If an organization reduces a person who has reached retirement age, then followed him and saved all payments and guarantees.This is stated in the Labour Code of the country.Retired and theoretically has the right and the opportunity to try a specific period of time to get any work, so he should be paid compensation for all and guarantee exactly the same as other workers.