How are payments made to an employee in case of redundancy?
How are payments made to an employee in case of redundancy?

Video: How are payments made to an employee in case of redundancy?

Video: How are payments made to an employee in case of redundancy?
Video: Overhead Cost | Meaning | Classification | Allocation And Apportionment | Cost Accounting | B.Com 2024, November
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Often, staff leave the company of their own free will or due to a number of violations committed by them in the course of their activities. However, sometimes situations arise when it is necessary to reduce staff in order to maintain the same productivity. It is unprofitable for the employer to draw up the above reason for dismissal in accordance with the articles of the Labor Code, since huge payments are due to the employee upon reduction. Unscrupulous leaders look for other ways to resolve the issue, which often leads to scandals.

redundancy pay to an employee
redundancy pay to an employee

Keeping the rules

So, if the employee is a legally competent person, then any attempts at deception on the part of management will not succeed, because payments to the employee in case of reduction are carried out without fail. It should be understood that the staff reduction procedure must be justified and carried out according to a plan strictly established by law. If athe enterprise decides to liquidate the organization, and also if maintaining performance indicators at an acceptable level requires the dismissal of employees of a certain category, then management is obliged to notify all personnel of such plans in advance. Moreover, it is not enough to put up an announcement on a common information board, you need to personally acquaint everyone with an order or order. This fact is recorded in a separate journal, where all employees sign. In addition, each person should know that the authorities cannot simply dismiss a conscientious employee; in return, the manager is obliged to offer a different position that corresponds to education and work experience. Unfortunately, most citizens are unaware of the existence of such an article in the Labor Code of the Russian Federation. And the owners of enterprises and firms do not want to assume additional responsibility, therefore, without a twinge of conscience, they ignore the above principle.

What payments are made to an employee in case of reduction?

severance pay in case of reduction
severance pay in case of reduction

So, the director announced the planned staff reduction in two months. Now the staff knows what to expect, so they can be interested in available vacancies. Many companies offer to document the application at their own request. This is due to the unwillingness to bear the additional costs incurred by each employee when a redundancy is carried out. Payments after the announcement of the official decision must be made three more times. Two salaries are due formonths actually worked, and the third payment is called severance pay. Its size is not less than the average monthly salary.

Paying severance pay upon reduction: significant nuances

dismissal to reduce pay
dismissal to reduce pay

As mentioned above, an employee has the opportunity to find a vacancy within two months. As a rule, many companies are ready to accept qualified specialists. In this case, the employee writes a statement stating that he is not against the early termination of employment. However, he is not deprived of the right to receive an employee's payment upon reduction. Its size is calculated from the number of days remaining until the date of the planned dismissal and the average monthly salary. If the employee was fired, and a new job could not be found, it is imperative to register with the state employment service no later than two weeks. Then he will be able to officially claim wages for the second and third months of work.

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