Payments to the employee during the reduction
What are the benefits of a reduction?
With the reduction of state workers, the law provides for the following payments: this so-called severance pay, which is calculated by monthly average wage. It, in turn, may be at a higher rate, if a point is spelled out in the collective agreement.
Also at the time of employment for a period of not more than 2 months the employee is the right to preservation of average earnings. In some cases, average wages may be paid to the employee and within 3 months. This happens in case if such decision will make the local employment service. To get these payments, the worker must contact the employment service within two weeks after the reduction, and should not be employed at any other work place.
After the enterprise became known that soon will start the reduction, the employer must notify its employees at least two months about this event and to staff the receipt that they are notified about it. Workers can not wait for the date of the reduction and to resign in advance. In this case an early dismissal is filled in writing, and the employee is entitled to payment of average monthly earnings for the period remaining until the date of the reduction.
Always keep in mind that the downsizing in connection with the termination of the employment contract, never subject to income tax. This applies to those citizens, who had retired from the company in advance, without waiting for the date of the reduction. All other payments required to employees are subject to personal income tax on a common basis.
Also, the amount of the severance pay paid includes the wages of employees for the actual time worked and money for unused vacation.
Additional rights of an employee dismissed by reduction
Completely dismissed employee may, within 30 calendar days from the date of full settlement again for the business and ask former employer the payment sheet of temporary disability. By law a former employer is promptly required to satisfy the request of a former employee.
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