Publication date: 19.05.2024
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Payments in case of termination of the employment contract due to downsizing
QUESTION
How much "cash benefits" should the company pay to an employee participating in the liquidation of the consequences of the Chernobyl NPP category 1 or 2 accident, if he is dismissed due to a reduction in the number of employees?
ANSWER
Two: one in accordance with Article 44 of the Labor Code of Ukraine (hereinafter referred to as the Labor Code of Ukraine), and the second in accordance with the Law of Ukraine of February 28, 1991 No. 796-XII "On the Status and Social Protection of Citizens Affected by the Chernobyl Disaster" (hereinafter — Law No. 796).
In case of termination of the employment contract in connection with changes in the organization of production and work, in particular liquidation, reorganization, bankruptcy or repurposing of an enterprise, institution, organization (hereinafter - the enterprise), reduction in the number or staff of employees (clause 1, article 40 of the Labor Code) , in accordance with Article 44 of the Labor Code, the employee must be paid severance pay in the amount of at least the average monthly salary.
It should be noted that the minimum amount of severance pay is established by law. That is, the employer can establish a higher amount of benefits than specified in Article 44 of the Labor Code, and can also provide other, besides mandatory, grounds for payment of severance benefits, which will be included in the "social package" of the enterprise. This can be prescribed, in particular, in a collective or labor agreement.
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In addition to the Labor Code, the payment of cash benefits upon dismissal is also provided for by other legislative acts.In particular, according to Clause 7 of the first part of Article 20 and Clause 1 of the first part of Article 21 of Law No. 796, “Chernobyl residents” of categories 1 and 2, in case of release, are paid an allowance in the amount of 3 times the average monthly salary at the expense of the state budget. But this payment does not release the employer from the obligation to pay the employee severance pay in the amount of at least the average monthly earnings from his own funds in accordance with Article 44 of the Labor Code.
In the case of dismissal of an employee, payment of all sums due to him from the enterprise, including severance pay, is carried out on the day of dismissal. If the employee did not work on the day of dismissal, then the specified amounts must be paid no later than the next day after the dismissed employee submits a claim for settlement.
About the amounts accrued and paid to the employee upon dismissal, with a separate indication of each type of payment (basic and additional wages, incentive and compensation payments, other payments to which the employee is entitled according to the terms of the employment contract and in accordance with the law, in particular upon dismissal) the employer must notify the employee in writing on the day of their payment (part one of Article 116 of the Labor Code).
Therefore, the enterprise must pay an employee - a participant in the liquidation of the consequences of the accident at the Chernobyl NPP of category 1 (2), who is dismissed due to a reduction in the number of employees, severance pay in the amount of at least the average monthly salary, provided for in Article 44 of the Labor Code, and assistance in the amount of 3 times the average monthly salary determined by Law No. 796.
