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Payment of Severance Allowance to an Official upon Dismissal due to Termination of Authority: Clarification of the Supreme Court

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Sakharuk Anatolii
Lawyer
Ukraine / Kyiv

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Publication date: 24.05.2024

Payment of Severance Allowance to an Official upon Dismissal due to Termination of Authority: Clarification of the Supreme Court
Introduction


Legal issues related to the payment of severance pay to officials upon dismissal due to the termination of their powers are always of considerable interest in the legal community and among the public. This is due to the need to ensure legal certainty and fairness in relations between employees and employers. The Supreme Court of Ukraine recently provided important clarifications regarding the rules for paying severance pay to officials in such cases. These clarifications are of great importance for the practice of law enforcement and contribute to the unification of approaches to solving relevant legal issues.


Normative and legal regulation

 

Constitution of Ukraine
According to Article 43 of the Constitution of Ukraine, everyone has the right to work, which includes the right to timely remuneration for work, protection against illegal dismissal and the right to social protection in case of unemployment.
Code of Labor Laws of Ukraine (KZpP)


The Labor Code is the main normative act regulating labor relations in Ukraine. Article 44 of the Labor Code stipulates that when an employee is dismissed in connection with the termination of the authority of an official, he is paid severance pay in the amount of at least the average monthly salary.


Law of Ukraine "On service in local self-government bodies"
This law establishes the specifics of the legal status of local self-government officials, including their remuneration and social protection.In particular, Article 21 of the law specifies that severance pay shall be paid to local self-government officials dismissed in connection with the termination of their powers.


Explanation of the Supreme Court


Grounds for payment of severance pay
In its decisions, the Supreme Court emphasizes that the payment of severance pay to an official upon dismissal due to termination of authority is mandatory if there are relevant grounds. These grounds include:
End of term of office – when an official is dismissed due to the end of his term of office.
Premature termination of powers - when the powers of an official are terminated prematurely for various reasons, such as reorganization or liquidation of the body in which he worked. You may be interested in the following articles: lawyer's consultation, lawyer's consultation, document analysis, legal analysis of the situation, written consultation, document verification lawyer, lawyers documents, lawyer's help online, lawyer online, legal opinion, lawyer's legal opinion, lawyer online.

The amount of severance pay


The Supreme Court emphasizes that the amount of severance pay cannot be less than the average monthly salary of an official. At the same time, the specific amount of assistance may be increased in accordance with the terms of the labor contract or collective agreement, if such terms provide for more favorable conditions for the employee.


Payment procedure


The Supreme Court draws attention to the need to follow the procedure for payment of severance pay. The payment must be made on the day of the employee's dismissal.In the case of impossibility of payment on this day, it must be made no later than the next working day after the dismissed employee submits a claim for settlement.

 

Special cases


The court also considers cases where an official can be dismissed at his own will or by agreement of the parties. In such cases, the payment of severance pay depends on the conditions defined in the relevant agreements between the employee and the employer. If the agreement provides for the payment of severance pay, it must be carried out in the prescribed manner.

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