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Dismissal due to reduction of position or staff.

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Kaploukh Victoria
Kaploukh Victoria
Attorney
Ukraine / Kharkiv

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Publication date: 03.06.2024

Dismissal in connection with the reduction of the position or staff is regulated by the legislation of Ukraine, in particular the Code of Labor Laws of Ukraine (Labor Code of Ukraine). Here are the main steps and requirements for this process:

 

  1. 1. Notification of the employee.
    • Notification: The employee must be notified in writing of the dismissal at least two months before the planned dismissal (Article 49-2 of the Labor Code of Ukraine).
    • Form of notice: The notice must be in writing and given to the employee for signature.

    2. Offer of another job.
    • Job offer: The employer is obliged to offer the employee another job at the same enterprise, if there is one (Article 49-2 of the Labor Code of Ukraine).
    • Transfer to another job: If the employee agrees to another position, a corresponding transfer order is drawn up.

    3. Informing the trade union.
    • Trade union: If the employee is a member of a trade union, the employer is obliged to notify the trade union organization of the upcoming dismissal and obtain its consent (Article 43 of the Labor Code of Ukraine).

    4. Fulfillment of guarantees.
    • Payments: The employee must be paid severance pay in an amount not less than the average monthly earnings (Article 44 of the Labor Code of Ukraine).
    • Compensation: Additional compensation and benefits may also be provided in accordance with the collective agreement or employment contract.

    5. Registration of dismissal.
    • Dismissal order: A dismissal order is drawn up, which indicates the reason for dismissal - reduction of staff or position.
    • Making an entry in the labor book: In the labor book of the employee, an entry is made about the dismissal with an indication of the reason.

    6. Registration at the labor exchange.
    • Employment Center: After dismissal, the employee has the right to register at the Employment Center to receive unemployment benefits and find a new job.

    7. Notification of social security authorities.
    • Social protection: The employee can contact the social protection authorities for information about possible social benefits and support.

 

Illegal dismissal lawyer / legal advice dismissal - Compliance with all these stages is important for the legal dismissal of an employee due to a reduction in position or staff.

 

The employer's action algorithm when dismissing an employee in connection with the reduction of a position or staff includes several consecutive steps, each of which is important for compliance with the law. Here is a detailed algorithm of the employer's actions:

 

  1. 1. Making a decision on reduction.
    Analysis of the need for reduction: Determine the reasons for reducing staff or positions.
    Management decision: Get the appropriate decision from the company's management.

    2. Internal design.
    Retrenchment Order: Issuance of an internal retrenchment or position order that lists the positions to be cut.

    3. Informing the trade union (if available).
    Notification of the trade union: Two months before the dismissal, inform the trade union organization about the planned reduction (Article 43 of the Labor Code of Ukraine).
    Obtaining consent: Obtain union consent to lay off workers.

    4. Notification of employees.
    Written notice: Give employees at least two months' notice of layoffs. The notification must be in writing and signed (Article 49-2 of the Labor Code of Ukraine).
    Offer another job: If there is an opportunity, offer the employee another position in the company.

    5. Preparation of documentation.
    Dismissal order: Prepare a dismissal order for each employee, which indicates the reason for dismissal - reduction of staff or position.
    Entering an entry in the labor book: Enter the relevant record of dismissal in the employee's labor book.

    6. Financial calculations.
    Payment of severance pay: Pay the employee severance pay in an amount not less than the average monthly earnings (Article 44 of the Labor Code of Ukraine).
    Calculation of other payments: Perform all other necessary calculations with the employee (unpaid salary, compensation for unused vacation, etc.).

    7. Informing state bodies.Employment Center: Notify the local Employment Center of planned layoffs.

    8. Employee support.
    Counseling: Provide counseling to laid-off workers regarding employment opportunities and unemployment benefits.
    Documentation: Provide all necessary documents (certificate of income, work book, etc.).

    9. Completion of the process.
    Handing over documents: Hand over the work book and other documents to the employee on the last working day.
    Final Settlement: Make a final settlement with the employee.

 

Illegal dismissal lawyer / legal advice on dismissal - Following these steps will allow the employer to correctly and legally carry out the dismissal procedure in connection with the reduction of the position or staff, minimizing the risks of labor disputes and claims from employees.

 

The preferential right to stay at work in the event of a reduction in staff or positions is really determined by the qualifications and productivity of the employees. Here is the detailed procedure for determining the priority right:

 

  1. 1. Qualification and labor productivity.
    Qualification assessment: Compare the qualifications of the employees subject to layoff. This may include their education, professional experience, special skills and knowledge, certifications, etc.
    Performance Evaluation: Evaluate the performance of employees, which may include the results of their work, execution of plans, quality of tasks performed, quantity of products produced or services provided, etc.

    2. Preferential right to stay at work.
    If the qualifications and labor productivity of employees are equal, then preference is given to those employees who have the right to remain at work in accordance with Art. 42 of the Labor Code of Ukraine (Labor Code of Ukraine):
    Marital status: Preference is given to employees who have two or more dependents (eg minor children, disabled parents, etc.).
    Family Disability: Preference is given to employees who are sole breadwinners or dependent family members with disabilities.
    Long work experience: Preference is given to employees with long work experience at this company.
    Other social factors: Preference may be given to other categories of employees defined by legislation, a collective agreement or internal regulations of the enterprise.

    3. Special categories of employees.
    There are also categories of employees who have additional guarantees regarding the preservation of jobs in the event of layoffs:
    Union workers: Union committee members may have additional guarantees.Employees who are on vacation or on sick leave: Dismissal of such employees is not allowed during vacation or temporary incapacity (Article 40 of the Labor Code of Ukraine).
    Women with children under 3 years of age: Dismissal of women who have children under 3 years of age is not allowed (Article 184 of the Labor Code of Ukraine).

    4. Registration of results.
    Documentation: Form the results of the analysis and comparison of the qualifications and labor productivity of employees, as well as the preferential right to leave at work. These can be internal acts, minutes of meetings, recommendations of commissions, etc.
    Termination decisions: Based on the analysis, make decisions about specific employees to be retained or fired.

 

Reinstatement lawyer - Compliance with this procedure will allow the employer to reasonably and fairly determine which employees have a preferential right to remain at work in the event of a reduction in staff or positions.

 

 

 

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