Severance pay

Dismissal from work, even it occurs at your initiative, it is always stressful. It is necessary to have time to close current issues, transfer duties, tighten tails. And once again look into the labor code and the collective agreement to estimate the size of the severance pay. Although the definition of the severance pay for retirement, as well as the payment itself is the accounting department, it is not superfluous to recall your rights.

The amount and terms of payment of severance pay

For starters, let's see what the termination allowance means, in principle. Dismissal is the termination (for various reasons) of the employment relationship between the employer and the employee. And severance pay is a sum of money determined either by the Labor Code of the Russian Federation, or by a collective agreement, as well as by other agreements concluded when applying for a job. At the same time, the minimum amount of severance pay is determined in the Labor Code and other legislative acts that regulate a specific field of activity. If you have a collective agreement, it can not specify an amount that is lower than the statutory rate. An severance pay is paid when the employee comes on the last day of work, called the day of dismissal.

It is logical that the severance pay depends on the reasons for the termination of the employee.

1. In the amount of a monthly average salary:

• liquidation of the enterprise or reduction of staff of employees (article 81, item 1, point 2 of the LC RF). If the company you worked for was liquidated, or if you were dismissed for reduction, the organization must pay the allowance in the amount of the average salary. In addition, next month (and sometimes - in the third, if you have documents from the employment service), you also receive cash payments, provided that you are still in search of a new job (period of employment). The employee of state institutions in this case receives cash payments within three months (not counting the severance pay). Important point: if you are on a childcare leave for a child who is not yet 18 months of age, in this case you are also entitled to payments;
• if the employment contract is terminated in connection with the violation of the rules established in it, which deprives the employee of the opportunity to continue his labor activity through no fault of his own.

2. In the amount of a two-week average salary:

• the call of an employee to the army or to an alternative service (Article 83, paragraph 1);
• reinstatement of a previously employed employee (Article 83, item 2);
• a state of health that does not allow the employee to cope with work (art. 81, item 3, subparagraph "a");
• impossibility of continuation of labor relations due to relocation of the enterprise (Article 77, item 9);
• dismissal during seasonal work (st.296).

In all these cases, the employee is entitled to a two-week severance pay.

How is the average monthly salary calculated and what is included in severance pay?

In order to calculate the amount to be paid as severance pay, it is necessary to add up all the money (including bonuses and funds received as a result of piece-rate payment, as well as salaries paid not in cash) and divide by the number of months. Important: severance pay is not subject to taxation, including personal income tax.

Separately it is necessary to say about a lump sum when dismissing military persons. A lump sum is paid on dismissal due to a state of health or in connection with the attainment of the age limit for being in the service. Its size depends on the total duration of military service:

• up to 10 years - at a rate of five salaries of the monetary maintenance;
• from 10 to 15 years - in the amount of ten salaries;
• from 15 to 20 - in the amount of fifteen salaries;
• more than 20 - in the amount of twenty salaries.

In unscrupulous companies, it often happens that the manager asks to write a statement of his own free will, but if the reason for leaving work is one of the above, you should refuse him a request. Dismissal at own will exempts the company from payment of severance pay. In addition, benefits are not paid to those who were not transferred to the staff of the company or violated the provisions of the Labor Code.