Payments upon termination

The labor legislation defines the list of the moments in which the employer is simply obliged to pay the severance pay, if the employment contract is terminated. For example, it can be a benefit in the reduction of staff or the number of employees, in the liquidation of a company and other such cases. At the same time, the Labor Code provides for other types of payment in case of dismissal in a collective or employment contract.

Sometimes the firm agrees to pay an additional one-time compensation to the employee upon dismissal, and its amount is established in the agreement on the termination of the contract of employment. This type of payment is not provided for in the list of mandatory labor laws, either in the collective agreement or in the employment contract. The courts are of the opinion that an agreement on termination of a treaty can not be a part of it. It does not regulate the relationship relating to the performance of the employee's direct functions. In this case, it is impossible to reduce the base of the profit tax on the amount of compensation to the employee upon dismissal. But the company has the possibility of concluding an additional agreement with the employee, which will provide for the payment of vacation pay on termination upon termination of the agreement on mutuality of the agreement of the parties.

The tax authorities and the Ministry of Finance in their letters explained that costs in the form of severance payments can be taken into account as expenses that allow reducing the base for income tax. Such dismissal payments should be provided for by the labor or collective agreement itself, or by an additional agreement to the contract. The text of this agreement should provide an indication that it is an integral part of the main contract, otherwise tax authorities can challenge the accounting of costs associated with the payment of this compensation.

The calculation of the payoff on dismissal is not particularly difficult, since it requires only a couple of indicators to be multiplied: the average salary for the day with the number of unused days on vacation. Calculate the average salary for the day can be, if you use the data on the actual payment for three months worked, it needs to be divided by the number of days that were actually worked out.

Now it is necessary to understand with what number of days it is necessary to count? It is worth remembering that compensation must be paid in any case, that is, it does not depend on who initiated the dismissal. For those who have worked less than 15 days, you do not need to count it, for everyone else - it is necessary. The full 28 days of leave will be paid to those who have worked for at least 11 months, that is, a calendar year, if counted along with the vacation. If it is a question of a lesser amount of time worked, then it is necessary to calculate the vacation in proportion to the time that was worked out.

Payment of wages upon dismissal

In the event of the termination of the employment contract, each employee has the right to choose: to get compensation for leave or to indulge it. If an employee chooses to indulge in it, he will be paid only wages, and if he chooses compensation, in addition to the paid remuneration of labor, the payment for unused vacation will be added. There is a certain set of situations that have already been regulated by judicial practice and regulations, that is, there should not be disputes on these issues.

For employees who do not use additional leave for the working year, a cash payment is expected to be paid. In the presence of holidays for several years, all of them should be compensated. In case of dismissal of an employee during the trial period or in the case when he worked less than six months, he must be compensated, the amount of which is proportional to the number of days of vacation.

Now you know what payments can be made upon dismissal.