How To Pay Severance Pay On Layoffs

Table of contents:

How To Pay Severance Pay On Layoffs
How To Pay Severance Pay On Layoffs

Video: How To Pay Severance Pay On Layoffs

Video: How To Pay Severance Pay On Layoffs
Video: Job tips : How to negotiate SEVERANCE package | IT Layoffs 2021 | సాఫ్ట్ వేర్ లైఫ్ | telugu 2024, December
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In the event of staff reductions, laid-off employees are paid severance pay. This value is calculated depending on the size of the average earnings. Compensation is issued together with the due remuneration for the hours worked. The allowance is calculated within two months from the date of termination of the contract.

How to pay severance pay on layoffs
How to pay severance pay on layoffs

It is necessary

  • - payroll for the calculation period;
  • - production calendar;
  • - calculator;
  • - Labor Code of the Russian Federation;
  • - form of a note-calculation.

Instructions

Step 1

When your firm foresees layoffs, notify the employees who are to be removed from the company. Do this in writing two months before the cut. To do this, draw up notifications in duplicate for each specialist. Such actions are spelled out in the Labor Code of the Russian Federation and are subject to execution by employers. In case of violation of the law, the employee has the right to go to court, which can reinstate the employee in office.

Step 2

Before dismissal, calculate the amount of remuneration that is due to the employee for the actual hours worked and the work done. To do this, multiply the number of days worked by the amount of the salary, include allowances, bonuses and other due payments in the result.

Step 3

Calculate the severance pay. To do this, find the amount of the average daily earnings. Take the calendar year for the calculation period. When a specialist performs his labor function less than the specified period, take the period from the moment the employee enters work as the calculation period. Exclude sick days and vacation days from the calculation.

Step 4

Now calculate the amount of remuneration for the calculation period. Include salary, bonuses, allowances, that is, all payments that are of a permanent nature are due for the performance of duties. Do not take into account the amount of money that was paid in the form of material compensation, that is, those remuneration that are of a one-time nature. Exclude from the calculation social benefits, sick leave amounts, vacation pay.

Step 5

Divide the received amount of remuneration by the number of calendar days in the billing period. The result is average daily earnings. Severance pay is paid within two months from the date of termination of employment. Therefore, multiply the average earnings by the number of working days in the next two months. Issue the amount received along with the salary, having previously entered it in the calculation note.

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