What Payments Are Made Upon Liquidation Of An Enterprise

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What Payments Are Made Upon Liquidation Of An Enterprise
What Payments Are Made Upon Liquidation Of An Enterprise

Video: What Payments Are Made Upon Liquidation Of An Enterprise

Video: What Payments Are Made Upon Liquidation Of An Enterprise
Video: #1 Liquidation of Companies - Concept -By Saheb Academy - B.COM / BBA / CA INTER 2024, December
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Liquidation of an enterprise means a complete cessation of its economic and economic activities and entails the termination of employment contracts with employees. With them, according to the law, the company must pay off in the first place, and only then give the existing debts to the tax inspectorate, banks and other creditors. Therefore, dismissal at the initiative of the employer in this case is accompanied by compensation payments.

What payments are made upon liquidation of an enterprise
What payments are made upon liquidation of an enterprise

The procedure for notifying employees

In order for the employees of the liquidated enterprise to have the opportunity to start looking for a new job, the employer must notify them of the upcoming dismissal no later than 2 months in advance. The notification is made in any written form and the employee must sign for its receipt, indicating the date of familiarization. Employees who are on business trips must be recalled from them in order to also serve notice of dismissal against signature.

After a two-month period from the date of notification of employees, it is necessary to issue a dismissal order according to unified forms T-8 or T-8a and familiarize employees with their text against signature. After that, a corresponding entry on the termination of the employment contract is made in the work book of each employee. On the appointed day of dismissal, the employee must get his hands on a work book with this entry and all payments due to him under the law, established by article 140 of the Labor Code of the Russian Federation.

Payments due to employees upon liquidation of an enterprise

Upon dismissal, the employee must receive the salary due to him for the time actually worked before the date of dismissal. In addition, he is obliged to pay compensation for all unused vacations, including additional ones, if they were due to him. There is no statutory limitation on the number of unused vacations to be compensated or on the amount of compensation.

As additional compensation for early termination of the employment contract, if the employee leaves without waiting for the expiration of two months after the notice, the employer must pay an amount equal to the average earnings for the period remaining until the end of the notice of termination. She, according to Art. 180 of the Labor Code of the Russian Federation, is charged in proportion to the remaining time.

An employee who works full-time or part-time must also receive severance pay in the amount of the average monthly earnings and the amount in the amount of the average earnings, but not more than two months. Severance pay is deducted from this amount. In the event that a dismissed employee fails to get a job within two months after the dismissal, he can receive an average earnings for the third month. This payment will be made by the accounting department of the enterprise if the employee presents a certificate of this from the employment fund, where he must register for unemployment within two weeks after dismissal.

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