Economic instability in the country is again forcing employers to cut their staff. This method of terminating an employment contract is one of the most difficult, both in terms of execution and from the emotional side. Retrenchment is unpleasant not only for employees, but also for the employer himself.
The main processes of the reduction procedure are prescribed in labor legislation, the subtleties are in industry-specific local acts. If the industry agreement does not classify layoffs into mass and individual, then one should be guided by the norms of Part 1 of Article 82 of the Labor Code and the Regulations on the organization of work to promote employment in conditions of mass layoffs.
Mass reduction - how many people are to be laid off? Official figures:
- 50 or more employees were fired in 1 month;
- 200 employees were fired within 2 months;
- reduced from 500 people in 3 months.
Also, for regions where the total population does not exceed 5 thousand people, a massive reduction is considered to be the release of 1% of employees at one enterprise in 30 days.
Why does the employer take such measures?
The legislation does not provide for the employer’s obligation to explain the reasons for the layoff, especially if everything happens within the framework of the law. Although the reasons are usually clear: a decline in production, inefficiency of top management, automation of production processes.
Thus, the reason for the massive layoffs of doctors in Moscow was optimization measures in the field of healthcare. It is too early to talk about the effectiveness of such measures, but many people were left without a livelihood, while having a noble and in-demand profession.
Responsibility for failure to notify
If the head of an organization ignores the requirement of the current legislation on the need to inform employees of a trade union organization or central organization about layoffs, then he may be brought to administrative responsibility in accordance with Art. 5.27 Code of Administrative Offenses of Russia. In this situation, a fine of 5 thousand rubles may be imposed. for individual entrepreneurs and 50 tr. for the enterprise. The amount of the fine increases several times if the regulatory authority records a repeated violation of the current legislation. In addition, in court, the dismissal can be declared invalid, which will allow the employee to be reinstated in his position and receive compensation in the amount of earnings for all the days he missed due to the fault of the head of the organization.
The procedure for reducing the number of employees requires strict compliance with the standards provided for by current legislation. Among other things, the manager is obliged to notify the trade union organization and the Central Workers' Office about the upcoming layoff in advance. In this case, it is necessary to comply with all deadlines, which may vary depending on the number of employees being dismissed. Otherwise, the employer may be held accountable, followed by a fine.
Order of reduction. Creation of a reduction commission
Despite the fact that this stage is not provided for by any legislative act, judicial practice suggests that it is better to make such decisions collectively, rather than individually by the director. The commission will decide how justified the mass reduction is, how many people it is and from which divisions and departments.
It is at this stage that the number of persons from the category not subject to reduction should be determined. It is also a good idea to create a comparison table to identify employees who are more qualified and therefore have priority to remain on the job. The defining criteria may be:
- work experience;
— absence of defects and violations for a certain period of time;
— the employee’s personal contribution to the development of the enterprise.
Assessment can be carried out not only within a certain category of positions, but also between positions with different titles, but with a similar range of responsibilities. The result of the commission’s work should be a protocol with a list of employees to be laid off.
Union Notice
Independent development of a notification form for coordination with the trade union of staff reductions does not give the employer absolute freedom in terms of presenting the text of the document. This is still an official document, so it should contain:
- Established data of the enterprise and trade union;
- The essence, translated into official language;
- Availability of appropriate attributes, including stamps, signatures and seals.
In order to avoid mistakes when filling out a sample union notification for staff reduction, the sample must be optimized for the characteristics of the enterprise and the specific reason for the reduction. This will ensure that all relevant paperwork is completed correctly and will make the job of the recruiting service easier.
First, a preamble must be written. It should be said that, in accordance with Article 82, Part 1 of the Labor Code, the trade union committee of the enterprise is informed that from such and such a date, due to optimization, a decrease in wages, production volumes and other reasons, a decision is made to reduce staff.
Next, you need to report in detail about the reduction procedure, namely the number of workers being dismissed and what will happen to them in the future. All this is transferred in a certain order to the employment service.
Before the adoption of changes to labor legislation, after sending information to the relevant authorities, approvals followed between trade union bodies and the employer. Now the notification is sent to the trade union committee, which will be able to express its own opinion on the proposed project and on the merits of the issue.
The notice sent should indicate that, in accordance with Article 373 of the Labor Code, the trade union is required to provide a detailed opinion on the draft termination of the employment contract with these employees.
Notifying a union of changes in staffing levels is a lengthy and labor-intensive procedure. It is necessary to draw up a notification in detail and in accordance with the law and avoid errors or inaccuracies. Because the procedure will have to be canceled and started again. That is why dismissal of an employee with notification to trade union organizations is rarely used.
Consider all possible risks when drawing up an application and making certain additions to it. And remember: everything must be done according to the law and within the framework of respecting the rights of an employee of the enterprise!
In writing, no later than two months before dismissal, the employer must inform the trade union, as well as the employment service, about the reduction in the number or staff of employees (Article 82 of the Labor Code of the Russian Federation, paragraph 2 of Article 25 of the Law of the Russian Federation of April 19, 1991 No. 1032- 1 “On employment in the Russian Federation”). If the decision to downsize could lead to mass layoffs, this must be done no later than three months in advance.
The notification sent to the trade union indicates the full names of the workers subject to layoffs, as well as the names of their professions, positions or specialties.
When contacting the employment service, you should indicate the position, profession, specialty and qualification requirements for each of the laid-off workers and the terms of payment for their labor.
Each notice must be accompanied by:
- a copy of the order to reduce the number (staff) of the organization’s employees;
- draft order on the dismissal of employees of the organization;
- draft organization staffing table.
We invite you to read: Sample letter of resignation from the police
Offer another job
After serving the notice or at the same time, the employer is obliged to offer employees another job if it is vacant. Whether it is a massive layoff of doctors or other specialists, vacancies can be offered that do not even correspond to the qualifications of the employee being laid off, with lower pay.
If vacancies were offered along with a layoff notice, and the employee does not want to change his profession, then he must write on the notice that he refuses the offered vacancies.
If there are no vacancies, the employer is also recommended to draw up a corresponding document about this and familiarize all released personnel with signature. Naturally, the staffing table must confirm the fact that there are no vacancies.
Important points
Since a message to various services about the layoff of an employee is considered an official document, it requires meticulous and careful drafting, taking into account all the nuances. After all, any error, inaccuracy in terminology or wording can lead to the fact that the notification will be immediately challenged, and the launched procedure will have to be cancelled.
Since labor legislation establishes strict time frames for each ongoing stage, possible violations at all stages can lead to a violation and a return to the beginning of the preparatory procedures.
Dismissal stage
Mass layoffs mean issuing an order to terminate the employment contract with each employee. Naturally, with the huge size of the enterprise, a large burden falls on the personnel department, but there is no other option. You will also have to make entries in the work books of those employees who are resigning, that is, carry out a full dismissal procedure with each laid-off employee.
If an employee does not want to receive a work book, or is absent from work on the day of dismissal, then on the same day he must be sent by mail with a notification requesting that he come to the enterprise to receive a work book. In case of illness of an employee, the date of dismissal is postponed to the moment when the employee returns to work with a sick leave certificate in hand.
Staff reduction procedure
All responsibility for the correct implementation of this procedure lies entirely with the administration of the enterprise. The redundant employee can take advantage of the mistake and go to court. In most cases, court decisions are made in favor of the plaintiff, so management must carefully consider the procedure at all stages.
There are two reasons for this process:
- Staff reduction is a change in staffing (some positions are eliminated).
- Downsizing is a reduction in the number of employees within one position.
The sequence of these procedures is practically no different from each other. The only difference is that when the number of employees decreases, employees eligible for dismissal are selected; otherwise, the actions of the administration come down to the same algorithm.
The following points regarding notifications are extremely important:
- Issuing an order and a new staffing table.
- Identification of employees who are not subject to layoffs under labor laws and classification selection.
- Notification of employees subject to layoffs.
- Introduce them to vacant positions, if any.
- Informing the professional committee and the employment center.
- Direct dismissal procedure.
https://youtu.be/2CPY5C-PYPs
Carrying out calculations
Both single and massive reductions in the number of employees require the payment of additional compensation, namely:
— payments for the last month of work, including all allowances and bonuses;
— payment for each day of ungranted leave;
- benefits in the amount of average monthly payment.
It should be remembered that failure to pay all compensation on the day of dismissal or the next day entails payment of interest in the amount of at least 1/150 of the key rate in effect at that time for each day of delay.
We notify the trade union about the layoff of employees (sample)
Notify all employees subject to dismissal due to staff reduction, against signature, by 09/30/2020.
In general, there is no difference in the regulation of the dismissal of one worker or the liquidation of an entire staff.
The only procedural feature is that the employer must send the draft order to the trade union 3 months in advance, not 2.
If an organization is affiliated with a trade union, then when resolving a number of issues it must take into account its opinion. The trade union represents the interests of the company's workers through its elected body. As a rule, such a body is a committee.
- Dismissal of an employee belonging to 2 trade unions in a situation where one trade union agrees with the dismissal, and the second did not respond to the employer’s request (appeal ruling of the St. Petersburg City Court dated No. 33-13571/2013).
- Dismissal of an employee who is a member of 2 trade unions in a situation where the employer requested the opinion of only one of them, since he was not notified by the employee that he is a member of another trade union (appeal ruling of the Moscow City Court from case No. 11-42107).
The procedure for the performance of their duties by members of the trade union committee allows them to simultaneously take into account the requests of employers and employees.
The deadline for submitting a paper on reducing the number of employees of a company should not be less than 2 months. before the date of termination of the staffing table, dismissal of a specialist (Article 81 of the Labor Code).
Possible payments if reduced staff were unable to find employment
With a massive layoff, no matter how many people there are, almost everyone registers with the Employment Center in order to receive at least some social guarantees and the opportunity to find a job.
If within 1 month from the date of layoff and registration with the Employment Center, the employee was unable to find a new job, then he has the right to present a certificate of incapacity for payment to the former employer. Unemployed personnel can also count on receiving an average monthly salary from the former enterprise for 2 months from the date of layoff. Naturally, such payments will be reduced by the amount of social unemployment benefits received.
To receive payment, a former employee can contact the employer with a written application and a work record book, which confirms that he is not employed. In some cases, the opportunity to receive wages remains with the unemployed for 3 months from the date of mass layoff:
- subject to contacting the employment center no later than the end of a two-week period after the date of reduction;
— The employment center was unable to employ an unemployed person for 3 months;
— the unemployed person must receive an appropriate decision from the employment agency where he is registered.
The employee must take an interest in his rights; for example, the collective agreement often stipulates increased compensation in the event of a massive staff reduction. Therefore, before employment, you should not formally study such a document.
What documents and in what time frame must be completed?
But often these events are carried out simultaneously, then everything is combined in one order. With the same order, it makes sense to approve a commission from among the organization’s employees that will deal with:
- compiling a list of employees to be laid off;
- selection of vacancies for those being laid off;
- giving them notices of the upcoming layoff.
https://youtu.be/Nb5R4jNshbQ
Here is a sample of such an order.
Limited Liability Company "Rassvet"
ORDER No. 11
On changing the staffing table and reducing the number of employees
Due to the closure of the store at the address: 1st Pryadilnaya Street, 3,
I ORDER:
1. Make changes to the staffing table dated 01.02.2010, excluding the following staff positions from it: - merchandiser - 1 unit; — marketing specialist — 1 unit.
2. Reduce the number of employees in the following positions: — sales manager — by 1 unit; - seller - for 2 units.
3. Changes to the staffing table dated 02/01/2010 come into force on 06/01/2013.
4. To carry out measures to reduce the staff and number of employees, form a commission consisting of: - chairman of the commission I.N. Belousova - HR inspector; — members of the commission: — O.I. Vasilyeva - accountant; — I.I. Kovaleva - sales manager.
5. Instruct the commission to: - prepare a list of employees to be laid off; — prepare notifications for the territorial employment authority about the upcoming reduction; — prepare proposals for providing redundant employees with other work, taking into account available vacancies; — notify employees of the upcoming termination of employment contracts and the rights and guarantees provided to them in connection with this.
6. Entrust control over the implementation of this order to the chairman of the commission I.N. Belousov.
CEO | A.I. Ponomarev |
You must notify the employment authority about the layoff, even if you are laying off just one employee. The notice must be sent before the expected date of dismissal of employees. 82 Labor Code of the Russian Federation; clause 2 art. 25 of the Law of April 19, 1991 No. 1032-1:
There is no approved form of notification. You can compose it like this.
Limited Liability Company "Rassvet"
129111, Moscow, st.
Khalturinskaya, 11, building 1, tel.: 1111111 Head of the Employment Center of the Eastern Administrative District of Moscow
Ref. No. 18 from 03/27/2013
NOTIFICATION
We hereby inform you of the dismissal on 05/31/2013 on the grounds provided for in clause 2, part 1, art. 81 of the Labor Code of the Russian Federation (reduction in the number or staff of employees), the following employees of Rassvet LLC:
Order number | Full Name | Education | Position (profession, specialty) | Conditions of remuneration (salary), rub. |
1 | Abramova Olga Nikolaevna | Secondary vocational | Salesman | 15 000 |
2 | Ivanova Polina Ivanovna | Secondary vocational | Salesman | 15 000 |
3 | Kirillova Galina Petrovna | Higher professional | Commodity expert | 30 000 |
4 | Kiyanova Tatyana Viktorovna | Higher professional | Marketer | 25 000 |
5 | Smirnov Alexander Sergeevich | Higher professional | Sales Manager | 28 000 |
Reason: order dated March 25, 2013 No. 11
CEO | A.I. Ponomarev |
M.P. | |
The employer is obliged to offer vacancies in other localities only if this is provided for by agreements, collective or labor agreement. 81 Labor Code of the Russian Federation.
If suitable vacancies appear in the period from the day the employee is warned until the day of his dismissal, then they also need to be offered to him.
The notice of the upcoming layoff must be drawn up in two copies, one of which is given to the employee, and the other with his signature on receipt of the notice is kept in the employee’s personal file.
We invite you to familiarize yourself with the ban on recalculating the MTS credit limit
Limited Liability Company "Rassvet"
To the seller Abramova Olga Nikolaevna
NOTIFICATION
29.03.2013
Dear Olga Nikolaevna,
in accordance with Art. 180 of the Labor Code of the Russian Federation, we notify you that in connection with the ongoing reduction in the number of employees on the basis of the order of the General Director of Rassvet LLC dated March 25, 2013 No. 11 “On changing the staffing table and reducing the number of employees,” the staff unit you occupy as a salesperson is subject to reduction from 06/01/2013.
We offer you a transfer to another job as a storekeeper with a salary of 10,000 rubles. There are currently no other suitable vacancies in our organization. We inform you that if you refuse to be transferred to the job of a storekeeper offered to you, as well as if you refuse to be transferred to other vacant positions (jobs) that will be offered to you, if available, in the period until May 31, 2013, taking into account your qualifications and health status, the employment contract with you will be terminated on May 31, 2013 under clause 2, part 1, art. 81 of the Labor Code of the Russian Federation (reduction in the number or staff of an organization’s employees).
Upon dismissal in accordance with clause 2 of Art. 81 of the Labor Code of the Russian Federation, you will be paid severance pay in the amount of average monthly earnings, and your average monthly earnings will be retained for the period of employment in accordance with Art. 178 of the Labor Code of the Russian Federation, but not more than 2 months from the date of dismissal (including severance pay). During the 3rd month from the date of dismissal, the average salary will be paid by decision of the employment service body, provided that within two weeks after dismissal you contact this body and are not employed by it.
CEO | A.I. Ponomarev |
One copy of notification received | If the employee refused to sign for receipt of the notice on your copy, then you need to draw up a report about this in the presence of at least two disinterested witnesses (signature) | HE. Abramova |
March 29, 2013
With the employee’s consent to the translation of Articles 66, 72, 72.1 of the Labor Code of the Russian Federation; clause 4 of the Rules, approved. Government Decree No. 225 dated April 16, 2003:
- draw up an additional agreement to his employment contract on transfer to another permanent job;
- issue an order to transfer the employee to another job. You can take the unified form No. T-5 or T-5a as a basis;
- make an entry about the transfer in the employee’s work book;
- reflect information about the transfer in the “Hiring and transfers to another job” section of the employee’s personal card, where he must sign.
If at the time of delivery of the notice to the employee there are no suitable vacancies in the organization, then instead of a proposal for transfer, the notice shall indicate the following.
We inform you that there are currently no vacant positions at Rassvet LLC that correspond to your qualifications, and lower-paid positions for which you can perform work taking into account your qualifications and health status. If such vacancies appear in the Company during the period until May 31, 2013, they will be offered to you in writing.
If the employee does not object, then the employment contract with him can be terminated before the expiration of the notice period for dismissal with the payment of additional compensation. 180 Labor Code of the Russian Federation.
You can draw up an agreement like this.
Agreement on termination of an employment contract before the expiration of the notice period for dismissal due to a reduction in the number of employees
Limited Liability Company "Rassvet", hereinafter referred to as the "Employer", represented by General Director Alexey Ivanovich Ponomarev, acting on the basis of the Charter, on the one hand, and Polina Ivanovna Ivanova, holding the position of seller, hereinafter referred to as "Employee", on the other The parties have entered into an agreement as follows.
In connection with the ongoing reduction in the number and staff of employees (order of the General Director of Rassvet LLC dated March 25, 2013 No. 11), the staff position occupied by the Employee as a salesperson is subject to reduction from June 1, 2013, of which the Employee was notified in writing against signature on March 29, 2013.
The parties agreed to terminate on 04/01/2013 the employment contract between the Employer and the Employee dated 03/01/2010 No. 10 TD.
Upon dismissal in accordance with clause 2, part 1, art. 81 of the Labor Code of the Russian Federation The employee will be paid severance pay in the amount of average monthly earnings, and the average monthly earnings will be retained for the period of employment in accordance with Art. 178 of the Labor Code of the Russian Federation, and additional compensation was paid for dismissal before the expiration of the notice period for dismissal in the amount of two average monthly earnings (Article 180 of the Labor Code of the Russian Federation).
We invite you to familiarize yourself with the Notice of transfer of debt under an assignment agreement
CEO | A.I. Ponomarev |
Salesman | P.I. Ivanova |
Practical questions
Often employees do not understand what a mass layoff is, how many people should be laid off and for how long. The employer takes advantage of this and can simply get rid of “unnecessary” personnel. Simply put, over time, recruit the same number of people, but at a lower salary. This is confirmed by court cases where employees won. There were cases when laid-off employees were able to prove that their position was not actually reduced, since after the dismissal the number of staff positions did not change, which was confirmed by an inspection by the labor inspectorate. After the massive layoffs of doctors, there will probably be more than one trial, and, most likely, on the basis that an incorrect assessment of labor productivity was carried out and on other grounds.