Process of dismissal demands accounting of many details that the person who was left without work received everything to it relying. Attention the severance pay at dismissal as it is necessary not to all deserves and there are features concerning its calculation.
In what cases the severance pay is paid?
For a start it is worth understanding the term, so, the sum which is due to the worker at his dismissal is considered a severance pay. In the law it is specified that there have to be good reasons of loss by the person of his workplace and the order of the procedure has to be observed. It is important to understand that the severance pay can have the different size and everything depends on the bases for leaving.
Severance pay at redundancy
There is a variety of reasons because of which the person can be fired before the termination of its contract with the employer, to them refer also reduction. In the Labor code it is specified that money is paid in such sizes:
- Seasonal workers can count on two-week earnings.
- Workers who were employed for two months under the employment contract receive a severance pay at reduction, according to the sum specified in it. If there is no such document, then it is possible not to count on payments.
- Other categories of workers receive monthly earnings, but only if it cannot continue work as compensation and there is no opportunity to find to it other place.
- The severance pay at dismissal equated to average payment in 14 days is received by people who are fired in the presence of the concrete basis for this purpose.
Severance pay at dismissal by agreement of the parties
The head has to provide compensation if the contract is as agreed by the parties broken off because of such reasons: sendings to military service, impossibility of work because of deterioration in health, reduction, unwillingness to pass into other branch, closings of the organization, violation of the agreement from the administration and refusal of activity because of change of working conditions or salary.
- At dismissal of people receives: calculation of hours worked, compensation and leave allowance.
- The severance pay as agreed by the parties is defined by agreement of the parties, and at its absence the management itself determines the amount of payment.
Severance pay at liquidation of the organization
As the person loses work not on the fault, he can count on receiving compensation. Employees after reduction receive the put payment in the days fulfilled current month and for a holiday which was not used, and still a severance pay at elimination, at a rate of two salaries. Reduction of quantity of compensation money contradicts the legislation.
Severance pay at dismissal on disability
People who cannot carry out the duties because of disability can count on rendering financial support. The severance pay at dismissal for health reasons has to correspond to average earnings of the person in two weeks. Still the law does not forbid charge of other payments which are specified, for example, in the collective agreement or other acts. In the Labor code groups of persons to which payment of a severance pay at dismissal has to be made are described:
- the workers who lost working capacity (1 group is appointed);
- people whom other offered place of work did not suit;
- employees for whom heads cannot choose other work.
Severance pay at dismissal at own will
The person has an opportunity to refuse implementation of the employment contract. The reason for that can be different, and it does not matter for compensation. According to the law the payment of a severance pay when leaving is at own will not provided. The worker can count only on payments which charge is carried out by the general rule: a salary for hours worked, a vacation pay and if there is a grant according to the sick-list.
Severance pay at retirement
If the reason for leaving – a retirement age, then the person can receive a severance pay. It is worth noticing that these payments are not obligatory and are not provided by the labor law therefore the head himself defines, the employee of such help is worthy or not. The severance pay at retirement can be specified, for example, in the collective agreement. The sum will not be taxed if it does not exceed nine average monthly salaries.
How to calculate a severance pay at reduction?
According to the law the amount of compensation which the person receives at going away from work depends on the average salary for a certain settlement period. It is accepted to take the year preceding dismissal of the employee for it. Calculation of a severance pay is carried out according to such scheme: the sum = average earnings * days of work in a month. For determination of the monthly sum the total annual salary and number of the actual days of work is calculated. Understanding how to calculate a severance pay, it is worth specifying and a row governed:
- Compensation is charged only for days of work of term of its delivery, that is month or two weeks.
- Total amount of salary in a year does not include the sick-list, compensation for a holiday, grants and other payments.
- The kind of compensation in no way does not influence calculation of a grant.
- The settlement period considers month in which there is a dismissal if this day coincides with the last day of work of month. If this day not the last in a month, then it is not included into the calculation period.
- From compensation insurance charges cannot keep. The employer can transfer a certain amount in the Social Insurance Fund, for example, of assignment from awards.
- The severance pay at dismissal can be the sum with which alimony will keep. Assignments can make up to 70%.
Terms of payment of a severance pay
In the legislation the following information concerning time of receiving compensation is specified:
- Workers who leave work have the right to all payments in day of dismissal.
- If the person this day did not work, then the put sum to him has to be given not later than the next day, after presentation of requirements about carrying out calculation.
- Finding out when the severance pay at dismissal is paid, It should be noted that the worker has to receive in advance surely the written notice of charge of the sum if something happens to specify its size.
- If there is a delay in payment on time, except for existence of disputes over a sum size occasion, then the management has to compensate delay time at a rate of an average salary.
- The severance pay at dismissal can be paid up to three months if the reason of leaving consists in reduction or closing of the organization.
Whether the personal income tax a severance pay is assessed at dismissal?
Not always from the sum paid to the person at dismissal the tax is subtracted. To understand whether the severance pay of a personal income tax is assessed, it is necessary to address the Tax Code where it is described in what cases the tax will be taken away also other nuances:
- Deduction happens if the sum of compensation is higher, than three salaries. If the situation concerns residents of Far North, then the sum should not be more than six average salaries.
- If the employer personally appointed additional compensations, then from them taxes are withdrawn.
- When the sum of a severance pay at dismissal does not allow, under no circumstances taxes do not keep.