According to the current legislation, the company independently determines the number of employees. For reasons of economic, technological, structural or other nature, the manager at any time has the right to decide to change the staffing table and dismiss employees. Downsizings are now a common ground for termination of labor relations.
Mistakes made during downsizing and dismissal of employees can lead to such consequences as: the reinstatement of laid-off employees with the payment of their average wages, moral damages, inspections of the State Labor Service, the imposition of fines on the company and holding its officials accountable.
Conditions for downsizing and dismissal of employees:
- Not later than 3 months before the planned dismissals, provide the trade union (if any) with information on the planned downsizing or dismissal of employees, including the reasons for subsequent dismissals, the number and categories of employees to which this applies, the terms of dismissals. Within 15 days, the trade union considers the employer’s submission and gives permission for dismissal or justifies the reasons for not providing its consent.
- Approve the new staffing table. When downsizing, the preferential right to remain at work is given to employees with higher qualifications and labor productivity. In this case, in particular, the presence of an appropriate education of the employee, advanced training, encouragement of success in work, the amount of work performed, conscientious observance of the manager’s instructions, etc. can be taken into account.
- Personally inform employees about the next dismissal later than 2 months by familiarization with the order under the signature. At the same time, employees should be offered a transfer to another job in the company. It is characteristic that the legislation does not exclude from the period of warning the employee about the dismissal of his leave or temporary disability.
- Carry out the dismissal of employees not earlier than the expiration of two-month period. Upon termination of the labor contract due to downsizing, a severance pay is paid in the amount of not less than the average monthly salary.
Please note that the law prohibits the dismissal of pregnant women and women with children under three years of age, single mothers – if there is a child under the age of 14 or a disabled child.
VigoLex provides downsizing and dismissal consulting, having working experience with companies with a significant number of employees. Legal support by VigoLex professionals provides the company with:
- step-by-step instructions for downsizing and dismissal of employees;
- drafts of all documents necessary for the company;
- advising on any issues that arise during the downsizing procedure.