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Procedures for reducing staff and paying benefits

By foreseeing significant financial expenses for the weekend, Russian businessmen have submitted to the State Duma a proposal to limit their size to only the amount of a fixed allowance, reducing the cost of assistance for a two-month recruitment period. Ukrainian legislation does not oblige employers to support workers after a reduction, but without that this procedure is not pleasant.

The process of reorganization or liquidation of an enterprise is quite complicated and in each case is associated with optimization (partial reduction) or a complete reduction of staff. In order for this unpleasant procedure to be most painless for both parties, the employer should strictly adhere to the requirements of the law.

So, in the event of a decision to reorganize (liquidate), re-profile the company or change in the organization of work, an order (decree) on the reduction of the state should first be issued, stating its necessity.

Art. 494 of the Labor Code stipulates a number of cases requiring the employer to submit the necessary information to the union no later than 3 months after the relevant decision has been made (see “Normative accompaniment”). If the case does not concern the liquidation of a legal entity, it is necessary to avoid the need to submit such information to the union by issuing an order, for example, about changes in the organization of work or re-profiling, which entails a reduction of staff.

Normative accompaniment
According to Art. 494 Quotation:

“Liquidation, reorganization of enterprises, change of ownership or partial cessation of production, which results in a reduction in the number or staff of workers, deterioration of working conditions, may only be made after providing professional associations with information on this issue in advance, including information on the reasons for the subsequent dismissals, the number and the categories of workers it may concern, about the timing of the release. The owner or the body authorized by him shall, not later than three months from the date of the decision, consult with the trade unions on measures to prevent the release or minimization of their number or to mitigate the adverse effects of any dismissal.

Trade unions have the right to make proposals to the relevant authorities on the postponement of time periods or the temporary cessation or cancellation of measures related to the release of employees. ”

Development of action
The experts then advise to develop and approve by order the new staffing table (which will take effect only in 2 months), excluding the posts and staff units to be reduced (if it is not about liquidation of the enterprise).

If there is a trade union in the enterprise, then it will be necessary to obtain its prior consent for the reduction.

And only after that, 2 months before the planned dismissal, according to Art. 492 KozoTa it is necessary to warn workers falling under the reduction. True, in case of violation of this term, one can hardly fear the restoration of an employee in the former place, since there is no place at all. This is fraught only with superfluous expenses and an administrative fine for officials in the amount of up to 850 hryvnias (see details of paragraph 18, paragraph 19 of the resolution of the Plenum of the Supreme Court “On the practice of reviewing labor disputes” and “Opinion”).

According to theoreticians, “the law does not impose any severe sanctions for violating the established period of warning the employee of the subsequent release. On this basis, the Plenum of the Supreme Court of Ukraine does not allow the possibility of resuming a worker at work simply because he was not promptly warned about the subsequent release, and explains that failure to comply with the employee’s notice of release when he is not subject to renewal at work from others the grounds entail only a change in the date of dismissal by the court, taking into account the warning period during which he worked. “

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