Dismissal upon liquidation in Belarus

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  1. Three options for dismissal upon liquidation
  2. The best option (by agreement of the parties)
  3. Wait-and-see option (expiration)
  4. Legal option (during liquidation)

 Documenting: 

  1. Employee notice of dismissal
  2. Social Security Notice
  3. Trade union notice (if any)
  4. Replacing a warning with compensation
  5. Further steps for dismissal

Three options for dismissal upon liquidation 

As practice shows, the issue of termination of labor relations between the company and its employees should not be postponed indefinitely. The sooner you fire workers, the lower your salary costs.

You can start dismissing employees both before the decision on liquidation is made (however, only options "1" and "2" described below are applicable here), and during liquidation procedures (all three options are possible). If necessary, employees can carry out their labor activities during the liquidation procedures.

  1. The best option.

The ideal option for the employer is a situation when the employee is explained that the founder has made a decision to close the business for one reason or another, and the employee will understand this and agree to terminate the employment contract (contract) by agreement of the parties (Article 37 of the Labor Code of the Republic of Belarus - hereinafter TC). Upon termination of an employment contract (contract) by agreement of the parties, in the wording of the dismissal entry in the employer's order of dismissal, as well as the employee's work book, a reference to clause 1 of Part 2 of Article 35 of the Labor Code must be made.

More information about dismissal by agreement of the parties can be found in our respective instructions, it also contains all the necessary documents for this dismissal option. 

  1. "Expectant" option.

If you have a contract with an employee, and the employee refuses to terminate it by agreement of the parties, you can take the path of less resistance and just wait for the expiration of the contract, and then not renew it.

This option is good when the contract with the employee is about to expire.

Otherwise, if the employer is not ready to wait and does not want to delay the liquidation of the company, you can resort to the "legal" option.

You can read more about dismissal due to the expiration of the employment contract (contract). here, right there and all the necessary documents.

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  1. "Legal" option.

Let's make a reservation right away that all of the listed options are legal. We named the third option so because it is provided for by law specifically for the case of the liquidation of an organization. This option is the most correct from the point of view of observing the rights and interests of the employee, but not the most profitable for the employer, because provides for the payment of certain compensations to employees for early termination of employment.

The fact is that paragraph 1 of Article 42 of the Labor Code provides for the right of the employer to terminate the employment agreement (contract) with the employee in the event of the liquidation of the organization, but certain conditions must be met.

The employer is obliged to notify the employee in writing about the upcoming dismissal at least 2 months before dismissal. In practice, the employee is familiarized with the notice of dismissal, which the employee signs, thereby confirming the fact of familiarization.

Before the expiry of the warning period, the dismissal of the employee without his consent is not allowed, the employer provides the employee for the specified period with one free day a week (without saving salary) to look for work. But in order to speed up the dismissal, the employer has the opportunity, with the consent of the employee, to replace the warning about the upcoming dismissal with monetary compensation in the amount of two months' average earnings.

Next, the employer issues an order to dismiss the employee in connection with the liquidation of the organization.

On the day of dismissal of the employee, the employer makes a full payment with him.

In addition to the salary and other payments due to the employee, it is important not to forget about the severance pay, which is paid to the employee in the event of dismissal due to liquidation. The size of the severance pay is at least three times the average monthly salary.

As you can see, it is the size of the severance pay for an employee dismissed in connection with liquidation that makes the third ("legal") option the most expensive for an employer. However, it provides an opportunity to early dismiss an employee, even if the employee is against.

Below is an instruction on how to dismiss an employee for this particular dismissal option.

Documenting

Step 1. Warning the employee about dismissal.

The employer at least 2 months before dismissal (longer periods may be provided for by the collective agreement) in writing warns the employee warns the employee about the upcoming dismissal due to liquidation. Separately we have warning form an employee for an individual entrepreneur.

The employee affixes his signature on the warning, a record of familiarization with the warning and the date of familiarization.

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Step 2. Notifying the social security authorities.

If an organization with a payroll number of employees of 25 or more is liquidated, then a mass dismissal of workers is "coming".

And in the event of a mass layoff of employees, the employer must be at least 2 months in advance (longer periods may be provided for by the collective agreement) before the mass dismissal in writing notifies of such dismissal bodies for labor, employment and social protection at the location of the employer.

In the notification, you must additionally indicate the names, professions (specialties), qualifications and the amount of remuneration of the released workers.

The notification, depending on the location of the employer, is sent to the labor, employment and social protection authorities:

- Committee on Labor, Employment and Social Protection of the Minsk City Executive Committee;

- management (departments) for labor, employment and social protection of the city, district executive committee.

Skipping Step 2 or its implementation with a delay entails administrative liability under Part 3 of Article 9.15 of the Administrative Code - a fine of 5 to 20 b.v.

Step 3. Notifying the union (if any).

The tenant in advance (no later than 2 weeks) notifies the union (if there is no union, then Step 3 is skipped).

Sometimes there are cases when the collective agreement provides for the mandatory receipt of the consent of the trade union to terminate the employment contract at the initiative of the employer. In this case, no notice is given, but prior consent from the union is required.

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Step 4. An order to replace the notice of dismissal with payment of compensation.

If the employer does not want to wait 2 months from the moment the employee was warned about dismissal, then you can use the opportunity to replace the warning about dismissal in connection with the liquidation of the organization with monetary compensation - such a kind of bonus for an employee for early dismissal. Those. the employer has the full right, with the consent of the employee, to replace the warning about the upcoming dismissal with a payment of compensation in the amount of two months' average earnings. As you can see, this will speed up the dismissal process.

But the employee's consent is required here. It is usually expressed in the perpetration of an employee on replacement order, issued by the employer, of the record "I have read and agree with the order." 

In practice, the offer of such compensation may come from both the employer and the employee himself.

Note that there is a small (but pleasant for the employer) nuance regarding cases when the initiative in reaching such an agreement to replace the warning comes from the employer. Often the employer offers the employee to replace the warning with compensation after a certain time has elapsed after warning the employee about the upcoming dismissal. In such a case, the employer can pay compensation in proportion to the time remaining until the end of the two-month notice period.

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Step 5. The employer publishes order to dismiss an employee in connection with the liquidation of an organization... The reference in the order of dismissal is made to clause 1 of Article 42 of the Labor Code. Separately there dismissal order an employee by an individual entrepreneur - an employer.

Step 6. The employer acquaints the employee with the order against signature.

Step 7. The employer enters into the employee's work book dismissal record.

Step 8. The employer introduces the employee to the dismissal record in the work book (done if the company maintains employee's personal card and the card has a column for such familiarization).

Step 9. The employer attaches a copy of the dismissal order to the employee's personal file, the personal file is transferred to the archive. 

Step 10. The employer, no later than the day of dismissal, makes settlements with the employee (pays the employee salary, compensation for unused vacation), and also pays the employee severance pay in the amount of three times the average monthly earnings.

Step 11. The employer gives the employee a work book on the day of dismissal.

Step 12. The employee signs for the receipt of the work book in the book for registering the movement of work books and inserts to them. Also issued bypass sheet.

Step 13. Tenant announces dismissal to the military registration and enlistment office at the place of residence of the employee, and also makes a record of dismissal in a personal military registration card liable for military service (of course, this step is taken only in relation to workers who are on military records).

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