Labour law

What payments are due on dismissal?

Huquqchi legal team

On the day the labour contract ends, the employer makes the full settlement — the unpaid wages and compensation for all unused leave. On dismissal at the employer's initiative (except grounds tied to the employee's fault) and on some other grounds, the employer also pays a severance benefit.

Always paid

Under article 172 of the Labour Code: the unpaid wages; compensation for all unused basic and additional leave; other payments that the legislation, the collective agreement, or the labour contract provides.

When it is paid

On the day the labour contract ends. If the employee did not work that day, not later than three days after the employee demands the settlement. Even in a dispute about the amount, the employer must pay the undisputed sum within this period. For a delay, the employer pays interest for every day of delay, regardless of fault, at the refinancing rate of the Central Bank (article 333).

Additional payments

Under article 173 of the Labour Code, the employer pays a severance benefit on dismissal at the employer's initiative (for example, a cut in the number of employees or in the staff), on liquidation of the organisation, when the employee refuses to work in new conditions or in another place, and in some other cases. On dismissal for the employee's own guilty acts, no benefit is paid. The benefit depends on the service with this employer and is not less than this share of the average monthly wage: up to three years — 50%; from three to five years — 75%; from five to ten years — 100%; from ten to fifteen years — 150%; more than fifteen years — 200%.

Check the calculation

Ask for the number of leave days, the calculation of the average wage, and the grounds for the deductions. Mistakes happen often.

Legal sources

Legal basisLabour Code, article 172 Legal basisLabour Code, article 173 Legal basisLabour Code, article 333

This article gives legal information, not legal advice. For your own situation, consult a qualified lawyer.