The agreement of the parties is one of the grounds on the basis of which the employment contract is terminated with the employee. I must say that dismissing an employee in this way to an employer is much faster and easier than on the basis of a reduction in staff or number of employees. Since it is necessary to warn employees about it no later than two months in advance. How to calculate the average earnings at dismissal by agreement of the parties? This is a very topical issue.
Abbreviation Notice
Not only employees are notified of the reduction, but also the employment service, as well as the relevant trade union organization. But you can dismiss by agreement of the parties on the day of its signing, and no one needs to be notified about this. This option for the employee may also be acceptable. The fact is that the agreement of the parties usually provides for the payment of a certain monetary compensation, that is, severance pay. Its size is discussed directly with the employer, since there are no restrictions on this issue at the legislative level.
In this article we will consider how to calculate the average earnings at the dismissal? But in order.
Payments due upon dismissal
On the day when the employment contract expires, the employer must pay his employee all the amounts due to him. These include salaries for the entire period worked and compensation for unused vacation. In addition, the organization also pays compensation regarding the termination of the contract, if such payment is provided for by agreement.
The size of wages is calculated in the usual mode, depending on which wage system is adopted in the organization. Let's consider in more detail. How to calculate the two-week average earnings at dismissal?
What is severance pay?
Severance pay is a lump sum amount paid by the employer to the employee upon his dismissal. There are grounds for payments of this type by the Labor Code of the Russian Federation, as well as labor and collective agreements, internal documents of the organization. Severance pay is not always given, but only if there are certain reasons for dismissal. By the same principle, its amount is determined. In order for the funds to be issued, a separate prescription is not required. Only an order with the reasons fixed in it is required to terminate the contract with the employee.
Grounds for dismissal and compensation
Further. How to calculate the average earnings at dismissal to reduce staff? According to the Labor Code of the Russian Federation, the employer must pay severance pay if the contract with the employee is terminated for the following reasons:
- liquidation of the enterprise;
- reduction in the number (list of employees) or staff (i.e. posts) of the organization’s employees;
- calling an employee to either the army or alternative service;
- reinstatement on the basis of a decision of the labor inspectorate or court of the employee who previously engaged in this activity;
- refusal to transfer to another place;
- refusal to transfer to another job due to medical conditions;
- if the employee is recognized as incapable of further work due to his state of health (an official medical report is necessary);
- violation of the legal requirements of the employer at the time of signing the labor agreement, as a result of which it becomes impossible for the employee to carry out activities or transfer to another job; The following persons are referred to this case:
- workers deprived of the opportunity by a court decision to carry out any activity or occupy a specific position;
- those who cannot work due to medical indications;
- employees who do not have documents on education, although the law requires special knowledge to carry out activities corresponding to their position;
- those who have been deprived of their rights have been expelled from the country or dismissed from state or municipal service;
- employees who are not allowed by law to engage in any particular type of activity.
- if the employee refuses to work in connection with the changed working conditions;
- the dismissal of the leader by decision of the founders, and not through his fault;
- liquidation of employment contracts with the head of the organization or the chief accountant due to a change of ownership. In this case, the severance pay has the average monthly wage. How to calculate the average earnings at dismissal, consider below.
Duration of average salary
In addition, the employee who was fired should receive his average salary for two months after that. If he gets registered at the employment center, then the duration of payments increases to three months. And, most importantly, correctly calculate the average earnings at dismissal for the Central Employee.
Also, the average monthly payment is due to the employee who was dismissed due to violations of the requirements when signing the contract. If the head or chief accountant has been dismissed, they receive three average earnings per month. If there are other reasons for dismissing the employee, he will be paid the payments corresponding to the average wage for two weeks. This category also includes seasonal workers, who were dismissed or reduced as a result of the liquidation of the enterprise. In the case of an employee being hired by the organization for no longer than two months, the amount of payments is determined either by an employment contract or an internal regulatory act. If there is no such clause in the documents, the employer should not pay the benefits. In addition, severance pay is not due to employees dismissed of their own free will, on probation or in connection with violations of labor discipline. So. How to calculate the average earnings at dismissal? Let's figure it out.
How to calculate the average earnings at termination? Severance pay
The severance pay is calculated according to the following formula: the average wage per day is multiplied by the number of working days in the period that is paid by the company. The average daily salary is the proportion of all earnings for the year (including remuneration and bonuses) and the days actually worked in a given period of time. When calculating the amount of severance pay, you need to keep in mind some points:
- only working days are paid, excluding weekends and holidays;
- social benefits are also not taken into account (material assistance, sick leave, travel, vacation pay, etc.);
- when an employee leaves on the last day of the month, he is fully paid in the billing period, in other cases, the period must be calculated before the month of dismissal;
- the type of remuneration does not affect the amount of benefits, whether it be hourly, salary, piecework or another system. Such nuances must be taken into account when dismissing after the decree. How to calculate average earnings should be clear.
Severance pay is a guaranteed payment. Even if an employee found a new job after leaving, he must receive the amount due to him in full.Above, we looked at how to calculate the average monthly salary when leaving.
Insurance premiums and taxes
After calculating the size of the severance pay, you need to find out if it is subject to personal income tax and the calculation of insurance premiums. Article 217 of the Tax Code of the Russian Federation says that such a tax is not levied if it is no more than three times the average earnings. In another case, thirteen percent is taken from it. For workers in the Far North and regions that are equated with it, six amounts of average earnings are not subject to tax. In addition, the organization’s management can take the initiative and pay benefits on the grounds that are not provided for by law (for example, the issuance of a certain amount in the event of dismissal of an employee who has worked for less than two months). How to calculate the average earnings at dismissal after maternity leave, we have considered above.
Differences of opinion between different services
There are differences of opinion regarding the taxation of accruals of this kind between the Tax Service and the Ministry of Finance. The Ministry of Finance prescribes to deduct from the severance pay of any type of personal income tax within the established norms (that is, from the amount of triple or six times the size). The FTS believes that tax payments should be levied in full on this category. Special mention deserves income tax. The organization should, when fixing the base for the collection, take into account all the costs that will be paid to employees. The amount of severance pay is also included here. The most important condition is legislative or intra-organizational fixing of payment. If severance pay is accrued according to the Labor Code, it is exempted from any insurance contributions. They are accrued only in the following cases:
- upon payment of benefits by the employer on his initiative;
- the amount exceeds the limit indicated by law. How to calculate the average earnings at dismissal, it is clear, but how exactly to pay it to the person? Further.
How are payments made?
If the employee leaves due to liquidation of the organization or reduction, the severance pay is issued as follows:
- the employee receives payments for the first month on the last day of his presence at work, and the payment is made regardless of further employment or lack thereof;
- after the end of the first month from the time when the contract was terminated, no payments are made to the former employee;
- at the end of the second month, the average salary for the period of employment is calculated, and the amount is paid only if the employee presented the employer with a work book with no notes about the new job and wrote a statement; if a new job was found in the middle of the second month, the payment is calculated in proportion to the time when the person was unemployed;
- at the end of the third month, the average salary is due to the employee in the event of his registration in the employment service no later than two weeks after dismissal, or if for three months they were not able to find a new job at the employment center;
- after the fourth, fifth and sixth months after the termination of the employment contract, the average salary is accrued to those people who work in the Far North or in areas equated to it, while the unemployed must submit a statement to his former boss, a work book with no notes in it on new employment and the conclusion of the employment service on reserving average earnings.
Another important point. How to calculate the average daily earnings for dismissal by disability?
Disability dismissal
There is a dependence of the payment of benefits in connection with the reduction or liquidation of the organization on the status of the employer: whether he is a private entrepreneur or an enterprise. In the first case, the allowance will be issued only if there is such an item in the employment contract. In the rest, the employee will not receive anything. Disability is fired only when he presents an official medical report. After that, the employer can offer the employee a position that matches his disability group. In case of refusal, they dismiss him of their own free will, but they do not pay the allowance. If the disability group is not combined with any activity, or the organization does not have a suitable job, then the employee is dismissed by paying him an amount in the amount of earnings for two weeks. In other cases, the full payment with the employee (including the calculation of severance pay) is carried out on the last business day.
How to calculate the average earnings at dismissal, we have considered, but what other payments are due to him.
Other payouts
When the employment contract expires, the employee receives not only severance pay, but also other payments. On the last day of work he is charged:
- salary (calculation is made depending on the number of days worked during the current month, including bonuses, allowances, if such are provided for in the organization);
- payments for unused vacation (for all days that the employee did not “take time off”, including past years) or the replacement of monetary compensation with leave of absence (with the consent of the employer and at the request of the employee);
- compensation for dismissal made ahead of schedule;
- other payments, if such are provided for by labor contracts, acts within the organization, etc.
Conclusion
Knowing the specifics of accruing benefits is useful not only for the employee, but also for the employer. The first one can be sure that all payments due to him are accrued. The employer, having paid for the labor activity of the former employee, maintains good relations with him and maintains the reputation of his organization. The main thing is to correctly calculate the average daily earnings at dismissal.