During the economic crisis, many firms are forced to resort to the mass dismissal of workers, as they are on the verge of bankruptcy. With this method, they significantly reduce the cost of labor for all employees. This procedure is considered complex, therefore, it should be carried out only if there are good reasons, and certainly this process attracts the attention of the labor inspectorate. Mass dismissal is always carried out at the closing of the company.
When is layoff called mass?
A massive dismissal is that certain criteria are met for the number of employees with whom the employment contract is terminated. Additionally, the provisions of various regional acts and the Customs Code are being studied.
In determining the mass dismissal, not only the number of citizens with whom the agreement is terminated is taken into account. This is the period of time in which this process occurs. Mass layoff - how many employees who stop working in the company? The main parameters include the following conditions:
- in 90 days, contracts with 500 employees or more are terminated;
- in 60 days from 200 employees of the company;
- 30 days terminate the employment relationship with 50 or more specialists.
It is under these conditions that we can talk about mass dismissal.
What other features are considered?
Other criteria for the mass dismissal of employees include:
- this process occurs when a full-fledged company is closed, which employs more than 15 people, and in this case, all employees immediately stop working on their posts in the staff of such an organization;
- this includes the situation if the number of citizens in the region who are officially employed does not exceed 5 thousand people, and within one month it decreases from 1% of the total employed population.
The employment service must constantly monitor these factors and criteria, as they have a direct impact on the unemployment rate and other significant indicators of a particular region.
For which areas of work do special agreements apply?
There are some industries for which special criteria are used when dismissing workers en masse. These areas include:
- oil or gas industry;
- civil Aviation;
- engineering or coal industry;
- broadcasting and several other areas.
When terminating a contract with an employee, each company must use the special agreement specified in the TC.
The mass dismissal of employees suggests that the company is obliged to pay the average income to all citizens until they can find the optimal place for employment, but for a maximum of three months.
Legislative regulation
There is no clear definition in the Labor Code of the conditions under which dismissal can be recognized as massive, as they are determined by different industry agreements.
A lot of information about this process is available in the Regulation of the Council of Ministers of the Russian Federation No. 99 dated 02/05/1993. Here the main signs are indicated by which it is possible to determine the mass reduction of citizens in a particular enterprise or in a specific region as a whole. But even here, other indicators are allowed if they are prescribed in the agreements. That is why even in one city, the reduction of the same number of people in different companies can belong to different categories.
Additionally, in Art.74 of the Labor Code, it is indicated that employers have the opportunity to establish part-time work for employees if there is a threat to the possible mass termination of contracts with them. However, this is only the right of the heads of companies, so if they do not have the opportunity to use such exemptions, then they can immediately reduce specialists.
What parameters are taken into account?
Mass dismissal is a process in which such factors are taken into account:
- the number of citizens with whom the employment relationship is terminated, for which a reduction procedure is being carried out, and this does not include people who quit of their own free will or for any reason related to the violation of an employment contract or discipline;
- the time during which this procedure is carried out, and it is considered in days.
Such dismissal additionally includes termination of contracts with more than 10% of the total number of employees of the company.
Why is the procedure used?
The reasons for the layoffs can be different, and usually they are associated with:
- a crisis in a country or in a specific field of business;
- lack of opportunities for the development of the company in a certain direction;
- a change in the management team, which ensures a change in the policy of the enterprise;
- the need for employment of more qualified specialists;
- a change in the direction of work, which requires the hiring of other professionals;
- translation of manual labor into automatic or mechanized.
Companies are not required to explain to anyone why they used this process, and some organizations knowingly use it for some purposes, while others cannot find another way out due to the difficult financial situation.
How are workers who will be reduced selected?
Each employer must first decide which state will be reduced. For this, a special commission is organized to decide which of the company's employees will be fired.
When choosing citizens, work experience, age, their qualifications, and also the existence of preemptive rights are taken into account.
Who cannot be reduced?
The mass dismissal of workers takes into account that not all citizens can be reduced, as some people are protected from this, therefore, contracts with them are terminated only at the closure of the company. Such employees include:
- pregnant women;
- women on maternity leave;
- citizens raising children alone, and children should not be more than 14 years old;
- people with children with disabilities;
- guardians of children with disabilities who do not have an officially registered marriage;
- people who are on vacation or sick leave at the time of the notice of mass dismissal;
- Citizens who are dependent on at least two other people represented by minors, elderly or disabled people;
- war veterans.
Additionally, this list can be replenished on the basis of various regional acts, for which the development of the industry and the region in which the company operates is taken into account.
If the closure of the enterprise and the mass dismissal of workers are carried out, then, regardless of the pre-emptive right, labor relations with all employees are terminated.
Stages of the procedure
Dismissal, on the basis of which contracts with several employees are terminated, is carried out in the correct sequence of actions.
| Process steps | Nuances |
| The head issues an order | The document can be formed in any form. It is compiled at least three months before the start of the process, and all employees should be familiar with it. It prescribes how many people will be reduced, what position they occupy, in which branch they work, and also when the employment contract will be terminated with them.All employees should familiarize themselves with this document, after which they sign on the notice |
| Create a new staffing | For this, a special form T-3 is used. Reduction of workers is permitted only after this document has been approved. |
| The choice of specialists | This takes into account who should be fired initially. We must remember the preemptive right of some individuals to maintain a job. Most often, people who have poor job performance, as well as multiple comments about work or discipline, quit |
| Citizen Alert | All people who fell under the mass dismissal of employees must be notified in 60 days about the termination of the employment contract for signature. If they refuse to sign, then a special act is drawn up for this |
| Alternative suggestion | The employer must assist all dismissed employees with the search for a new job. For this, other vacancies may be offered at the enterprise, taking into account the qualifications of the specialist. Support may also be provided in finding a new job. If the employee accepts the offer, then he is transferred to a new position. If he refuses options, then a written refusal is made |
| Send notice to the union | This process must be completed three months before the start of the direct process. If there are disagreements between the employer and this organization, it will be necessary to reach a compromise, for which a meeting is being held. All its results are recorded, after which it is given to the employer 10 days to make a suitable decision. If it is not possible to reach agreement, a complaint is sent to the labor inspectorate. The specialists of this service decide whether the dismissal is legal or not. |
| Sending a notification to the employment center | A notice must be sent 3 months before the start of the reduction. It indicates how many workers will be laid off. The positions, F. I. O., age, length of service and other characteristics of each employee being reduced are given. |
| Contract denunciation | This document should not only be correctly formed, but also registered. Each person with whom the contract will be terminated, studies it within three days after creation |
| All funds paid to the dismissed | All payments are made directly on the day of dismissal. |
The correctness and timeliness of the implementation of each stage is the key to preventing various disputes and disagreements not only with employees, but also with trade unions and labor inspection.
What documents are needed?
The procedure carried out in connection with the mass dismissal requires the preparation of certain documents from the head. With its help, it is confirmed that the entrepreneur provided for all necessary measures under the law. These documents include:
- new staffing table;
- order to approve the schedule;
- orders drawn up for each dismissed employee, and they can indicate not only a reduction or dismissal, but also a transfer;
- an act on the basis of which the specialist agrees or refuses to transfer to another position at work;
- notifications of the planned process sent to employees, the employment service and the union;
- a protocol that states the consent or disagreement of the union with this procedure;
- financial documentation, on the basis of which it is proved that the company paid all necessary funds to dismissed citizens.
Separate papers are required for each employee.
What funds are paid to citizens?
Three months after the notification of the mass dismissal of workers, labor contracts are denounced. With all employees who are reduced in the company, a calculation is made.The necessary payments are transferred to them, which include:
- salary for all days worked;
- compensation if there are days of unused vacation;
- severance pay presented under Art. 178 TC average citizen earnings per month at work;
- additional compensation due to early dismissal, if necessary, and the employees themselves must agree with this process.
If, after the reduction, citizens are not employed within the next three months, and at the same time are registered in the employment service, then the previous employer must pay them compensation. They are equal to their average earnings. The main point for this is that citizens must go to the employment center within two weeks after terminating the contract in order to register as unemployed.
Nuances for the Far North
If citizens worked in the Far North, then compensation is paid to them within six months.
It is not assigned to people who are fired of their own free will. Often, company leaders insist on this wording in order to conceal a mass layoff, but it is not recommended to accept this.
Conclusion
Thus, a layoff is determined by two criteria, represented by the number of employees with whom the employment relationship is terminated, as well as the period of time during which this process is carried out. The procedure must be properly executed, for which successive steps are performed.
If the rights of citizens are violated, the dismissal may be suspended by the labor inspectorate. There are also certain workers who cannot be fired with a massive layoff. An exception would be the simultaneous closure of the company, in which all employees are left without work.