Staff reduction is a necessary measure for any company. Typically, the procedure is associated with a change in the direction of work or the deterioration of the material condition of the enterprise. It affects the process of many workers, which include vulnerable categories of the population, so pensioners are often dismissed to reduce staff. Reduction payments are represented not only by salary or vacation compensation, but also severance pay. Without these payments, dismissal would be illegal.
Legislative regulation
The reduction in the staff suggests that different specialists occupying different positions in the company quit. This leads to a decrease in the total number of employees in the company. When choosing specialists to be reduced, their status, the presence of various unique abilities and skills, as well as utility for the company, are taken into account.
The dismissal of retirees to reduce the number of employees in the company should be subject to the requirements of the law. These include:
- Art. 81 TC contains information on what payments are due to employees being reduced in the company;
- Art. 2 of the Labor Code indicates that ordinary workers, retirees, or minor employees have equal rights;
- Art. 3 TC prohibits discrimination in the workplace by age or gender;
- Art. 178 of the Labor Code guarantees that pensioners, upon reduction, can count on severance pay and various other guarantees;
- Art. 140 of the Labor Code contains information on how long funds should be transferred to layoffs.
If the employer violates the requirements of the law, then the retired pensioner may file a complaint with the labor inspectorate. Additionally, he can file a lawsuit in court, on the basis of which he requests not only the due payments, but also compensation for non-pecuniary damage.
Reasons for the reduction
Pensioners, along with other employees, can be dismissed if the company is officially executing a reduction in the number of employees. The process can be carried out for various reasons:
- it is necessary to increase labor productivity, therefore, the optimization of existing labor resources is carried out;
- the direction of the enterprise is changing;
- the company’s profit has decreased significantly, so the organization cannot work as before;
- reorganization of the company.
For these reasons, the retirement of a layoff pensioner is being fired. Payments must be paid on the last day a citizen works in the company.
What privileges do pensioners have?
People who are retirees and continue to work, have some privileges in comparison with other employees of the companies. These include:
- age discrimination is prohibited;
- citizens have the right to work, even if they have reached the age of a pensioner;
- if an elderly person has a high qualification or unique experience, and also he is actively involved in the production and successfully cope with his duties, then he has the pre-emptive right to remain in the company;
- retirees can at their own time at any time to take a vacation for 14 days.
All these factors must be taken into account by employers when dismissing a retirement pensioner. Payment of benefits and other funds should be made on the last day of work.If transfers are delayed, then this is the basis for a complaint to the labor inspectorate.
If a pensioner retires or resigns at will, there is no need to work out the required 2 weeks in the company.
What pensioners can not be fired?
The dismissal of working retirees to reduce staff is considered a normal process, but first the employer must make sure that the selected employees do not belong to preferential categories. In this case, it is forbidden to reduce them. These pensioners include:
- participants and invalids of the Second World War or other military operations;
- people who have been injured at work on the basis of which they have issued a specific disability group;
- retirees, self-contained minors;
- people who are the guardians and sole breadwinners of children;
- workers belonging to the priority group;
- specialists aimed at courses, the main purpose of which is advanced training.
The above working retirees may not worry about the reduction. They have the pre-emptive right to remain in the company.
Dismissal Procedure
The procedure for dismissing retirees to reduce staff is divided into successive stages. They are implemented in the optimal sequence. These include the following:
- the head of the company decides to reduce staff;
- an order is issued on the basis of which a committee is appointed to deal with the issues of determining and approving the list of staff reductions;
- it is checked whether the selected employees do not have the preemptive right to remain in the company;
- an order is issued that lists all the hired specialists subject to reduction, as well as the date of termination of the contracts;
- a notice of reduction is sent to each selected specialist two months before this process;
- pensioners are offered other vacant places for transfer, if any;
- if a citizen does not agree to another position, the employment contract is terminated within the established time frame;
- the necessary information is entered into work books and personal cards of employees;
- Settlements are made with redundant workers.
It is allowed to terminate the contract before the expiration of a period of two months, but the pensioner must have consent to this. At the same time, he can count on all the payments due to him. The dismissal of a pensioner to reduce staff is considered an understandable, but difficult process, since the head of the company must ensure that the rights or interests of citizens are not violated.
Rules for writing a notice
A notice of reduction is sent to all selected employees. The procedure is performed two months before the planned event. Information is entered into the document:
- Company name;
- reason for termination of employment;
- date of reduction;
- the opportunity is given to choose another vacant place, if available in the company;
- put the date of the document and the signature of the head.
Upon receipt of the notice, the employees sign in a special act, therefore they confirm that they have indeed been notified in advance of the reduction. If citizens refuse to sign the document, then in the presence of two witnesses a corresponding act is drawn up. A sample notice can be found below.
Rules for issuing an order
When staff is reduced, an order must be issued containing the following information:
- date of formation;
- a list of all citizens who will be reduced in the company, and the positions they occupy must be indicated;
- date of termination of employment contracts;
- reason for staff reduction.
This document should be read by all employees who will be dismissed by the reduction. They put their signatures on this order.
The nuances of making an entry in the workbook
If a pensioner quits due to reduction, then the following data are entered in his workbook:
- record number;
- reason for dismissal;
- reference to art. 81 shopping malls;
- date of termination of the employment contract;
- signature of the head of the company;
- organization stamp.
Information is entered directly on the last day of the citizen’s work, after which the document is handed over to the reduced employee. A sample entry can be found below.
What are the benefits?
The dismissal of a pensioner to reduce staff is carried out with the simultaneous transfer of the money to the citizen. These include the following payments:
- salary, which is calculated depending on the number of days worked in the company by a pensioner;
- compensation for vacation, if there are unused days of rest;
- severance pay for one month of work, equal to the average earnings in the company for a month of work;
- if during the next month a pensioner cannot find a job, he can count on severance pay for another two months.
Upon dismissal of a retirement pensioner, a compensation equal to the average citizen's earnings is required. Within three months, a pensioner will be able to receive his average salary if he does not find a new place to work. To receive funds, you must immediately register with the employment center immediately after the termination of the contract.
The severance pay for seasonal workers or people who have refused to transfer to a company located in another region is reduced. They receive benefits only two weeks after the termination of the contract.
Employee Rights
The rights of retirees upon dismissal during layoffs are contained in the following guarantees:
- the opportunity to receive severance pay within three months after the termination of the employment relationship;
- transfer to another position or to another company is proposed;
- the employer may offer early dismissal while retaining all guarantees and without working out.
Often, the union, which the employer informs about the reduction process, takes the side of the workers, therefore, negatively refers to their dismissal. But usually even the motivated opinion of this organization cannot stop the process.
The nuances of retirement
Some older people who prefer to work officially decide to retire with a reduction. This is due to the fact that for these citizens a change of job is considered a stressful procedure. Due to the fact that they worked already in retirement age, they can count on a fairly good pension.
Most often, company executives try to reduce exactly the elderly, as it is believed that they do not bring the proper benefits of the company. But previously, in any case, a productivity analysis is carried out and the professionalism of the employees is evaluated.
Conclusion
Many people prefer to continue working when they reach retirement age. They can be reduced in the company along with other specialists. For this, a decision is made by management, an order is issued, a notification is handed in two months, the necessary information is entered into the work book and all necessary calculations are made.
Some pensioners have the preemptive right to stay at work, as they belong to the preferential category. They may not worry about being laid off while downsizing.