Dismissal can be carried out on their own initiative, with the reduction of staff or at the request of the company's management. In any case, the employee can count on various payments, which include vacation pay. They can be appointed simultaneously with the salary for the hours worked, and it is also possible to write an application for leave with subsequent dismissal. The payment of vacation pay upon dismissal should be made by employers taking into account the numerous requirements and rules, since if they are violated, the owner of the company will be held liable.
Methods of transferring funds
Payment of leave upon dismissal at will or at the initiative of the employer can be carried out in various ways. The procedure is performed if the employee has unused vacation days at the time of termination of the employment relationship.
Payment of leave after dismissal can be carried out in the following ways:
- the employee may decide to take time off these days, so he forms an application for leave with subsequent dismissal, and on the last day of work he receives the necessary amount of funds from the employer;
- dismissal without going on vacation, so on the appointed day the specialist receives his salary and compensation for the remaining days of vacation.
In any case, the employee receives the same amount of funds. But when you go on vacation, you can count on the final settlement only after the end of the rest period, and in the second case, all the funds allocated are transferred immediately after the citizen is dismissed. Therefore, many workers prefer to use the second scheme. Even company executives want to immediately pay the dismissed employees to complete important tasks.
The process of paying vacation pay upon termination of employment should be fixed in a collective agreement.
How is the calculated amount calculated?
All employers and employees themselves must know how vacation pay is calculated upon dismissal. The correct calculation ensures that the hired specialist will not have claims against the former manager.
Calculation of compensation for vacation pay upon dismissal involves the use of a standard and simple formula: payment = (employee's labor income for 12 months / number of days worked for the reporting period) * number of days of unused vacation.
To calculate the days that were not spent by the employee, the formula is used: the number of days of unused vacation = (the number of months the specialist works in the company * the number of days during which the employee can rest on the basis of legislation / 12) - the number of days used for rest for everything working hours.
If necessary, the calculation of vacation pay upon dismissal can be made directly by the employee, if he doubts the correctness of a certain amount.
Are funds paid to employees on vacation?
Holidays after dismissal are paid with certain nuances. Often, employers are faced with the fact that the employee notifies of his dismissal in the process of being on vacation. It does not matter for what reason he makes such a decision. In this case, the head of the enterprise must pay for all days of vacation that have not been used by the employee.
In this case, the payment of vacation pay upon dismissal is carried out taking into account the rules:
- initially, the employee of the enterprise submits a letter of resignation, and he can bring it personally to the employer or send it by mail;
- after receiving this notice, the employer prepares the documents necessary for terminating the employment relationship with a specific specialist;
- papers are prepared on the basis of which the final settlement is made with the employee;
- all documentation is dated two weeks after the application for dismissal of the specialist was received;
- it is allowed to reduce the period of two weeks by agreement of the parties;
- final settlement is made on the day of termination of employment;
- after the end of the vacation, the employee must come to the office of the company in order to receive a work book and other documents from the employer;
- on the day of dismissal, it is advisable to send a registered letter to the employee’s registration address containing a request to come to work in order to pick up the work book and other documents.
Often an employee submits an application for leave when there is less than two weeks left to rest. In this case, the difference will have to be worked out if it is requested by the employer.
What to do in case of overpayment?
The payment of vacation pay upon dismissal is a direct responsibility of the head of each organization. But often situations arise when a specialist goes on vacation, having received in advance part of the vacation. After that, he submits a letter of resignation.
Under such conditions, the employer may deduct the overpayment for the vacation from the employee's remaining salary, which must be paid to him at the final payment. During the implementation of this process will have to take into account the restrictions contained in Art. 137 Tax Code.
If the salary balance is not enough, then in order to receive compensation for the overpayment, you will have to agree with the employee to return a specific amount of funds. The employer has legal grounds to recover this money.
If the employee refuses to return the funds, then it is possible that he will be restored to work even if there is a letter of resignation. Therefore, the remaining amount will be deducted from the following vacation pay.
What compensation is paid for dismissal during a probationary period?
Many companies use the probationary period because they want to make sure of their professionalism and other important qualities before finalizing a specific employee. If a decision is made to dismiss a person, then how is vacation pay paid upon dismissal?
Everyone can count on compensation for unused vacation regardless of the conditions under which he is employed in the company. Based on Art. 70 TC apply the requirements of accrual of compensation even for workers working on a trial period. They have the same duties and rights as full-time employees. Therefore, they receive vacation pay when they are dismissed on a common basis. This is done even if the person worked for no more than two months.
Rules for providing leave with dismissal
Many specialists who want to change their place of work do not want to work out the prescribed two weeks, as they spoil relations with the employer or other employees of the organization. In this case, they can write a vacation application followed by dismissal. The features of such termination of employment include:
- under such conditions, the last day of work is the date the vacation ends;
- two weeks on vacation are represented by mining;
- all payments due to the specialist are transferred to him on the last day before the vacation;
- in certain situations, going on holiday before leaving leads to a slight increase in the size of vacation pay;
- employers have a negative attitude to such a situation, since they do not want to lose an employee without working out, but they do not have the right to refuse such a decision.
The employer before the immediate leave of the employee guarantees the payment of vacation pay. With the subsequent dismissal, the leave is issued by specialists often due to the fact that they do not want to work out the statutory two weeks.
How is compensation reflected in accounting?
A letter of resignation with payment of vacation pay is quite simple. This document does not even need to reflect the need to receive compensation for unused vacation, as this is the direct responsibility of the employer.
The accountant of the company must correctly reflect the payment of compensation in accounting. It does not matter if the funds are paid after working out or when making a vacation, followed by dismissal. The only difference is the name of the operation. If an employee goes on vacation, after which he will be dismissed, then he is paid vacation pay. If the employment relationship ends after working out, then he receives compensation.
To reflect the payment of vacation pay when leaving at will, the following entries are used:
- accrual of compensation or vacation due to the current expenses of the enterprise - D20 or 26, K70;
- payment of funds from the reserve - D96 K70.
If you want to keep excessively days off, then when calculating with an employee for cash, posting D70 K50 is used, and if money is transferred to a bank account, then posting D70 K51 is selected.
Are taxes and insurance premiums charged?
Are vacation pay paid upon dismissal? If a person draws up a vacation application with subsequent dismissal, then he receives vacation pay. If he leaves after working, then he is awarded compensation. When transferring these funds, the following nuances of the employer are taken into account:
- personal income tax is necessarily withheld from payments, and deductions to the PF and the Social Insurance Fund, as well as from regular salaries, are paid from this amount;
- the same applies to the salary of the dismissed employee for the worked period of time;
- taxes and insurance contributions from severance pay, as well as various compensations, which include payments for job search after reduction or transfer for a belated warning about the reduction or liquidation of a company, are not withheld.
If the employment contract provides that upon dismissal the employee will be able to rely on additional compensation, then taxes and social contributions are not levied on these funds. The total amount of these payments cannot exceed the average earnings for three months of work.
Penalties for the employer in case of violations
Often, employees have to face the fact that the head of the company did not pay compensation for the vacation at all or transferred funds late. Such actions are a serious violation of the Labor Code; therefore, an employee may apply to various state institutions to hold the company management accountable.
A complaint can be filed even if the payment is delayed for one day, since in this case the labor rights of a citizen are still violated. An application can be submitted to different authorities:
- Labour Inspectorate;
- prosecutor's office;
- court.
With the help of the court, you can additionally recover from the employer a forfeit or compensation for non-pecuniary damage. Employees of the labor inspectorate and prosecutor's office have the ability to only hold company management accountable.
It is necessary to submit an application within a month after leaving the company.
If payments are paid to the employee late, the employer will be forced to pay a significant fine:
- for organizations, the sanction varies from 30 to 50 thousand rubles;
- for officials a fine of 10 to 20 thousand rubles is applied;
- Individual entrepreneurs pay from 1 to 5 thousand rubles.
The company and the officials who committed the violation are held liable simultaneously.
What can be required in court?
If an employee goes to court, then he can demand not only the funds laid to him on the basis of the Labor Code, but even a forfeit, depending on the amount of debt. In this case, 1/150 refinancing rates for each day of delay are used.
Additionally, a citizen may demand compensation for non-pecuniary damage. The amount of such payment is established directly by the court, although when filing a claim, you can immediately indicate in the application how much the citizen needs.
When can an employer not hold vacation pay?
The law clearly indicates the situations when it is required to transfer the employee vacation pay upon dismissal on time and in full. These include:
- bankruptcy of the company, after which the liquidation of the organization;
- reduction of workers in the enterprise, which should be carried out with the obligatory notification of the labor inspectorate, direct specialists and the trade union;
- dismissal in connection with the discovery of a serious disease that impedes normal work;
- draft specialist in the army;
- assignment of a specific disability group;
- reinstatement of an employee at work after a trial.
In the above cases, the employer, regardless of the circumstances, must transfer the employee vacation pay in full and within the time limits established by law. Otherwise, an employee of the company may file a complaint with various state bodies.
Compensation Rules
In order for the funds to be transferred to the employee lawfully, certain rules for his dismissal must be taken into account. Therefore, successive stages are implemented:
- initially, the employee draws up a letter of resignation with the payment of vacation pay;
- it may be indicated in the document that the specialist goes on vacation with subsequent dismissal;
- the employer issues an order, on the basis of which the employment relationship with a specific specialist is terminated, and T-8 form is used for this;
- it is allowed directly in the order to prescribe an instruction for the accountant to calculate compensation for the dismissed employee;
- development is appointed if the specialist does not issue a vacation with subsequent dismissal;
- on the last day of work, all the necessary funds are paid to him, and a work book and other documents are issued.
If this procedure is violated, the employee may apply to the labor inspectorate to hold the company management accountable.
Conclusion
Each person working in a company on an official basis can count on compensation for unused vacation. This applies even to professionals working on probation. The company's accountant must correctly calculate this payment.
If an employee of the company does not receive the required amount of funds within the prescribed period, then this is the basis for contacting the labor inspectorate, prosecutor's office or court to bring the employer to justice.