Legal Question in Employment Law in Russian Federation

Re: Contract Termination and Compensations on the Final Statement in Russia

LABOUR CODE OF RUSSIAN FEDERATION

CHAPTER 27. GUARANTEES AND COMPENSATIONS FOR THE EMPLOYEES ON CANCELLING THE LABOUR CONTRACT

Article 178. Dismissal allowances

On canceling the labour contract in connection with liquidation of the organization (Article 81 point1) or reducing the number of permanent staff (Article 81 point 2) the employee to be dismissed is paid a dismissal allowance in the amount of the average monthly wages. His or her average monthly wages are preserved for the period of taking up a job but not more than for two months from the date of dismissal (considering a dismissal allowance).

In exceptional cases the average monthly wages are preserved for the employee during the third month from the date of dismissal on the base of the decision made by the employment agency providing that the employee applied to this employment agency within two weeks after dismissal but was not placed in a job.

The dismissal allowance in the amount of the average wages for two weeks' period is to be paid on canceling the contract in connection with:

the employee's non-conforming to the post held or the work being done due to poor health which hinders further fulfilling the work (Article 81, point 3a);

ordering the employee to join the army or sending him to an alternative civil service (Article 83, point 1);

the employee's reinstatement in the job which he did before (Article 83, point 2);

the employee's refusal to be transferred due to the employer's moving to another locality (Article 77, point 9).

The collective agreement or labour contract may stipulate other cases of paying dismissal allowance as well as establish increased amounts of dismissal allowances.