The instability of domestic and external economic regulations has forced many companies and enterprises to take action to reduce costs. Dismissal by staff reduction is, from this point of view the most common method of optimizing these costs procedure. The Code of Labour Laws of Ukraine contains basic provisions, according to which the process of dismissal is regulated by reduction. Thus, one of the conditions of the reduction is the decision to dismiss solely by the employer. At the same time, the current legislation of Ukraine provides a number of requirements, mandatory to comply in cases where there is a dismissal on reduction.
Stages of layoffs
The company’s management should provide for the gradual dismissal of employees. To do this, the reduction procedure should be followed and all of its stages, which are to be followed.
Make a decision to reduce the number or number of employees.The decision is made by the self-authorized management body of the company.
Notify the unions of the planned dismissal if there is a primary trade union organization in the enterprise, as well as if the employee is a member of the trade union.
The employer is obliged to provide the primary trade union organizations with information about these activities no later than three months before the planned dismissals, together with information on the reasons for subsequent layoffs, the number and categories of employees that may be related to the timing of the dismissals (v. 3 p. 22 of the Trade Unions Act, their rights and guarantees of activity” of 15.09.99, No. 1045-XIV).
At the same time, the legislation requires only a warning (Article 494 OF the CPOT) of the trade union about the impending reduction of the number or staff of workers.
Trade unions have the right to make proposals to the relevant authorities to postpone or temporarily suspend or cancel activities related to the dismissal of employees.
If there is no trade union in the enterprise, it is desirable to coordinate these issues with the elected representative from the labor collective; consent should be obtained from the elected body of the primary trade union organization (trade union representative) for the termination of the employment contract on the grounds provided for by section 1 of Article 40 of the Percentage..
To accept the relevant order to amend the organization of production and labor, which discloses the contents of these changes, commissions are set up to carry out liquidation or reorganization, which are entrusted to carry out measures related to the liquidation or reorganization of the enterprise.
Adopt an order to authorize the human resources department or other department of the enterprise, which is entrusted with the function of the human resources department, to carry out the necessary measures in connection with the dismissal of employees.
To draw up and approve in due course a new staffing schedule, to identify candidates to be dismissed.When approving the order to amend the staffing, the statement includes justifications for the dismissals, and the executive order provides a list of reduced positions responsible for the reduction procedure or the establishment of a special commission (if necessary).
In order to identify workers subject to reduction, it is necessary to take into account the preferential right to leave at work.
NB Preferred right to leave at work is granted to employees with higher qualifications and productivity. For this purpose, information on education, assigning qualifications (classes, categories, ranks), temporary performance of duties of more qualified workers, professional development, performance of development standards, availability of rewards for success in work and absence of disciplinary penalties, etc. can be taken into account.
In equal conditions of productivity and qualifications, preference in leaving work is given to the categories of employees specified in Article 42 of the ACT, as well as other categories of workers, if this is provided by the legislation of Ukraine and the collective agreement.
In determining candidates for reduction, it should be as long as there were no persons subject to dismissal restrictions.
NB Candidates for dismissal only with the complete liquidation of the enterprise can be:
- pregnant women and women with children under the age of three (up to six years of age – in the order and cases provided for by part 6 of Article 179 of the C.E.O.), single mothers with a child under the age of fourteen or a disabled child (v. 3 p. 184 CT);;
- parents raising children without a mother (including in the case of a long stay of the mother in a medical institution), as well as guardians (guardianships) (v. 1861Kot);
- workers under the age of 18 (Article 198).
However, the dismissal of these categories of persons is permitted on the condition that they are compulsory employment.
6.Warn workers of impending dismissal no later than two months before the reduction.In accordance with Section 1 of Article 492 of the C.E.O., employees are personally warned about the impending dismissal within two months.
The countdown to the two-month period begins with the day following the employee’s warning of his dismissal (v. 253 GCU).
Typical mistakes of employers in reducing workers
The price of the employer’s mistakes in the non-compliance with the procedure of dismissal is the restoration of dismissed employees in the post, the recovery from the company earnings for the time of forced absenteeism, and sometimes moral damage caused by illegal dismissal.
So, the employer risks getting a court decision to reinstate the employee dismissed under Article 40 of Article 40 of Ukraine, if…
- dismissed employee, whom the CPOT of Ukraine prohibits dismissal
- The employee’s pre-eminent right to leave work is not taken into account
- the employee was not offered vacant positions
- there is no evidence of a reduction in the number of or staff employees
AGTL Kharkiv, Kyiv, Odessa specialists are ready to offer professional assistance to all those affected by the reduction of existing in the organization or in the state enterprise. We will provide detailed advice to each client and take it upon ourselves to represent his legitimate interests and rights.
If you need advice or direct assistance in the situation with redundancy, contact AGTL Kharkiv, Kyiv, Odessa to a lawyer for employment, disputes and issues. We are sure to help you in any, the most difficult and confusing situations.
Call! +38 (050) 676-34-45, +38 (098) 028-08-51.