Loss-of-employment compensations.

Individual as well as collective labour agreements can provide various payments and benefits in the event of termination of the labour agreement. Legislation sets the minimum level of protection. The idea beyond these provisions is to give time to the unemployed to find a new job without or with minimal financial distress and to share the burden between the employer and the state.

As the law stands the employee who was made redundant is entitled to the following benefits:

1. Redundancy payment;
2. Severance payment;
3. Compensation for unused paid leave;
4. Payment according to art. 180 of the Labour Code.


Redundancy payment

An employee whose labour agreement is terminated on the grounds of liquidation of the company or reduction of labour is entitled to a redundancy payment in the amount of his average monthly wage.

Two weeks wage is payable when the termination of employment is caused by certain events controlled, known or at least connected to the redundant, i.e. the employee's refusal to move to another place due to the company’s relocation; her refusal to stay under new terms, necessary for technological or organisational reasons; the employee's poor health; reinstatement of another person to the job in question and etc.


Severance payment

An employee who is made redundant due to liquidation of the company or reduction of labour is entitled to the severance pay while she is looking for the alternative employment, but only for two months (the redundancy payment, though, is credited against the severance). The severance payment for the third month can be made by the decision of the State Unemployment Agency, if the redundant failed to find a new job and under condition that she contacted the agency within two weeks of termination of work.

Those, dismissed from a company located on the North or regions with similar conditions, are entitled to three months severance payment, and up to six months, by the decision of the State Unemployment Agency.


Compensation for unused paid leave

Employees are provided with 28 calendar days of paid vacation a year. People working on the North are entitled to additional vacation for 24 days, and those, working on the regions with similar conditions, to 16 days.

Upon termination of the labour agreement an employer must pay a compensation for unused paid leave.


Payment according to art. 180 of the Labour Code

An employee must be notified about the forthcoming dismissal resulting from liquidation of the organization or reduction of labour, personally and in writing, two months before the dismissal.

With the employee's written consent the employer can terminate the labour contract without the notice with payment of additional compensation in the amount of two months' average wage.