Additional guarantees have been introduced for employees who are dismissed due to company’s liquidation

Aug, 26 2020

From August 13, 2020 company’s liquidation procedure is changed in order to guarantee rights of employees of legal entity being liquidated.

Amendments in the field of employment and civil legislation (in the part of company’s liquidation) will allow to guarantee rights of employees who are dismissed due to company’s liquidation. The company’s liquidation process will be impossible to complete if employer has not fully paid off the employees.

What payments can employee of liquidated organization claim?

  • severance payment in the amount of average monthly salary;
  • average monthly salary before dismissal if employment period exceeds 1 month;
  • average monthly salary if employment period exceeds 2 months (only upon decision of employment service authorities);
  • one-time payment in the amount of twice average monthly salaries in exchange for payments of average monthly salaries for the period of employment.

All above mentioned payments should be made by employer before liquidation procedure is completed. After that, employer must submit to relevant executive authority a statement confirming completion of settlements with employees.

Employer’s compliance with these legal requirements will allow state registration of legal entity’s liquidation.

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