Expenses, related to reduction of the staff (payment of indemnifications is regulated the Articles 40.2 and 40.3 KZoT):

To the workers, disengaged on reduction of the staff:

a discharge pay is paid in size of the average monthly earning, expected on the basis of the average earning for the last three month;

a middle salary is saved on the period of employment, but not over two months from the day of discharge taking into account payment of discharge pay. Subsequent absence of employment during the second months must be confirmed absence of new record in a labour book;

a middle salary is saved and in the flow of the third months from the day of discharge in decision of organ on employment subject to condition, if a worker in advance (in a two-week term after a discharge) appealed to this organ and was not them employed. Absence of employment during the third months must be confirmed absence of new record in a labour book. The presence of the proper decision of local organ is thus needed on employment.

In obedience to prevailing among tax specialists opinion, paid in accordance with KZoT discharge pays are not assessed taxes and Company must not produce on them deduction in social funds.

A company must pay the discharged employees additional indemnification for the untapped days of annual vacation. In accordance with the Article of 8 д Instruction № 35 Declarations about the taxes of physical persons of payment on account of untapped annual vacations are a taxable profit for workers.

Resume

Thus, minimum indemnification at laying off a staff is expected middle paying for two month, and additionally for the third months in case if a worker was not able to find job after expiration of these two months.

However, it should be remembered that warning must be given a worker no less, what two month prior to the set discharge. This requirement can be avoided by additional payment of two monthly wages. During this time a worker legalistically will be considered working, but really will not be into place of work. In this case complete sum of payments to the employee discharged "from a morrow" can arrive at the sum of five middle monthly wages. In practice many foreign companies used preeminently this variant for recent reduction of the state of employees.

Discharge on the basis of disparity held a position, truancies and others like that

• In the Article 33 п. 2-8 KZoT is expounded foundation for the discharge of worker not on reduction of the staff, but on other reasons, namely: disparity held a position, truancies, drunkenness et cetera

• At going of point of claim a worker to the court and in case if his requirements are satisfied, an employer must pay a worker a salary for all the time of judicial trial (which in Russia usually occupies very long time), and also to cover all charges, related to consideration of point of claim, and to pay the legal charges of both sides.

Comment: In obedience to statistics, the Russian courts give preference to the workers, I.e. practically it was in every case awarded judgement not in behalf on an employer.