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The Labor Code stipulates that a seriously dismissed employee must receive severance pay equal to twice his average salary. If the employment relationship lasts less than a year, a severance pay equal to half of your average salary.
Additionally, the terminated employee receives an additional long-term employment benefit based on the employee’s continued service at that workplace.
Not all those laid off are entitled to benefits
At that time, workers laid off through no fault of their own do not receive unemployment benefits. Reasons for termination of employment can be a serious breach of duty and a repeat offense within the last 12 months.
Serious violations of an employee’s duties include: absence from full-time work without good cause, appearing drunk or otherwise intoxicated at work, refusing to submit to a medical check-up when necessary, harassment or other discrimination in the workplace. work, intentional damage to property or attempting to do so against an employer, crime at work or in the workplace, other infractions.
They usually receive retirement benefits
However, the Labor Code also excludes cases in which employees can claim severance pay and resign for important reasons.
“There are quite a few circumstances in which they can terminate the contract themselves. One of the most common circumstances is when an employee reaches retirement age and if the employee has an indefinite employment contract, “said Daiva Čibirienė, president of the Association of Accountants and Auditors.
In the first case, the employee must request dismissal from the employer and must indicate that he is requesting dismissal pursuant to section 56 (1) (4) of the DK.
If an employee voluntarily requests dismissal (article 55 (1) of the Labor Code), he will not receive a benefit equivalent to two average wages.
Downtime due to downtime
The Labor Code establishes that an employee is entitled to compensation in the event of termination of the employment contract on his own initiative for important reasons. Downtimes of more than 30 consecutive days or more than 45 days in the last 12 months will be considered as such reasons.
“If there is such a situation, the employee has the right to put a statement on the table and say ‘I am leaving according to Art. Due to inactivity time.” And he will also be entitled to the payment of two average salaries for more than one year of service ”Explained D. Čibirienė.
Exit for non-payment of salary
Voluntary termination benefits are also paid if the employee is not paid the full amount owed for two consecutive months or more or if the employer fails to meet its occupational safety and health obligations for more than two consecutive months.
“If a piece is paid for, then it doesn’t count. In this case, the employee can also say that he will not work, write a request to leave the job and will be entitled to a benefit of two average wages and the employer’s debt for wages, ”said D. Čibirienė.
Provision of self-employment
The exit benefit is also paid in the event that the employee is unable to work due to illness, disability or has to care for a family member who needs permanent care.
“A child, an adopted child, a father, an adoptive father, a mother, a mother-in-law, a husband or wife. If you are taking care of your mother, you can ask your employer to resign voluntarily and your employer will have to pay you an average of two average wages.
If you have been employed and worked only a month, and then you have seen that you need to take care of your mother, then you can receive an average salary of a month when submitting such an application, “said the president of the College of Accountants and Auditors.
In all the above cases, the employer must pay the employee compensation equal to twice his average salary. If the employment relationship lasts less than a year, a severance pay equal to one of your average earnings.
Employers may not be aware of benefits
It is true that there may be cases where employees are left without benefits solely due to their employer.
“Why an employer may not pay: they don’t know, they may not know when a person reaches retirement age. Sometimes even the employees themselves don’t know when they will reach retirement age. This is an interesting place where others residents do not exercise this right and do not receive benefits, ”noted D. Čibirienė.
If your salary is reduced
D. Čibirienė also recalls that the old Labor Code regulated that an employee can quit work and receive compensation if his salary is reduced, but he does not agree with it.
“The current Labor Code does not allow this to be done and does not allow an employer to fire an employee if he does not accept a pay cut,” said the specialist.
Here, too, he advises employees what to do when they learn of a pay cut.
“What should be done to the employee: when you receive a notification from the employer that your salary is being reduced, if you respond in writing that you agree, the reduction will occur. If you do not respond, it means that you did not agree to the reduction.
If the employer has ignored and still reduced the salary, the employee should not fall asleep and request the employer within three months to illegally reduce his salary.
If the employee does not meet the three-month deadline and applies after a longer period, everything is considered a legal reduction of wages and nothing can be done anymore ”, emphasized D. Čibirienė.
It is true that the Labor Code does not provide for the possibility for an employee to resign and receive severance pay when their working conditions change, except for a reduction in salary.
“But an employee can refuse to move to another city, then they will have downtime. And then when you put down time, you are entitled to a retirement benefit. Usually, if the employer makes a proposal to change the working conditions to work not in, for example, Vilnius, but in Alytus, and the employee does not agree, the Labor Code already allows the employer to dismiss the employee accordingly with Art.
This is a gold item if the employee has worked for the company for more than 5 years. Because then the benefit will be paid not only by the employer, but also by Sodra, – explained D. Čibirienė.
What benefits are owed after layoff
The new LC, which came into force two years ago, establishes that the dismissed worker must receive compensation equivalent to twice their average salary and, if the employment relationship lasts less than a year, half their average salary.
If the worker receives a notice of termination three days in advance, a six-month subsidy will be paid.
Also, if the employee has accumulated the required continuous work experience in a workplace, Sodra can award a long-term employment benefit.
If a person has worked for the company for 5 to 10 years, he is entitled to an additional benefit of one month, if it is 10 to 20 years, a benefit of two months, if it is more than 20 years, a benefit of three months . Furthermore, if the employee and the employer agree to terminate the employment contract by agreement of the parties, the employee may receive severance pay.
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