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It is clear to many employees that when they terminate an employment contract on their own initiative, the employer must pay them severance pay. Normally, the employer must notify the employee in advance and pay a fixed amount of severance pay.
However, not all employees know that, in some cases, they are entitled to the benefit if they decide to retire.
When does the benefit not belong?
According to the Labor Code, an employer must pay severance pay equal to twice his average earnings to a worker who has been fired for reasons beyond his control. It is true that the benefit will be less if the employee has worked less than a year. In this case, the compensation will be half of your average salary.
However, severance pay is not paid when an employee loses his job through no fault of his own. According to the Labor Code, the employer has the right to terminate the employment contract without prior notice and not to pay compensation if the employee violates the rules of the labor law or the employment contract.
The employment contract may be terminated if the employee commits a serious breach of duty or repeats the breach in the last 12 months.
It can be considered serious breach of duty:
- absence from full-time or shift work for no good reason;
- Appear intoxicated or intoxicated by narcotics, toxic substances or psychotropic substances at work, except in cases where said intoxication has been caused by the performance of professional duties;
- refusal of a health examination when such an examination is mandatory under labor law;
- Sexual or gender-based harassment, discriminatory acts or defamation of other employees or third parties at work or in the workplace;
- intentional material damage to the employer or attempt to cause material damage;
- an act committed with signs of a crime committed during work or in the workplace;
- other infractions that seriously violate the employee’s job responsibilities.
If you have reached retirement age
Daiva Čibirienė, president of the Association of Accountants and Auditors, mentions many reasons why employees, having decided to terminate their employment contracts, are entitled to severance pay. According to her, the main reason is a pension.
„[Išmoka skiriama], when the employee reaches retirement age and works with an employment contract of indefinite duration ”, said D. Čibirienė.
In this case, Mr. Čibirienė highlights a specific article of the Labor Code: article 56 of the Labor Code. Part 1, point 4, according to which you must terminate your employment contract. Otherwise, you will be left without profit.
“Residents do not exercise that right and do not receive benefits,” said D. Čibirienė.
“If an employee requests the dismissal voluntarily, he will not receive any benefit. The benefit would be a benefit of two medium sizes. If the employee has been working for less than a year, then the benefit will be an average salary,” explained the president of the College of Accountants. and Auditors.
He adds that sometimes employees continue to receive benefits not because the employer does not pay them specifically, but because of ignorance.
“An employer may not know when a person reaches retirement age. Sometimes even the employees themselves do not know when they will reach retirement age. This is an interesting place where other residents do not exercise that right and do not receive benefits. ”Noted D. Čibirienė.
If you have not received a salary
The aforementioned DK Art. In addition to the retirement age, it provides for three other circumstances in which an employee must receive severance pay upon termination of employment. One of them is a one-time free salary.
The Labor Code states that an employee can resign if his full compensation has not been paid for two consecutive months or if the employer has not fulfilled his obligations for more than two consecutive months.
However, D. Čibirienė points out that in this case it is important that the employer must not have paid the full salary owed to the employee for two months.
In this case, the employee can also say that he will not work, write a request for resignation, and will be entitled to a benefit of two average wages and the employer’s debt for wages. And if a part of the salary has been paid, then it does not count ”, emphasized D. Čibirienė.
If you are depressed
The benefit is also paid if the employee’s downtime is not due to his fault for more than 30 consecutive days or if it lasts more than 45 days in the last 12 months.
“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 two average salaries for more than one year of service ”Said D. Čibirienė.
If you cannot perform your duties
No less important reason for voluntary termination of employment: if the employee is unable to perform his duties due to illness or disability, if he is caring for a close relative (son, father, mother, husband or wife) at home, if the employee needs constant care.
“For example, 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 saw that you need to take care of your mother, then you can receive an average monthly salary benefit by submitting such an application, ”said D. Čibirienė.
In all the above cases, the employee must terminate the employment contract by notifying the employer in writing at least 5 working days in advance.
The “golden” article of the Labor Code
D. Čibirienė DK 57 art. He calls it an item of gold, because employees laid off under it can claim not only the employer’s benefit, but the Sodra benefit as well. It is true that it depends on your service time in the same workplace.
“This is a gold item if the employee has worked in the company for more than 5 years,” said D. Čibirienė.
“Usually if the employer submits a proposal to change the working conditions to work not in, for example, Vilnius, but in Alytus, and the employee does not agree, DK 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, – said D. Čibirienė.
What is the long-term employment benefit?
What is the aforementioned “golden” article of the Labor Code? According to article 57 of the DK. An employee dismissed at the initiative of the employer through no fault of the employee can claim an additional benefit if he has worked at the same workplace for more than 5 years. Employees of budgetary institutions and the Bank of Lithuania cannot receive benefits.
- If a person has worked for 5 to 10 years, they are entitled to 77.58 percent of 1 VMU benefit;
- If a person has worked for 10 to 20 years, he is awarded a benefit of 77.58 percent 2 VMU;
- If a person has worked for 20 years or more, they are awarded a 77.58 percent 3 VMU benefit.
In this case, VMU is calculated based on the employment benefits received during the last 12 calendar months.
However, Sodra emphasizes that these benefits are only available to those who have not been employed by the same employer within three months of being laid off. Redundant individuals must also apply to Sodra no later than 6 months after dismissal.
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