In accordance with Clause 1 of Part 1 of Article 40 of the Labor Code, an employment contract concluded for an unlimited period, as well as a fixed-term employment contract before its expiration date, can be terminated by the owner or an authorized body only in case of changes in the organization of production and labor, including liquidation, reorganization, bankruptcy or re-profiling of an enterprise, institution, organization, reduction of the number or staff of employees.
Part 2 of Article 40 of the Labor Code provides that dismissal on the grounds specified in Clause 1 of this Article is allowed if it is impossible to transfer the employee with his consent to another job.
The dismissal of an employee at the initiative of the owner or his authorized body during the period of his/her temporary incapacity for work, as well as during the employee’s vacation, is not allowed. This rule does not apply to the case of the complete liquidation of an enterprise, institution, organization.
Employees are personally warned no later than 2 (two) months of the forthcoming dismissal by virtue of Art. 49– 2 of the Labor Code.
When dismissing employees in cases of changes in the organization of production and labor, the priority right to remain at work, provided for by law, is taken into account.
In accordance with Article 42 of the Labor Code, when the number or staff of workers is reduced due to changes in the organization of production and labor, the preferential right to remain at work is granted to workers with higher qualifications and labor productivity.
Under equal conditions of labor productivity and qualifications, preference in leaving at work is given to:
– family (if there are two or more dependents);
– persons in whose family there are no other employees with independent earnings;
– employees with long-term continuous work experience at a given enterprise, institution, organization;
– employees studying in higher and secondary specialized educational institutions on-the-job;
– participants in hostilities, war invalids and other persons who are subject to the DPR Law “On social protection of war veterans”;
– to the authors of inventions, utility models, industrial designs and rationalization proposals;
– employees who have received work injury or occupational disease at this enterprise, institution, organization;
– to employees from among the former conscripts and persons who performed alternative (non-military) service – within two years from the date of their dismissal from service.
Other categories of workers may also be given preference to remain at work if it is provided for by law.
Simultaneously with the warning about dismissal in connection with changes in the organization of production and labor, the owner or body authorized by him/her offers the employee another job at the same enterprise, institution, organization. In the absence of work in the relevant profession or specialty, as well as if the employee refuses to transfer to another job at the same enterprise, institution, organization, the employee, at his/her discretion, applies for help to the state employment service or finds a job independently. At the same time, the owner or a body authorized by him/her informs the state employment service about the forthcoming release of the employee, indicating his/her profession, specialty, qualifications and amount of wages.
The state employment service offers the employee a job in the same or another locality according to his profession, specialty, qualifications, and in the absence of such, it selects another job, taking into account individual wishes and social needs. If necessary, the employee may be sent, with his/her consent, to learn a new profession (specialty) with the subsequent provision of work.
Also, it should be noted that on the basis of Part 5 of Art. 24 of the Law of the DPR “On Trade Unions”, if the employer plans to take measures entailing mass layoffs of workers, changes in essential working conditions for reasons of economic, technological, structural or other nature, reorganization, liquidation of an enterprise, institution, organization, he/she must not less than 3 (three) months before the implementation of the planned measures, provide the primary trade union organization with information on the reasons for taking appropriate measures, the number and categories of employees affected by these measures, on the timing of dismissals and the introduction of changes in essential working conditions. In the event of an impending mass layoff of workers, such information is also sent to state authorities and local self-government bodies.
Part 6 of Article 24 of this Law provides that, simultaneously with sending information, the employer determines the timing and procedure for holding consultations with representatives of the trade union to develop measures to prevent layoffs, reduce their number to a minimum, employment opportunities for another job, teaching other professions, mitigating the adverse effects of layoffs. Trade unions, their organizations and the union of trade unions have the right to make economically justified proposals to state authorities, local governments, employers and their associations to abolish measures related to the dismissal of workers, postpone the time for the relevant changes that are mandatory for consideration. Trade unions are informed about the results of the consideration of their proposals within ten days.
