Mass layoffs of workers. How many people are laid off during a mass layoff, what laws govern the procedure

The term " lockout"is called the mass dismissal of employees from their positions.

Sometimes a situation arises at an enterprise when it is forced to get rid of a significant part of its hired workforce. Sometimes the price for this is the very existence of the company; if it disappears, a large number of people lose their jobs.

How to determine whether a layoff is mass?
How is it different from the usual one?
What are the responsibilities of an employer towards employees and government agencies?

In the article we consider all issues related to the lockout, and also provide a step-by-step algorithm for an employer who dismisses employees en masse, and a list of documents required for this.

When the lockout comes

Mass release of hired employees is not a very frequent phenomenon, however, it can occur under certain circumstances, usually unfavorable for the organization. Whatever events lead to the outcome, the resulting mass layoff can occur for one of two real reasons.

Liquidation of an enterprise or organization, in connection with this, dissolution of all personnel (clause 1 of Article 81 of the Labor Code of the Russian Federation).
Reduction of the number or staff of an organization (clause 2 of Article 81 of the Labor Code of the Russian Federation).

NOTE! For any of these reasons, dismissal can be either ordinary or mass.

Lockout or just dismissal?

Where to look for the answer

How to distinguish a standard dismissal from a mass dismissal? This is clearly defined in the relevant documents - specific industry agreements, possibly also in territorial ones.

REFERENCE! At the end of 2016, about two dozen industry agreements have been adopted and are in force, which also regulate issues of mass layoffs.

If such an agreement for the relevant industry or region has not been adopted or does not contain the necessary criteria, an older document will come to the rescue, valid in those parts that do not contradict labor legislation. Such a document is the Regulations on the organization of work to promote employment in conditions of mass layoffs. It was approved by Resolution of the Council of Ministers of the Government of the Russian Federation on February 5, 1993 No. 99.

Lockout criteria

Let's consider in what cases the release of employees would fall under the signs of mass layoffs. This takes into account:

the total number of hired workers at the enterprise;
number of people being laid off;
the percentage of laid-off employees out of the total number;
the time during which layoffs occur;
unemployment rate in a particular region.

In the event of liquidation of an enterprise, no matter what legal form it belongs to, the dismissal will be considered mass if the organization had 15 or more employees.
In terms of headcount or staff reductions, the scale depends on the number of employees being relieved of their positions over a given time period:
- Fifty or more people were laid off in a month;
- in 2 months, more than 2 hundred people lost their places;
- in 3 months, more than half a thousand workers left their jobs.
For any of both reasons, dismissal falls under the mass criterion if, in regions where no more than 5 thousand residents are employed, 1% of the total number of employees lost their jobs within a month.

ATTENTION! If the unemployment rate in a region is particularly high, more than 11%, then local authorities may decide to suspend mass layoffs. They cannot be completely cancelled, but it is allowed to slow down the process so that the employment services and trade unions can cope with such an “influx”. It is allowed to increase the interval for dismissal of 50 people to 8 months, 200 or more employees can be dismissed within 10 months, and five hundred employees - for a period of at least a year.

What an employer should not forget about

A lockout is a responsible process that must be carried out strictly according to the law, and the legislation on this matter has many inviolable regulations. To do this, it is better to follow the established algorithm, acting strictly according to the protocol and not forgetting to notify the relevant authority and correctly fill out all the necessary documents.

A step-by-step algorithm for a massively dismissing employer

Drawing up a written appeal to the organization’s trade union body and the regional employment service three months before the start of the event.
Development of an updated staffing table taking into account the number of remaining employees (either throughout the organization, or for some structural unit or individual categories of personnel). Approval of this document.
Based on the approved staffing table, issuance of an order for the organization to reduce personnel or staff.
2 months from the date of dismissal specified in the order, notify in writing the people who are subject to dismissal. If the company has suitable vacancies or positions in branches, they must be offered to those under the order to fill them. The employee must leave a signature on the notice of impending dismissal. If he refuses to endorse the notice, it must be sent by mail with a notification to the address specified during employment, or the refusal must be recorded in an act signed by two witnesses.
Preparation of a dismissal order. Familiarization with it to employees against personal signature. In case of refusal, perform actions similar to paragraph 4.
Making entries in the work books of employees losing their positions. The entry indicates the reason for dismissal (downsizing, liquidation of the enterprise, and possibly the parties’ own desire or agreement), the corresponding article of the Labor Code. Number and date of the dismissal order.
On the last working day, all retiring employees are accrued the required payments and compensations - wages, funds for unused vacations, severance pay due upon dismissal under Articles 178 and 180 of the Labor Code of the Russian Federation.
Submitting information about dismissed workers to the employment service of a given region, because they may differ from those submitted three months ago if, for example, some employees were transferred to other positions.

Employer risks

There are a number of points that an employer should in no case lose sight of during a mass dismissal, so that no one can bring claims against him for violating legal norms.

When making redundancies, it is necessary to take into account the categories of employees who fall under it, especially their qualifications.
It is impossible to dismiss a preferential contingent due to reduction, even if they are inferior in qualifications to other employees, namely:
- women expecting a child;
- single parents in whose care are children under 14 years of age (and disabled people under 18 years of age);
- adoptive parents, guardians of children under 14 years of age.
Timely notification of the lockout to state and trade union bodies. If this is not done or the deadline established by law is missed, the employer will receive serious administrative punishment in the form of a fine of 2 to 3 thousand rubles. for a specific official and from 10 to 15 thousand rubles. – for an organization (Article 19.7 of the Code of Administrative Offenses of the Russian Federation).

List of documentation required by the employer

The necessity and legality of a complete lockout can be confirmed by the entrepreneur with relevant documents, which include:

a new staffing table, certified and approved in the usual manner, or a court decision on the bankruptcy of the organization (for its liquidation);
an approved plan for the mass layoff process;
extracts from the personal files of candidates for layoffs;
extracts from the minutes of the meeting of the commission discussing candidates for reduction;
order for the company on mass dismissal with a list of names of those being released and their signatures;
act of proposed vacancies for transfer with resolutions on the employee’s consent or refusal;
confirmation that letters to the trade union and employment service were sent on time (for example, a correspondence log, postal notification, etc.);
a document from the trade union organization agreeing to the upcoming lockout;
final order of dismissal;
entries in personal cards;
financial documents confirming full settlement with employees.

In this article we will look in detail at how mass layoffs of workers are formalized and what the reasons may be.

Reasons and criteria for numerous dismissals

The mass release of workers involves the premature denunciation of employment contracts concluded with them due to the cessation of the existence of the organization or staff reduction. The work book records that the dismissal was made due to staff reduction or liquidation of the organization.

The evaluation criteria for mass participation are determined by the indicators of the number of dismissals for a specific period. According to Art. 82 of the Labor Code of the Russian Federation, they are determined by sectoral and territorial agreements. In the absence of such regulation - Regulations of the Council of Ministers of the Russian Federation No. 99 of February 5, 1993 “On the organization of work to promote employment in conditions of mass layoffs.”

If the specified criteria are met, the dismissal is considered mass. If a number of agreements apply to the dismissed person, then those that are more favorable in terms of their terms are applied.

Features of mass layoffs under the law

Collective dismissal is an extreme measure used by the employer in the presence of large debts, bankruptcy, or other reasons of an economic, legal, or technological nature. To avoid numerous layoffs, the head of the organization may first take other measures:

invite employees to go on vacation at their own expense or move to another job;
reduce wages;
introduce, with the consent of the trade union body, part-time work ( Art. 74 Labor Code of the Russian Federation).

If the current situation cannot be resolved, then the employer inevitably resorts to collective dismissal of workers. Further, when implementing dismissal measures, the employer is guided by the following laws:

Law of the Russian Federation N 1032-1 of April 19, 1991 (as amended on October 11, 2016) “On employment in the Russian Federation”, Art. 21 (about notifying trade unions) and 25 (about notifying the employment center).
Art. 81 of the Labor Code of the Russian Federation (denunciation of an employment contract at the initiative of the employer).
Art. 179 of the Labor Code of the Russian Federation (privileges for certain categories of citizens to remain at work).
Art. 373 of the Labor Code of the Russian Federation (participation of a trade union in the dismissal of workers).
Art. 180 of the Labor Code of the Russian Federation (guarantees and compensation for layoffs - for workers).
Art. 140 of the Labor Code of the Russian Federation (terms for payment of amounts due upon dismissal).

For failure to comply with legal norms when carrying out multiple dismissals, management is held administratively liable.

Conditions and procedure for mass release

The mass release procedure involves a series of sequential actions that must be performed primarily by the initiator - the employer. It is he who guides the reduction step by step, adhering to the following order.

Stage	Features of the event
Issuing an order in any form	Compiled several months before the start of the event; indicates the number of people being laid off, their positions and departments where they work, as well as the date of the reduction; Each employee must familiarize himself with the order and sign it
Formation of another staffing table (⊕)	Employees can be fired only after approval
Selecting candidates to be fired	Workers have the advantage of remaining at work:
Notification of those being dismissed	Carried out under the signature of employees 60 days in advance ( Labor Code of the Russian Federation, art. 180, part 2); in case of refusal to sign, an appropriate act is drawn up; if two parties agree to denounce the employment contract, there is no need to send a notice to the employee
Providing assistance in further employment	The employer has the right to offer the employee: +) another vacancy in accordance with qualifications, +) a lower or vacant position in the organization, +) assistance in finding work at other enterprises. When an employee accepts one of the proposals, a transfer is issued, and in case of disagreement, a written refusal is issued
Trade Union Alert	At least 3 months before the start of the event, the union is given documentation accompanying the dismissal; in case of disagreement, the members of the association with the employer try to reach a compromise and draw up a protocol based on the results, after which the employer is given 10 days to make a final decision; in the absence of unanimous agreement, the labor inspectorate considers the complaint and recognizes the dismissal as legal or not
Job center alert	The notification is sent no later than 3 months before the start of: 1) Appendix No. 1 to the Regulations on the organization of work in conditions of mass layoffs - about the upcoming numerous reductions, 2) Appendix No. 2 of the same Regulations - on the dismissal of an employee
Drawing up and registering an order to denounce an employment contract	The person being dismissed must be familiarized with him under his signature within 3 days
Payment of amounts due to a dismissed employee	Done on the day of dismissal (see →)

Timely and correct implementation of all stages with numerous reductions allows you to eliminate controversial situations and also avoid violations.

Documentation for mass layoffs

Any mass dismissal is accompanied by the execution of basic (mandatory) and additional (if necessary) documents. It is they who confirm the very fact of carrying out the measures provided for by law in such cases. These include:

updated staffing table, order for its approval;
orders of dismissal, reduction, transfer;
acts of consent (non-consent) of an employee to move to another position or job;
notices of upcoming layoffs of workers, trade unions, employment services;
protocol on consent (disagreement) of the trade union;
financial documents certifying that the employee has received the amounts due.

In addition, information on each dismissed employee has an evidentiary basis, which should also always be ready, and the signatures of the dismissed persons after familiarization with the documents.

Payments to employees upon dismissal

At the end of 2 months from the date of notification, the employment contract is denounced and a settlement is made with the employee. On the date of dismissal, mandatory payments are made to him:

due salary;
compensation for unused vacations;
severance pay - average monthly earnings ( Art. 178, part 1.2 of the Labor Code of the Russian Federation);
additional compensation for early dismissal (average earnings calculated in proportion to the remaining period until the termination notice expires).

In addition, the worker is entitled to compensation (average earnings) after dismissal for the second and third months, if he has not yet found a job and is listed in the employment center. In some cases, by decision of the center, an already unemployed person is paid such compensation for the third month. The main condition for recognition of the right to compensation payments after layoffs (liquidation of an organization) is that the dismissed person must contact the Labor and Employment Center within two weeks after losing his job.

For dismissed workers from organizations operating in the Far North and equivalent territories, the period of compensation payments is extended to six months. In case of dismissal with the wording “at one's own request” or in case of transfer, compensation amounts are not due.

Example #1. Mass layoffs at OJSC "Vasilek"

Due to the lack of funding and a drop in the volume of construction work, the management of Vasilek OJSC decided in March 2016 to liquidate three of its structural sectors with 98 employees. In total, OJSC “Vasilek” employs 600 people.

Federal industry agreement regarding the construction and construction materials industry of the Russian Federation for 20014–2016. dated 10/11/2013 determines the number of personnel, upon reaching which the dismissal is recognized as mass.

Obviously, the established threshold for the number of dismissed people (50 people) per month has been exceeded and amounts to 98 dismissed people. This means that the planned release is considered massive.

Example #2. Dismissal due to the cessation of the organization's existence

The head of the personnel service handed A.V. Dolgov a notice signed by the employer about the impending dismissal due to the cessation of the organization’s existence. The start date of the activities is October 26, 2016. The notice was sent to the addressee in a timely manner - 2 months before. After reviewing it, the person being dismissed put his signature.

After a week, the employer offered A.V. Dolgov to resign early with the payment of additional compensation, to which the latter agreed, confirming this in writing.

One of the most important concepts in the world of economics is mass layoffs. This phenomenon is always associated with many events and ensuing factors, and it will not be possible to do something like this “quietly.” If the owner of a business does not want to get into trouble with the law and his former employees, he needs to thoroughly study all aspects and carefully prepare. In addition, the location of the enterprise and the specifics of the legislation also matter - for example, mass layoffs of workers in the Russian Federation differ from similar practices in other countries.

There is such a term as lockout (from the English lock-out - close the door). This concept is related to the liquidation of enterprises, since it also implies the mass dismissal of workers. This practice originated in capitalist countries, and in the overwhelming majority of cases it is a response to a strike by enterprise employees. When workers go on strike or make extremely high demands, owners resort to lockouts - firing all workers, or liquidating or reorganizing their company.

A very tough and radical measure of restraint, to be sure, therefore in most states a lockout is not welcomed. If such practices are encouraged, people will not be able to fully protect their rights and defend their interests with their employers.

Therefore, in the Russian Federation, a lockout in its full manifestation is prohibited.

What are the main reasons pushing the business owner to take such measures? Usually everything is inextricably linked with bankruptcy. If a company declares itself bankrupt, it can legally avoid paying all of its debts. Of course, after the announcement of bankruptcy information, the closure of the enterprise immediately follows. Immediately terminate employment contracts with all employees, put up remaining assets for sale, and all this on the initiative of the business owner.

Mass dismissal criteria

But first of all, it is necessary to define the very concept of mass layoffs, and by what features it can be identified. In simple words, the criteria for mass layoffs are determined by the number of people with whom the employment contract is terminated - there must be at least 15. That is, the closure of an enterprise that employs 15 or more people is already recognized as a mass layoff, with all that it entails. And, as already mentioned, here it is necessary to follow a certain order of actions.

Notice Rules

According to the Labor Code, before liquidating its business and dismissing all workers, the employer is required to notify the union and the local employment service about this. When so many people are left without work, this must be taken into account, which is why there are corresponding obligations.

The trade union must be notified in writing, following the established rules. There is no strict notification procedure, but there are still certain rules.

The notice must contain information about each employee of the enterprise, such as:

Profession;
Speciality;
Position held;
Payment requirements;
Qualification requirements, etc.

This notification is transmitted to local government authorities. In the old days, this information had to be sent to the territorial department for employment of the population of Rostrud, but subsequently a number of reforms took place and the rules changed.

Possibility of litigation

Business owners often have a question: how can they fire so many people without ending up under a pile of lawsuits from former employees? In this matter, the timing of dismissal is very important. It is necessary to take decisive action only when the corresponding entry about your company has already been made in the Unified State Register of Legal Entities. Thus, the liquidation will be recognized by the court as justified, no matter how many people you fire.

In such cases, it will be very difficult for former employees to win a legal battle. Such cases can drag on for a very long time, which is not beneficial for either party. In addition, a dismissed worker may soon find out that he simply has no one to sue, since the enterprise has ceased to exist. So in such situations, it is easier for people to start looking for a new job rather than to arrange legal proceedings.

To understand all the features, you should carefully study the concept of “mass layoffs of personnel.”

According to the law, this is the only reason why an employer can fire everyone indiscriminately:

Trainees;
Employees with long service;
Pregnant women;
Young mothers.

In other cases, the so-called “dismissal under article” is a very complex operation that is quite difficult to carry out without the employee’s agreement. That is why business owners usually force employees to write statements of their own free will, since it is much simpler and after that the person will no longer be able to sue.

Bankruptcy at the request of a creditor

The closure of an enterprise due to bankruptcy can be initiated:

The business owner himself;
Lender.

If everything happens at the request of the creditor, at least two operations must be carried out - observation and bankruptcy proceedings. In this case, the process is led by the bankruptcy trustee. For the mass dismissal of workers, he is obliged to issue a corresponding decree, which will distribute all the necessary orders to officials.

The principle of dissolving employees during mass layoffs is similar to staff reduction, but there are still significant differences. As already mentioned, in our case, the employer has the legal right to fire everyone without exception, but if there is a reduction, he will not have such opportunities.

In addition, when reducing staff, it is necessary to offer people vacancies in other enterprises, which is not mandatory when closing a company. When an enterprise ceases to exist, it is difficult to present anything to it legally, and experienced lawyers know this. This is why consultation with qualified lawyers is so important during such sensitive legal transactions.

As you can see, the liquidation of an enterprise followed by large-scale layoffs is not the most troublesome matter, but it still requires certain knowledge. Through liquidation, a business owner can legally get rid of debts and sell off remaining assets. There is also information for ordinary employees, although it is not the most pleasant - no one is insured against dismissal when the company is closed, and you most likely will not be able to achieve any compensation.

Economic instability in the country is again forcing employers to cut their staff. This method of terminating an employment contract is one of the most difficult, both in terms of execution and from the emotional side. Retrenchment is unpleasant not only for employees, but also for the employer himself.

The main processes of the reduction procedure are prescribed in labor legislation, the subtleties are in industry-specific local acts. If the industry agreement does not classify layoffs into mass and individual, then one should be guided by the norms of Part 1 of Article 82 of the Labor Code and the Regulations on the organization of work to promote employment in conditions of mass layoffs.

Mass reduction - how many people are to be laid off? Official figures:

50 or more employees were fired in 1 month;
200 employees were fired within 2 months;
reduced from 500 people in 3 months.

Also, for regions where the total population does not exceed 5 thousand people, a massive reduction is considered to be the release of 1% of employees at one enterprise in 30 days.

Why does the employer take such measures?

The legislation does not provide for the employer’s obligation to explain the reasons for the layoff, especially if everything happens within the framework of the law. Although the reasons are usually clear: a decline in production, ineffectiveness of top management,

Thus, the reason for the massive layoffs of doctors in Moscow was optimization measures in the field of healthcare. It is too early to talk about the effectiveness of such measures, but many people were left without a livelihood, while having a noble and in-demand profession.

Order of reduction. Creation of a reduction commission

Despite the fact that this stage is not provided for by any legislative act, judicial practice suggests that it is better to make such decisions collectively, rather than individually by the director. The commission will decide how justified and from which divisions and departments.

It is at this stage that the number of persons from the category not subject to reduction should be determined. It's also a good idea to create a comparison table to identify employees who are more qualified and therefore have preferential treatment to stay on the job. The defining criteria may be:

Work experience;

Absence of defects and violations for a certain period of time;

Personal contribution of the employee to the development of the enterprise.

Assessment can be carried out not only within a certain category of positions, but also between positions with different titles, but with a similar range of responsibilities. The result of the commission’s work should be a protocol with a list of employees to be laid off.

Reduction order indicating positions and names

Such an order is issued at least 2 months before the date of release of employees. Although this order comes into force together with orders to dismiss employees.

If there is a massive reduction of workers, then it is more rational to create a new staffing table than to make changes to the old one, but it can only come into force after the reduction procedure is completed.

Notifying employees about upcoming release

The law provides for a two-month period for notifying an employee of an upcoming dismissal. The best option is personal written notices issued to everyone against signature. The employer must keep one copy of the notice signed by the dismissed employee.

If individual employees refuse to accept the notice or sign, then an appropriate act should be drawn up and commission members and other employees, preferably from other departments, should be involved in signing it. If an employee is absent from the workplace due to being on vacation or sick leave, a notification can be sent by mail with a list of the documents being sent and a notification.

During the massive layoff of doctors in Moscow, many employees quit before the cutoff date. Indeed, you can quit earlier. In this case, the employer is obliged to make all payments guaranteed by law.

Offer another job

After serving the notice or at the same time, the employer is obliged to offer employees another job if it is vacant. Whether it is a massive layoff of doctors or other specialists, vacancies can be offered that do not even correspond to the qualifications of the employee being laid off, with lower pay.

If vacancies were offered along with a layoff notice, and the employee does not want to change his profession, then he must write on the notice that he refuses the offered vacancies.

If there are no vacancies, the employer is also recommended to draw up a corresponding document about this and familiarize all released personnel with signature. Naturally, the staffing table must confirm the fact that there are no vacancies.

Union Notice

At the same time that employees are notified of the upcoming layoff, the union must also be notified. If we are talking about mass layoffs in Russia, then 3 months before the upcoming layoff date.

The legislation does not require the employer to obtain consent from the Administration; it may be limited to just a notification.

Transfer of personnel who agree to fill available vacancies

There are no special requirements for the transfer of personnel during the reduction period; everything is carried out according to the standard procedure. The employee may express his consent by checking the appropriate box on the notice. After this, the employer makes these changes to the employment contract.

Dismissal stage

Mass layoffs mean issuing an order to terminate the employment contract with each employee. Naturally, with the huge size of the enterprise, a large burden falls on the personnel department, but there is no other option. You will also have to make entries in the work books of those employees who are resigning, that is, carry out a full dismissal procedure with each laid-off employee.

If an employee does not want to receive a work book, or is absent from work on the day of dismissal, then on the same day he must be sent by mail with a notification requesting that he come to the enterprise to receive a work book. In case of illness of an employee, the date of dismissal is postponed to the moment when the employee returns to work with a sick leave certificate in hand.

Carrying out calculations

Both individual and mass cases involve the payment of additional compensation, namely:

Payments for the last month of work, including all allowances and bonuses;

Payment for each day of ungranted leave;

Benefit in the amount of the average monthly payment.

It should be remembered that failure to pay all compensation on the day of dismissal or the next day entails payment of interest in the amount of at least 1/150 of the key rate in effect at that time for each day of delay.

Possible payments if reduced staff were unable to find employment

With a massive layoff, no matter how many people there are, almost everyone registers with the Employment Center in order to receive at least some social guarantees and the opportunity to find a job.

If within 1 month from the date of layoff and registration with the Employment Center, the employee was unable to find a new job, then he has the right to present a certificate of incapacity for payment to the former employer. Unemployed personnel can also count on receiving an average monthly salary from the former enterprise for 2 months from the date of layoff. Naturally, such payments will be reduced by the amount of social unemployment benefits received.

To receive payment, a former employee can contact the employer with a written application and a work record book, which confirms that he is not employed. In some cases, the opportunity to receive wages remains with the unemployed for 3 months from the date of mass layoff:

Subject to contacting the employment center no later than the end of a two-week period after the date of reduction;

The employment center was unable to employ an unemployed person for 3 months;

An unemployed person must receive an appropriate decision from the employment agency where he is registered.

The employee must take an interest in his rights; for example, the collective agreement often stipulates increased compensation in the event of a massive staff reduction. Therefore, before employment, you should not formally study such a document.

Practical questions

Often employees do not understand what a mass layoff is, how many people should be laid off and for how long. The employer takes advantage of this and can simply get rid of “unnecessary” personnel. Simply put, over time, recruit the same number of people, but at a lower salary. This is confirmed by court cases where employees won. There were cases when laid-off employees were able to prove that their position was not actually reduced, since after the dismissal the number of staff positions did not change, which was confirmed by an inspection by the labor inspectorate. After the massive layoffs of doctors, there will probably be more than one trial, and, most likely, on the basis that an incorrect assessment of labor productivity was carried out and on other grounds.

During the economic crisis, many companies are forced to resort to mass layoffs of workers, as they are on the verge of bankruptcy. By this method, they significantly reduce the cost of paying all employees. This procedure is considered complex, therefore it should be carried out only if there are compelling reasons, and such a process will certainly attract the attention of the labor inspectorate. Dismissals are always carried out en masse when a company closes.

When is a dismissal called mass?

Mass dismissal is a dismissal in which certain criteria are met regarding the number of employees with whom the employment contract is terminated. Additionally, the provisions of various regional acts and Labor Codes are studied.

When determining mass layoffs, not only the number of citizens with whom agreements are terminated is taken into account. This is also the period of time in which this process occurs. Mass layoff - how many employees stop working for the company? The main parameters include the following conditions:

contracts with 500 employees or more are terminated within 90 days;
200 employees of the company quit in 60 days;
within 30 days, employment relations with 50 or more specialists are terminated.

It is when these conditions are met that we can talk about mass layoffs.

What other features are taken into account?

Other criteria for mass layoffs of workers include:

this process occurs when a full-fledged company that employs more than 15 people is closed, and in this case all employees immediately stop working in their positions on the staff of such an organization;
This includes the situation if the number of citizens in the region who are officially employed does not exceed 5 thousand people, and within one month decreases from 1% of the total employed population.

The employment service must constantly monitor these factors and criteria, as they have a direct impact on the unemployment rate and other significant indicators of a particular region.

For which areas of work do special agreements apply?

There are some industries that use special criteria when laying off workers en masse. These areas include:

oil or gas industry;
civil Aviation;
engineering or coal industry;
television and radio broadcasting and several other areas.

Each company, when terminating a contract with an employee, must use a special agreement specified in the Labor Code.

The mass dismissal of workers implies that the company is obliged to pay the average income to all citizens until they can find the optimal place for employment, but for a maximum period of three months.

Legislative regulation

The Labor Code does not have a clear definition of the conditions under which dismissal can be recognized as mass, since they are determined by different industry agreements.

Quite a lot of information about this process is available in the Regulations of the Council of Ministers of the Russian Federation No. 99 dated 02/05/1993. Here are the main signs by which one can determine the mass reduction of citizens at a particular enterprise or in a particular region as a whole. But even here, the presence of other indicators is allowed if they are prescribed in agreements. That is why, even in the same city, layoffs of the same number of people in different companies may fall into different categories.

Additionally in Art. 74 of the Labor Code states that employers have the opportunity to establish part-time work for employees if there is a threat of possible mass termination of contracts with them. However, this is only the right of company managers, so if they do not have the opportunity to use such a relaxation, they can immediately lay off specialists.

What parameters are taken into account?

Mass dismissal is a process that takes into account the following factors:

the number of citizens with whom employment relations are terminated, for which a reduction procedure is carried out, and this does not include people who quit of their own free will or for any reason related to violation of the employment contract or discipline;
the time during which this procedure is carried out, and it is calculated in days.

Such dismissal additionally includes termination of contracts with more than 10% of the total number of employees of the company.

Why is the procedure used?

The reasons for mass layoffs can be different, and they are usually associated with:

a crisis in the country or in a specific area of business;
lack of opportunities to develop the company in a certain direction;
a change in management, which ensures a change in the enterprise’s operating policy;
the need to employ more qualified specialists;
changing the direction of work, which requires hiring other professionals;
transferring manual labor to automatic or mechanized.

Companies are not required to explain to anyone why they have used such a process, and some organizations deliberately use it for some purpose, while others cannot find another way out due to difficult financial situations.

How are the employees who will be laid off selected?

Each employer must first decide which of the staff will be laid off. For this purpose, a special commission is organized, which decides which of the company’s employees will be fired.

When choosing citizens, work experience, age, their qualifications, as well as the presence of preferential rights are taken into account.

Who can't be made redundant?

The mass dismissal of workers takes into account that not all citizens can be laid off, since some people are protected from this, so their contracts are terminated only when the company is closed. Such employees include:

pregnant women;
women on maternity leave;
citizens raising children alone, and children should not be more than 14 years old;
people who are raising disabled children;
guardians of disabled children who do not have an officially registered marriage;
people who are on vacation or sick leave at the time of notification of mass layoffs;
citizens who are dependent on at least two other people, represented by minors, elderly or disabled people;
combat veterans.

Additionally, this list can be replenished on the basis of various regional acts, which takes into account the development of the industry and the region itself in which the company operates.

If an enterprise is closed and workers are laid off en masse, then, regardless of the existence of a preemptive right, employment relations with all employees are terminated.

Stages of the procedure

Dismissal, on the basis of which contracts with several employees are terminated, is carried out in the correct sequence of actions.

Process steps
The manager issues an order	The document can be generated in any form. It is drawn up at least three months before the start of the process, and all employees must be familiar with it. It states how many people will be laid off, what position they hold, what branch they work in, and also when exactly their employment contract will be terminated. All employees must read this document and then sign the notice
Creating a new staffing table	For this, a special T-3 form is used. Retrenchment of employees is permitted only after this document has been approved.
Selection of specialists	This takes into account who should be fired initially. We must remember about the preferential right of some people to retain their jobs. People most often fired are those who have poor performance records, as well as multiple criticisms regarding work or discipline.
Notifying citizens about reductions	All people who were subject to a mass layoff of employees must be notified 60 days in advance of the termination of the employment contract against signature. If they refuse to sign, then a special act is drawn up for this
Offering an alternative	The employer must provide assistance to all laid-off employees in finding a new place of employment. For this purpose, other vacancies at the enterprise may be offered, taking into account the qualifications of the specialist. Support may also be provided in finding a new job. If the employee accepts the offer, a transfer to a new position is carried out. If he refuses the options, then a written refusal is drawn up
Sending a notice to the union	This process must be completed three months before the start of the actual process. If disagreements arise between the employer and this organization, then it will be necessary to reach a compromise, for which a meeting is held. All its results are recorded, after which the employer is given 10 days to make an appropriate decision. If it is impossible to reach an agreement, a complaint is sent to the labor inspectorate. The specialists of this service decide whether the dismissal is legal or not.
Sending a notification to the employment center	Notification must be sent 3 months before the start of the layoff. It indicates how many workers will be laid off. The position, full name, age, length of service and other characteristics of each employee being laid off are given.
Drawing up an order to denounce contracts	This document must not only be correctly formed, but also registered. Each person with whom the contract will be terminated studies it within three days after creation
All funds are paid to those fired	All payments are made directly on the day of dismissal

The correctness and timeliness of the implementation of each stage is the key to preventing various disputes and disagreements not only with employees, but also with trade unions and the labor inspectorate.

What documents are needed?

The procedure carried out in connection with mass dismissal requires the preparation of certain documentation from the manager. With its help, it is confirmed that the entrepreneur took all necessary measures according to the law. These documents include:

new staffing;
order to approve the schedule;
orders drawn up for each dismissed employee, and they can indicate not only reduction or dismissal, but also transfer;
an act on the basis of which the specialist agrees or refuses to be transferred to another position at work;
notifications about the planned process sent to employees, the employment service and the trade union;
a protocol that states the union’s agreement or disagreement with this procedure;
financial documentation, on the basis of which it is proved that the company paid all the necessary funds to dismissed citizens.

Separate papers are required for each employee.

What funds are paid to citizens?

Three months after notification of the mass layoff of workers, labor contracts are denounced. A settlement is made with all employees who are laid off in the company. The necessary payments are transferred to them, which include:

salary for all days worked;
compensation if there are days of unused vacation left;
severance pay provided under Art. 178 TC is the average monthly earnings of a citizen at work;
additional compensation through early dismissal, if necessary, and the employees themselves must agree with this process.

If, after being laid off, citizens do not find employment within the next three months, but are still registered with the employment service, then the previous employer must pay them compensation. They are equal to their average earnings. The main point for this is that citizens must go to the employment center within two weeks after termination of the contract to register as unemployed.

Nuances for the Far North

If citizens worked in the Far North, then they are paid compensation within six months.

It is not assigned to people who were dismissed of their own free will. Often, company managers insist on this wording in order to hide mass layoffs, but it is not recommended to agree with this.

Conclusion

Thus, mass dismissal is determined by two criteria, represented by the number of employees with whom the employment relationship is terminated, as well as the period of time during which this process is carried out. The procedure must be correctly formalized, for which successive steps are performed.

If the rights of citizens are violated, the dismissal may be suspended by the labor inspectorate. There are also certain employees who cannot be fired in a mass layoff. An exception would be a simultaneous closure of the company, in which all employees remain unemployed.