What an employer needs to know when downsizing the staff

Введение

When reducing the number or staff of employees, it is necessary to fulfill the conditions for applying this basis for termination of the employment contract on the initiative of the employer.

Here we will tell you about the prerequisites for terminating an employment contract.

Payment of compensation in connection with the loss of work

If all of the above conditions are met, then upon termination of the employment contract, it is necessary to pay the employee compensation in the amount of the employee's average monthly wage.

In addition, when considering cases on the reinstatement of persons at work, the employment contract with whom was terminated in connection with the liquidation of the employer (legal entity), termination of the employer (natural person), reduction of the number or staff of employees, the courts are obliged to check whether the organization (legal entity) has been liquidated, whether the employer (natural person) has terminated its activities, whether the number or staff of employees has actually been reduced, whether the procedure for dismissing employees provided for by legislative acts has been observed, whether other persons have not been hired in their place.

If the above facts are not established, then the court has the right to recognize the termination of the employment contract as illegal.

Handing-in of notifications

  • It is necessary to notify the employee at least 1 month in advance, unless a longer notice period is stipulated in the labor or collective agreement.
  • It is necessary to provide the career center (labor mobility center) in writing or through the Electronic Labor Exchange (Enbek.kz) with full information about the upcoming release of employees in connection with the termination of the activity of an individual employer or the liquidation of the employer – a legal entity, a reduction in the number or staff, a decrease in the volume of production and work performed and services that led to a deterioration in the economic condition of the employer, the number and categories of employees that it may affect, indicating the positions and professions, specialties, qualifications and the amount of remuneration of the released employees and the time during which they will be released, not less than one month before the start of release.

Compliance with prohibitions when downsizing the staff

First, you need to find out if the employee falls under the categories of workers, the reduction of which is prohibited by the Labor Code.

Those are:

  • pregnant women who have provided a pregnancy certificate;
  • women with children under the age of 3;
  • single mothers raising a child under the age of 14 (disabled child under 18);
  • other persons raising the specified category of children without a mother.

In addition, it is not allowed with employees until they reach the retirement age established by the Law "On Pension Provision in the Republic of Kazakhstan", who are less than 2 years old, without a positive decision of the commission created from an equal number of representatives from the employer and employees.