In case of the staff reduction, an employer is obliged to pay to the redundant employee a severance payment in the amount equal to at least one average monthly salary of such employee (Article 44 of the Labour Code of Ukraine). А collective bargaining agreement or the employment agreement may envisage higher amount of the severance payment.
In addition, according to the Law of Ukraine On the Status and Social Protection of Citizens Affected by the Chernobyl Disaster
employees who suffered from Chornobyl accident of categories I and II, and participants of liquidations of consequences of Chornobyl accident of category III are entitled to additional dismissal aid (compensation) in the amount of three average monthly salaries. Such compensation is paid by the employer in addition to the severance payment mentioned above and is afterwards compensated to the employer from the state budget.
The severance payment and additional dismissal compensation to Chornobyl victims should be paid on the dismissal date on top of the salary for the current month, compensation for unused days of vacation and other payments due to the employee. Mass layoff
If the planned staff reduction falls under definition of mass layoff, it will require additional actions from the employer.
According to the Ukrainian legislation, the mass layoff is one-time occurrence or during
- a) one month: release of 10 or more employees at an enterprise with 20 to 100 employees / release of 10% and more of employees at an enterprise with 101 to 300 employees, or
(b) three months
: release of 20% or more of employees at the enterprise regardless of the number of employees.
If the planned staff reduction is qualified as a mass layoff, the employer is obligated to notify a territorial body of the State Employment Service of Ukraine. Such notification shall be submitted no later than two months before the staff reduction. It is necessary to notify the State Employment Service of Ukraine not only before beginning of staff reduction.