When Must an Employer Pay Severance? A Guide to Legal Obligations in Ukraine

Understanding Severance Pay Upon Dismissal

According to ХВИЛЯ: Specialists from the State Labor Service's South-Eastern Interregional Management have clarified the circumstances under which an employer is legally required to provide severance pay to a dismissed employee. The conditions and amounts for these payments are outlined in Article 44 of Ukraine's Labor Code, as explained by the inspection department in the Zaporizhzhia region.

Severance pay is mandated in the following situations:

• Due to staff reduction or the liquidation of the enterprise;
• If an employee refuses to relocate with the company to a different area;
• When there are substantial changes to working conditions;
• Due to an employee's inability to perform the job because of health issues or insufficient qualifications;
• If a previously employed worker is reinstated to the position;
• When the employer cannot provide working conditions due to the destruction of property or production assets as a result of hostilities.

Special Cases for Increased Severance

Furthermore, specific scenarios exist where the amount of severance pay can be increased. For instance, an employee conscripted or enlisted for military or alternative service is entitled to a payment equal to two minimum wages. In cases of dismissal due to the employer's violation of labor law, a collective agreement, or because of harassment (mobbing), the employee has the right to compensation of no less than three months' average earnings. Conversely, the dismissal of officials upon the termination of their authority requires a severance payment of at least six months' average salary.

This guidance is crucial for workers to understand their rights and potential financial support during difficult employment transitions. Knowing these legal provisions helps employees protect their interests and guard against potential employer abuses. For context, Ukraine's labor laws provide these protections to offer a measure of economic security during involuntary job loss, which is particularly relevant given the country's current challenges.