How to properly cancel staff reductions

Reasons for canceling the reduction

The head of any enterprise can carry out a staff reduction procedure. At the same time, all laid-off employees receive the payments due to them according to the legislation of Russia or, for example, Ukraine, and begin to look for a new job.

If the situation has changed, then the manager has every right to cancel the previously made decision to lay off workers. To do this, he creates a new order that cancels the previous document. There may be several reasons for such actions:

• Unexpected increase in staff. Due to the fact that the employee continues to work in his place, the employer does not need to pay him compensation. The employee will continue to receive a salary.
• Transfer of an employee to another position. In this case, he usually retains his previous earnings.
• The organization does not have money for mandatory payments to employees subject to dismissal. Sometimes the compensation can be quite high. In addition, there may be many laid off workers. In both cases, the company may not be able to cover the costs of cash payments. A solution may be to postpone the layoff, which will allow the organization to find the necessary amount to make payments to those laid off.
• Errors were made when preparing documents. The entire layoff procedure is carried out again, while employees continue to perform job duties until the deadline established by the new management order.
• The order to reduce staff was drawn up by a person who does not have the rights to carry out such actions. This situation occurs quite rarely, but if it does occur, then all documents are drawn up again by an authorized employee.

It should be noted that these are only the most common grounds for canceling employee reductions. The management of the organization can carry out this procedure for any valid reason.

Stages of the procedure

It will not be possible to quickly cancel the order to reduce the number of employees. This procedure consists of the following steps:

1. Creating a new order that cancels the previous one. If, according to the initial order, several employees had to be fired, then there is no need to draw up a separate order for each. One document listing all employees will be more than enough.
2. Drawing up notices of cancellation of the previous order, as well as that the notices associated with it have been withdrawn. Employees are notified only in writing. Notices must be delivered against signature to each employee specified in the order.
3. Familiarization of employees with the new document. This action is necessary so that each employee knows about his place in the enterprise and about all the changes that affect his position. If the employer refuses to familiarize his employees with the document canceling the layoff, then they have the right to apply to the judicial authorities with a corresponding claim within a month. In addition, if changes are made to the work schedule of people subject to dismissal, then this should also be reported to everyone mentioned in the order.
4. Notification of the Trade Union and the Employment Center, provided that they were previously notified of the upcoming staff reduction.

Before the reduction order expires, it can be canceled. If employees have already been given notices of dismissal, then new ones should be issued, drawn up in accordance with the latest document.

How to cancel an order?

If it is necessary to cancel the reduction in staff, then the corresponding order should be canceled. This is done by issuing a new order. This document provides information on the cancellation of planned measures to reduce the number of employees.

The employer must first inform the trade union committee, heads of personnel and accounting departments about the decision made. Then a notice is sent to employees with whom, according to the previous order, the employment relationship should have been terminated.

Notification of services and employees is made in writing. An order is attached to the notice. The document is drawn up in any form. It is important to highlight two columns for signature: regarding familiarization with the notice and with the order.

The notification is sent in two copies: one remains with the employee, and the second is certified by the employee’s signature and sent back to the enterprise administration. Notices are sent by mail.

Expert opinion

Irina Vasilyeva

Civil law expert

The employment service, labor inspectorate and other bodies that the employer had previously notified about the dismissal of employees must also be notified of the cancellation of the layoff.

Nuances of carrying out

When staff reduction is carried out, the employer is obliged to notify the local Employment Center about this.
This measure allows a laid-off employee to quickly register with the Employment Center, as well as find a new job in a short time. But when there is a possibility that staff reductions can still be avoided or it will be possible to restore workers to their positions, then there is no point in reporting this to the Employment Center. The main thing is to notify employees both about the reduction in personnel and about the cancellation of this procedure. In both cases, this should only be done in writing. If employees are notified by telephone or orally, then it is not impossible to verify these facts, which means that the reduction can be challenged, that is, declared invalid on the grounds that the person did not know about it.

It is necessary to take into account the possibility that the candidate for dismissal will find a new job before the reduction is canceled. In such a situation, the employee can terminate the employment relationship either at his own request or by agreement of the parties. He has no right not to demand that he be dismissed due to layoff, or not to claim special payments, since according to Article 81 of the Labor Code of the Russian Federation, only the employer himself can initiate a layoff.

But nevertheless, this situation is quite complicated, since a former employee can apply to the Trade Union and the judiciary to protect his rights. To avoid this, some employers retain all compensation benefits for such employees.

Making an order

The meaning of this administrative act is to cancel the previous order on the dismissal of employees due to reduction. There is no strict template for this document. It is drawn up in any form, but according to established rules, that is, on the official letterhead of the enterprise and with the signature of the manager.

Such an order can be issued only within two months following the date of notification of employees about the upcoming dismissal. It must contain information such as:

• The reason for the decision to cancel the dismissal.
• Details of all orders that should be cancelled.
• Instructions to personnel service employees that it is necessary to notify the Employment Center, as well as other government bodies, about a change in the decision of the organization’s management.
• If some employees who were subject to staff reduction quit during the notice period of their own free will, then their job functions should be distributed among the remaining employees, indicating the necessary information in this document.
• Responsible persons who are obliged to monitor compliance with all terms of the order. Most often, this function is assigned to the manager himself.

In the text of the order, it should be noted in a separate paragraph that the chief accountant and the senior employee of the enterprise’s personnel department must be familiar with it. The canceled document is stored in the archive, since it cannot be destroyed, since the document is registered.

Procedure for canceling a reduction

The order will be as follows:

1. An order is issued to cancel the reduction measures.
2. First of all, the head of the personnel department, accountant and trade union must be familiarized with the order.
3. Next, employees affected by the cancellation of the previous order are notified. A written notice is sent out with an order attached. One copy remains with the employee, the second, with the employee’s signature, is returned to you. It is better to take two signatures: one for receiving the notification, the second for familiarizing yourself with the order.
4. Notify the labor inspectorate, employment service and other bodies that you were required to notify about the layoff 2 months in advance about the changes.

Letter of revocation of previous notice

A notice containing information about the withdrawal of notice of impending dismissal is drawn up in free form. But it must include:

• a message about the fact of cancellation of the reduction, containing a link to the order;
• notification that the employment contract will continue under the same conditions;
• information that the employee will not be dismissed due to reduction, and if he does not want to continue working for this employer, he has the right to resign at his own request.

This document must be addressed to each employee personally. It must be signed by the head of the enterprise.

Cancellation order

To cancel the reduction procedure, the director of the organization must issue an appropriate order. At the legislative level, there are no strict requirements for this document, which gives the head of the company the right to issue an order in any form or using a form specially designed for use in one organization. In this case, the document must indicate:

• the reason why the director wants to cancel the order. It is recommended to indicate the real reason, since otherwise the director may be accused of having selfish intent;
• the exact name of the document whose validity will need to be cancelled, the number and date of its preparation;
• the fact of cancellation of a notice that could have previously been sent to employees;
• Full name and position of all employees who will be subject to the new order;
• the need to continue fulfilling job responsibilities by employees who may have been laid off. In this paragraph, the employer can indicate the employee’s right to resign at his own request;
• a list of actions that the responsible person will be required to perform. For example, send a notification to the central planning office or trade union organization.

At the end, the document must be signed by the head of the organization. Without a signature, the order has no legal force.

It is important to know! First of all, the director of the company must familiarize the chief accountant with the document and order that the old order be placed in the internal documents of the company. It cannot be thrown out, since the previously issued order has already been assigned an individual number and is registered in the appropriate journal.

The downsizing procedure is necessary to improve the economic condition of the organization, but due to changes in circumstances, the need for downsizing may no longer be necessary. In such a situation, current legislation allows the director of the organization to cancel the dismissal of employees. To do this, it is necessary to issue an appropriate order and notify all employees in a timely manner.

Features of delivery of notice

An employee of an organization who has received notice of a reduction in his staff position is not considered dismissed.
His dismissal is carried out only if there is an order signed and certified by the seal of the personnel service of the enterprise. Only in this case can a corresponding entry be made in the employee’s work book. The employer has every right to demand the return of a previously issued notice of layoff if it becomes possible not to carry out this procedure or if there are no grounds to dismiss a certain employee. To avoid misunderstandings and ambiguous situations when delivering notices, a certain procedure should be followed. It includes the following steps:

1. An employee who is subject to dismissal due to a reduction is given a notice of cancellation against signature.
2. The employee signs two copies of the document, one of which is kept in the person’s personal file.

If for some reason the employee refuses to sign the notice, then a corresponding act of refusal is drawn up in front of two witnesses. It is also entered into your personal file. It should be noted that in such a situation, the employee loses the right to demand payment and special compensation payments due to the redundant employee. If this person still wants to sever his employment relationship with the organization, then he will have to either write a statement of his own free will, or ask the employer to draw up a dismissal order by agreement of the parties.

Early dismissed employees

Article 180 of the Labor Code of the Russian Federation states that the employer has the right to dismiss an employee due to staff reduction before the expiration of the notice period. But this is only possible if the person has given his written consent to such a procedure. It must be said that this consent cannot change the legal component of dismissal, that is, the employee is considered dismissed precisely in connection with the reduction. Only the date of termination of the employment relationship and the amount of compensation due to him change.

In case of early dismissal, the following situations may arise:

• If an agreement between the employer and the employee has been concluded, but the person has not yet been fired, then canceling the reduction will void this agreement, since such dismissal can only be carried out due to a reduction in the number of employees. Canceling this procedure leaves the staff unchanged, therefore, the employee cannot be dismissed due to reduction.
• The employee was dismissed early and received all payments due. It is possible that he is already working in another organization. In this case, the dismissal procedure due to a decrease in the number of employees is considered completed, since by the time the order was cancelled, the employment contract had been terminated, and there was a legal basis for dismissal. For the positions of such employees, it is better not to carry out the procedure for canceling the reduction. It would be more correct to return them to the staffing table again. In addition, to prevent disputes about the right component of reducing the number of personnel, it is necessary to offer these positions primarily to dismissed employees, and it is recommended to do this in writing.

In the latter case, it is necessary to clearly understand that if an employee was dismissed before the order to cancel the layoff was issued, then it is not possible to restore everything in a short time.
According to the Labor Code, a reduced staffing position can be restored no earlier than six months later. The reduction in the number of jobs and, as a consequence, the number of employees is regulated by the Labor Code of the Russian Federation. The employer has the right to apply this measure, but at the same time he is obliged to properly notify his employees. In addition, if the situation at the enterprise changes, the layoff order can be canceled and notified employees can be issued notices informing them of the new state of affairs.

How to properly issue a new order?

There is no unified form for an order to cancel an order to reduce staff or number of employees. Therefore, the company’s management can draw up a document in any form. It is allowed to take other orders as a basis. It is important to adhere to a certain structure and general rules. It is acceptable to draw up a document by hand or using printing technology.

The structure of the order to cancel the reduction is presented in the following parts:

• a cap . The information is located at the top of the sheet, centered. Indicate the legal form and name of the company;
• Name . As a rule, the monosyllabic text of the title is placed in the center, without punctuation at the end of the word. Be sure to write down the order number, place and date of its preparation;
• main unit;
• conclusion. The final part contains the signatures of all persons specified in the order, as well as employees who were previously laid off. Opposite the signatures should be the names with initials, positions of employees, and the dates of familiarization with the order. If the enterprise has a seal, its imprint is affixed.

The main block provides information about the cancellation of a previously issued order, appoints responsible persons and gives instructions. The order should indicate the reason for the cancellation of the old order.

You can use the following formulations:

1. “improving the financial condition of the enterprise”;
2. “due to an unplanned delay in the transition to a new production technology”;
3. "due to receiving a new order."

Some employers prefer to provide formal reasons. For example, they write “due to a change in the situation.” But it is better to indicate the specific circumstances that led to the cancellation of the order.

This will help reduce the likelihood of accusations from regulatory authorities that the intended dismissal has a hidden intent, some kind of benefit for the employer. Be sure to write a separate paragraph in the main part of the order, which notes the fact of cancellation of the previous order.

The following formulations can be used:

1. “Cancel order...(name) No.... from...”;
2. “Consider the order number... from... invalid”;
3. “Read the order... No.... from... having lost their strength.”

It is also necessary to indicate in the main part that previously issued notifications are considered invalid. If the decision to cancel the layoff does not apply to all employees, then it is necessary to list the names of the employees who remain on the staff of the enterprise.

In the text of the order, it is necessary to note in a separate paragraph that the head of the personnel department and the chief accountant have been familiar with it. It is also necessary to indicate who is responsible for monitoring the implementation of this order. Usually this person is the director of the company.

It is recommended to keep the old order in the company archives. Destroying it is considered an illegal act.

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