Upon dismissal due to liquidation of the enterprise - an entry in the employee’s work book

Basic provisions

Current legislation identifies the liquidation of an enterprise as a reason for terminating an employment contract at the initiative of the employer - clause 1 of Art.
81 Labor Code of Russia. With a complete closure, all employees are dismissed, including citizens with whom cooperation cannot be terminated on a general basis, for example, pregnant women, employees on vacation or sick leave. When carrying out the dismissal procedure, the employer must adhere to the following algorithm:

• 2 months in advance for a regular layoff and 3 months in advance for a mass layoff, a notification is sent to the central planning office and to all employees with whom employment contracts are terminated;
• upon expiration of the period, the manager must order the issuance of a dismissal order, which can be drawn up in form T-8 (T-8a) or using a specially designed form. Each employee should be familiarized with the document for signature;
• all documents are prepared;
• full payment is made. On the last day, the employee must be issued all required documents, including employment, 2-NDFL certificate and those requested individually. The funds required by law are also issued.

It is important to know! If a person does not agree with the final amount of payments, then the employer is obliged to immediately provide him with the part that is not subject to dispute. The second part is issued after a repeated recalculation, negotiations with the employee or by court decision.

What is regulated

Termination of employment relations at the initiative of the employer is allowed only for the reasons specified in the Labor Code of the Russian Federation. One of them is the liquidation of the organization. Filling out documents when terminating a contract with an employee is regulated by Resolution No. 69, approved by the Ministry of Labor of the Russian Federation on October 10, 2003. Paragraph 5 of the Instructions indicates that the entry in the labor record about dismissal due to the liquidation of the enterprise must be accompanied by an indication of paragraph 1 of Article 81 of the Labor Code of the Russian Federation.

The fact that the company will be liquidated, in accordance with Art. 180 of the Labor Code of the Russian Federation, the employer is obliged to notify 2 months in advance. By agreement with the employee and with his written consent, it is possible to dismiss him earlier than after 2 months, but with payment of average earnings for the time not worked. For example, if an employee agrees to quit in a month, then he is entitled to payment for both this and the next month.

Rules for making entries

If the organization closes and the individual entrepreneur ceases its work, employees are fired in accordance with clause 1, part 1, article 81 of the Labor Code. Instruction No. 69, approved in 2003, provides a detailed procedure for making records of dismissal in the work book.

Information is entered into the document as follows:

This entry in the employment record of dismissal upon liquidation of the enterprise, as well as other entries, must be certified by the signature of the employee himself, an authorized person of the personnel service and the seal of the enterprise.

For residents of national republics, where entries in the work book are made in the state and national languages, it is necessary to certify both texts in accordance with the established procedure.

Also see “Rules for filling out work books in 2021.”

How is the dismissal of employees due to liquidation carried out?

An important point in successfully fulfilling the legal requirements regarding the dismissal of employees in connection with liquidation is the mandatory notification that is sent to each employee of such an organization two months before the date of its official final liquidation.

Such a written personal warning is prepared in any form. It does not have a fixed form. In most cases, a special form of the organization is used.

This notification requires the following information:

• About the reasons for the proposed dismissal and its date
• About the guarantees that an employee will be provided upon dismissal

Important: The fact of familiarization with the notification can only be confirmed by his personal signature.

Such notices are sent to each employee 2 months in advance, with the exception of those hired for seasonal or temporary service.

Next, the liquidated company and its personnel services should take the following actions:

• Inform the employment center about the emergence of new unemployed personnel in production
• If there is a trade union organization at the production site, notify its managers of the upcoming dismissal
• Calculate all mandatory payments to each employee that will need to be made directly on the date of dismissal or earlier than the date of dismissal
• Prepare appropriate orders
• Make appropriate entries in the work books of each employee

An important difference between dismissal due to liquidation of production is the need to formalize the termination of relations with each employee enrolled in the staff, regardless of the social guarantees that apply to him.

Including, as a general rule, relationships are terminated with such representatives of socially protected groups as:

• pregnant women;
• parents on maternity leave to care for a child;
• single parents;
• minor workers;
• those who were on vacation or had sick leave at the time of notification of liquidation.

All representatives of these categories on the established date of liquidation .

Upon dismissal, each employee receives an increased payment , calculated on the basis of average monthly earnings. Further, the average earnings are retained for two months, including severance pay, and can be retained for a period of 3 months by decision of the employment service authority.

True, the latter is assumed only in the case when the employee is registered with the employment service within two weeks after the date of official liquidation of production. This amount is paid if there is no information about acceptance to a new duty station.

How is dismissal carried out in connection with the liquidation of an enterprise?

A company and individual entrepreneur may have many reasons for closing. It is possible to begin the liquidation process voluntarily, but there are often cases of forced termination of an enterprise through the court (for example, due to the financial insolvency of a person).

Whatever the reason, the dismissal procedure in such a situation must be followed. Information about the closure of a company or individual entrepreneur must be transmitted to the territorial branch of the Federal Tax Service of the Russian Federation.

If the company voluntarily came to such a decision, it is required to notify the tax authority within three days after drawing up the minutes of the meeting of co-founders or the sole decision of the owner of the company. A completed notification form in form P15001 is also sent to the Federal Tax Service, which must be certified by a notary.

In addition, the enterprise (individual entrepreneur or legal entity) undertakes to notify about the planned liquidation:

• a trade union that protects the interests of staff, if it has been formed (warned at least three months before termination of contracts with employees);
• employment authority (LLCs are notified 60 days before the actual closure, and individual entrepreneurs - 14 days before the cessation of commercial activities);
• all employed personnel (at least 60 days before the actual closure of the LLC or individual entrepreneur).

A written notification is sent to the listed authorities by registered mail with acknowledgment of delivery.

In accordance with the second part of Article 180 of the Labor Code of the Russian Federation, management is obliged to notify employed personnel about the liquidation of the enterprise and further termination of employment relations at least 60 days before the actual termination of the person’s activities.

Notifications are handed over to employees against signature; information about this is recorded in the appropriate notification log.

An employee has the right to refuse to receive a notification. In this case, management must draw up an appropriate act reflecting information about the citizen’s reluctance to familiarize himself with the text of the notification (it can indicate the reasons for such a decision).

The final stage of closing a company is the registration and issuance of:

• orders to terminate contracts with hired personnel (form T-8 is used for each individual employee, and form T-8a is used for a group of employees);
• work books (hereinafter referred to as LC) with the corresponding records of dismissal.

Before receiving technical documentation, staff must sign personal cards. In case of refusal to receive a work permit, a corresponding act is drawn up.

If the issuance of this document is not possible on the day of actual dismissal, the citizen has the right to return for the Labor Code later or receive it through a representative. Management is obliged to notify the former employee of the need to obtain the document.

What regulatory documents should be used?

When formalizing such termination of an official relationship, the following are used:

• the first part of Article 81 of the Labor Code of the Russian Federation (LC RF);
• Article 176 of the Labor Code of the Russian Federation;
• Federal Law of November 14, 2002 No. 161-FZ “On State Municipal and Unitary Enterprises,” which defines the procedure for liquidating production for various legal reasons;
• Article 140 of the Labor Code of the Russian Federation, which determines the terms of settlement with dismissed employees
• Article 142 of the Labor Code of the Russian Federation assumes the employer’s liability for violating the terms of payment of wages and severance pay of the country’s Civil Code and some other regulatory and legislative documents.

Regulations

Issues of dismissal of company personnel during its liquidation are regulated by regulatory documents, the main of which include:

• Labor Code of the Russian Federation No. 197-FZ, chapter 13 (clause 1, part 1, article 81), chapter 27 (parts 1 and 2, article 178, parts 2 and 3, article 180)
• Federal Law No. 79-FZ of July 27, 2004 (in case of abolishment of a government agency).

The Labor Code of the Russian Federation does not directly refer to the interpretation of the concept of liquidation of a subject of law, therefore, for the correct application of legal norms in the process of dismissal of an organization’s personnel, it is necessary to also refer to the Civil Code of the Russian Federation, without replacing issues related to the liquidation of an organization with measures for its reorganization or a change in the owner of property.

Attention

A feature of the liquidation procedure is the complete termination of all obligations and rights of a legal entity, without the possibility of transferring them to other business entities.

The primary grounds for starting the liquidation procedure are Article 61 of the Civil Code of the Russian Federation:

• decision of the founders or an authorized higher organization authorized to make such a decision;
• court decisions on claims by state or local authorities;
• decision of the founder of a subject of economic law when predicting a lack of potential to achieve the planned goal, the impossibility of continuing the company’s activities, or the emergence of serious difficulties in carrying out such activities.

The termination of the functioning of an organization can also be determined by the expiration of the intended period of its activity or the achievement of the results that were the purpose of its creation.

Legal acts governing the dismissal procedure

The fundamental legal act here is the Labor Code of the Russian Federation. In particular, it establishes that:

• an entry must be made in the work book indicating that the contract has been terminated (Article 66);
• provides for termination of the contract by the employer if the organization or individual entrepreneur ceases its activities (clause 1, part 1, article 81).

The rules directly governing the entry of notes into an employee’s personal document during the liquidation of an enterprise are contained in the “Rules for maintaining and storing work books,” which were established in 2003 by Government Resolution No. 225.

These Rules contain information that:

• the reason for dismissal is indicated as it is stated in the article of the Labor Code of the Russian Federation;
• if the contract was terminated at the initiative of the employer, then when filling out the line it is necessary to provide a reference to one of paragraphs 81 of Article of the Labor Code of the Russian Federation;
• any entry must be certified by: the employer’s seal;
• signature of the employee who is responsible for filling them out, or an individual entrepreneur;
• owner's signature.

Information

Another important legal act is Resolution of the Ministry of Labor No. 69, adopted in 2003. It contains Instructions for filling out work books, which describe in detail the process of maintaining them.

Step-by-step instructions for the dismissal procedure

Dismissal of employees in a liquidated organization is a variant of the employer’s proactive actions in labor relations. Not mandatory, but allowing the liquidation of a company to be carried out in an organized, correct and timely manner, the procedure is the preparation of a comprehensive liquidation plan. Separate paragraphs of the plan provide for the dismissal of personnel and the implementation of all required payments.

The step-by-step procedure for dismissing employees during the liquidation process is as follows.

Warning about dismissal

The employer must warn employees in advance about the liquidation of the organization and the related dismissal of personnel. This must be done two months in advance, against signature, by handing the employees a notice of dismissal upon liquidation of the enterprise (for more information, see “Notice of dismissal in connection with the liquidation of an organization (sample)”). If employees agree to early dismissal, then there is no need to wait for the expiration of the two-month period. They can be fired earlier by obtaining written consent to dismissal (Article 180 of the Labor Code of the Russian Federation).

In practice, organizations are liquidated, both voluntarily and compulsorily (clauses 2.3 of Article 61 of the Civil Code of the Russian Federation). Thus, a company can be dissolved through the court in the following cases:

• when creating an organization, the current legislation was violated, provided that the existing violations are irreparable;
• the organization operates without the necessary permits or licenses, provided that such activities are subject to mandatory licensing;
• the organization conducts prohibited activities.

Employment service notification

Law of the Russian Federation No. 1032-1 of April 19, 2001 obliges the employer of a liquidated company to inform the labor exchange in writing about the release of employees within the following periods:

• director of the organization - 2 months;
• employer - individual entrepreneur - 2 weeks in advance.

This notice must contain the information necessary for further employment of workers:

1. Job title.
2. Profession, specialty.
3. Qualification requirements for relevant positions.
4. Salary information (individually for each employee).

Attention

If liquidation measures involve the dismissal of personnel in large numbers, then employment services are informed 3 months in advance.

Regional authorities, based on the territorial and city-forming characteristics of the corresponding subject of the Federation, the state of the labor market in the region, are authorized to determine their criteria for assessing the massive release of labor resources, aimed at additional social protection of the population.

Issuance of an order

A dismissal order in a liquidated company is drawn up using forms (for one employee) or (for several employees).

The following details are entered in the document form in the appropriate sections and lines:

• full name of the organization;
• registration data;
• number of the employment contract, date of its termination (writing in Arabic numerals is allowed, for example, 07/21/2021 or in a verbal-numeric way, for example, July 21, 2021);
• Full name of the employee;
• number according to the report card;
• subdivision;
• position, specialty, profession;
• reason for dismissal and reference to Art. 81, part 1, clause 1 of the Labor Code of the Russian Federation;
• grounds for dismissal, for example, decision (minutes) of a meeting, decision of the founders;
• registration data of the employee’s written notification;
• signature of the director or liquidator with a transcript;
• employee's signature and date.

Important

All information in the order form is entered without abbreviations.

Termination of the contract under Art. 81, clause 1 of the Labor Code of the Russian Federation

The decision to terminate the company’s activities serves as the basis for terminating employment contracts with employees under Article 81, paragraph 1 of the Labor Code of the Russian Federation. Thus, the rights and obligations of a legal entity as a result of a decision on liquidation in the order of legal succession do not pass to other persons, which was adopted in accordance with the established procedure of the legislation of the Russian Federation (Article 61 of the Civil Code).