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The procedure for calculating the final bill upon termination of the employment contract
The procedure for calculating the final bill upon termination of the employment contract
The final account is the amount consisting of the salary for the working days worked for the period up to the date of termination of the employee's employment contract by the employer, compensation for unused leave and benefits to be paid in the form and in the cases provided by law. Tax experts interpret the procedure for calculating the final bill.
First, let's look at the payments due on the employee's termination date:
The following payments must be made to the dismissed employee:
1. Salary calculated up to the day of actual work;
2. Compensation of unused leave for previous years or months;
3. Severance pay as per law.
What is mentioned is the final account.
Calculation of wages based on actual working days
Example 1: Vugar works as an accountant at "AA" LLC. He applied to quit his job on 19.07.2023. His monthly salary is 1,200 manats. Let's calculate the amount of wages Vugar will receive up to the days he works:
According to the production calendar, there are 23 working days in July. Vugar worked 15 working days in July. Therefore, Vugar's salary calculated during the month of July will be 782.60 manats:
(1200 : 23 working days) x 15 = 782.60 manats.
There will be corresponding deductions from this.
Compensation of unused leave for previous years or months
Example 2: Let's assume that the employee started work on 17.04.2023 and left work on 05.12.2023 at his own request. The employee's annual leave consisted of 30 days of basic leave and 4 days of additional leave due to seniority. Let's calculate the amount he will receive based on the unused vacation days upon leaving work:
According to Article 140.2 of the Labor Code, the average monthly salary of an employee who has worked for less than 12 calendar months and goes on vacation is calculated based on the full calendar months of his actual work. Since the employee did not work full-time in April, it will not be taken into account when calculating the average salary for vacation pay. So, the employee worked for 7 full months.
As we mentioned, compensation for additional leave is not paid.
30 : 365 days = 0.082 days (day of graduation)
0.082 x 233 days (worked calendar days) = 19 days.
If we assume that the average monthly salary of an employee is 1,200 manats, the calculation will be as follows:
1200 : 30.4 = 39.47 manats (salary per 1 working day);
39.47 x 19 = 749.93 manats.
The amount of the employee's salary: 1200: 20 days (the number of working days in December) = 60 manats:
60 x 5 days (number of working days) = 300 manats.
Let's look at the example of severance pay.
Example 3: On 14.02.2019, an employee with 4 years of experience received a notice that he will be dismissed from his job in accordance with clause "b" of Article 70 of the Labor Code (when the number of employees is reduced or their staff is reduced). . He was notified in advance in accordance with Article 77 of the Code. According to the agreement between the employee and the employer, it was decided to terminate the employment with a lump sum payment instead of a notice period. The employee's monthly salary is 1,980 manats.
Salary received by the employee in December and January:
1980 + 1980 = 3960 manats;
20 + 21 = 41 working days;
3960 : 41 = 96.59 manats.
According to the production calendar of 2019, the average monthly number of working days is 20.17.
So, the average salary will be 1,948 manats:
96.59 x 20.17 = 1948 manats.
In the example, since the employee has 1 to 5 years of experience, he is paid severance pay in the amount of at least 1.4 times the average monthly salary.
That is, 1948 x 1.4 = 2727.2 manats.
Instead of the notice period, the amount of the allowance will be 1,753.2 manats:
1948 x 0.9 = 1753.2 manats.
Thus, the employee will receive a total of 4480.4 manat benefits:
2727.2 + 1753.2 = 4480.4 manats
According to Article 172 of the Labor Code, when an employee leaves work, all payments due to him are paid in full on the day he leaves work. If the issuance of the employee's work book is delayed on the last working day due to the fault of the employer, the employee must be paid the average salary for the entire period during which he was unable to find work.
Example 4: The employee agreed to conclude an employment contract with another employer and applied to the employer of the enterprise where he works on 01.03.2021 on his own initiative to terminate the employment contract from 01.04.2021. On 01.04.2021, the employer terminated the employee's employment contract and, despite making the stipulated payments, could not present the employee's employment book due to the loss of the employee's employment book. The employer found the labor book and presented it to the employee on 15.06.2021. Until that date, the employee cannot conclude an employment contract with another employer due to the lack of an employment book, so he must be paid the average salary for the entire period of his inability to get a job. If we assume that the average salary is 500 manats, in this case, the average salary will be paid to the employee in the amount of 750 manats.
At the same time, as a result of not handing over the employee's work book for the reason mentioned above, the employee may have difficulty in getting a new job, or he may miss out on an agreed job due to the lack of a work book. In this case, the employee can file a lawsuit before the court and demand compensation from the employer for the damage caused to him due to the non-handover of the labor book.
Example 5: Anar worked at the enterprise "A" for a salary of 1,200 manats. He filed a petition on 27.07.2023 and demanded the termination of the employment contract. In his application, he indicated the date of termination of the employment contract as 27.08.2023 according to Article 69, Clause 1 of the Labor Code. The employee has agreed to start working at "B" enterprise from 30.08.2023. This agreement was reflected in the official job offer received by "B" enterprise on 25.08.2023, and the monthly salary was 2,700 manats. In the official job offer, along with the employment book and identity card, the employee's starting date was mentioned on August 30.
However, the employee's employment contract was not terminated by the employer on the mentioned date. The employee did not go to work after that date and demanded the termination of the employment contract from the employer. Because according to Clause 2 of Article 69 of the Labor Code, the employee has the right not to go to work after one calendar month from the day of the application and to demand the final account. In this case, the employer is obliged to fulfill the demands of the employee.
At the same time, according to Article 83 of the Labor Code, a copy of the termination order, the employee's workbook and the employer's last account (cash compensation for unused vacation, salary to be paid to the employee and other payments) must be given to the employee on the last working day.
Enterprise "B" waited until 10.09.2023, and while an official job offer was made, the job offer was rejected in order to submit the documents in the correct form (because there was no employment book).
The reason for not terminating Anar's employment contract was the loss of the employment book by the employer. The employee's employment contract was terminated on 30.09.2023. The employee appealed to the court and sued for compensation for the damages caused to him due to the termination of the employment contract in violation of the requirements of the labor legislation.
Article 21.1 of the Civil Code states that the person whose rights have been violated may demand full compensation for the damage caused to him, provided that the law or the contract does not provide for compensation for the damage in a smaller amount. In Article 21.2 of the Code, it is determined that damages are the expenses incurred or to be incurred by the person whose rights have been violated to restore the violated right, deprivation of property or damage to his property (real damage), as well as what the person would have received in normal civil circulation if the right had not been violated. revenues (forgotten benefit) are understood. Thus, the damage provided for in this article consists of real damage and lost profit.
According to Clause 5 of Article 172 of the Labor Code, if the payment of wages is delayed due to the employer's fault, the employee must be paid at least one percent of the wages for each delayed day. Anar signed a contract with a lawyer to restore his violated rights and paid a service fee of 1,000 manats.
In the example, according to the official job offer received from the new employer, the contract could not be concluded due to the lack of submission of the employment book, and the offer was already rejected by them. In this respect, that situation is an example of a lost benefit.
At the same time, a 1 percent fee must be paid for late payment of the last bill due to non-payment on time. The court may issue a decision on compensation for other expenses incurred by the employee.
According to Clause 6 of Article 172 of the Labor Code, if the issuance of the employee's work book at the time specified by the third part of Article 87 of this Code is delayed due to the fault of the employer, the employee must be paid the average salary for the entire period of his absence.
Based on the employee's appeal to the court, taking into account the requirements of the mentioned and other legislative acts, the court may issue a decision on the compensation of the damage caused to the employee.
The final account is the amount consisting of the salary for the working days worked for the period up to the date of termination of the employee's employment contract by the employer, compensation for unused leave and benefits to be paid in the form and in the cases provided by law. Tax experts interpret the procedure for calculating the final bill.
First, let's look at the payments due on the employee's termination date:
The following payments must be made to the dismissed employee:
1. Salary calculated up to the day of actual work;
2. Compensation of unused leave for previous years or months;
3. Severance pay as per law.
What is mentioned is the final account.
Calculation of wages based on actual working days
Example 1: Vugar works as an accountant at "AA" LLC. He applied to quit his job on 19.07.2023. His monthly salary is 1,200 manats. Let's calculate the amount of wages Vugar will receive up to the days he works:
According to the production calendar, there are 23 working days in July. Vugar worked 15 working days in July. Therefore, Vugar's salary calculated during the month of July will be 782.60 manats:
(1200 : 23 working days) x 15 = 782.60 manats.
There will be corresponding deductions from this.
Compensation of unused leave for previous years or months
Example 2: Let's assume that the employee started work on 17.04.2023 and left work on 05.12.2023 at his own request. The employee's annual leave consisted of 30 days of basic leave and 4 days of additional leave due to seniority. Let's calculate the amount he will receive based on the unused vacation days upon leaving work:
According to Article 140.2 of the Labor Code, the average monthly salary of an employee who has worked for less than 12 calendar months and goes on vacation is calculated based on the full calendar months of his actual work. Since the employee did not work full-time in April, it will not be taken into account when calculating the average salary for vacation pay. So, the employee worked for 7 full months.
As we mentioned, compensation for additional leave is not paid.
30 : 365 days = 0.082 days (day of graduation)
0.082 x 233 days (worked calendar days) = 19 days.
If we assume that the average monthly salary of an employee is 1,200 manats, the calculation will be as follows:
1200 : 30.4 = 39.47 manats (salary per 1 working day);
39.47 x 19 = 749.93 manats.
The amount of the employee's salary: 1200: 20 days (the number of working days in December) = 60 manats:
60 x 5 days (number of working days) = 300 manats.
Let's look at the example of severance pay.
Example 3: On 14.02.2019, an employee with 4 years of experience received a notice that he will be dismissed from his job in accordance with clause "b" of Article 70 of the Labor Code (when the number of employees is reduced or their staff is reduced). . He was notified in advance in accordance with Article 77 of the Code. According to the agreement between the employee and the employer, it was decided to terminate the employment with a lump sum payment instead of a notice period. The employee's monthly salary is 1,980 manats.
Salary received by the employee in December and January:
1980 + 1980 = 3960 manats;
20 + 21 = 41 working days;
3960 : 41 = 96.59 manats.
According to the production calendar of 2019, the average monthly number of working days is 20.17.
So, the average salary will be 1,948 manats:
96.59 x 20.17 = 1948 manats.
In the example, since the employee has 1 to 5 years of experience, he is paid severance pay in the amount of at least 1.4 times the average monthly salary.
That is, 1948 x 1.4 = 2727.2 manats.
Instead of the notice period, the amount of the allowance will be 1,753.2 manats:
1948 x 0.9 = 1753.2 manats.
Thus, the employee will receive a total of 4480.4 manat benefits:
2727.2 + 1753.2 = 4480.4 manats
According to Article 172 of the Labor Code, when an employee leaves work, all payments due to him are paid in full on the day he leaves work. If the issuance of the employee's work book is delayed on the last working day due to the fault of the employer, the employee must be paid the average salary for the entire period during which he was unable to find work.
Example 4: The employee agreed to conclude an employment contract with another employer and applied to the employer of the enterprise where he works on 01.03.2021 on his own initiative to terminate the employment contract from 01.04.2021. On 01.04.2021, the employer terminated the employee's employment contract and, despite making the stipulated payments, could not present the employee's employment book due to the loss of the employee's employment book. The employer found the labor book and presented it to the employee on 15.06.2021. Until that date, the employee cannot conclude an employment contract with another employer due to the lack of an employment book, so he must be paid the average salary for the entire period of his inability to get a job. If we assume that the average salary is 500 manats, in this case, the average salary will be paid to the employee in the amount of 750 manats.
At the same time, as a result of not handing over the employee's work book for the reason mentioned above, the employee may have difficulty in getting a new job, or he may miss out on an agreed job due to the lack of a work book. In this case, the employee can file a lawsuit before the court and demand compensation from the employer for the damage caused to him due to the non-handover of the labor book.
Example 5: Anar worked at the enterprise "A" for a salary of 1,200 manats. He filed a petition on 27.07.2023 and demanded the termination of the employment contract. In his application, he indicated the date of termination of the employment contract as 27.08.2023 according to Article 69, Clause 1 of the Labor Code. The employee has agreed to start working at "B" enterprise from 30.08.2023. This agreement was reflected in the official job offer received by "B" enterprise on 25.08.2023, and the monthly salary was 2,700 manats. In the official job offer, along with the employment book and identity card, the employee's starting date was mentioned on August 30.
However, the employee's employment contract was not terminated by the employer on the mentioned date. The employee did not go to work after that date and demanded the termination of the employment contract from the employer. Because according to Clause 2 of Article 69 of the Labor Code, the employee has the right not to go to work after one calendar month from the day of the application and to demand the final account. In this case, the employer is obliged to fulfill the demands of the employee.
At the same time, according to Article 83 of the Labor Code, a copy of the termination order, the employee's workbook and the employer's last account (cash compensation for unused vacation, salary to be paid to the employee and other payments) must be given to the employee on the last working day.
Enterprise "B" waited until 10.09.2023, and while an official job offer was made, the job offer was rejected in order to submit the documents in the correct form (because there was no employment book).
The reason for not terminating Anar's employment contract was the loss of the employment book by the employer. The employee's employment contract was terminated on 30.09.2023. The employee appealed to the court and sued for compensation for the damages caused to him due to the termination of the employment contract in violation of the requirements of the labor legislation.
Article 21.1 of the Civil Code states that the person whose rights have been violated may demand full compensation for the damage caused to him, provided that the law or the contract does not provide for compensation for the damage in a smaller amount. In Article 21.2 of the Code, it is determined that damages are the expenses incurred or to be incurred by the person whose rights have been violated to restore the violated right, deprivation of property or damage to his property (real damage), as well as what the person would have received in normal civil circulation if the right had not been violated. revenues (forgotten benefit) are understood. Thus, the damage provided for in this article consists of real damage and lost profit.
According to Clause 5 of Article 172 of the Labor Code, if the payment of wages is delayed due to the employer's fault, the employee must be paid at least one percent of the wages for each delayed day. Anar signed a contract with a lawyer to restore his violated rights and paid a service fee of 1,000 manats.
In the example, according to the official job offer received from the new employer, the contract could not be concluded due to the lack of submission of the employment book, and the offer was already rejected by them. In this respect, that situation is an example of a lost benefit.
At the same time, a 1 percent fee must be paid for late payment of the last bill due to non-payment on time. The court may issue a decision on compensation for other expenses incurred by the employee.
According to Clause 6 of Article 172 of the Labor Code, if the issuance of the employee's work book at the time specified by the third part of Article 87 of this Code is delayed due to the fault of the employer, the employee must be paid the average salary for the entire period of his absence.
Based on the employee's appeal to the court, taking into account the requirements of the mentioned and other legislative acts, the court may issue a decision on the compensation of the damage caused to the employee.