23.05.2024

How to get the most out of layoffs

This is not a tragedy, but a natural process. Take control of your emotions and stand up for your rights.

 How to get the most out of being fired

Mikhail Prytula Co-author of the book “Resume for a Million”. Over 12 years in HR. Worked at Wargaming, STB, Alfa-Bank, iDeals Solutions.

Most people have a very negative attitude towards being fired. This attitude is a relic of the Soviet past, when people were fired only for stealing or drinking, and therefore those who quit were treated like lepers. Retirement is now part of every business. In different countries, from 30 to 50% of all layoffs at Workforce Turnover Around The World/Mercer are company-initiated layoffs.

The list of reasons for layoffs has expanded significantly, and some of them are beyond the control of the employee:

  • The company no longer needs this role.
  • The company needs this role, but now it requires a different set of skills.
  • The person is burned out, has lost interest in the job, and therefore does not work as well as before.
  • Someone more suitable for this role appeared.
  • Relationships with management or colleagues did not work out, and so on.

If you fired, no need to play the drama. This will not help you. Instead, let's discuss how to get the most out of the situation.

What rights does an employee have upon dismissal

In total, there are three types of dismissal:

  • on their own initiative;
  • on the initiative of the company without conflicts;
  • at the initiative of the company with the conflict.

For the first option, everything is very simple: you work for two weeks and receive compensation for unused vacation.

In the third case, you can hardly count on anything other than vacation compensation. This is an option for dismissal for causing harm to the company: from damage to property to damage to the image of the company or disclosure of confidential information.

In this article we will consider the second option: how to behave if you are fired without conflict.

< p> World practice is the compensation in the amount of weekly to monthly salary for each year worked in the company. For example, if you have worked for two years, then the average market conditions are compensation in the amount of two weeks to two monthly salaries.

However, the labor codes of many countries of the former USSR provide for compensation in the amount of two monthly salaries and a warning no later than a month before dismissal in case of a reduction in position.

Therefore, it can be expected that an employee will be paid at least three salaries. But is it really so? Let's figure it out.

How to leave and maintain warm relations with the company

Most dismissals at the initiative of the employer are extremely negative: often with tears, resentment, petty dirty tricks and a break in relations. This is due to the natural reaction of people to changes, which can be graphically depicted as follows: -ot-uvolnenija-e2e1168.jpg” alt=”How to get the most out of being fired” />

Experience shows that after being fired, people find a better job than the previous one. This happens for various reasons: they were not appreciated before, they did not raise salaries, they did not develop them, but in the new company everything is from scratch.

Companies rarely make efforts to mitigate the effect of layoffs. But that doesn't mean you can't change the situation yourself. Try one of the following:

  • Speak to a career counselor. So you will understand that there are many roads ahead of you.
  • Go to an appointment with a psychologist. This will relieve emotional tension.
  • Have a party with your friends. This is also a great emotional release, and you will feel the support of loved ones.
  • Update your CV according to our guidelines. Realize how cool you are!
  • Take a couple of days off and get out of town: you need a reboot and a change of scenery.
  • Sign up for the courses you've been wanting to take for a long time. Prepare yourself for a new position or even a profession.
  • Remember how you successfully survived a force majeure situation earlier.

What is all this for? Below we will tell you how to get the maximum compensation from the company, but you can achieve this if you control your emotions.

What amounts and in what cases the company pays

Here we will rely not on the Labor Code, but on the actual practice of companies.

Compensation for unused vacation

There are many rules and approaches, but the market practice is this: unused vacation is carried over from year to year and is subject to compensation upon dismissal. All days of unused vacation are multiplied by the average daily earnings for the last 12 months of work. Average daily earnings is the amount of salary accrued for the year, divided by 12, and then by 29.3 (this is the average number of calendar days in a month).

If your current salary is $ 1,000, and also six months ago was $500, then the average daily earnings are calculated as follows:

(6 × (1,000 + 500)) ÷ 12 ÷ 29.3 ≈ 25.6.

Suppose , you have accumulated 17 days of unused vacation:

17 × 25.6 ≈ 435.

Salary for the current month

Excluding advance payment. The company will calculate the number of days worked and the number of working days in a month. Divide the number of days worked by the number of workers and multiply by the rate – this will be your amount. For example:

(14 ÷ 22) × 1,000 ≈ 636.

Bonuses and premiums

Someone pays them upon dismissal, but someone does not. The usual market practice is this: if the date of the planned payment of bonuses and bonuses falls on the date after the dismissal, do not pay. You will be lucky if the company goes forward and pays or manages to finalize before the date of payment. By the way, in companies, most often the highest “turnover” begins immediately after the annual bonus is paid – people wait.

Promised project bonuses

If you were promised bonuses for a project that you partially implemented or in full, be sure to discuss receiving all or part of the amount.

Wage or bonus arrears

If it is present, then it is customary to pay in full.

Compensation< /h3>

If you are laid off, the market practice is to give you one month's notice and pay two salaries. Someone does not notify for a month and pays three salaries. Here, companies usually want to save money, so they can only offer one salary in the hope that the employee will agree.

If you are fired for inefficient work (or you are simply told so), then usually nothing is paid on top, except for vacation compensation and wages for hours worked. But it may be possible to negotiate compensation in the amount of at least one salary.

We hope that these tips will not only save your nerves when you leave, but also improve your career.