12.06.2020
WHAT COMPENSATION DOES THE COMPANY OWE TO US IN THE EVENT OF A REDUCTION
The employer owes compensations to employee when he terminates the employment contract on the grounds of art. 328, para. 1, item 2 (reduction of the staff) or art. 328, para. 1, item 3 of the Labor Code (reduction of the volume of work).
On both grounds, the termination of the contract is with notice and if the employer does not comply with the notice, there is a right to compensation under Art. 220, para. 1 of the LC (for non-compliance with the notice).
In case of unemployment, as a result of the termination, a right to compensation arises under Art. 222, para. 1 of the LC.
The compensation is paid by the employer to the employee who has lost his/her job or started working after the termination with a lower salary.
The compensation is in the amount of the gross remuneration of the employee for the time during which he has lost his job, but for not more than 1 month.
An act of the Council of Ministers, a collective labor agreement or an employment contract may provide for compensation for a longer period. If within this period the employee has started working with a lower salary, he/she is entitled to the difference for the same period. By the order and under the conditions of art. 224 of the Labor Code, the employer owes compensation for unused paid annual leave.
If you are laid off under both articles of the law, you are entitled to full compensation from the Labor Office. It amounts to 60% of your average monthly salary for the last 24 months.
The sum of your last 24 salaries for the last 24 consecutive months is divided by 24 to get the average monthly salary.
This amount is then divided into 21 business days to find your average daily salary for that period.
For example - If you received a monthly salary of BGN 1,100.00 each month (including length of service, all insurances and tax), then for the last 24 months the amount of your salaries will be BGN 26,400, and your average monthly salary for the period - BGN 1,100.
Your average daily salary for this period will be: BGN 1,100. / 21 days = BGN 52.38
The daily unemployment benefit is 60% of your average daily wage (or your average daily insurance income, but not more than the maximum insurance income of BGN 3,000.00), on which contributions for the Unemployment Fund have been paid (or are due) for the last 24 calendar months preceding the month of termination of your insurance.
Everyone who wants information or consultation on the topic of interest can contact the Consultancy Center for Disadvantaged People in Berkovitsa by phone 0890943741 or by e-mail: berkpro.robg@abv.bg
