Upon termination of the employment relationship, after the worker or employee has acquired entitlement to a retirement pension, irrespective of the grounds for the termination, he/she is entitled to compensation from the employer amounting to his/her gross salary for a period of 2 months or, if he/she has completed 10 years of service with the same employer or in the same group of undertakings over the last 20 years, to compensation equal to the gross salaries for a period of 6 months.
The term "group of undertakings" is defined in § 1, item 5 of the Supplementary Provisions of the Labour Migration and Labour Mobility Act. A group of undertakings consists of two or more associated undertakings where: one undertaking holds in relation to the other undertaking, directly or indirectly, a predominant share of the subscribed capital of the second undertaking; it controls the majority of the votes attached to the share capital issued by the second undertaking; it has the right to appoint more than half of the members of the administrative, management or supervisory body of the second undertaking, or the undertakings are under the unified management of the parent undertaking.
The conditions for acquiring entitlement to compensation under Article 222(3) of the КТ are:
- termination of the employment relationship on any ground,
- the employee was entitled to a retirement pension at the time of the termination.
No compensation under Article 222(3) of the KT is due in the event that the status of pensioner is acquired after the termination of the employment relationship. The compensation referred to in Article 222(3) of the KT may be paid only once upon termination of the employment relationship.
It is solely an employer’s right to make a final assessment of whether the employee meets the conditions to receive a compensation and of the amount of the compensation under Article 222(3) of the KT.
In case of refusal or incorrect calculation of the amount of compensation, the matter may be referred for resolution to the competent court within 3 years of the limitation period from the date on which the right subject to the action became due or could have been exercised. With regard to debts of money, the claim is considered to fall due on the date on which payment would have been made under the claim as a matter of course.
Reference: Article 222(3); Article 358(1)(3) and (2)(2) of the Labour Code.