Compensation under Article 331 and compensation for retirement

COMPENSATION UNDER ARTICLE 331 AND COMPENSATION FOR RETIREMENT
The contract of employment with the employee may be terminated under Article 331 of the Labor Code, by mutual agreement of the parties with a benefit. The law defines the minimum amount of compensation, which can not be less than four monthly wages. In the collective or in the individual employment contract or under the employer's decision the amount of thi benefit may be set higher. There are no restrictions on the maximum size of the benefit, it may be ten or even more wages. The negotiation on smaller size of the benefit is unallowed. When the employment contract is terminated on the basis of Article 331 with a benefit and in the time of the contract termination that worker has become entitled to retirement pension, he is entitled  to compensation under Paragraph 3 of Article 222 of the Labor Code in the amount of two or six monthly salaries depending on whether he worked for the employer at least ten years.
If the employer refuses payment of the compensation for vested pension rights, it can be claimed through the courts.


: 01/02/2010



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