Redundancy is a procedure where every employer mistake costs money. An employee dismissed in violation of the rules is reinstated, receives average earnings for the forced absence, and gets compensation for moral harm. An employer who does everything correctly pays only what is due. The difference lies in details that are easy to overlook.
Let's look at an example of how a practitioner assesses the lawfulness of a redundancy dismissal, what payments are due, and where the procedure most often breaks down. And we'll also see what skills are needed to handle such disputes confidently.
Anatomy of a dispute: calculating payments and checking the procedure
Imagine: an employee is made redundant on March 1, 2026. Salary — about $1,000, monthly performance bonus — on average about $250. Length of service — 3 years. Vacation for the last year fully taken. The employee was notified two months in advance, but vacancies were offered only in another city.
The first thing a lawyer checks is compliance with the procedure. Redundancy requires:
- issuing an order on the reduction and a new staffing schedule;
- written personal notification to each employee at least two months in advance;
- offering all vacancies matching the employee's qualifications, including lower-level and lower-paid positions, in the given locality; vacancies in other localities — only if provided for by a collective agreement or agreement;
- considering the preferential right to remain at work (Article 179 of the Labor Code) — comparing productivity and qualifications, and in case of equality — family situation and other circumstances;
- observing restrictions: pregnant women, women with children under three, single mothers, and certain other categories cannot be made redundant (Article 261 of the Labor Code).
If at least one step is missed, the court may reinstate the employee.
Now payments. On redundancy, the following are due:
- wages for time worked;
- compensation for unused vacation;
- severance pay in the amount of average monthly earnings;
- average earnings for the period of employment, but not more than two months (with offset of severance pay). In exceptional cases, by decision of the employment service — for the third month.
Average earnings are calculated according to the rules of Government Decree No. 922 of 24.12.2007. They take the actually accrued salary for the 12 calendar months preceding the month of dismissal and divide by the days actually worked. For example: if $12,000 were accrued over the year (salary + bonuses) and 247 days were worked, the average daily earnings are about $50. On dismissal on March 1, 2026, the severance pay for the first month (March) is calculated according to the schedule: the number of working days in March is 21, so the severance pay is ≈ $1,050.
If the employer underpaid or violated the procedure, the employee can go to court. And here judicial practice matters: courts increasingly award not only underpaid amounts but also interest under Article 236 of the Labor Code (monetary compensation for delay), as well as compensation for moral harm. Reinstatement is not the only outcome: it may be limited to recovery of average earnings for the forced absence and a change in the wording of the dismissal.
Where the mechanism breaks: four scenarios
Even experienced HR professionals sometimes fall into traps. Here are typical situations when the scheme fails.
1. Vacancies appeared after notification
The employee was notified of redundancy, but a month later a suitable vacancy opened up in the company. If it was not offered, the court may find the dismissal unlawful. How to notice in advance: check the staffing schedule and the list of vacancies on the date of dismissal. What to do if it's too late: the employee can be reinstated through court if they prove that the vacancy existed and matched their qualifications.
2. Preferential right not assessed
With equal productivity and qualifications, preference is given to those with two or more dependents, sole breadwinners, etc. If the commission did not assess this criterion, the dismissal may be challenged. How to notice: check whether there is a commission protocol or other document on the assessment. What to do: if the employee has already been dismissed, the court may reinstate them.
3. Notification period violated
Notification must be given at least two months in advance. If notification is served later, the employer can either postpone the dismissal date or dismiss with payment of additional compensation (Article 180 of the Labor Code). How to notice: compare the date of service of the notification and the date of dismissal. What to do: if the period is missed, the dismissal is unlawful.
4. Employee belongs to a protected category
A pregnant woman, a woman with a child under three, a single mother with a child under 14 (or a child with a disability under 18) cannot be made redundant (Article 261 of the Labor Code). Sometimes the employer learns of the pregnancy after dismissal — then reinstatement is almost inevitable.
Judicial statistics: what disputes show
There are no exact percentages for all regions, but stable trends can be identified. Courts increasingly award compensation for moral harm even for minor violations. The number of cases where employees challenge not only the dismissal but also the amount of payments is growing — especially when the employer incorrectly calculates average earnings without including bonuses or additional payments.
Another trend: employees are more actively using pre-trial mechanisms — complaints to the labor inspectorate. The inspectorate may issue an order to eliminate violations, which often ends in voluntary payment before trial. But if the case goes to court, the employer risks additionally receiving a fine under the administrative code.
Learning paths: comparing strategies
To work confidently with redundancies and employment disputes, systematic knowledge is needed. Here are three approaches.
| Method | Time | Costs | Result |
|---|---|---|---|
| Self-study of the labor code and judicial practice | 3–6 months | Free (or cost of access to legal databases) | Deep understanding, but high risk of gaps and calculation errors |
| Practice under supervision (internship, work at a law firm) | From 6 months | Time, sometimes low pay | Real skills, but depends on the mentor and case flow |
| Structured course | 1–2 months | Course fee | Systematic knowledge, case analysis, feedback on decisions |
Trade-off: self-study gives flexibility, but you don't know if you've understood the norm correctly until you face a real case. A course saves time but requires discipline and does not replace practice. Practice without theory is dangerous: you can memorize an erroneous template.
Who the course suits and who it doesn't
The course will be useful for:
- HR professionals and lawyers who want to systematize their knowledge of employment law;
- managers who have to make dismissal decisions;
- employees who want to understand their rights during redundancy.
You shouldn't take the course if you're only looking for a template of a statement of claim without understanding the procedure — templates won't save you in a non-standard situation. Also, the course will not replace years of court practice, but it will give you a foundation to start from.
The course "Employment Law" on the asibiont.com platform is built on the current edition of the labor code and includes analysis of real situations, sample documents, and feedback on your decisions. If you need a structured path into the topic of redundancies and employment disputes, check out Employment Law. There you will cover the calculation of average earnings, the dismissal procedure, and typical mistakes that lead to court.
You can start here: Labor Law of the Russian Federation.