Often an employee who signs a resignation letter of their own accord is confident that they have no right to severance pay. Meanwhile, the Severance Pay Law clearly states that if the reason for the employee’s dismissal lies in a significant deterioration of working conditions, the situation will be equated to dismissal at the initiative of the employer and, accordingly, the employer will be obliged to pay the employee compensation.
What can be considered ‘significant deterioration of working conditions’?
- systematic delays in wages;
- the need to perform more difficult work, not stipulated at the time of employment;
- reduction in wages;
- a new, inconvenient schedule or workplace for the employee.
Any of these factors allows the employee to submit a resignation letter of their own accord and retain the right to compensation.
Before resigning, the employee should write to the employer (preferably with the help of a lawyer) and point out the specific deterioration, demanding that the situation be rectified as soon as possible. The letter should also note that otherwise, the employee will be forced to resign and demand compensation.Important! Deterioration is recognized only if it is of a permanent nature. If the employer does not strive or is unable to correct the situation that caused the deterioration of working conditions, this will also add weight to the employee’s arguments.
Note, the employer is also not left unprotected and bound by legislative restrictions. According to judicial practice, minor territorial changes in the workplace are not recognized as a significant deterioration for the employee. In most cases, the decision on whether there has been a deterioration of conditions or not remains with the court, and each specific case is considered separately, taking into account the position, working conditions, and schedule of the employee.
Judicial Practice
In the practice of the Supreme Court, which considers labor disputes, a whole list of circumstances has emerged, the occurrence of which is recognized as a deterioration of working conditions for the employee:
- wages are paid late;
- the employee was transferred to a different job than the previous one;
- wages were reduced or the employee was transferred from a full-time position to a part-time one;
- the company moved from one district to another;
- social conditions (e.g., vacation) are worse than those established by law or collective agreement;
- the employer decided to send the employee on an unpaid leave for an indefinite period;
- the company changed ownership, and the employee does not agree to work for the new owner;
- there is a tense atmosphere in the team, sexual harassment by colleagues, beatings, fights;
- the employer insulted the employee;
- the employer accused the employee of misconduct that they did not commit, and did not provide evidence;
- the employer did not make contributions to the employee’s pension fund.
This list is not exhaustive, and, as mentioned above, each case requires separate consideration. Nevertheless, a reasonable step in such a situation would be to seek legal advice from a lawyer.
In our office, we often receive requests for legal advice on labor law, dismissal, and compensation. If you have any questions, we will be happy to help you.
