Russian institution shuts branch amid financial decline and job cuts
Our institution has several branches located on different streets. Due to the organization's poor financial standing and failure to meet certain performance targets, a decision has been made to close one of the branches. How should we proceed with dismissing an employee who is a single mother with a 15-year-old child?
Answer by Natalya Ivanovna Barkovskaya, Head of the Labor Legal Inspection of the Federation of Trade Unions of the Republic of Sakha (Yakutia) and Honored Lawyer of the Republic of Sakha (Yakutia):
"Under Article 81 of the Russian Labor Code, if a branch, representative office, or other separate structural division located in a different area ceases operations, employment contracts with its staff are terminated under the same rules as in cases of full organizational liquidation. This means that preferential retention rights do not apply, and there is no obligation to offer alternative employment.
At the same time, Article 261 of the Russian Labor Code prohibits employers from initiating the dismissal of: - a woman with a child under three years old; - a single mother raising a disabled child under 18 or a child under 16; - a guardian (or other legal representative) acting as the sole provider for a disabled child under 18 or the sole provider for a child under three in a family with three or more children under 14, if the other parent (or legal representative) is not employed.
The only exceptions are dismissals on the grounds specified in Clauses 1, 5–8, 10, or 11 of Part 1, Article 81 or Clause 2, Article 336 of the Labor Code.
Based on the above provisions, you will need to determine whether the employee in question can be dismissed due to the liquidation of the branch under Clause 1, Part 1, Article 81 of the Russian Labor Code."
