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The employer has the right to reduce all employees of the closed branch

Rostrud experts clarified whether the individual entrepreneur has the right to reduce the employee on maternity leave if the store in which he worked closes and other stores located in other areas continue to work.

The Office notes that the current legislation has not settled the question of what to do with the employee in this case.

According to Rostrud, in a similar situation, analogy should apply the provisions on the termination of activities of branches and representative offices of organizations.

This means that the individual entrepreneur can terminate the employment contract with the employee, as in connection with the termination of activity. In this case, the employer is obliged to pay the employee the final payroll (the size of the salary is indicated in the labor contract), compensation for all unused days of the annual paid vacation (if any) and other payments stipulated by the labor contract, collective agreement, agreement and/or local regulatory act of the organization.

The employer is obliged to pay additional compensations (for example, severance pay) if this is provided for by the employment contract concluded with the dismissed employee.