On the day of termination of employment, the employer is obliged to settle with the employee
Upon resignation in 2026, an employer must pay the employee wages for the period worked, bonuses, and compensation for unused vacation days. In cases provided for by law, severance pay is also required. This was reported by Novyny.LIVE, according to the portal PromPolitInform.
In the event of an employment contract termination, a company must perform a full financial settlement with its staff. The list of payments due includes not only the salary for the actual time worked but also all provided allowances, surcharges, and bonus accruals.
In accordance with labor legislation, unused annual and social vacation days are subject to monetary compensation. Additionally, in several situations, such as staff reduction, employees are entitled to severance pay according to the Labor Code of Ukraine.
Minimum guarantees and taxes
Even if resigning in the middle of a month, the employee is covered by the minimum wage guarantee. If the amount of payments for days worked is lower than the proportionally calculated minimum, the employer is obliged to make a top-up payment, which cannot be replaced by compensation or other funds.
Furthermore, upon resignation, the right to apply for a tax social benefit remains. It allows reducing the personal income tax, provided that the total monthly income, including salary and compensation payments, does not exceed 4,660 UAH.
Liability for delay in settlement
In case of ignoring the obligations for timely settlement, the employer bears financial liability according to Article 117 of the Labor Code of Ukraine. It provides for the payment of the employee’s average wage for the entire period of delay until the actual date of settlement, with a limitation period not exceeding six months.
To restore their rights, the employee is advised to first submit a written demand to the company’s management. In case of refusal or ignoring the application, the next step is to file an official complaint with the State Labor Service of Ukraine.
Illustrative photo: National Bank of Ukraine / Public domain
Read also: Mykhailo Fedorov appointed adviser to Italian Defence Minister
