Procedure for Final Settlement with an Employee

Pursuant to Article 130 of the RA Labor Code, in case of rescinding an employment contract the employer shall be obliged to make a full final settlement with the employee on the day of rescission of the employment contract, unless other procedure for final settlement is provided for by this Code, the law or upon agreement between the employer and the employee.

If here the employee is moved (transferred) to another job with the same employer, the employer shall not make a final settlement with the employee.

The employer shall be obliged to pay the employee his or her salary and other equivalent payments on the day of final settlement, fill out and hand in the employee’s employment record book in the prescribed manner.

In the case of death of the natural person employer, the obligations of making the final settlement shall be transferred to those accepting the inheritance, and in the case of absence of the inheritors or their refusal to accept the inheritance, to the person or authority that accepts that property, within the range of its value.

By will of the employee, the employer shall be obliged to provide him or her with a statement on his or her functions (duties), the amount of salary, paid taxes and mandatory social security payments and performance evaluation.

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