An article by Irina Charkova, a lawyer at the Law firm “YUST”, concerning the procedure of calculating average earnings is published in the September issue of the “Labour disputes” magazine

An article by Irina Charkova, a lawyer at the Law firm “YUST”, is published in the “Labour disputes” magazine (issue No. 9, September 2010).

The author of the article shares the experience of resolving a labour dispute of a client of the Firm, a large German construction company, with its former CFO. The dispute between the employee and the employer was whether the amount paid to the employee on his dismissal had been calculated correctly. Thus, the employee insisted that the amount was to include additional accommodation payments, substantially increasing the total amount to be paid to him.

Having considered the dispute, the court supported the employer, whose position was that additional accommodation payments should be seen as material assistance from the legal point, and thus are not to be included in the calculation of average earnings while establishing the amount of dismissal payments.