Lawyer Pavel PetrovLawyer Pavel Petrov

RURU ENEN

Severance Pay during Russian Personal Bankruptcy

DISMISSAL · EMPLOYMENT INCOME · PERIOD

Severance Pay during Russian Personal Bankruptcy

Severance received by a dismissed debtor is not a child benefit or targeted social payment. Separate it from unpaid salary, unused-leave compensation and average earnings for the job-search period, then assess the applicable income and protected-living-funds rules.

Articles 178 of the Labour Code, 101 of Law No. 229-FZ and 213.25 of the Bankruptcy Law checked on 21 October 2026. Available funds depend on the documents in the individual case.

Legal basis

The dismissal order and Labour Code provision identify the reason for dismissal.

Breakdown

The calculation separates salary, leave compensation, severance and average earnings.

Period

One large payment may relate to several months.

How to read a dismissal settlement

ComponentEvidenceCheck
SalaryPayslipWorked period
Unused leaveCalculation noteUnused days
SeveranceOrder and calculationLabour Code ground
Average earningsEmployer decisionJob-search period
DelayInterest calculationSeparate claim

Check before contacting the financial manager

Five practical steps

Obtain the calculation note

The bank total does not show components.

Separate accruals

Each component has its own date and basis.

Reconcile months

Ask the employer which periods the payment covers. Agree the allocation of protected living funds with the manager: dividing a payment into months does not itself create additional immunity.

Calculate living funds

The protected amount depends on the current figure and dependants.

Report later employment

Inform the manager about new salary and the former employer about circumstances affecting job-search-period payments. Entitlement depends on the dismissal ground and Article 178 of the Labour Code.

The Word “Benefit” Does Not Create Social Immunity

Severance arises from employment and compensates dismissal consequences in Labour Code cases. Article 101 of Federal Law No. 229-FZ does not turn it into a protected child or targeted payment merely because of its label. During asset realization, it is assessed under Article 213.25 of Federal Law No. 127-FZ while preserving applicable living funds.

Where payment was delayed, separate the principal settlement from delay liability.

Do Not Confuse Debtor Income with an Employee Claim against an Insolvent Employer

This page concerns personal bankruptcy of an employee who received a settlement. If the employer is insolvent and the employee files a severance claim, special priority rules in the employer’s case apply in a separate case. For personal bankruptcy, focus on receipt date, legal breakdown and the debtor’s current budget.

If the manager does not release living funds

Submit a written request, the dismissal order, the employer’s detailed calculation and a bank statement. Identify the period, other income and living funds already released. Ask the manager to determine the protected amount and how to receive it. Disagreements over excluding funds from the estate are decided by the commercial court handling the bankruptcy; transferring money to a relative is not a substitute.

Example: one transfer, three components

Suppose an employer transfers RUB 90,000: RUB 30,000 salary, RUB 20,000 unused-leave compensation and RUB 40,000 severance. This does not create three separate living-minimum allowances or automatically protect all RUB 90,000. The breakdown, accrual periods and funds already retained by the debtor matter. These figures are illustrative, not a calculation for a particular case.

Lump-sum replacement and essential expenses

In the cases provided for by Article 178 of the Labour Code, the employer may replace continued average earnings during the job-search period with a lump-sum payment. Ask for the legal basis and any earlier payments credited against it to be identified separately. A large receipt does not automatically create a reserve of future monthly living allowances.

If current funds are insufficient for essential housing, medical or dependant expenses, attach supporting documents and a calculation to the request. Additional exclusion needs justification and is not guaranteed merely because employment ended. If an insolvent employer fails to pay, see employee claims against the employer.

Request a payroll reconciliation

Compare the gross calculation, tax and other deductions, and the actual net bank credit. Do not deduct tax again from a payment that has already arrived net of it.

Example request to the employer: “Please itemise the final settlement by legal basis and covered period, showing gross amounts, deductions, net amounts and transfer dates. Please identify separately whether a lump sum replaces continued average earnings and which payments have already been credited against it.”

Keep the signed termination agreement and order. The agreement’s label alone does not establish entitlement to every guarantee under Labour Code Article 178.

Legal sources

Article 178 of the Labour Code addresses dismissal payments; Article 101 of Federal Law No. 229-FZ lists protected income. The employment compensation list in paragraph 8 does not cover every payment labelled compensation.

Article 213.25 of the Bankruptcy Law and paragraphs 1–2 of Supreme Court Plenum Resolution No. 48 of 25 December 2018 address the estate, protected funds and disagreements.

FAQ

Is the whole sum preserved?

There is no automatic full immunity; income and protected-funds rules apply.

Is unused-leave compensation separate?

Yes, identify it in the settlement.

What if payment covers several months?

Obtain a breakdown by legal basis and period from the employer. It supports the manager’s assessment but does not entitle you to multiply the living minimum by the number of months or withdraw everything.

May dismissal be concealed?

No, employment and income changes should be disclosed.

Is unemployment benefit the same?

No, it has another payer and legal basis.

Related materials

Unemployment benefit · Working during bankruptcy · Living minimum

Need to review a dismissal settlement?

We can check the order, calculation, period, statement and current living funds.

INITIAL CONSULTATION