Violation of labor discipline. If the CEO showed up for work under the influence of alcohol or drugs, allowed misappropriation of funds, made commercial secrets public, then for any of these reasons he can be fired without compensation. But for this, it is recommended to have material evidence of guilt, so that there are no problems later in a possible trial.
The employee has demonstrated complete incompetence for the position held. Employment relations can be terminated if the company president has not adequately performed his/her functional duties, has shown unsatisfactory results during the probationary period. It is also possible not to renew the contract after its expiration.
Liquidation of the enterprise. Perhaps the easiest case. The procedure for terminating activities entails the termination of employment contracts, including with the Chief Executive Officer.
Reduction of the staff unit. Some business owners are sure that the presence of the position of the company president is a necessary condition for prosperity. But practice shows business owner database that this is far from true. Recently, businessmen have been resorting to outsourcing with increasing confidence. In this case, they prefer to entrust the management of the enterprise to external professionals. In this case, it is possible to abolish the position of the general director, saving financial resources.
Bankruptcy. In accordance with paragraph 1 of Article 278 of the Labor Code of the Russian Federation, the basis for termination of an employment contract may be the acquisition of the status of a debtor by the enterprise. But here the order must be observed: dismissal must precede the registration of bankruptcy.
External factors. There are other reasons for terminating a contract with the company's president. Even if the employer is satisfied with everything, and the director himself is eager to work, the following circumstances may come into force: conscription into the armed forces, disqualification or other administrative punishment, the occurrence of extraordinary circumstances that prevent the continuation of labor relations (military actions, catastrophe, natural disaster, major accident, epidemic).
In addition, there are special grounds for termination of the contract with the CEO. A change in the owner of the company may result in the dismissal of the company's president, since the new owner may enter into a contract with a member of his team. But there is a time limit here - 3 months from the moment of acquiring ownership rights. Erroneous decisions by the CEO that resulted in damage to the company or harm to the health of workers are also grounds for termination of the contract without compensation.
It is obvious that it is quite problematic to take into account all the nuances when drafting an employment contract. The content of the contract itself should not contradict the norms of federal laws of the Russian Federation. Provisions included in local regulations cannot lead to a deterioration in the employee's position. Very often, owners use the following wording of the reasons for dismissal in employment contracts: regular delays in payment of wages; abuse of authority; systematic violations of labor discipline and provisions of the Charter of the enterprise; ignoring the decisions of the general meeting of founders.
Additional aspects to consider include:
Termination of an employment contract with the company's president is prohibited if he is on regular leave or undergoing treatment. If the general director is a woman, then in the event of pregnancy, her rights are protected by Part 1 of Article 261 of the Labor Code of the Russian Federation, which states that dismissal is prohibited before the end of the pregnancy or the end of maternity leave.
If the employer has decided to dismiss the employee occupying the said position under paragraph 2 of Article 278 of the Labor Code of the Russian Federation, it is recommended that the order reflect a specific justification. Otherwise, in the event of a possible court case, this circumstance may be interpreted in favor of the employee.
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