Representing the interests of the largest retail chain in a dispute with a top manager dismissed due to staff cuts

One of the client's top managers was dismissed due to staff cuts. The dismissal was preceded by several incentive payments based on performance results. The amount received by the employee was significantly smaller than they expected. Having disagreed with the dismissal and non-payment of the bonus in the maximum possible amount, the employee applied to the court.

The court of first instance satisfied the demands for employee reinstatement at work based on the conclusion that the employer did not comply with the pre-emptive right despite the fact that the employee held the only position according to the staffing table. The court refused to satisfy the demands for the recovery of the bonus but did not properly motivate their arguments stated in the decision.

Since the court’s findings created a very dangerous precedent for the employer, the client turned to KIAP to represent their interests in higher courts and at the pre-trial stage during the re-dismissal of the employee.            

Thanks to the legal assistance of KIAP and the proposed strategy for re-dismissal, the court confirmed the proper amount of the bonus paid to the employee, and it was possible to conclude an agreement with the employee to terminate the employment contract on market conditions, reducing the employee’s initial financial expectations by more than 10 times.


Julia Paushkina