Former Rescuer Won a Case on Indexation and Then Recovered Another 155 Thousand UAH for Delay in Settlement

A former State Emergency Service employee, who successfully sued for over 280,000 UAH in salary indexation, was also granted compensation for the delayed final settlement upon dismissal. The Dnipropetrovsk District Administrative Court ruled that the fire-rescue unit's delay in final settlement was unlawful, awarding the plaintiff 155,112 UAH in average earnings. Furthermore, the court found the defendant's failure to calculate compensation for the loss of part of income to be unlawful and mandated its calculation and payment in accordance with the Law of Ukraine "On Compensation to Citizens for the Loss of Part of Income Due to Violation of Payment Deadlines." The specific amount of this compensation was not determined by the court.

Case Circumstances

The plaintiff, who served in civil protection at the 8th State Fire-Rescue Unit of the Main Department of the State Emergency Service in the Dnipropetrovsk region, was dismissed on 23 April 2025.

On the day of dismissal, a full settlement was not made due to the non-payment of due salary indexation.

Subsequently, a decision by the Dnipropetrovsk District Administrative Court on 17 July 2025, in case No. 160/17414/26, deemed the non-payment of indexation unlawful. The SES unit was ordered to calculate and pay the indexation for the period from 1 December 2015 to 23 April 2025.

Following this decision, on 13 February 2026, the former employee received 280,226.92 UAH in indexation. According to the court, this payment effectively completed the final settlement upon dismissal.

Subsequently, the plaintiff filed a new lawsuit, claiming entitlement to average earnings for the delay in the final settlement upon dismissal, as well as compensation for the loss of part of income due to the delayed indexation payment.

Court's Position

In case No. 160/4470/26, the court noted that salary indexation constitutes part of the amounts that should have been paid to the employee on the day of dismissal. Since these funds were not paid when the plaintiff was removed from the personnel list, the final settlement was not completed, thereby providing grounds for applying Article 117 of the Labour Code of Ukraine.

The court also pointed out that, following amendments to Article 117 of the Labour Code, effective from 19 July 2022, average earnings for settlement delays can be recovered for a maximum of six months, even if the actual delay was longer. The court applied this version of the law, referencing current Supreme Court practice.

Separately, the court emphasised that special legislation governing service does not establish liability for untimely settlement upon dismissal. Therefore, general provisions of Articles 116 and 117 of the Labour Code of Ukraine apply to such legal relations, consistent with the Supreme Court's legal conclusions.

How the Court Determined the Amount

The court established that the plaintiff was dismissed on 23 April 2025, and the unpaid indexation was only recalculated on 13 February 2026. Consequently, the court set the first day of delay as 24 April 2025 and the last day as 12 February 2026.

The plaintiff's average daily salary was calculated by the court as 843 UAH, based on payments for February and March 2025.

Considering the six-month limit stipulated by Article 117 of the Labour Code, the court awarded the plaintiff 155,112 UAH in average earnings for the delay in the final settlement upon dismissal.

Regarding Compensation for Loss of Part of Income

The court also considered the claim for compensation for the loss of part of income in accordance with the Law of Ukraine No. 2050-III.

The decision states that the right to such compensation arises if payment deadlines for monetary income are violated by more than one calendar month, irrespective of whether the amounts were paid voluntarily or only after a court decision. The court also referred to the Supreme Court's practice, according to which the right to compensation exists regardless of whether such amounts were previously accrued if they were subject to accrual and payment.

However, the court did not determine the specific amount of compensation, as its calculation falls within the defendant's authority. Therefore, it recognised the SES unit's inaction as unlawful and obliged it to calculate and pay this compensation in accordance with legal requirements.

Court Decision

The Dnipropetrovsk District Administrative Court partially upheld the claim. The court recognised the SES unit's failure to calculate and pay average earnings for the delay in final settlement upon dismissal as unlawful, awarded the plaintiff 155,112 UAH in average earnings, recognised the inaction regarding non-calculation of compensation for loss of part of income as unlawful, and obliged the defendant to calculate and pay it.

At the same time, the court denied part of the claim because it did not independently determine the specific amount of compensation for loss of part of income, noting that its calculation is the defendant's responsibility.

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