The Supreme Court of the Russian Federation sided with an employee in a dispute with the bankruptcy trustee of Oracle's Russian subsidiary.

The court overturned the decision to return to the bankruptcy estate a severance payment equal to six monthly salaries (approximately 5 million rubles), paid upon dismissal shortly before bankruptcy. The trustee insisted that such a payment harmed the interests of creditors.

The Supreme Court of the Russian Federation recalled that labor guarantees are not automatically revoked in bankruptcy. Severance pay is intended to support the employee while they search for a new job and cannot a priori be considered a harmful transaction.

The courts' position on the unconditional return of such payments contradicts the principles of labor law and social protection.

Conclusion:

This position significantly strengthens the position of employees in pre-bankruptcy situations. This precedent should be used to defend employee payments, demonstrating that the amount of compensation is reasonable and consistent with market practice, and not an asset stripping scheme.