1. **Subject matter of the dispute:** The dispute concerns the legality of the accrual of a one-time financial allowance upon discharge for a serviceman, compensation for the loss of a portion of income, and the payment of average earnings for the period of delay in final settlement upon discharge.
2. **Court’s reasoning:** In this case, the Supreme Court took into account the position of the Grand Chamber dated October 8, 2025 (case No. 489/6074/23), which departed from previous conclusions regarding the application of Article 117 of the Labor Code of Ukraine. The Court emphasized that even after the legislative limitation of the period for payment of average earnings to six months, this payment remains compensatory rather than punitive. Therefore, courts are obligated to apply the principles of reasonableness, fairness, and proportionality when determining the amount of such compensation. In particular, the court must consider the amount of the overdue debt and its ratio to the amount of average earnings. Furthermore, the Supreme Court emphasized that the indexation of monetary provision is a mandatory component when calculating average earnings. The appellate court made an error as it failed to take indexation into account in its calculations and did not adhere to the criteria of proportionality established by the Grand Chamber.
3. **Court decision:** The Supreme Court partially granted the cassation appeal, set aside the judgment of the appellate court regarding the determination of the amount of average earnings for the period of delay in final settlement, and remanded the case in this part for a new trial to the appellate court.
