Kontakt
Klaus Kessler

Rechtsanwalt (Deutschland)
Partner
Niederlassungsleiter
Phone: +49 89 928 780 702
E-Mail

Andrii Maznov

Diplom-Jurist
Associate Partner
Phone: +380 (44) 586 23 03
E-Mail

Overview of essential changes introduced in the regulation of labor relationships by the Law of Ukraine "On Amending Certain Legislative Acts of Ukraine to Optimize Labor Relationships" No.2352-IX of 1 June 2022, which took effect on 19 July 2022.

1. An obligation was imposed on an employer to inform employees who work under a fixed-term employment agreement about vacancies with indefinite-term employment agreements

An employer is obliged to inform the employees who work under a fixed-term employment contract about the vacancies, which correspond to the employees' qualifications and anticipate execution of an indefinite-term employment agreement, and ensure equal opportunities for such employees to conclude an indefinite-term employment agreement.

2. The scope of information that the employer shall make an employee familiar with before the commencement of work was extended

Before the commencement of work, the employer is required to inform the employee in a mutually agreed manner about:

  1. place of work (information about the employer, including its location), the job function the employee is required to perform (position and list of duties), date of the commencement of the work;
  2. a designated workplace, provision with the necessary equipment for the work;
  3. rights and obligations, terms of work;
  4. existence of unsafe and harmful production factors at the workplace, which have not yet been eliminated, and the possible consequences of their impact on health, as well as the right to benefits and compensation for work in such conditions in accordance with the law and the collective bargaining agreement - against signature;
  5. internal labor regulations or conditions of work regime, working hours and vacation time, as well as provisions of a collective bargaining agreement (if concluded);
  6. completing training on occupational safety and health, industrial sanitation, occupational hygiene and fire protection;
  7. organization of professional training for employees (if such training is implemented);
  8. the duration of the annual leave, conditions and amount of remuneration;
  9. the procedure and terms of notice of termination of the employment agreement established by the Labor Code, which must be adhered to by the employee and the employer.

In the event of conclusion of an employment agreement for a distance work, an employer is not required to provide an employee with the information mentioned in points 2, 4 and 6.

The manner of notification must be agreed upon in advance with an employee.

3. The list of grounds for termination of an employment agreement has been extended

Such new grounds for termination of an employment agreement have been introduced in the legislation as:

  1. death of a natural person-employer or entry into force of the court's decision declaring the natural person missing or dead;
  2. death of an employee, declaring him/her missing or dead;
  3. absence of an employee at work and information about the reasons for such absence for more than four consecutive months.

 
4. The list of grounds for unilateral termination of an employment agreement by an employer has been extended

Because of the war, such a new additional reason for unilateral termination of the employment agreement with an employee became available for an employer, as the inability to provide the employee with work, specified in the employment contract due to destruction (unavailability) of production, organizational and technical conditions, production facilities or property of the employer as a result of military operations. The procedure for dismissal of employees for this reason is as follows:

  1. the employees shall be personally notified of the contemplated dismissal at least 10 calendar days in advance;
  2. no later than 10 calendar days prior to the contemplated dismissal of employees, trade union organizations shall be provided with information on these measures, including information about the reasons for dismissal, the number and categories of employees who can be affected, the terms of dismissal. If the dismissal of employees is of large scale, the employer shall notify the state employment center of the contemplated dismissal 10 calendar days prior to the dismissal, and within five calendar days consult with trade unions on measures to prevent dismissals or reduce their number to the minimum or to mitigate adverse consequences of any dismissals.


Employees who are dismissed due to the inability to provide them with the work specified in the employment agreement due to destruction (unavailability) of production, organizational and technical conditions, production facilities or property of the employer as a result of military operations, an employer shall be paid a severance payment by an employer in the amount not less than the average monthly earning.

An employee, with whom an employment agreement was terminated on this basis, within one year enjoys the right of conclusion of an employment agreement in case of new hiring, if the employer hires employees with similar qualifications.

5. The list of obligations which the employer shall perform at the time of dismissal of an employee was changed

On the day of dismissal of an employee, the employer shall:

  1. provide the employee with a copy of the employment termination order;
  2. pay all amounts due to the employee within the terms stipulated by employment laws;
  3. provide the employee with a written notification of accrued and paid amounts to the employee at the time of his/her dismissal;
  4. upon the employee's request, make the respective records about dismissal in the employment records book kept by an employee.


6. The period for which the average earning is paid in case of delayed settlement with the employee at the time of dismissal has been limited

The maximum period for which the employer is obliged to pay average earning to an employee in case of delay in settlement with the employee concerned at the time of dismissal has been limited to six months

7. The obligation of an employee to pay average salary to the employees called up for the military service

Starting from 19 July 2022, employers shall not pay average salaries to employees called up for regular military service, military service for officers, military service for enlisted men during mobilization, for a special period, military service of persons from among the reservists during a special period or those engaged for military service under a contract, including by signing a new contract for military service during a special period. In this case, such employees retain their place of work and position for the period until the end of the special period or until the day of actual dismissal.

8. Limitation period in employment disputes was changed

Under a general rule, an employee may now file a claim with a court in a dispute related to payment of all amounts due to the employee at the time of dismissal within three months from the date of receipt by such an employee of the written notification of the accrued and paid amounts to the employee at the time of dismissal.

9. The industries, in which normal working hours can be increased for employees, have been narrowed

During the martial law period, the normal working hours can be increased up to 60 hours per day for employees working in critical infrastructure (defense, human normal living conditions securing areas, etc.). With this being said, the remuneration for the work shall be paid pro rata to the increased duration of work.

10. Employers and employees have been enabled to determine the procedure for the exchange of documents during the martial law period

During the martial law period, the parties to an employment agreement may agree on alternative ways of creating, transmitting and storing orders (instructions) of the employer, notices and other documents related to employment relationships and any other available means of electronic communication chosen upon agreement of the employer and the employee.

11. The mandatory prohibition to give employees an annual basic leave of over 24 calendar days during the martial law period has been changed to the right of the employer to limit the duration of the annual basic leave to 24 calendar days

During the period of the martial law, the duration of the annual basic vacation of an employee may, at the discretion of the employer, be limited to 24 calendar days for the current working year.

12. A new type of non-paid vacation has been introduced

During the martial law period, the employer, upon the request of the employee who has left the territory of Ukraine or has acquired the status of internally displaced person, must grant him/her non-paid vacation for a period specified in the employee's application, but not more than 90 calendar days. The period of such vacation shall not be counted for the purpose of determining the duration of annual basic leave.

13. The regulation procedure for an employment agreement suspension has been amended

According to the amendments, the suspension of an employment agreement means a temporary suspension of provision of work to an employee by an employer and temporary suspension of performance of work by an employee under an employment agreement due to the military aggression against Ukraine, which excludes the possibility of both sides of the employment relationships to perform the duties provided for in the employment agreement. Therefore, the mandatory condition for suspension of the employment agreement is the absolute inability of both sides of the employment relationships to perform the duties specified in the employment agreement (e.g. destruction of production facilities, where the work is performed).

An employment agreement can be suspended upon the initiative of one of the parties for a period no longer than the period of martial law. The suspension of an employment agreement does not result in the termination of the employment relationships. In this case, the state which has applied military aggression against Ukraine, shall be fully responsible for compensation of salaries, guaranteed and compensatory payments to the employees during the period of suspension of an employment agreement.

If the decision is made to cancel the suspension of an employment agreement prior to the termination or cancellation of the martial law, the employer must inform the employee 10 calendar days before the renewal of the employment agreement about the return to work.

The suspension of an employment agreement is documented with an order of the employer, which must include the following information:

  1. the reasons of suspension, including the inability of both parties to perform their obligations;
  2. the manner of exchange of information;
  3. the period of suspension of an employment agreement;
  4. the number, categories and surnames, names, middle names (if available), identification codes or passport series and numbers (for natural persons, who because of their religious beliefs refuse to accept the identification codes and have notified the relevant control authority and have a record in their passport) of the employees concerned;
  5. conditions of renewal of an employment agreement.


If an employee (employees) does (do) not agree with the order of the employer to suspend the employment agreement, the employee concerned or the trade union upon the authorization of the employee (employees), may challenge the order in the State Labor Service of Ukraine, or its territorial body, which, after reviewing the content of the order and grounds for its issuance, upon consent of the military administration, may issue a writ to the employers to cancel the relevant order or to eliminate violations of the employment laws in another way, which is subject to mandatory fulfilment by an employer within 14 calendar days from the date of receipt of such a writ.

The writ of the State Labor Service of Ukraine, or its territorial body, may be challenged by an employer in court with 10 calendar days.

14. State supervision (control) over compliance with the employment laws during the martial law period

During the martial law period, the State Labor Service of Ukraine and its territorial bodies may, upon the request of an employee or a trade union, take unscheduled actions of supervision (control) over compliance by the employers with the employment legislation, in respect of compliance with the Law of Ukraine "On Organization of Employment Relationships in the Conditions of Martial Law", as well as in respect of revealing undocumented employment relationships and legal grounds for termination of employment agreements.

15. Compensations to employees and employers of monies related to employment relationships which were lost because of military aggression against Ukraine

The amendments stipulate that the compensations to employees and employers of the monies related to employment relationships, which were lost as a result of military aggression against Ukraine, shall be made at the expense of the funds of the aggressor's state, as well as the funds received from/by the correspondent funds for renovation of Ukraine, including international funds, international technical or/and rotational or irrevocable financial aid, other sources stipulated by the legislation. The procedure for determining and compensating to employees and employers the monies lost as a result of military aggression against Ukraine shall be established by the Cabinet of Ministers of Ukraine.