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Ukraine's Proposed Labor Code: New Rules for Dismissals and Overtime

Нові правила звільнень та понаднормової роботи в Україні: реформування трудових відносин

Ukraine's Draft Labor Code

A proposed new Labor Code in Ukraine would grant employers greater authority to dismiss workers and simplify termination procedures. Under the draft, an employer would have the unilateral right to determine an employee's 'guilt' as grounds for terminating a contract. Furthermore, Article 97 introduces the concept of dismissal 'due to culpable actions,' allowing the employer to establish fault on their own authority. This legislative overhaul is part of broader economic reforms aimed at increasing business flexibility.

Grounds for Dismissal

The draft specifies several grounds for termination, including:

  • violation of safety regulations,
  • disclosure of commercial or state secrets,
  • committing an 'immoral offense.'

A significant and controversial change is the removal of the prohibition against firing an employee while they are on sick leave or annual vacation, raising concerns about the erosion of worker protections.

The draft code also proposes increasing the annual limit on overtime work from 120 to 180 hours. A collective bargaining agreement could raise this limit further to 250 hours. The process for dismissal due to changes in working conditions is also simplified. Employers would be required to provide 60 days' notice of termination or have the option to terminate a contract immediately with compensation.

Commenting on the changes, Andriy Pavlovsky stated: 'Excessive overtime, reduced vacations, uncontrolled dismissals.'

These proposed changes have sparked anxiety among employees, who fear they will negatively impact working conditions and labor rights. The reforms reflect an ongoing effort to modernize Ukraine's post-Soviet labor market, but critics argue they tilt the balance too far in favor of employers.

While the proposed amendments to Ukraine's labor law aim to optimize employer-employee relations, they have generated significant apprehension among the workforce. In particular, the expansion of employer powers regarding dismissal could lead to abuses and weaken social protections for employees. Consequently, the new Labor Code requires thorough analysis and public debate to ensure a fair balance of interests between the parties in labor relations.