The government has adopted a new Labor Code: what will change for employees and employers

New Labor Code of Ukraine

The Cabinet of Ministers of Ukraine has adopted a new draft Labor Code, which is set to serve as a foundation for reforming the labor market in the country. This document has been developed over more than two years with the participation of the Ministry of Economy, business, and international partners. Currently, the labor market in Ukraine operates under the Labor Code adopted in 1971.

The new Labor Code defines eight characteristics of labor relations, and the number of types of labor contracts increases from six to nine. The Code also provides for the implementation of more than 30 directives of the European Union, which will simplify Ukraine's integration into European economic structures. As Julia Svyrydenko noted, the adoption of the code is an important step towards further European integration of the country.

Main innovations and advantages

In addition, the document introduces flexible work arrangements for parents, and the minimum salary threshold will be determined as a percentage of the average wage. An important innovation is also the equivalence of electronic documents to paper ones in labor relations, reflecting a trend towards digitalization. The Labor Code also introduces a risk-oriented approach to labor inspection checks, aimed at increasing the effectiveness of monitoring compliance with labor legislation.

Another significant aspect is the introduction of a student labor contract, aimed at facilitating youth employment. According to recent data, the number of vacancies with booking on the 'OLX Work' platform has increased eightfold, indicating a growing interest in labor activity among the population.

Julia Svyrydenko noted that the new code is one of the key steps for implementing the employment strategy for the population until 2030.

Thus, the adoption of the new Labor Code is expected to be an important stage in the development of labor relations in Ukraine, contributing to their modernization and adaptation to contemporary economic realities.

The adoption of the new Labor Code in Ukraine is a significant step towards improving working conditions and enhancing the competitiveness of the Ukrainian labor market. In particular, the implementation of EU directives and the introduction of flexible employment forms may facilitate Ukraine's integration into European economic structures, which in turn can have a positive impact on the economic development of the country. The new code also meets modern digitalization requirements and the needs of youth, which is an important aspect for ensuring sustainable development of the labor market in Ukraine.