Changes to legislative acts on optimisation of labour relations came into effect

The Law of Ukraine "On Amendment of Certain Legislative Acts of Ukraine Regarding the Optimisation of Labour Relations" No 2352-ІХ dated 01 July 2022 (the "Law") came into effect on 19 July 2022. 

The Law introduces a number of important changes to employment legislation, including important updates to the Law of Ukraine "On Organisation of Labour Relations Under Martial Law" No 2136-ІХ dated 15 March 2022. Inter alia, the following changes came into effect: 

1. The requirement of paying the average salary to mobilised employees and other categories of employees defined in Part 3 Article 119 of the Labour Code has been cancelled (such employees will receive compensation from the state under the Law of Ukraine “On Social and Legal Protection of Military and their Family Members”). 

2. The Law introduces new grounds for employment agreement termination, in particular: 

• absence of an employee at work without an information on the reasons for such absence for over four months consecutively
• death or declaration of an employee by court as missing or deceased
• inability to provide an employee with work defined by the employment agreement due to the destruction (absence) as a result of military actions of production and other conditions, production facilities or the employer’s property. 

In addition, the Law clarifies the procedure for dismissal upon staff redundancy (including mass redundancy) and the requirements for the employer’s actions during the termination of employees.

3. The Law permits ad-hoc audits by the State Labour Service in certain circumstances, in particular, to identify non-formalised employment relations and review the legality of employment agreements termination.

4. A definition of the term "job combination" has been introduced.

5. The Law further specifies the concept of "employment agreement suspension" and the procedure for its application. 

6. The Law updated the provision regulating the compensation of losses to employees and employers  as a result of the military invasion of Ukraine at the expense of the aggressor state. In particular, the Law identifies possible sources of such compensation. The procedure for such compensation is to be developed by the Cabinet of Ministers of Ukraine.

7. The Law specifies the rules for increasing the working hours during martial law. In particular, the normal working hours may be increased up to 60 hours per week for the employees of critical infrastructure facilities (in the defense sector, daily living support to population, etc.). The salaries to such categories of employees must also be increased on a pro rata basis.

8. The Law provides for an update of the procedure for notifying employees about changes in essential conditions of work and remuneration during martial law. 

9. The length of the basic annual paid leave during martial law may be limited to 24 calendar days for the current working year at the employer's discretion. 

10. The Law requires employers to provide to employees who went abroad or qualify as internally displaced persons,with an unpaid leave of up to 90 calendar days during martial law, upon request of such employees

11. For the duration of martial law, employers are permitted, at their discretion, to define their own document management process related to employment relations, maintenance of employment record books and retention of document archives in areas with ongoing active military actions. 

12. During martial law, employees and employers are permitted to agree upon alternative methods of generating, transmitting and storing employment documents and using electronic means of communication.

Upon your request, we would be ready to share more detailed comments on the latest legislative changes, as well as provide you with other consultancy support.