News

New guarantee         for fixed-term employees

Obligation of employer to inform employees working under fixed-term employment agreements about vacant positions meeting their qualifications and provision for the possibility of concluding permanent employment agreement. The way of provision of such information is chosen upon the employer’s decision.

Termination of employment –        new basis

The Labor Code is supplemented by new grounds for termination of employment:

• death of employer, or recognition him/her as missing, or declaration dead by the court (this article includes the algorithm of the employee’s actions in such circumstances);
• death of employee, recognition him/her as missing, or declaration dead by the court;
• employee’s absence from work and lack of available information about the reasons for such absence for more than 4 (four) consecutive months (not identical with truancy, the presence of both factors - absence of the employee and availability of any information about its reasons for four months are necessary).

Termination of employment at employer’s initiative – new basis

Impossibility of providing the employee with the work specified in employment agreement which is directly related to destruction (absence) of production, organizational and technical conditions, means of production, or property of employer as a result of hostilities.

• requires no prior consent of trade union organization;
• the severance pay is one average monthly salary, or more, in case the other amount is set by collective or employment agreement;
• in case of the large-scale dismissal the employees are personally informed 10 (ten) days before, informing the primary trade union organization on the reasons of large-scale dismissal, and notification of the State Employment Service.

Amendments related to guarantees of mobilized employees

Employers are obliged to keep the place of work (position) for the employees called up for military service, however, now they are exempt from the obligation to maintain the average earnings of such employees.

Employers may still pay the average earnings at their own discretion. Additionally, during mobilization, employer has the right to temporarily assign the duties of the mobilized employee to another employee, or to hire a new employee under a fixed-term employment contract for fulfilment of employment duties of the mobilized employee.

Working time duration

• The updated Law clarifies that increasing the length of working hours during martial law to 60 (sixty) hours per week is the right of the employer (not the obligation) and does not provide for establishment of such a length for every employee in a mandatory manner.

Normal duration of working hours during the period of martial law may be increased to 60 (sixty) hours per week, but only for persons employed at critical infrastructure facilities (in the defense sector, the sphere of ensuring the livelihood of the population, etc.), and up to 40 (forty) hours per week for employees who, in accordance with the legislation may have the reduced duration of working hours;

• Remuneration of labor of employees whose normal working hours have been increased is carried out in proportionally increased amounts.
• Employer decides on the duration of the working week (a five-day or six-day one) at his own discretion without a corresponding decision of the military command or local military administrations.
• Work during weekends is due to compensation (double size payment);

Annual leave –     latest amendments

• Employer is given the right to independently decide whether, during the period of martial law, the employee's annual leave will be limited to 24 calendar days for the current working year. In case the employee is entitled for a longer annual leave, the unused days may be used after termination or cancellation of martial law;
• during the period of martial law, employer may refuse to provide the employee with unused days of annual leave. However, in case of dismissal of the employee during the period of martial law, the employee is paid compensation for unused days of annual leave in accordance with the Law of Ukraine “On Vacations”;
• the employees’ salary for the entire period of annual leave is paid before its beginning, unless otherwise provided by the labor or collective agreement (prior period was three days before the leave);
• in case of dismissal the employee shall receive all amount due to payment in full, compensation for unused annual leaves including; for now, the new employer is not responsible for relations with previous one (previously, it was possible to receive compensation for unused annual leaves after transfer to another enterprise, f.e.);
• the Law establishes employer's obligation to grant a non-paid leave for the duration specified in application, but no more than 90 (ninety) calendar days to an employee, who has left the territory of Ukraine or acquired the status of an internally displaced person, upon his application, during the period of martial law;
• in case of death of the employee, compensation for all the days of annual leave unused during the employee’s life are paid to members of his/her family, or in case of their absence is included into his/her inheritance.

Amendment of essential working conditions

For the period of martial law, the procedure is simplified: employer does not have to notify the employee about such amendments within 2(two) months, from now on such notification is carried out no later than before the introduction of amended conditions.

Suspension of employment agreement

The Law improves legal regulation of suspension of the employment agreement, namely:

• it defines in details the criteria and conditions for suspension of the employment agreement, provides for the mechanism of renewal of suspended employment agreement, and sets restrictions on application of this mechanism for certain categories of employees;
• the main condition for suspension of employment agreement is the absolute impossibility of both sides of the employment relations to fulfill the obligations stipulated by employment agreement (for employer – to provide work, for employee – to perform it);
• the procedure may be initiated by both employer and employee;
• it is executed through the order of employer;
• the period of suspension of employment agreement may not exceed the period of martial law;
• in the event of decision to cancel the suspension of the employment agreement before termination or cancellation of martial law, the employer must notify the employee of the need to start work 10 (ten) calendar days before getting down to work.

Revised statute of limitations

The employee is entitled to apply to the court in case related to payment of all sums due to him/her upon dismissal only within 3 (three) months from the date of receipt of the written notice about the sums accrued and paid to him/her upon dismissal.

This innovation is supposed to increase efficiency of consideration of labor disputes regarding non-payment of wages.