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HR

18/ 07/ 2022
  On July 15, the President of Ukraine signed draft law No. 7251 on the optimization of labor relations. The European Business Association welcomes this step, as our experts consistently advocated for modernizing the regulation of labor relations and actively participated in the development of this document. The adopted draft law significantly simplifies the administration of labor relations and adapts the legislation to martial law. First, it allows digitization of many processes – hiring and firing, informing about changes in working terms, and communication with employees. This is especially relevant in the case when employees who have temporarily moved abroad continue to work for a Ukrainian company. Secondly, the draft law allows employees to go on unpaid leave with the preservation of their workplace for an unlimited period (previously, the term of such leave was limited to 14 days). This can be especially relevant if the company is temporarily out of business or destroyed – in this way, the employer does not have to close the company and lay off people. Instead, by sending the staff on unpaid leave, the employer retains the opportunity to later resume the operation of the company and compensate for the payment of wages for previous periods. Thirdly, according to the draft law, mobilized workers to retain their place of work and position for the duration of military service, and the retention of average earnings remains at the discretion of the employer. Thus, this option can support companies that are in a difficult financial situation or are on the verge of closure. We thank the MPs for their timely and adequate response to the challenges of martial law in the field of labor and for the simplification of relations between the employer and the employee!

On July 15, the President of Ukraine signed draft law No. 7251 on the optimization of labor relations. The European Business Association welcomes this step, as our experts consistently advocated for modernizing the regulation of labor relations and actively participated in the development of this document.

The adopted draft law significantly simplifies the administration of labor relations and adapts the legislation to martial law. First, it allows digitization of many processes – hiring and firing, informing about changes in working terms, and communication with employees. This is especially relevant in the case when employees who have temporarily moved abroad continue to work for a Ukrainian company.

Secondly, the draft law allows employees to go on unpaid leave with the preservation of their workplace for an unlimited period (previously, the term of such leave was limited to 14 days). This can be especially relevant if the company is temporarily out of business or destroyed – in this way, the employer does not have to close the company and lay off people. Instead, by sending the staff on unpaid leave, the employer retains the opportunity to later resume the operation of the company and compensate for the payment of wages for previous periods.

Thirdly, according to the draft law, mobilized workers to retain their place of work and position for the duration of military service, and the retention of average earnings remains at the discretion of the employer. Thus, this option can support companies that are in a difficult financial situation or are on the verge of closure.

We thank the MPs for their timely and adequate response to the challenges of martial law in the field of labor and for the simplification of relations between the employer and the employee!

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