Business insists on the necessity of new Labour Code adoption

01/ 09/ 2017

Association members report that the Draft Labor Code, which was published before the second reading, largely ignores the position of the business community as conscientious employers. In particular, the profile Committee of the Verkhovna Rada of Ukraine did not support the following proposals from the business: Possibility of concluding labor contracts both in writing and in oral form; The need for the employer to agree with his / her legal acts with the union / freely chosen representatives of employees in certain cases; Possibility for employers to dismiss employees in case of committing actions for which, according to the legislation on prevention of corruption, criminal, administrative, civil or disciplinary liability is provided; To introduce the notion of minimum wage level of an unskilled worker for the full working time standard, which should include all types of remuneration; Leave the type of work and basic leave, but increase it to 30 days (instead of 24 days today) and 2 social leave (for pregnancy and childbirth and for caring for a child under 2 years old (today up to 3). Other vacations and their duration to be defined in collective agreements and agreements; Exempt rules on the authorization of trade unions at the initiative of the administration in the event of a reduction, reorganization, or discrepancy of the employees position or performance due to inadequate qualifications or health, which impede the continuation of work; To exclude the need to inform the union about overtime work if the employee has given his written consent to such work; To consolidate the possibilities of the heads of the separate subdivisions (branches) of legal entities to conclude labor contracts on behalf of the legal entity; To expand the list of persons who can be employed without obtaining a work permit, adding such a list of categories of persons whose employment is carried out without obtaining a permit in accordance with part 6 of Article 42 of the Law of Ukraine On Employment of the Population No. 5067-VI of July 5, 2012 and other suggestions. The Association emphasizes the importance of the adoption of the Labor Code, but draws attention to the need for a substantial revision of the existing project. The Associations experts are ready to give their expertise in order to make a judicious decision on the new regulation of labor relations.

Association members report that the Draft Labor Code, which was published before the second reading, largely ignores the position of the business community as conscientious employers.

In particular, the profile Committee of the Verkhovna Rada of Ukraine did not support the following proposals from the business:

Possibility of concluding labor contracts both in writing and in oral form;
The need for the employer to agree with his / her legal acts with the union / freely chosen representatives of employees in certain cases;
Possibility for employers to dismiss employees in case of committing actions for which, according to the legislation on prevention of corruption, criminal, administrative, civil or disciplinary liability is provided;
To introduce the notion of minimum wage level of an unskilled worker for the full working time standard, which should include all types of remuneration;
Leave the type of work and basic leave, but increase it to 30 days (instead of 24 days today) and 2 social leave (for pregnancy and childbirth and for caring for a child under 2 years old (today up to 3). Other vacations and their duration to be defined in collective agreements and agreements;
Exempt rules on the authorization of trade unions at the initiative of the administration in the event of a reduction, reorganization, or discrepancy of the employee’s position or performance due to inadequate qualifications or health, which impede the continuation of work;
To exclude the need to inform the union about overtime work if the employee has given his written consent to such work;
To consolidate the possibilities of the heads of the separate subdivisions (branches) of legal entities to conclude labor contracts on behalf of the legal entity;
To expand the list of persons who can be employed without obtaining a work permit, adding such a list of categories of persons whose employment is carried out without obtaining a permit in accordance with part 6 of Article 42 of the Law of Ukraine “On Employment of the Population” No. 5067-VI of July 5, 2012 and other suggestions.

The Association emphasizes the importance of the adoption of the Labor Code, but draws attention to the need for a substantial revision of the existing project. The Association’s experts are ready to give their expertise in order to make a judicious decision on the new regulation of labor relations.