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Why do we have a labor reform?

29/ 09/ 2017
  The Labor Code has long been a painful issue for all parties - from state bodies and trade unions to employers and workers. And it is necessary to make objective changes and adopt the draft Code. Despite the priority given to the government and parliament of land and pension reforms, as well as deregulation and health reform, labor reform is not losing its relevance. And we expect the adoption of the new Labor Code of Ukraine (TKU) in the near future. This idea is not new and has its origins since the 2000s. However, so far, the reform has not been so close to realization. In general, the adoption of the Code in this wording (draft law No. 1658 in the wording before the 2nd reading of 07/24/2017) can not be called a reform in its pure form. Rather, it is making changes that correspond to the time and which all the members of labor relations have long been waiting for. For example, written labor contracts signed with employees, labor contracts for management, provisions on non-disclosure of confidential information, compensation for irregular work. And also the reduction of the role of trade unions in some aspects, the cancellation of unused leave after the end of the year, etc. The very initiative to unite in a single normative document a large number of disparate acts is correct. It promotes systematic and stable regulation. In particular, it will be easier for employees to understand the regulatory framework for relations with the employer. And the key issues will be fixed in one document - leave, wages, social guarantees and protection, etc. For employers, this will simplify the conduct of labor relations. However, a transitional period will be required for staff adaptation. EVA is an active participant in the development of the TCU, members of the profile committee of the Association for the Management of Human Resources participated in the development from the very first project and to the current - from 2000 to 2017. In 2015, at the Verkhovna Rada Committee on Social Policy, a working group was set up to finalize the draft TCU for the second reading. It included document developers, business representatives, and the side of trade unions and independent parties - market experts and academics. All parties to the process and labor relations are counting on the rapid adoption of the TCU, already in 2017, and on the implementation of innovations in practice. This will help to improve the regulation of labor relations, as well as the balance in relations between public authorities, employers, trade unions and employees. It is worth noting that the International Labor Organization, in its opinion on the TKU project, draws attention to the excessive detail of the project, which may adversely affect its application in practice. In particular, international experience shows that the more difficult the language and the detailed rules are written - the more difficult it is to perform them in practice. It is also necessary to provide more freedom in the relations between the employer and the employee, which will avoid overregulation and prevent the non-compliance with the law. Employees will also be more aware of their rights and responsibilities, which, of course, is also a positive aspect of reform. Being a direct participant in the development of the TCU, I can say that the draft code in general corresponds to the state of affairs in the labor market. Namely, the formalization of labor relations in the form of labor contracts, the promotion of the payment of all taxes and salary payments, in particular, for the purposes of pension reform. He deserves to be accepted this year. Source: Novoe Vremia

The Labor Code has long been a painful issue for all parties – from state bodies and trade unions to employers and workers. And it is necessary to make objective changes and adopt the draft Code.

Despite the priority given to the government and parliament of land and pension reforms, as well as deregulation and health reform, labor reform is not losing its relevance. And we expect the adoption of the new Labor Code of Ukraine (TKU) in the near future. This idea is not new and has its origins since the 2000s. However, so far, the reform has not been so close to realization.

In general, the adoption of the Code in this wording (draft law No. 1658 in the wording before the 2nd reading of 07/24/2017) can not be called a reform in its pure form. Rather, it is making changes that correspond to the time and which all the members of labor relations have long been waiting for.

For example, written labor contracts signed with employees, labor contracts for management, provisions on non-disclosure of confidential information, compensation for irregular work. And also the reduction of the role of trade unions in some aspects, the cancellation of unused leave after the end of the year, etc.

The very initiative to unite in a single normative document a large number of disparate acts is correct. It promotes systematic and stable regulation. In particular, it will be easier for employees to understand the regulatory framework for relations with the employer. And the key issues will be fixed in one document – leave, wages, social guarantees and protection, etc. For employers, this will simplify the conduct of labor relations. However, a transitional period will be required for staff adaptation.

EVA is an active participant in the development of the TCU, members of the profile committee of the Association for the Management of Human Resources participated in the development from the very first project and to the current – from 2000 to 2017. In 2015, at the Verkhovna Rada Committee on Social Policy, a working group was set up to finalize the draft TCU for the second reading. It included document developers, business representatives, and the side of trade unions and independent parties – market experts and academics.

All parties to the process and labor relations are counting on the rapid adoption of the TCU, already in 2017, and on the implementation of innovations in practice. This will help to improve the regulation of labor relations, as well as the balance in relations between public authorities, employers, trade unions and employees.

It is worth noting that the International Labor Organization, in its opinion on the TKU project, draws attention to the excessive detail of the project, which may adversely affect its application in practice. In particular, international experience shows that the more “difficult” the language and the detailed rules are written – the more difficult it is to perform them in practice.

It is also necessary to provide more freedom in the relations between the employer and the employee, which will avoid overregulation and prevent the non-compliance with the law. Employees will also be more aware of their rights and responsibilities, which, of course, is also a positive aspect of reform.

Being a direct participant in the development of the TCU, I can say that the draft code in general corresponds to the state of affairs in the labor market. Namely, the formalization of labor relations in the form of labor contracts, the promotion of the payment of all taxes and salary payments, in particular, for the purposes of pension reform. He deserves to be accepted this year.

Source: Novoe Vremia

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