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New termination ground and requirements for internal labor regulations (employee handbook)

27/ 09/ 2024
  On 27 September 2024, the Law of Ukraine On Amendments to the Labor Code of Ukraine on Establishing Additional Grounds for Termination of Employment Agreements at the Initiative of the Employer and Certain Other Issues No. 3768-IX dated 4 June 2024 (Law) (with certain exceptions) will come into force. The Law, among other things, details the rules applicable to internal labor regulations (Employee Handbook) and establishes new termination grounds. Key changes The Employee Handbook may include, among other things, rules on (a) employees nondisclosure obligations and (b) the terms of work with confidential information (Information Rules). The Information Rules are obligatory for companies of strategic importance for the economy and security of the state and/or objects or operators of critical infrastructure.  A new termination ground at the employers initiative due to the employees failure to comply with the Information Rules has been introduced. Recommendations  We recommend that employers in Ukraine take the abovementioned legislative changes into account in their business activities and supplement the Employee Handbook with the Information Rules to protect the companys confidential information and to be able to rely on the new termination ground. Contacts: Lina Nemchenko Partner Baker McKenzie   Mariana Marchuk Counsel Baker McKenzie   Anna Stepanowa Associate Baker McKenzie

On 27 September 2024, the Law of Ukraine “On Amendments to the Labor Code of Ukraine on Establishing Additional Grounds for Termination of Employment Agreements at the Initiative of the Employer and Certain Other Issues” No. 3768-IX dated 4 June 2024 (“Law“) (with certain exceptions) will come into force. The Law, among other things, details the rules applicable to internal labor regulations (“Employee Handbook“) and establishes new termination grounds.

Key changes

  • The Employee Handbook may include, among other things, rules on (a) employees’ nondisclosure obligations and (b) the terms of work with confidential information (“Information Rules“).
  • The Information Rules are obligatory for companies of strategic importance for the economy and security of the state and/or objects or operators of critical infrastructure. 
  • A new termination ground at the employer’s initiative due to the employee’s failure to comply with the Information Rules has been introduced.

Recommendations 

We recommend that employers in Ukraine take the abovementioned legislative changes into account in their business activities and supplement the Employee Handbook with the Information Rules to protect the company’s confidential information and to be able to rely on the new termination ground.

Contacts:

Lina Nemchenko
Partner Baker McKenzie
 
Mariana Marchuk
Counsel Baker McKenzie
 
Anna Stepanowa
Associate Baker McKenzie

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