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Legal updates on labour and employment in Ukraine, Q2 2018

07/ 08/ 2018
  LEGISLATIVE ACTS Non-Disclosure and Non-Compete Obligations of Corporate Officers On June 17, 2018, the new Law (1) On LLCs and ALCs became effective. This Law has extended the obligations of corporate officers at LLCs and ALCs (members of the executive body, supervisory board, other persons defined by the company’s charter) and laid down the additional dismissal grounds for violations of those obligations. Details New Residence Permits On April 25, 2018, the Cabinet of Ministers of Ukraine has adopted two Resolutions, No. 321 (2) and No. 322 (3) approving new procedures for obtaining permanent and temporary residence permits, respectively. On June 1, 2018, these Resolutions became effective. Details Getting Temporary Residence Permits Became Easier On July 18, 2018, the Cabinet of Ministers of Ukraine approved the Resolution (4) amending the Procedure for temporary residence permit obtainment. Before this, certain foreigners were required to leave Ukraine and return only to make their entry date later than the date of the work permit issuance. Details Employment Record Books of Representative Offices – GDIP’s Monopoly Ceased On July 18, 2018, the Cabinet of Ministers of Ukraine approved the Resolution (5) and the Decree (6) lifting the obligation of the foreign representative offices to store employment record books at the Directorate-General for Representative Offices (the GDIP). Before that, only GDIP was authorized to make records in such employment record books. From now on, the representative offices may keep and file the employment record books by themselves. JUDICIAL PRACTICE Dismissal of Pregnant Woman upon Expiration of Fixed-Term Employment Agreement – Claims for Employer’s Obligation to Employ, not Reinstatement The Grand Chamber of the Supreme Court in its Resolution (7) dated May 16, 2018, resolved the case concerning that employer’s right to dismiss a pregnant woman upon expiration of the fixed-term employment agreement. Details Trade Union Lacks Standing to Represent all Staff in Court The Grand Chamber of the Supreme Court in its Resolution (8) dated May 23, 2018, stated that as the staff of the company is not a legal entity, it doesn’t have standing before the court. Accordingly, the trade union is not authorized to represent the staff at commercial or civil proceedings. So, in lawsuits brought in the interests of staff, the trade union acts on its own behalf, not on behalf of the staff. 1 - The Law of Ukraine No. 2275-VIII “On Limited and Additional Liability Companies” dated June 17, 2018; 2 - Resolution of the Cabinet of Ministers of Ukraine No. 321 “On Approval of the Specimen, Technical Description of Form and the Procedure for the Issuance, Exchange, Cancellation, Transfer, Withdrawal, Return to the State, Invalidation and Elimination of Permanent Residence Permit” dated April 25, 2018; 3 - Resolution of the Cabinet of Ministers of Ukraine No. 322 “On Approval of the Specimen, Technical Description of Form and the Procedure for the Issuance, Exchange, Cancellation, Transfer, Withdrawal, Return to the State, Invalidation and Elimination of Temporary Residence Permit” dated April 25, 2018; 4 -  Resolution of the Cabinet of Ministers of Ukraine On Amending paragraph 33 of the Procedure for the Issuance, Exchange, Cancellation, Transfer, Withdrawal, Return to the State, Invalidation and Elimination of Temporary Residence Permit” dated July 18, 2018; 5 -  Resolution of the Cabinet of Ministers of Ukraine On Amending paragraph 4 of the Resolution of the Cabinet of Ministers of Ukraine No. 301dated April 27, 1993 dated July 18, 2018; 6 -  Order of the Cabinet of Ministers of Ukraine On Abrogation of paragraph 2.21 of the Instruction on the Procedure on Issuance of Employment Books dated July 18, 2018; 7 - Resolution of the Grand Chamber of the Supreme Court in case No. 759/19440/15 dated May 16, 2018; 8 - Resolution of the Grand Chamber of the Supreme Court in case No. 910/9010/17 dated May 23, 2018.   Contacts Oksana Voynarovska partner voynarovska@vkp.ua Valeriya Savchuk counsel vsavchuk@vkp.ua Oleksandr Melnyk associate melnyk@vkp.ua

LEGISLATIVE ACTS

Non-Disclosure and Non-Compete Obligations of Corporate Officers

On June 17, 2018, the new Law (1) On LLCs and ALCs became effective. This Law has extended the obligations of corporate officers at LLCs and ALCs (members of the executive body, supervisory board, other persons defined by the company’s charter) and laid down the additional dismissal grounds for violations of those obligations.

Details

New Residence Permits

On April 25, 2018, the Cabinet of Ministers of Ukraine has adopted two Resolutions, No. 321 (2) and No. 322 (3) approving new procedures for obtaining permanent and temporary residence permits, respectively. On June 1, 2018, these Resolutions became effective.

Details

Getting Temporary Residence Permits Became Easier

On July 18, 2018, the Cabinet of Ministers of Ukraine approved the Resolution (4) amending the Procedure for temporary residence permit obtainment. Before this, certain foreigners were required to leave Ukraine and return only to make their entry date later than the date of the work permit issuance.

Details

Employment Record Books of Representative Offices – GDIP’s Monopoly Ceased

On July 18, 2018, the Cabinet of Ministers of Ukraine approved the Resolution (5) and the Decree (6) lifting the obligation of the foreign representative offices to store employment record books at the Directorate-General for Representative Offices (the “GDIP”). Before that, only GDIP was authorized to make records in such employment record books. From now on, the representative offices may keep and file the employment record books by themselves.

JUDICIAL PRACTICE

Dismissal of Pregnant Woman upon Expiration of Fixed-Term Employment Agreement – Claims for Employer’s Obligation to Employ, not Reinstatement

The Grand Chamber of the Supreme Court in its Resolution (7) dated May 16, 2018, resolved the case concerning that employer’s right to dismiss a pregnant woman upon expiration of the fixed-term employment agreement.

Details

Trade Union Lacks Standing to Represent all Staff in Court

The Grand Chamber of the Supreme Court in its Resolution (8) dated May 23, 2018, stated that as the staff of the company is not a legal entity, it doesn’t have standing before the court. Accordingly, the trade union is not authorized to represent the staff at commercial or civil proceedings. So, in lawsuits brought in the interests of staff, the trade union acts on its own behalf, not on behalf of the staff.

1The Law of Ukraine No. 2275-VIII “On Limited and Additional Liability Companies” dated June 17, 2018;

2 – Resolution of the Cabinet of Ministers of Ukraine No. 321 “On Approval of the Specimen, Technical Description of Form and the Procedure for the Issuance, Exchange, Cancellation, Transfer, Withdrawal, Return to the State, Invalidation and Elimination of Permanent Residence Permit” dated April 25, 2018;

3 – Resolution of the Cabinet of Ministers of Ukraine No. 322 “On Approval of the Specimen, Technical Description of Form and the Procedure for the Issuance, Exchange, Cancellation, Transfer, Withdrawal, Return to the State, Invalidation and Elimination of Temporary Residence Permit” dated April 25, 2018;

4 –  Resolution of the Cabinet of Ministers of Ukraine “On Amending paragraph 33 of the Procedure for the Issuance, Exchange, Cancellation, Transfer, Withdrawal, Return to the State, Invalidation and Elimination of Temporary Residence Permit” dated July 18, 2018;

5 –  Resolution of the Cabinet of Ministers of Ukraine “On Amending paragraph 4 of the Resolution of the Cabinet of Ministers of Ukraine No. 301dated April 27, 1993” dated July 18, 2018;

6 –  Order of the Cabinet of Ministers of Ukraine “On Abrogation of paragraph 2.21 of the Instruction on the Procedure on Issuance of Employment Books” dated July 18, 2018;

7 – Resolution of the Grand Chamber of the Supreme Court in case No. 759/19440/15 dated May 16, 2018;

8 – Resolution of the Grand Chamber of the Supreme Court in case No. 910/9010/17 dated May 23, 2018.

 

Contacts

Oksana Voynarovska
partner
voynarovska@vkp.ua

Valeriya Savchuk
counsel
vsavchuk@vkp.ua

Oleksandr Melnyk
associate
melnyk@vkp.ua

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