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Ukraine: Changes to distance work requirements and delayed payments compensation settled

04/ 03/ 2021
  In brief On 26 and 27 February 2021, Law No. 1214-IX of Ukraine, which provides an exhaustive list of the types of monetary income for which compensation is paid for delays in payment (Law No. 1214), and Law No. 1213-IX of Ukraine, which provides for the detailed application of distance and home work (Law No. 1213), came into effect. Key takeaways Distance and home work Law No. 1213 introduces more detailed regulation of distance work and work from home. Among other things, it provides for the following: distinguishing the concepts of distance work and home work possibility to conduct briefings and acquaint employees with certain internal documents through electronic means possibility to combine distance work with work at a stationary workplace introduction of the concept of a shutdown period (i.e., time when the employee working remotely is entitled to not be available for communications) settlement of issues connected with the procedure and terms of equipment provision, payment of compensation for the use of equipment, reimbursement of expenses, etc. for distance work possibility to conclude an agreement on full liability with distant and home employees settlement of issues related to labor safety of distant and home employees Violation of the term of payments due to employees Law No. 1214 provides that salary, amounts of income indexation and the amount of certain compensations constitute income of citizens, and employees should be paid compensation for loss of income for the violation of their terms of payment (Compensation). Recommended actions Bring internal policies on alternative working arrangements and the employment agreements of relevant employees into compliance with law. Carry out indexation of salary and pay salary, including the indexation amount and the applicable compensations due, to employees within the time limits provided by law; in the event of a delay in payments for one or more calendar months, pay the Compensation in compliance with the new requirements. Contacts Lina Nemchenko Partner Baker McKenzie   Mariana Marchuk Counsel Baker McKenzie

In brief

On 26 and 27 February 2021, Law No. 1214-IX of Ukraine, which provides an exhaustive list of the types of monetary income for which compensation is paid for delays in payment (“Law No. 1214“), and Law No. 1213-IX of Ukraine, which provides for the detailed application of distance and home work (“Law No. 1213“), came into effect.

Key takeaways

Distance and home work

Law No. 1213 introduces more detailed regulation of distance work and work from home. Among other things, it provides for the following:

  • distinguishing the concepts of distance work and home work
  • possibility to conduct briefings and acquaint employees with certain internal documents through electronic means
  • possibility to combine distance work with work at a stationary workplace
  • introduction of the concept of a “shutdown period” (i.e., time when the employee working remotely is entitled to not be available for communications)
  • settlement of issues connected with the procedure and terms of equipment provision, payment of compensation for the use of equipment, reimbursement of expenses, etc. for distance work
  • possibility to conclude an agreement on full liability with distant and home employees
  • settlement of issues related to labor safety of distant and home employees

Violation of the term of payments due to employees

Law No. 1214 provides that salary, amounts of income indexation and the amount of certain compensations constitute “income of citizens,” and employees should be paid compensation for loss of income for the violation of their terms of payment (“Compensation“).

Recommended actions

  • Bring internal policies on alternative working arrangements and the employment agreements of relevant employees into compliance with law.
  • Carry out indexation of salary and pay salary, including the indexation amount and the applicable compensations due, to employees within the time limits provided by law; in the event of a delay in payments for one or more calendar months, pay the Compensation in compliance with the new requirements.

Contacts

Lina Nemchenko
Partner Baker McKenzie
 
Mariana Marchuk
Counsel Baker McKenzie

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