Legislative novelties in The Draft Labor Code of Ukraine No.1108 of 4 December 2007

21.03.2013

Ukrainian labor and employment registration is quite outdated. The Ukrainian Labor Code was adopted in 1971, and obviously has to be modernized. The Draft Labor Code of Ukraine No.1108 of 4 December 2007 has been prepared for its second reading. Alexey Pokotylo, senior associate of Konnov & Sozanovsky, told The Ukrainian Journal of Business Law about the novelties of the document. 

- The legal framework of employment relations in Ukraine has long since required major revision. The current Labor Code of Ukraine adopted in 1971 and amended many times in the following 40 years remains largely outdated, and the many relating laws and regulations are often difficult to comprehend for non-lawyers. In this respect, the most obvious novelty of the new Labor Code, which is about to undergo a second reading in the Ukrainian Parliament, is that it will incorporate the majority of legal rules on employment which are currently contained in a number of different legal acts. It seems that the new Labor Code will be a very comprehensive document, with many new features. It should finally formally introduce many customary practices, such as great emphasis on protecting the employer’s confidential information and trade secrets (up to the right to dismiss those who breached the non-disclosure obligation), or the possibility to formally suspend an employee from work e.g. during an internal disciplinary investigation. Among other apparent novelties, the new Labor Code expressly addresses non-discrimination, including sexual harassment; removes such a concept as “employment contract” (a special form of employment agreement for certain categories of employees); provides that all employment agreements should be done in writing, save for certain specific cases; defines home working; provides that severance pay should increase proportionally depending on a person’s length of service, etc. 

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