““The labor market in Ukraine is not keeping up with reality, especially after the pandemic and in the conditions of a full-scale war””, — write: www.radiosvoboda.org
As expected by the department, the document should “comprehensively update the labor rules and replace the outdated framework of labor legislation, formed back in 1971.”
“The update of the Labor Code is part of the European integration obligations of Ukraine and approximation to European standards in the field of labor. The project provides for the implementation of more than 30 EU directives, in particular regarding working hours, transparent and predictable working conditions, combining work and family responsibilities, occupational health and safety and other areas,” the Ministry of Economy said.
According to Minister Oleksiy Sobolev, the project was submitted to update the labor legislation for the modern economy and European standards.
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“The labor market in Ukraine still functions according to the Labor Code of 1971 and does not keep up with reality, especially after the pandemic and in the conditions of a full-scale war. Point edits do not remove inconsistencies, so a system update is needed.” – stated he.
Prime Minister Yuliya Svyridenko believes that the code should start labor market reform. She said that the team of the Ministry of Economy worked on the document for more than two years.
“The labor market in Ukraine still functions according to the Labor Code of 1971. During this time, the structure of the economy, employment formats and the needs of employers and employees have changed. The new Labor Code takes this into account and forms clear rules of labor relations,” the head of government said.
She added that the document is one of the key steps for the implementation of the Population Employment Strategy until 2030, which the Cabinet of Ministers also adopted today during the meeting.
Svyridenko named some changes provided for by the Code:
- it defines 8 signs of labor relations; this should help reduce legal uncertainty and bring employment out of the shadows. Previous volumes of detinization of the labor market are estimated at 43 billion hryvnias per year
- increasing the number of types of employment contracts from 6 to 9, clearly regulating modern work formats, which include remote, home, non-fixed working hours. Also, the employee will be able to conclude several types of employment contracts with the employer
- equating electronic documents with paper documents in labor relations
- a transparent mechanism for determining the minimum salary, both monthly and hourly, agreed with the standards of the European Union
- flexible work regimes for employees who have children; the right to flexible forms of work, also provided for the expansion of the rights of both parents to leave to take care of the child: both the mother and the father will be able to take two months of leave each
- risk-oriented approach to labor inspection
- the mechanism of combining studies and the first job (student employment contract) for youth employment
Svyridenko emphasized that the adoption of the Code is an important step for further European integration of Ukraine. The document provides for the implementation of more than 30 EU directives, regulations and conventions of the International Labor Organization.
In the future, the parliament should consider the document in the first reading.
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The Ministry of Economy notes that it is “ready for a professional discussion with people’s deputies, social partners, business and the expert environment within the framework of the parliamentary procedure.”
In November, Ukraine and the International Monetary Fund reached an agreement at the staff level regarding the Ukrainian authorities’ request for a new 48-month Extended Financing Agreement (EFF) with a potential access of approximately USD 8.1 billion. Among other things, the fund announced an agreement on measures to detinize the economy, in particular, by “eliminating loopholes in the current labor code.”
