Key changes in labor legislation in 2024

New grounds for dismissal at the initiative of the employer

Effective September 27, 2024, the Labor Code of Ukraine (the “Labor Code”) was amended to include new grounds for terminating  an employment contract at the employer’s initiative, namely:

• the entry into force of a court verdict convicting an employee (except for release from serving a sentence with probation) for committing a crime against  Ukraine’s national security;
• failure to comply with company rules  on non-disclosure of restricted information, including  state or commercial secret, as well as the conditions for handling confidential information.

Separately, in June 2024, a new grounds for dismissal was introduced for employees of the Bureau of Economic Security of Ukraine (the “BES”). From now on, employees of the BES may be dismissed for refusing to undergo certification or for failing to pass certification by the certification commission. Dismissal on this ground is allowed during an employee’s sick leave or vacation. Moreover, there is no requirement to provide a two months’ notice or offer an alternative position.

Employees’ duty of confidentiality

Employers have the right to require employees not to disclose restricted-access information, in particular:

• information that constitutes a state or commercial secret;
• information about the conditions for working with confidential information.

To enforce  this, the companies must supplement their internal labor regulations with relevant  provisions. The relevant changes must be communicated to employees.

If an employee violates this obligation, he or she may be dismissed from work at the employer’s initiative.

At the same time, it is mandatory to establish employee obligations not to disclose restricted-access information and conditions for working with confidential information at enterprises, institutions, organizations of strategic importance to the economy and security of the state, and/or critical infrastructure facilities or operators.

Possibility of sending employment record books abroad

The Resolution of the Cabinet of Ministers of Ukraine No. 1045 dated September 10, 2024,  amended the List of attachments prohibited for sending in postal items. According to these changes, starting fromSeptember 12, 2024, , employment records may be sent abroad.

As a general rule, mailing an employment record books may only be sent via mail with the employee’s written consent. Therefore, in the case of sending an employment record book abroad, the employer must first obtain the employee’s written consent to such a transfer.

The procedure for changing the company’s owner has been regulated

In 2024, the Labor Code of Ukraine was supplemented with a new Article 36-1 which regulates  labor relations in the event of a business entity transfer. This provision came into force on May 15, 2024..

This  article stipulates that when a company  changes ownership, the employment relationships of its employees continue with the new owner. The rights and obligations under employment contracts remain unchanged.

Also, the status and functions of the trade unions (or employee representatives) are preserved and remain in effect under the same conditions.

As for the procedure of changing ownership, both the previous and new owners are obliged to inform the trade union (employees’ representatives) no later than 10 working days before such change of ownership about:

• the date or estimated date of the business entity transfer;
• the reasons for the business entity transfer;
• the legal, economic and social consequences of the transfer for employees;
• any planned measures concerning employees.

In turn, the trade union (employees’ representatives) has the right to initiate consultations with both the previous and the new owner regarding the consequences of such changes for employees. 

It is important to note that the transfer of a business entity is a change in essential working conditions, which must be notified to the employee no later than two months in advance.

Labor of domestic workers has been regulated

The Labor Code has been supplemented with a new Chapter XI-A (Articles 173-2 to 173-7 of the Labor Code), which defines the working conditions for domestic workers. Such workers include, for example, drivers, domestic workers, gardeners, etc. 

Key  provisions of the new regulations include:

• domestic work is defined as work performed for a household under a written employment contract;
• it is not allowed to hire a person under the age of 16 as a domestic worker;
• the employer may provide housing to the employee, but is not entitled to deduct its cost from the salary;
• working hours are determined by the parties, but the employee is responsible for keeping track of them;
• an employment contract may provide for waiting periods (time during which a domestic worker cannot dispose of his/her time at his/her own discretion and must be ready to perform tasks);
• an employment contract concluded with a domestic worker may be terminated at the initiative of one of the parties.

As you can see, in 2024, changes in labor legislation were aimed at regulating and simplifying certain procedures in labor relations. However, the effectiveness and efficiency of these changes can be analyzed in practice.

(https://www.lexology.com/library/detail.aspx?g=f76f9a0d-fe0b-4796-a58a-7b1281d5b4a8) 

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