Legal Hotline | Digest of the main legislative changes in Ukraine 05.02.2021

The Law on the improvement of the legal regulation of remote work was adopted

On February 4, 2021, the Verkhovna Rada of Ukraine adopted the Law “On Amendments to Certain Legislative Acts on Improvement of Legal Regulation of Remote Work” (Draft Bill No. 4051 of September 4, 2020, hereinafter referred to as the “Law“).

It introduces the long-awaited amendments to the Labour Code of Ukraine, which have become relevant since the beginning of the lock-down and caused an active discussion. In particular, such amendments affected flexible working hours, remote work and home-based-work.

According to the Law, flexible working hours is a form of labour organization, which allows to establish a different work schedule than that stipulated by the internal work order regulations, subject to compliance with the daily, weekly or other norm of working time established for a certain accounting period (week, month, quarter, year, etc.) (the definition set out in the new version provides minor clarifications compared to the current version).  

The Law stipulates that flexible working hours may be established:

• pursuant to the application of an employee – without a need to notify of the change in work schedule not later than two months before such changes;
• by an employer, if necessary – with an obligatory notification of an employee about the change in the work mode not later than two months prior to it.

Also, a rule is introduced that in case of violation of the flexible working hours’ rules, the employee’s working conditions can be replaced with the regular ones without prior (2 months) notice of a change in significant working conditions.

The Law distinguishes between “home-based-work” and “remote work”; and establishes rules for the application of each of the modes.

Home-based work shall be performed by an employee at his/her place of residence or in other premises designated by him/her with a fixed area, necessary technical means, but outside the premises of an employer.

The main feature of the home-based work is the existence of a fixed workplace, which an employee cannot change without the consent of an employer. An exception to this rule is impossibility to perform work at a fixed workplace for reasons beyond his/her control. In such case an employee shall notify an employer of the change of his/her workplace in advance (no later than 3 working days before the change).

In case of introduction of remote work, an employee also performs his/her work outside the premises of an employer, but independently determining the workplace and apportioning his/her working hours at his/her discretion. As a general rule, such an employee is not subject to the internal work order regulations. In this case, an employer is under obligation to provide an employee with the necessary equipment and tools to perform the work.

Home-based work or remote work shall be stipulated in a written employment contract (standard forms of such contracts will be approved by the State Labour Service), but, if necessary, it can be arranged and regulated by an order of an employer.

The government has approved rules and technical requirements for the national logo and certificate of an authorized economic operator

With its Resolution No. 70 of February 3, 2021, the Cabinet of Ministers of Ukraine approved the official form and description of the national logo of the authorized economic operator (hereinafter referred to as “AEO“), as well as the form of the AEO certificate.

The same resolution approved the rules for using the logo. In particular, a resident enterprise that has received AEO authorization shall have the right, from the date of receipt of such authorization, to use the AEO logo on its official documents, seals, vehicles, buildings and structures, etc. used by the enterprise in its activities, at its own discretion.

We recall that the AEO is a special status that confirms a high degree of credibility of a business entity and provides for significant simplifications in dealing with customs formalities.

The law on accounting of employee’s labour activity in electronic form has been adopted

On February 5, 2021, the Verkhovna Rada of Ukraine adopted the Law “On Amendments to Certain Legislative Acts of Ukraine Concerning the Accounting of Employee’s Labour Activity in Electronic Form” (Draft Bill No. 3623 of June 10, 2020, hereinafter referred to as the “Law“). The official text of the Law has not yet been published.

According to the latest published version of the draft Law, the accounting of employee’s labour activity in electronic form shall be performed in the register of insured persons of the State Register of Compulsory State Social Insurance (hereinafter referred to as the “Register“).

At the request of an employee, a paper employment record book  must be issued and information on hiring, dismissal, promotion, etc. can be entered in the paper employment record book. The book is to be kept by an employee, once an employer transfers the information from it to the Register.

In order to conclude an employment contract, it will be possible to provide information on work experience from the Register, instead of presenting a traditional employment record book in a paper form.

The Law establishes a transitional period of 5 years from the date of its entry into force, during which the Pension Fund of Ukraine shall, on the basis of information provided by an insurer (employer) or insured person (employee), enter in the Register the missing information about the work experience of an employee.