Litigation regarding wellness payments to employees of JSC “Ukrzaliznytsia” is ongoing

One example of law enforcement practice in the field of labor law concerns the payment of financial assistance for health recovery to employees of the joint-stock company “Ukrzaliznytsia”.

According to the provisions of the Sectoral Agreement, employees of the railway transport industry are guaranteed the payment of financial assistance for health recovery in amounts defined by collective agreements, but not less than 30% of the tariff rate (official salary). The specific amount of such assistance for employees is determined by the respective collective agreements concluded between the subdivisions of Ukrzaliznytsia and the trade union organizations of these subdivisions.

On March 14, 2022, shortly after the start of the full-scale hostilities, the management board of JSC “Ukrzaliznytsia” decided to suspend the payments provided for by the Sectoral Agreement and collective agreements. However, the provision of Article 11 of the Law of Ukraine “On the Organization of Labor Relations under Martial Law”, which allows for the temporary suspension of certain provisions of collective agreements, entered into force only on March 24, 2022.

Thus, the decision of JSC “Ukrzaliznytsia” dated March 14, 2022, was adopted without proper legal grounds. This position was confirmed by the Supreme Court in case № 211/7338/23, which recognized such a decision as unlawful. Although this case concerned only one employee of Ukrzaliznytsia, the ruling represents an important step toward establishing the illegality of the employer’s actions.

In June 2024, JSC “Ukrzaliznytsia” unilaterally adopted a new decision, which, in fact, once again suspended the provisions of collective agreements regarding the payment of wellness assistance. At the same time, a “uniform minimum amount” of such aid was set at 30% of the base salary. This approach raises serious legal concerns, since the Sectoral Agreement sets only the minimum guaranteed level of assistance. The majority of collective agreements at JSC “Ukrzaliznytsia” provide for significantly higher payment amounts, which have now been unjustifiably reduced.

Moreover, the legislative possibility of temporarily suspending certain provisions of collective agreements, as provided for by Article 11 of the Law mentioned above, requires the existence of objective grounds, in particular, the employer’s inability to fulfill the corresponding obligations. At the same time, at the moment the decision was adopted, JSC “Ukrzaliznytsia” continued to generate income, which calls into question the causal link between martial law and the alleged impossibility of fulfilling the terms of collective agreements.

It is worth noting that the current legislation does not provide for the possibility of unilateral changes to the terms of a collective agreement by the employer. Any amendments to such provisions must take place only with the consent of, or at the very least following prior consultations with, trade union bodies.

In this regard, in September 2024, the Trade Union of Railway and Transport Construction Workers of Ukraine filed a corresponding lawsuit against JSC “Ukrzaliznytsia.”

Notably, in December 2024, after a change in the management of JSC “Ukrzaliznytsia”, a separate decision was adopted to partially resume the payment of wellness assistance for 2022. However, according to available information, these payments covered only 24% of employees who were working during the relevant period. As of August 2025, the issue of payments for the period starting from 2023 and subsequent years remains unresolved.

Moreover, it is noteworthy that after the aforementioned lawsuit was filed, JSC “Ukrzaliznytsia” began taking actions that bear signs of procedural abuse. Thus, the company submitted a number of procedural documents that are similar in both content and reasoning.

In particular, a motion and petition to leave the statement of claim without further action, submitted two separate motions to close the proceedings, as well as written explanations that once again included a request to terminate the case. The repeated submission of such essentially identical documents clearly does not contribute to the efficient handling of the case—instead, it complicates the proceedings.

At the time some of these procedural documents were submitted, the court had already reviewed and reasonably dismissed several of them as unsubstantiated. Despite this, JSC “Ukrzaliznytsia” continues to actively use procedural tools not so much to defend its position on the merits of the dispute, but rather to delay the case’s consideration. As a result of these groundless motions, the preparatory proceedings in the case have already lasted for nearly a year. Such conduct contradicts the principle of good faith in civil proceedings and indicates an attempt to postpone the issuance of a fair court decision.

Nevertheless, the court proceedings are ongoing. The lawyers of the GOLAW law firm, representing the trade union’s interests in court, remain confident that justice will be restored and the rule of law will prevail.