Economy

Rada panel backs new draft Labor Code for first reading

Rada panel backs new draft Labor Code for first reading

The Committee on Social Policy and Protection of Veterans' Rights of Ukraine's Verkhovna Rada recommended that parliament place on the session agenda and adopt at first reading, with further revision for the second reading, the government's draft Labor Code of Ukraine (No. 16010), while rejecting the alternative bill (No. 16010-1).

The committee made the decision at a meeting on September 25, and on September 28, committee chairwoman Halyna Tretyakova registered a draft resolution on adopting the bill as a basis, with the committee to revise it for the second reading taking into account amendments and proposals submitted by legislative initiative entities.

As reported, the Cabinet of Ministers re-registered the draft of the new Labor Code (bill No. 16010) in parliament on September 2. Compared with the previous government version (No. 14386), the document clarifies certain provisions concerning the prohibition of forced and child labor, as well as the prohibition of discrimination. It also expands the definition of mobbing (bullying) and harassment and eases the burden of proof for an employee seeking a temporary transfer to remote work due to mobbing or harassment.

In addition, the new version details the scope of labor legislation as it applies to the labor of members of farming enterprises, collective agricultural enterprises and cooperatives, clergy and church workers, as well as relations between gig specialists and residents of Diia City.

The document relaxes the prohibition on assigning pregnant employees, employees who have recently given birth, or breastfeeding employees to night work, overtime work and work on weekends, allowing them to be assigned such work with their written consent and provided there are no medical contraindications. In addition, a provision has been added guaranteeing protection of employees against criminal and administrative prosecution for participation in a lawful strike (Article 282).

Among the main innovations of the draft Labor Code compared with current legislation are the definition of eight indicators of an employment relationship, with a relationship to be considered an employment relationship if at least five of them are present, as well as a list of nine types of employment contracts, with the possibility of concluding a contract combining terms of different types. In particular, the bill introduces an employment contract for temporary (agency) work, concluded between an employee and a temporary employment agency to perform assignments under the control of another person. For persons aged 14 and older, it provides for a vocational training employment contract for up to six months, with a mentor appointed to combine work and workplace training.

In the digitalization of employment relations, the bill establishes the possibility of reviewing documents through electronic communications, concluding an employment contract electronically, and recording employment activity in the register of insured persons.

The updated Labor Code also establishes a mechanism for determining the minimum wage as a percentage of the average monthly wage by type of economic activity across the economy as of January 1 of the previous year, with the percentage to be determined by the government. The duration of the basic annual paid leave is increased from 24 to 28 days (Article 135).

The procedure for granting leave related to the birth and raising of a child is being reformed based on the principles of gender non-discrimination. The document introduces four months of paid parental leave until the child reaches the age of eight, calculated at two months for each parent.

In addition, new categories of female employees are defined – pregnant employees, employees who have recently given birth, and breastfeeding employees – with additional guarantees, including reduced or part-time working hours and special breaks for breastfeeding.

Individual labor disputes may be resolved in three ways: through negotiations, mediation or court proceedings. Collective labor disputes are divided into disputes over rights and disputes over interests; conciliation procedures, labor arbitration and mediation are introduced, while procedures for calling a strike are simplified through the introduction of warning strikes and lockouts.

The draft code regulates the basic principles of state supervision and control, the status of labor inspectors and the procedure for conducting inspection visits, and also introduces a new system for preventing occupational risks based on their assessment, control and management.

The document incorporates provisions of the current laws "On Remuneration of Labor," "On Vacations," "On Collective Agreements and Contracts," and "On the Procedure for Resolving Collective Labor Disputes (Conflicts)."

According to the authors of bill No. 16010, its adoption will help eliminate Soviet-era elements from labor legislation, maintain a balance of interests between employees and employers, and reduce the level of informal employment.

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