{"id":3678,"date":"2026-01-19T18:14:54","date_gmt":"2026-01-19T16:14:54","guid":{"rendered":"https:\/\/ukrpayroll.com\/?p=3678"},"modified":"2026-01-19T18:14:54","modified_gmt":"2026-01-19T16:14:54","slug":"comprehensive-analysis-draft-labor-code-of-ukraine-2026-vs-current-labor-code-1971","status":"publish","type":"post","link":"https:\/\/ukrpayroll.com\/ru\/comprehensive-analysis-draft-labor-code-of-ukraine-2026-vs-current-labor-code-1971\/","title":{"rendered":"COMPREHENSIVE ANALYSIS: DRAFT LABOR CODE OF UKRAINE (2026) vs. CURRENT LABOR CODE (1971)"},"content":{"rendered":"

COMPREHENSIVE ANALYSIS: DRAFT LABOR CODE OF UKRAINE (2026) vs. CURRENT LABOR CODE (1971)<\/h1>\n

Prepared for:<\/strong>\u00a0Legal Review
\nDate:<\/strong>\u00a0January 2026
\nAnalysis Type:<\/strong>\u00a0Comparative Legal Analysis of Draft Tr\u0443\u0434\u043e\u0432\u0438\u0439 \u041a\u043e\u0434\u0435\u043a\u0441 \u0423\u043a\u0440\u0430\u0457\u043d\u0438
\nLanguage:<\/strong>\u00a0English (Based on Ukrainian Law Sources)<\/p>\n

\n

EXECUTIVE SUMMARY<\/h2>\n

The Draft Labor Code of Ukraine (hereinafter “Draft Code” or “New Code”), submitted to the Verkhovna Rada on January 15, 2026, represents a comprehensive modernization of Ukrainian labor law. The current legislation is based on the Soviet Code of Labor Laws (\u041a\u043e\u0434\u0435\u043a\u0441 \u0437\u0430\u043a\u043e\u043d\u0456\u0432 \u043f\u0440\u043e \u043f\u0440\u0430\u0446\u044e \u0423\u043a\u0440\u0430\u0457\u043d\u0438) adopted in 1971, which the Draft aims to replace entirely.<\/p>\n

Key Strategic Changes:<\/h2>\n
    \n
  • \n

    De-communization<\/strong>\u00a0of labor legislation and removal of Soviet-era paternalistic state regulation<\/p>\n<\/li>\n

  • \n

    Implementation of EU directives and ILO (International Labour Organization) standards<\/p>\n<\/li>\n

  • \n

    Shift from employer-protective to balanced regulation<\/p>\n<\/li>\n

  • \n

    Legalization and formalization of informal employment<\/p>\n<\/li>\n

  • \n

    Risk-based occupational health and safety management system<\/p>\n<\/li>\n<\/ul>\n

    Risk Assessment for Employers:\u00a0MODERATE TO HIGH<\/strong><\/h2>\n

    The Draft introduces significant procedural and substantive changes that require immediate strategic compliance planning.<\/p>\n

    \n

    I. COMPARISON TABLE: CORE PROVISIONS<\/h2>\n

    A. EMPLOYMENT CONTRACT FRAMEWORK<\/h2>\n
    \n
    \n\n\n\n\n\n\n\n\n\n\n\n
    Aspect<\/strong><\/th>\nCurrent Code (1971)<\/strong><\/th>\nDraft Code (2026)<\/strong><\/th>\nImpact on Employers<\/strong><\/th>\nRisk Level<\/strong><\/th>\n<\/tr>\n<\/thead>\n
    Contract Requirement<\/strong><\/td>\nVerbal contracts allowed for temporary workers; written required for permanent<\/td>\nMANDATORY WRITTEN CONTRACT<\/strong>\u00a0for ALL employment relationships<\/td>\nAdministrative burden increases; all relationships must be documented<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Contract Formats<\/strong><\/td>\nSingle model; limited options<\/td>\nMultiple types: permanent, fixed-term, short-term, seasonal, apprenticeship, domestic work, part-time<\/td>\nRequires new HR policies and procedures for each type<\/td>\nHIGH<\/strong><\/td>\n<\/tr>\n
    Proof of Employment Relationship<\/strong><\/td>\nDifficult to prove; burden on worker<\/td>\nExplicit criteria: work performed under employer’s direction\/control, subordination, remuneration at employer’s discretion<\/td>\nMakes avoiding employment classification difficult; impacts gig economy models<\/td>\nHIGH<\/strong><\/td>\n<\/tr>\n
    Fixed-Term Contracts<\/strong><\/td>\nPermitted but highly regulated; rarely exceeds 2-3 renewals<\/td>\nClearly permitted with defined notice and termination procedures; up to 4 renewals allowed (subject to specific conditions)<\/td>\nMore flexibility in workforce planning; but strict renewal limits create compliance risk<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Probationary Period<\/strong><\/td>\nUp to 3 months<\/td>\nUp to 3 months<\/strong>\u00a0(unchanged); but more clearly defined<\/td>\nMinimal change; familiar framework<\/td>\nLOW<\/strong><\/td>\n<\/tr>\n
    Remote\/Home Work<\/strong><\/td>\nNot regulated; treated as standard employment<\/td>\nNEW<\/strong>: Specific regulations for remote and home work; must be in written contract with clear terms<\/td>\nEmployers must distinguish remote positions; requires explicit agreements<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Temporary Agency Workers<\/strong><\/td>\nNot regulated<\/td>\nNEW<\/strong>: Regulated status; agencies must be licensed; workers’ rights protections<\/td>\nCreates liability for compliance with temp worker regulations<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    B. WORKING TIME REGULATION<\/h2>\n
    \n
    \n\n\n\n\n\n\n\n\n\n\n\n\n
    Aspect<\/strong><\/th>\nCurrent Code (1971)<\/strong><\/th>\nDraft Code (2026)<\/strong><\/th>\nImpact on Employers<\/strong><\/th>\nRisk Level<\/strong><\/th>\n<\/tr>\n<\/thead>\n
    Standard Working Hours<\/strong><\/td>\n40 hours\/week<\/td>\n40 hours\/week<\/strong>\u00a0(unchanged)<\/td>\nMinimal change; familiar framework<\/td>\nLOW<\/strong><\/td>\n<\/tr>\n
    Daily Working Time<\/strong><\/td>\nNot strictly regulated; 40 hours\/week rule dominant<\/td>\nMaximum 10 hours\/day (standard); split shifts permitted but regulated<\/td>\nStricter daily limits; split shifts require specific justification<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Flexibility Mechanisms<\/strong><\/td>\nAggregated accounting (\u043f\u043e\u0434\u0441\u0443\u043c\u043e\u0432\u0430\u043d\u0438\u0439 \u043e\u0431\u043b\u0456\u043a); flexible within quarter<\/td>\nAggregated accounting retained<\/strong>\u00a0but redefined; can exceed daily\/weekly limits if compensated within accounting period (month, quarter, year)<\/td>\nEmployers gain flexibility BUT documentation becomes critical for proof<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Break Entitlements<\/strong><\/td>\nMeal breaks required (not specified in hours)<\/td>\nExplicit<\/strong>: 30 min minimum break in shifts 4-6 hours; 60 min in longer shifts; breaks must be rest periods<\/td>\nClearer rules; must provide documented rest breaks<\/td>\nLOW-MEDIUM<\/strong><\/td>\n<\/tr>\n
    Night Work<\/strong><\/td>\nLimited definition<\/td>\nNEW<\/strong>: Night = 22:00-06:00; limited to 8 hours\/shift; higher pay (25%+ premium) required<\/td>\nSignificant cost impact for 24\/7 operations; must pay night differentials<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Irregular Work Schedule<\/strong><\/td>\nAllowed; limited regulation<\/td>\nNEW<\/strong>: “Unfixed work schedule” (\u043d\u0435\u0444\u0456\u043a\u0441\u043e\u0432\u0430\u043d\u0438\u0439 \u0440\u043e\u0431\u043e\u0447\u0438\u0439 \u0447\u0430\u0441) explicitly regulated; 2-week notice for changes; compensation for short-notice changes<\/td>\nRequires new HR systems for schedule management; notice requirements increase compliance burden<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Work on Rest Days<\/strong><\/td>\nPermitted with compensation (1.5x wage for first 4 hours, 2x for rest)<\/td>\nNEW<\/strong>: Weekend work distinguished from statutory rest days; specific compensation formulas apply; 2 consecutive rest days\/week mandatory<\/td>\nChanges compensation calculations; stricter rest day protections<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Overtime<\/strong><\/td>\nPermitted; no maximum; payment 1.5x-2x<\/td>\nNo mention of removal of overtime caps; compensation structure unchanged<\/td>\nMinimal change anticipated; traditional rules likely apply<\/td>\nLOW<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    C. LEAVE AND VACATION<\/h2>\n
    \n
    \n\n\n\n\n\n\n\n\n\n\n\n\n
    Aspect<\/strong><\/th>\nCurrent Code (1971)<\/strong><\/th>\nDraft Code (2026)<\/strong><\/th>\nImpact on Employers<\/strong><\/th>\nRisk Level<\/strong><\/th>\n<\/tr>\n<\/thead>\n
    Annual Leave Duration<\/strong><\/td>\nMinimum 15 calendar days<\/td>\nMinimum 20 working days (approximately 28 calendar days)<\/td>\nSIGNIFICANT INCREASE<\/strong>\u00a0in paid leave liability; approximately +45% in minimum leave entitlement<\/td>\nHIGH<\/strong><\/td>\n<\/tr>\n
    Entitlement Schedule<\/strong><\/td>\nFull entitlement after 11 months; prorated before<\/td>\nAccumulation begins from first day; 1.67 days\/month accrual; new calculation method<\/td>\nChanges financial planning; potential for higher accrual liabilities for departing employees<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Maternity Leave<\/strong><\/td>\n126 calendar days; 70 before birth, 56 after<\/td>\nNEW GENDER-NEUTRAL APPROACH<\/strong>: Maternity = 126 days; Paternity = 14 days (for fathers); Parental leave = up to 3 years (unpaid)<\/td>\nFathers gain specific rights; expanded unpaid leave options; potential gender discrimination claims if eligibility not carefully managed<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Childcare Leave<\/strong><\/td>\nUp to 3 years (unpaid); for child under 3<\/td>\nMaintained BUT with expanded flexibility: can take partially (part-time work during leave); clearer conditions<\/td>\nMore options for employees; requires new tracking systems<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Sick Leave<\/strong><\/td>\nFull payment for first 3 days (employer); state thereafter<\/td>\nCHANGED<\/strong>: First 6 days paid by employer; state funds days 7-30<\/td>\nHigher costs for employer sick leave; more documentation required<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Educational Leave<\/strong><\/td>\nPaid leave for vocational\/professional training<\/td>\nMaintained; expanded to include lifelong learning; clearer employer obligations for paid educational leave<\/td>\nSupport for training requirements; cost implications<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Military Service Leave<\/strong><\/td>\nAvailable under special conditions<\/td>\nNEW<\/strong>: Clearly regulated in context of wartime\/mobilization<\/td>\nSignificant implications given Ukraine’s current security situation; exemption requirements<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Additional Leave Types<\/strong><\/td>\nLimited (only specially hazardous work, etc.)<\/td>\nEXPANDED<\/strong>: Additional leave for hazardous work, healthcare workers, cultural professionals, blood donors, adoption, etc.<\/td>\nMore leave categories create compliance complexity; sector-specific leave obligations<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    D. WAGES AND REMUNERATION<\/h2>\n
    \n
    \n\n\n\n\n\n\n\n\n\n\n\n\n
    Aspect<\/strong><\/th>\nCurrent Code (1971)<\/strong><\/th>\nDraft Code (2026)<\/strong><\/th>\nImpact on Employers<\/strong><\/th>\nRisk Level<\/strong><\/th>\n<\/tr>\n<\/thead>\n
    Minimum Wage<\/strong><\/td>\nIndexed to inflation; set by Cabinet of Ministers<\/td>\nMinimum wage mechanism continues; indexed annually; Cabinet of Ministers authority retained<\/td>\nFollows current practice; periodic adjustment likely<\/td>\nLOW-MEDIUM<\/strong><\/td>\n<\/tr>\n
    Wage Payment Frequency<\/strong><\/td>\nAt least twice per month<\/td>\nAt least twice per month<\/strong>\u00a0(unchanged); but with stricter deadlines defined<\/td>\nMinimal change; familiar framework<\/td>\nLOW<\/strong><\/td>\n<\/tr>\n
    Wage Payment Timing<\/strong><\/td>\nMust be paid regularly (no specific deadline days)<\/td>\nNEW<\/strong>: Must specify exact payment dates in contract; deviations from schedule create liability<\/td>\nRequires explicit contract terms; documentation of payment schedules needed<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Withholding\/Deductions<\/strong><\/td>\nLimited to court decisions, garnishments, taxes<\/td>\nExpanded but still limited; only lawful deductions allowed; explicit contract authorization required for voluntary deductions<\/td>\nClearer rules; union agreements may specify deductions; requires employee consent<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Gender Pay Equality<\/strong><\/td>\nPrinciple of equal pay for equal work (limited enforcement)<\/td>\nSTRENGTHENED<\/strong>: Equal pay for work of equal value; must provide justification for wage differences; applies to indirect discrimination<\/td>\nRequires wage audits; gender pay gap analysis needed; documentation requirements increase<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Night Work Premium<\/strong><\/td>\nTypically 25%<\/td>\nUpgraded to minimum 25%; Draft suggests higher rates for hazardous night work<\/td>\nCost increase for night operations; must budget additional premiums<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Bonus\/Incentive Programs<\/strong><\/td>\nPermitted; no specific regulation<\/td>\nAllowed but must be clearly documented in collective agreement or individual contract; cannot be below minimum wage after inclusion<\/td>\nCreates documentation requirements; prevents wage reduction via “incentive” structures<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Wage for Training Period<\/strong><\/td>\nSet by regulation; usually reduced<\/td>\nTraining wage (80-100% of standard wage) permitted; must be specified in contract<\/td>\nClearer framework; requires explicit documentation<\/td>\nLOW<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    E. TERMINATION OF EMPLOYMENT<\/h2>\n
    \n
    \n\n\n\n\n\n\n\n\n\n\n\n\n
    Aspect<\/strong><\/th>\nCurrent Code (1971)<\/strong><\/th>\nDraft Code (2026)<\/strong><\/th>\nImpact on Employers<\/strong><\/th>\nRisk Level<\/strong><\/th>\n<\/tr>\n<\/thead>\n
    Notice Periods – Employer Termination<\/strong><\/td>\n2 weeks (general rule); shorter for probation (3 days) or justifiable cause (no notice)<\/td>\nCHANGED<\/strong>: 2 weeks (general); 7 days for probationary dismissal (extended from 3); immediate for cause<\/td>\nLonger notice for probation dismissal; causes must be well-documented<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Notice Periods – Worker Resignation<\/strong><\/td>\n2 weeks; immediate in certain cases<\/td>\n2 weeks (unchanged)<\/td>\nMinimal change<\/td>\nLOW<\/strong><\/td>\n<\/tr>\n
    Termination for Cause<\/strong><\/td>\n10 grounds listed (drunkenness, absenteeism, violence, etc.)<\/td>\nEXPANDED to include<\/strong>: gross breach of obligations, safety violations, theft, fraud, and others; but with stricter procedural requirements<\/td>\nMore grounds available but HIGHER EVIDENTIARY BURDEN; must conduct proper investigation<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Severance Pay<\/strong><\/td>\n2 weeks average wage (general dismissal); varies by reason<\/td>\nMaintained at 2 weeks but with recalculation method; additional severance for collective dismissals<\/td>\nFamiliar amount; potentially higher costs for collective terminations<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Collective Dismissals<\/strong><\/td>\nDefined as 10+ workers in 30 days; 2-3 months notice<\/td>\nCHANGED<\/strong>: Collective dismissal threshold likely modified; stricter notice to workers and union (if applicable); potential state notification<\/td>\nRequires careful planning; state\/union notification adds compliance steps<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Termination for Incapacity<\/strong><\/td>\nLimited grounds; must offer retraining<\/td>\nNEW FRAMEWORK<\/strong>: Incapacity dismissals must follow strict procedure; medical documentation required; offers of alternative work required before dismissal<\/td>\nStronger worker protections; documentation requirements increase significantly<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Restrictions on Dismissal<\/strong><\/td>\nCannot dismiss pregnant women, women on maternity leave, workers on military leave<\/td>\nEXPANDED<\/strong>: Protections maintained; amplified for protected categories; clearer procedures for exceptions during wartime<\/td>\nFamiliar protections; must maintain careful documentation of exceptions<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Wrongful Dismissal Remedies<\/strong><\/td>\nReinstatement; back wages; compensation<\/td>\nENHANCED<\/strong>: Reinstatement; back wages; compensation for moral damages (now explicitly included); potential for greater liability<\/td>\nDamages awards potentially larger; compensation scope expanded<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    F. OCCUPATIONAL HEALTH AND SAFETY<\/h2>\n
    \n
    \n\n\n\n\n\n\n\n\n\n\n\n
    Aspect<\/strong><\/th>\nCurrent Code (1971)<\/strong><\/th>\nDraft Code (2026)<\/strong><\/th>\nImpact on Employers<\/strong><\/th>\nRisk Level<\/strong><\/th>\n<\/tr>\n<\/thead>\n
    OHS System<\/strong><\/td>\nReactive model: respond to incidents; prescriptive regulations<\/td>\nNEW<\/strong>: Proactive risk-based system; hazard assessment and risk management required (similar to EU model)<\/td>\nFundamental shift in approach; requires new assessment methodologies and documentation<\/td>\nHIGH<\/strong><\/td>\n<\/tr>\n
    Hazard Assessment<\/strong><\/td>\nRequired but limited scope<\/td>\nMANDATORY COMPREHENSIVE<\/strong>: Regular risk assessment; documentation; control measures; monitoring; reviews<\/td>\nNew compliance infrastructure needed; consultants may be required<\/td>\nHIGH<\/strong><\/td>\n<\/tr>\n
    Employer Responsibility<\/strong><\/td>\nProvide safe conditions; limited liability for systemic failures<\/td>\nENHANCED<\/strong>: Active duty to assess, control, and manage risks; personal liability for employer\/manager failures increased<\/td>\nCriminal liability risk increased for serious violations<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Medical Examinations<\/strong><\/td>\nPeriodic checks for hazardous work<\/td>\nRETAINED but clarified<\/strong>: Initial and periodic exams; psychometric testing for certain roles; results must inform accommodations<\/td>\nClearer procedures; medical documentation requirements increase<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Personal Protective Equipment (PPE)<\/strong><\/td>\nProvided; rules basic<\/td>\nCLARIFIED<\/strong>: Employer must provide, maintain, train on use; workers obligated to use; defective PPE creates strict liability<\/td>\nStandards and documentation requirements increase<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Accident Reporting<\/strong><\/td>\nInvestigation required; reporting to authorities<\/td>\nENHANCED<\/strong>: Immediate reporting for serious incidents; systematic investigation; external audit of findings in serious cases<\/td>\nTighter timelines; external audit potential increases cost<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Worker Rights<\/strong><\/td>\nRight to refuse unsafe work; limited protections against retaliation<\/td>\nEXPANDED<\/strong>: Enhanced right to refuse unsafe work; explicit protection from retaliation; can report to inspectorate without notice to employer<\/td>\nStrengthened whistleblower protections; management retaliation carries heavy penalties<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    G. COLLECTIVE LABOR RELATIONS<\/h2>\n
    \n
    \n\n\n\n\n\n\n\n\n\n\n\n
    Aspect<\/strong><\/th>\nCurrent Code (1971)<\/strong><\/th>\nDraft Code (2026)<\/strong><\/th>\nImpact on Employers<\/strong><\/th>\nRisk Level<\/strong><\/th>\n<\/tr>\n<\/thead>\n
    Union Recognition<\/strong><\/td>\nUnions recognized; must negotiate in good faith<\/td>\nMAINTAINED<\/strong>\u00a0with enhanced procedural clarity; union rights reinforced; must negotiate on wages, working conditions<\/td>\nFamiliar framework; clearer obligations may require updated negotiation protocols<\/td>\nLOW-MEDIUM<\/strong><\/td>\n<\/tr>\n
    Collective Agreements<\/strong><\/td>\nPermitted; set floors for worker protections<\/td>\nEXPANDED SCOPE<\/strong>: Agreements can now set higher standards in various areas; must extend to non-union employees if broadly applicable<\/td>\nCollective agreements carry more weight; wider application increases costs<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Industry\/Sectoral Agreements<\/strong><\/td>\nLimited framework<\/td>\nNEW<\/strong>: Framework for sector-wide collective agreements; can be extended to non-parties by government order<\/td>\nPotential exposure to sectoral obligations beyond direct negotiation<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Strike Rights<\/strong><\/td>\nPermitted with notice; procedural restrictions<\/td>\nENHANCED<\/strong>: Right to strike clarified; mediation\/arbitration procedures defined; government role in resolution expanded<\/td>\nMediation requirements add steps; potential for government arbitration outcome<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Dispute Resolution – Grievances<\/strong><\/td>\nLimited mechanisms; mostly through courts<\/td>\nNEW PROCEDURES<\/strong>: Internal grievance process (15-30 days); mediation (optional but encouraged); labor arbitration (voluntary); only then courts<\/td>\nMulti-step dispute resolution required; may increase compliance burden but may reduce litigation<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Labor Disputes Committee<\/strong><\/td>\nExists but weak mechanisms<\/td>\nREFORMED<\/strong>: Committees have enhanced role; must attempt resolution before litigation; recommendations carry weight<\/td>\nMandatory pre-litigation process increases time but may reduce court disputes<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Inspections and Oversight<\/strong><\/td>\nLabor inspectorate; limited surprise inspections<\/td>\nENHANCED AUTHORITY<\/strong>: Inspectors can conduct unannounced inspections; broader access to records; financial penalties increased<\/td>\nMore frequent inspections likely; documentation requirements increase<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    H. DISCRIMINATION AND EQUAL TREATMENT<\/h2>\n
    \n
    \n\n\n\n\n\n\n\n\n\n\n
    Aspect<\/strong><\/th>\nCurrent Code (1971)<\/strong><\/th>\nDraft Code (2026)<\/strong><\/th>\nImpact on Employers<\/strong><\/th>\nRisk Level<\/strong><\/th>\n<\/tr>\n<\/thead>\n
    Protected Characteristics<\/strong><\/td>\nRace, nationality, religion, disability, union membership<\/td>\nEXPANDED<\/strong>: Adds sexual orientation, gender identity, marital\/family status, political views, and others; aligns with EU anti-discrimination directive<\/td>\nBroader scope requires more inclusive policies; documented non-discrimination required<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Discrimination Definition<\/strong><\/td>\nLess detailed; based on case law<\/td>\nDETAILED<\/strong>: Includes direct, indirect, harassment, and instruction to discriminate; employer liability for 3rd party discrimination<\/td>\nRequires proactive harassment policies; training programs recommended<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Burden of Proof<\/strong><\/td>\nGenerally on complainant (employee)<\/td>\nSHIFTED<\/strong>: Once prima facie case shown, burden shifts to employer to prove non-discrimination<\/td>\nReverses burden of proof; employers must document legitimate reasons<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Gender Pay Gap<\/strong><\/td>\nPrinciple exists; enforcement weak<\/td>\nSTRENGTHENED<\/strong>: Employers must conduct pay audits; justify wage differences; gender pay gap transparency required<\/td>\nRequires documentation of wage justifications; transparency obligations increase<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n
    Pregnancy\/Maternity Discrimination<\/strong><\/td>\nProtected; but enforcement challenging<\/td>\nENHANCED<\/strong>: Explicit prohibition on discrimination; cannot penalize pregnancy or family leave; status-based decisions prohibited<\/td>\nStricter protections; fewer exceptions permitted<\/td>\nMEDIUM<\/strong><\/td>\n<\/tr>\n
    Remedies for Discrimination<\/strong><\/td>\nBack wages; reinstatement; limited damages<\/td>\nEXPANDED<\/strong>: Higher compensation ranges; moral damages included; possible punitive elements<\/td>\nGreater financial exposure for discrimination violations<\/td>\nMEDIUM-HIGH<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n
    \n

    II. DETAILED RISK ASSESSMENT FOR EMPLOYERS<\/h2>\n

    HIGH-RISK PROVISIONS (Immediate Action Required)<\/h2>\n

    1.\u00a0Mandatory Written Employment Contracts<\/strong><\/h2>\n
      \n
    • \n

      Current State<\/strong>: Verbal contracts common; difficult to prove employment status in disputes<\/p>\n<\/li>\n

    • \n

      New Requirement<\/strong>: ALL employment must be in writing<\/p>\n<\/li>\n

    • \n

      Employer Risk<\/strong>:<\/p>\n

        \n
      • \n

        Current informal arrangements become non-compliant<\/p>\n<\/li>\n

      • \n

        Every relationship requires documented contract<\/p>\n<\/li>\n

      • \n

        Disputes over contract terms easier to resolve (but must be documented correctly)<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

      • \n

        Mitigation Strategies<\/strong>:<\/p>\n

          \n
        • \n

          Develop comprehensive contract templates for each employment type<\/p>\n<\/li>\n

        • \n

          Implement new hire procedure with mandatory written contract<\/p>\n<\/li>\n

        • \n

          Digitize contract management system<\/p>\n<\/li>\n

        • \n

          Conduct audit of current informal employment relationships<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

          2.\u00a0Increased Annual Leave Entitlement (20 working days minimum)<\/strong><\/h2>\n
            \n
          • \n

            Current State<\/strong>: 15 calendar days<\/p>\n<\/li>\n

          • \n

            New Requirement<\/strong>: 20 working days (~28 calendar days) minimum<\/p>\n<\/li>\n

          • \n

            Employer Risk<\/strong>:<\/p>\n

              \n
            • \n

              Approximately 40-50% increase in annual leave liability<\/p>\n<\/li>\n

            • \n

              Higher accrual rates impact balance sheet<\/p>\n<\/li>\n

            • \n

              Staff scheduling complexity increases<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

            • \n

              Financial Impact Example<\/strong>:<\/p>\n

                \n
              • \n

                Employee salary: 40,000 UAH\/month = 480,000 UAH\/year<\/p>\n<\/li>\n

              • \n

                Daily rate: 480,000 \u00f7 248 working days = 1,935 UAH\/day<\/p>\n<\/li>\n

              • \n

                Current: 15 days \u00d7 1,935 = 29,025 UAH<\/p>\n<\/li>\n

              • \n

                New: 20 days \u00d7 1,935 = 38,700 UAH<\/strong>\u00a0(+33% cost increase per employee)<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

              • \n

                Mitigation Strategies<\/strong>:<\/p>\n

                  \n
                • \n

                  Review and adjust annual compensation budgets<\/p>\n<\/li>\n

                • \n

                  Evaluate leave scheduling software<\/p>\n<\/li>\n

                • \n

                  Model multi-year accrual liability<\/p>\n<\/li>\n

                • \n

                  Consider phased implementation for sector-specific adjustments<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                  3.\u00a0Enhanced Occupational Health & Safety (Risk-Based System)<\/strong><\/h2>\n
                    \n
                  • \n

                    Current State<\/strong>: Reactive, prescriptive regulations; limited risk assessment<\/p>\n<\/li>\n

                  • \n

                    New Requirement<\/strong>: Proactive hazard identification, assessment, and management; documentation required<\/p>\n<\/li>\n

                  • \n

                    Employer Risk<\/strong>:<\/p>\n

                      \n
                    • \n

                      Requires fundamental shift in OHS management approach<\/p>\n<\/li>\n

                    • \n

                      Regular risk assessments with documentation needed<\/p>\n<\/li>\n

                    • \n

                      Non-compliance with risk management = presumption of negligence<\/p>\n<\/li>\n

                    • \n

                      Personal liability of employer\/managers for serious violations<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                    • \n

                      Compliance Burden<\/strong>:<\/p>\n

                        \n
                      • \n

                        Hire or train OHS specialists<\/p>\n<\/li>\n

                      • \n

                        Conduct comprehensive risk assessments<\/p>\n<\/li>\n

                      • \n

                        Document control measures<\/p>\n<\/li>\n

                      • \n

                        Implement monitoring\/review system<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                      • \n

                        Mitigation Strategies<\/strong>:<\/p>\n

                          \n
                        • \n

                          Engage external OHS consultants for baseline assessment<\/p>\n<\/li>\n

                        • \n

                          Implement ISO 45001 or similar system<\/p>\n<\/li>\n

                        • \n

                          Document all hazard assessments and corrective actions<\/p>\n<\/li>\n

                        • \n

                          Train management on new OHS obligations<\/p>\n<\/li>\n

                        • \n

                          Budget for OHS infrastructure improvements<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                          4.\u00a0Termination for Cause with Expanded Grounds but Stricter Procedures<\/strong><\/h2>\n
                            \n
                          • \n

                            Current State<\/strong>: 10 defined grounds; limited procedural requirements; quick dismissal possible<\/p>\n<\/li>\n

                          • \n

                            New Requirement<\/strong>: Expanded grounds BUT with mandatory investigation, documentation, right to response<\/p>\n<\/li>\n

                          • \n

                            Employer Risk<\/strong>:<\/p>\n

                              \n
                            • \n

                              Cannot dismiss without proper procedure<\/p>\n<\/li>\n

                            • \n

                              Wrongful dismissal claims easier to succeed if procedure flawed<\/p>\n<\/li>\n

                            • \n

                              Back wages + moral damages award potential<\/p>\n<\/li>\n

                            • \n

                              Retaliation claims possible if discharge perceived as retaliation<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                            • \n

                              Specific Procedures Required<\/strong>:<\/p>\n

                                \n
                              • \n

                                Written notification of violation<\/p>\n<\/li>\n

                              • \n

                                Opportunity for employee response\/explanation (period not specified; likely 3-10 days)<\/p>\n<\/li>\n

                              • \n

                                Investigation documentation<\/p>\n<\/li>\n

                              • \n

                                Disciplinary decision in writing with grounds<\/p>\n<\/li>\n

                              • \n

                                Notice period (7 days for some cases)<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                              • \n

                                Mitigation Strategies<\/strong>:<\/p>\n

                                  \n
                                • \n

                                  Develop documented investigation procedures<\/p>\n<\/li>\n

                                • \n

                                  Create templates for disciplinary letters<\/p>\n<\/li>\n

                                • \n

                                  Train HR personnel on proper termination procedure<\/p>\n<\/li>\n

                                • \n

                                  Document all performance issues contemporaneously<\/p>\n<\/li>\n

                                • \n

                                  Consider progressive discipline approach<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                                  5.\u00a0Wage Payment Deadlines and Schedule Requirements<\/strong><\/h2>\n
                                    \n
                                  • \n

                                    Current State<\/strong>: “Regular” payment required; no specific schedule mandated<\/p>\n<\/li>\n

                                  • \n

                                    New Requirement<\/strong>: Exact payment dates must be specified in contract; deviation creates liability<\/p>\n<\/li>\n

                                  • \n

                                    Employer Risk<\/strong>:<\/p>\n

                                      \n
                                    • \n

                                      Must have consistent, documented payment schedule<\/p>\n<\/li>\n

                                    • \n

                                      Delayed payment triggers automatic interest charges<\/p>\n<\/li>\n

                                    • \n

                                      Worker can claim breach even for 1-day delay<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                    • \n

                                      Mitigation Strategies<\/strong>:<\/p>\n

                                        \n
                                      • \n

                                        Specify exact payment dates in all contracts<\/p>\n<\/li>\n

                                      • \n

                                        Implement accounting system to ensure on-time payment<\/p>\n<\/li>\n

                                      • \n

                                        Document any delays with explanations<\/p>\n<\/li>\n

                                      • \n

                                        Plan for payroll timing well in advance<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                                        6.\u00a0Enhanced Strike and Collective Action Rights<\/strong><\/h2>\n
                                          \n
                                        • \n

                                          Current State<\/strong>: Strikes permitted but limited; minimal procedures<\/p>\n<\/li>\n

                                        • \n

                                          New Requirement<\/strong>: Clearer strike procedures; mediation\/arbitration requirements; broader participation rights<\/p>\n<\/li>\n

                                        • \n

                                          Employer Risk<\/strong>:<\/p>\n

                                            \n
                                          • \n

                                            Potential for more frequent labor actions<\/p>\n<\/li>\n

                                          • \n

                                            Mediation required before formal labor arbitration<\/p>\n<\/li>\n

                                          • \n

                                            Government arbitration outcome binding<\/p>\n<\/li>\n

                                          • \n

                                            Retaliation against strikers is strictly prohibited<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                          • \n

                                            Mitigation Strategies<\/strong>:<\/p>\n

                                              \n
                                            • \n

                                              Establish labor relations department<\/p>\n<\/li>\n

                                            • \n

                                              Develop communication protocol with unions<\/p>\n<\/li>\n

                                            • \n

                                              Understand mediation\/arbitration procedures<\/p>\n<\/li>\n

                                            • \n

                                              Document all labor relations interactions<\/p>\n<\/li>\n

                                            • \n

                                              Avoid any action that could be perceived as retaliation<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                                              \n

                                              MEDIUM-RISK PROVISIONS (Planning Required)<\/h2>\n

                                              1.\u00a0Expanded Maternity\/Paternity Leave Structure<\/strong><\/h2>\n
                                                \n
                                              • \n

                                                Risk<\/strong>: Gender discrimination claims if paternity leave not properly offered<\/p>\n<\/li>\n

                                              • \n

                                                Action<\/strong>: Update HR policies to address gender-neutral parental leave<\/p>\n<\/li>\n<\/ul>\n

                                                2.\u00a0Working Time Flexibility and “Unfixed Schedule” Regulation<\/strong><\/h2>\n
                                                  \n
                                                • \n

                                                  Risk<\/strong>: Must provide 2-week notice for schedule changes; compensation required for short-notice changes<\/p>\n<\/li>\n

                                                • \n

                                                  Action<\/strong>: Evaluate current scheduling practices; plan for transition<\/p>\n<\/li>\n<\/ul>\n

                                                  3.\u00a0Sick Leave Payment (First 6 Days by Employer)<\/strong><\/h2>\n
                                                    \n
                                                  • \n

                                                    Risk<\/strong>: Increased sick leave costs; requires documentation<\/p>\n<\/li>\n

                                                  • \n

                                                    Action<\/strong>: Budget for increased sick leave liability; implement medical certification process<\/p>\n<\/li>\n<\/ul>\n

                                                    4.\u00a0Collective Agreement Extension to Non-Union Workers<\/strong><\/h2>\n
                                                      \n
                                                    • \n

                                                      Risk<\/strong>: Sectoral agreements may apply broadly; employers not party to negotiation<\/p>\n<\/li>\n

                                                    • \n

                                                      Action<\/strong>: Monitor sector-level collective agreement developments<\/p>\n<\/li>\n<\/ul>\n

                                                      5.\u00a0Discrimination Claims with Shifted Burden of Proof<\/strong><\/h2>\n
                                                        \n
                                                      • \n

                                                        Risk<\/strong>: Once employee shows prima facie case, employer must prove non-discrimination<\/p>\n<\/li>\n

                                                      • \n

                                                        Action<\/strong>: Document all employment decisions; maintain objective criteria records<\/p>\n<\/li>\n<\/ul>\n

                                                        \n

                                                        III. UNCLEAR\/AMBIGUOUS PROVISIONS REQUIRING CLARIFICATION<\/h2>\n

                                                        1.\u00a0Definition of “Work of Equal Value” for Gender Pay Equity<\/strong><\/h2>\n
                                                          \n
                                                        • \n

                                                          Current Text<\/strong>: States “equal pay for work of equal value” but does not define methodology<\/p>\n<\/li>\n

                                                        • \n

                                                          Problem<\/strong>: Different calculation methods produce different results<\/p>\n<\/li>\n

                                                        • \n

                                                          Guidance Needed<\/strong>:<\/p>\n

                                                            \n
                                                          • \n

                                                            What factors constitute “equal value”?<\/p>\n<\/li>\n

                                                          • \n

                                                            Can employers use job evaluation systems?<\/p>\n<\/li>\n

                                                          • \n

                                                            What documentation satisfies the requirement?<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                          • \n

                                                            Recommendation<\/strong>: Await implementing regulations from Ministry of Economy<\/p>\n<\/li>\n<\/ul>\n

                                                            2.\u00a0Aggregated Working Time Accounting Period Parameters<\/strong><\/h2>\n
                                                              \n
                                                            • \n

                                                              Current Text<\/strong>: References accounting periods but exact rules unclear<\/p>\n<\/li>\n

                                                            • \n

                                                              Problem<\/strong>: Can exceed daily\/weekly limits within month? Quarter? Year?<\/p>\n<\/li>\n

                                                            • \n

                                                              Guidance Needed<\/strong>:<\/p>\n

                                                                \n
                                                              • \n

                                                                Clear maximum accounting periods<\/p>\n<\/li>\n

                                                              • \n

                                                                Compensation rules for exceeding limits<\/p>\n<\/li>\n

                                                              • \n

                                                                Dispute resolution for calculation disagreements<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                              • \n

                                                                Recommendation<\/strong>: Seek clarification in implementing regulations<\/p>\n<\/li>\n<\/ul>\n

                                                                3.\u00a0Unfixed Work Schedule (\u041d\u0435\u0444\u0456\u043a\u0441\u043e\u0432\u0430\u043d\u0438\u0439 \u0420\u043e\u0431\u043e\u0447\u0438\u0439 \u0427\u0430\u0441) Definition<\/strong><\/h2>\n
                                                                  \n
                                                                • \n

                                                                  Current Text<\/strong>: References “nonfixed work schedule” but definition sparse<\/p>\n<\/li>\n

                                                                • \n

                                                                  Problem<\/strong>: Not clear which industries\/positions qualify<\/p>\n<\/li>\n

                                                                • \n

                                                                  Guidance Needed<\/strong>:<\/p>\n

                                                                    \n
                                                                  • \n

                                                                    Criteria for “unfixed” designation<\/p>\n<\/li>\n

                                                                  • \n

                                                                    Distinction from part-time or flexible scheduling<\/p>\n<\/li>\n

                                                                  • \n

                                                                    Compensation formulas<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                  • \n

                                                                    Recommendation<\/strong>: Wait for ministerial guidance; consult sector agreements<\/p>\n<\/li>\n<\/ul>\n

                                                                    4.\u00a0Protected Categories in Discrimination Definition<\/strong><\/h2>\n
                                                                      \n
                                                                    • \n

                                                                      Current Text<\/strong>: Lists 10+ protected characteristics but some vague (e.g., “other grounds”)<\/p>\n<\/li>\n

                                                                    • \n

                                                                      Problem<\/strong>: “Other grounds” creates uncertainty about what’s protected<\/p>\n<\/li>\n

                                                                    • \n

                                                                      Guidance Needed<\/strong>:<\/p>\n

                                                                        \n
                                                                      • \n

                                                                        What qualifies as “other grounds”?<\/p>\n<\/li>\n

                                                                      • \n

                                                                        Case law development needed<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                      • \n

                                                                        Recommendation<\/strong>: Adopt broadest interpretation; review case law as Code implemented<\/p>\n<\/li>\n<\/ul>\n

                                                                        5.\u00a0Collective Dismissal Threshold and Notification<\/strong><\/h2>\n
                                                                          \n
                                                                        • \n

                                                                          Current Text<\/strong>: References collective dismissal but threshold may be modified from 10 workers\/30 days<\/p>\n<\/li>\n

                                                                        • \n

                                                                          Problem<\/strong>: Exact threshold not clear in Draft excerpts<\/p>\n<\/li>\n

                                                                        • \n

                                                                          Guidance Needed<\/strong>:<\/p>\n

                                                                            \n
                                                                          • \n

                                                                            Is 10+\/30 days maintained?<\/p>\n<\/li>\n

                                                                          • \n

                                                                            What authorities must be notified?<\/p>\n<\/li>\n

                                                                          • \n

                                                                            State approval needed?<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                          • \n

                                                                            Recommendation<\/strong>: Clarify with Ministry before implementing mass layoffs<\/p>\n<\/li>\n<\/ul>\n

                                                                            6.\u00a0Relationship Between Collective Agreements and Individual Contracts<\/strong><\/h2>\n
                                                                              \n
                                                                            • \n

                                                                              Current Text<\/strong>: States agreements can extend to non-party workers if “broadly applicable”<\/p>\n<\/li>\n

                                                                            • \n

                                                                              Problem<\/strong>: “Broadly applicable” undefined; creates exposure for non-union employers<\/p>\n<\/li>\n

                                                                            • \n

                                                                              Guidance Needed<\/strong>:<\/p>\n

                                                                                \n
                                                                              • \n

                                                                                Percentage of workforce coverage threshold?<\/p>\n<\/li>\n

                                                                              • \n

                                                                                Can employers opt out of sectoral agreements?<\/p>\n<\/li>\n

                                                                              • \n

                                                                                Government authority to extend agreements?<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                              • \n

                                                                                Recommendation<\/strong>: Monitor government decisions on sectoral agreement extension<\/p>\n<\/li>\n<\/ul>\n

                                                                                7.\u00a0Hazard\/Risk Categories for Enhanced Leave and Protections<\/strong><\/h2>\n
                                                                                  \n
                                                                                • \n

                                                                                  Current Text<\/strong>: References “hazardous work,” “special conditions,” etc. but categories undefined<\/p>\n<\/li>\n

                                                                                • \n

                                                                                  Problem<\/strong>: Existing lists (e.g., 1997 Cabinet Decision No. 1290) may not align with new Code<\/p>\n<\/li>\n

                                                                                • \n

                                                                                  Guidance Needed<\/strong>:<\/p>\n

                                                                                    \n
                                                                                  • \n

                                                                                    Which occupations\/industries get additional leave?<\/p>\n<\/li>\n

                                                                                  • \n

                                                                                    How are new categories added?<\/p>\n<\/li>\n

                                                                                  • \n

                                                                                    Retroactive application to existing employees?<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                                  • \n

                                                                                    Recommendation<\/strong>: Request Ministry guidance; review industry-specific regulations<\/p>\n<\/li>\n<\/ul>\n

                                                                                    8.\u00a0Night Work Premium Rates for Different Sectors<\/strong><\/h2>\n
                                                                                      \n
                                                                                    • \n

                                                                                      Current Text<\/strong>: Minimum 25% but suggests “higher rates for hazardous night work”<\/p>\n<\/li>\n

                                                                                    • \n

                                                                                      Problem<\/strong>: No definition of which sectors get higher rates<\/p>\n<\/li>\n

                                                                                    • \n

                                                                                      Guidance Needed<\/strong>:<\/p>\n

                                                                                        \n
                                                                                      • \n

                                                                                        Specific percentages for hazardous industries<\/p>\n<\/li>\n

                                                                                      • \n

                                                                                        Determination process<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                                      • \n

                                                                                        Recommendation<\/strong>: Baseline at 25%; adjust based on sector guidance<\/p>\n<\/li>\n<\/ul>\n

                                                                                        9.\u00a0Mediation Procedure Timelines and Binding Effect<\/strong><\/h2>\n
                                                                                          \n
                                                                                        • \n

                                                                                          Current Text<\/strong>: References mandatory mediation but procedures sparse<\/p>\n<\/li>\n

                                                                                        • \n

                                                                                          Problem<\/strong>: Not clear if mediation recommendation binding; timelines vague<\/p>\n<\/li>\n

                                                                                        • \n

                                                                                          Guidance Needed<\/strong>:<\/p>\n

                                                                                            \n
                                                                                          • \n

                                                                                            Mandatory vs. recommended mediation<\/p>\n<\/li>\n

                                                                                          • \n

                                                                                            Mediator qualifications<\/p>\n<\/li>\n

                                                                                          • \n

                                                                                            Timeline for mediation before arbitration<\/p>\n<\/li>\n

                                                                                          • \n

                                                                                            Effect of “agreement” in mediation<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                                          • \n

                                                                                            Recommendation<\/strong>: Await detailed implementing regulations<\/p>\n<\/li>\n<\/ul>\n

                                                                                            10.\u00a0Interim Provisions and Transition Rules<\/strong><\/h2>\n
                                                                                              \n
                                                                                            • \n

                                                                                              Current Text<\/strong>: References “transitional provisions” but scope unclear<\/p>\n<\/li>\n

                                                                                            • \n

                                                                                              Problem<\/strong>: Not certain how existing contracts\/agreements transition<\/p>\n<\/li>\n

                                                                                            • \n

                                                                                              Guidance Needed<\/strong>:<\/p>\n

                                                                                                \n
                                                                                              • \n

                                                                                                Do existing contracts auto-convert to new framework?<\/p>\n<\/li>\n

                                                                                              • \n

                                                                                                Phase-in periods for compliance<\/p>\n<\/li>\n

                                                                                              • \n

                                                                                                Treatment of ongoing disputes under old Code<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                                              • \n

                                                                                                Recommendation<\/strong>: Carefully track final version of transitional provisions<\/p>\n<\/li>\n<\/ul>\n

                                                                                                \n

                                                                                                IV. POTENTIAL COMPLIANCE GAPS AND RISKS<\/h2>\n

                                                                                                Gap 1: Technology and Data Privacy<\/h2>\n
                                                                                                  \n
                                                                                                • \n

                                                                                                  Issue<\/strong>: Draft addresses remote work but does not reference data privacy regulations (GDPR-equivalent)<\/p>\n<\/li>\n

                                                                                                • \n

                                                                                                  Risk<\/strong>: Monitoring remote workers may violate privacy rights<\/p>\n<\/li>\n

                                                                                                • \n

                                                                                                  Recommendation<\/strong>: Review compliance with Ukrainian data protection laws<\/p>\n<\/li>\n<\/ul>\n

                                                                                                  Gap 2: Interaction with Collective Security\/Wartime Provisions<\/h2>\n
                                                                                                    \n
                                                                                                  • \n

                                                                                                    Issue<\/strong>: Ukraine is in active conflict; military mobilization\/service leave requirements unclear<\/p>\n<\/li>\n

                                                                                                  • \n

                                                                                                    Risk<\/strong>: Potential conflict between demobilization and new labor code<\/p>\n<\/li>\n

                                                                                                  • \n

                                                                                                    Recommendation<\/strong>: Await clarification on interaction between defense laws and Labor Code<\/p>\n<\/li>\n<\/ul>\n

                                                                                                    Gap 3: Apprenticeship and Training Wage Framework<\/h2>\n
                                                                                                      \n
                                                                                                    • \n

                                                                                                      Issue<\/strong>: Training wages mentioned but detailed framework sparse<\/p>\n<\/li>\n

                                                                                                    • \n

                                                                                                      Risk<\/strong>: Disputes over classification as “training” vs. regular employment<\/p>\n<\/li>\n

                                                                                                    • \n

                                                                                                      Recommendation<\/strong>: Develop clear apprenticeship program documentation<\/p>\n<\/li>\n<\/ul>\n

                                                                                                      Gap 4: Applicability to Special Employment Categories<\/h2>\n
                                                                                                        \n
                                                                                                      • \n

                                                                                                        Issue<\/strong>: Civil servants, military, public utilities workers may have separate rules<\/p>\n<\/li>\n

                                                                                                      • \n

                                                                                                        Risk<\/strong>: Unclear which provisions apply to all employers vs. private sector only<\/p>\n<\/li>\n

                                                                                                      • \n

                                                                                                        Recommendation<\/strong>: Clarify with Ministry whether special categories fully covered<\/p>\n<\/li>\n<\/ul>\n

                                                                                                        \n

                                                                                                        V. IMPLEMENTATION TIMELINE AND RECOMMENDATIONS<\/h2>\n

                                                                                                        Phase 1: IMMEDIATE (Now – February 2026)<\/h2>\n
                                                                                                          \n
                                                                                                        1. \n

                                                                                                          Conduct Legal Audit<\/strong><\/p>\n

                                                                                                            \n
                                                                                                          • \n

                                                                                                            Review all employment contracts against new requirements<\/p>\n<\/li>\n

                                                                                                          • \n

                                                                                                            Identify non-compliant arrangements (verbal contracts, foreign-only contracts)<\/p>\n<\/li>\n

                                                                                                          • \n

                                                                                                            List all informal employees<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                                                          • \n

                                                                                                            Prepare Policy Updates<\/strong><\/p>\n

                                                                                                              \n
                                                                                                            • \n

                                                                                                              Contract templates (all types)<\/p>\n<\/li>\n

                                                                                                            • \n

                                                                                                              Leave calculation procedures<\/p>\n<\/li>\n

                                                                                                            • \n

                                                                                                              Wage payment schedule documentation<\/p>\n<\/li>\n

                                                                                                            • \n

                                                                                                              Termination procedures<\/p>\n<\/li>\n

                                                                                                            • \n

                                                                                                              OHS risk assessment methodology<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                                                            • \n

                                                                                                              Budget Planning<\/strong><\/p>\n

                                                                                                                \n
                                                                                                              • \n

                                                                                                                Quantify increased leave liability<\/p>\n<\/li>\n

                                                                                                              • \n

                                                                                                                Model increased sick leave costs<\/p>\n<\/li>\n

                                                                                                              • \n

                                                                                                                Plan for compliance infrastructure<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n

                                                                                                                Phase 2: PRE-ENACTMENT (February – Expected Passage Q2-Q3 2026)<\/h2>\n
                                                                                                                  \n
                                                                                                                1. \n

                                                                                                                  Stakeholder Engagement<\/strong><\/p>\n

                                                                                                                    \n
                                                                                                                  • \n

                                                                                                                    Monitor Verkhovna Rada committee discussions<\/p>\n<\/li>\n

                                                                                                                  • \n

                                                                                                                    Participate in public consultations if available<\/p>\n<\/li>\n

                                                                                                                  • \n

                                                                                                                    Join employer associations to coordinate advocacy<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                                                                  • \n

                                                                                                                    Technical Compliance Preparation<\/strong><\/p>\n

                                                                                                                      \n
                                                                                                                    • \n

                                                                                                                      Implement payroll system updates for payment deadlines<\/p>\n<\/li>\n

                                                                                                                    • \n

                                                                                                                      Develop leave tracking software<\/p>\n<\/li>\n

                                                                                                                    • \n

                                                                                                                      Plan OHS assessment methodology<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                                                                    • \n

                                                                                                                      Training<\/strong><\/p>\n

                                                                                                                        \n
                                                                                                                      • \n

                                                                                                                        HR staff training on new procedures<\/p>\n<\/li>\n

                                                                                                                      • \n

                                                                                                                        Management training on disciplinary process<\/p>\n<\/li>\n

                                                                                                                      • \n

                                                                                                                        OHS coordinator training on risk assessment<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n

                                                                                                                        Phase 3: POST-ENACTMENT (Upon passage; likely 6-month transition)<\/h2>\n
                                                                                                                          \n
                                                                                                                        1. \n

                                                                                                                          Immediate Conversion<\/strong><\/p>\n

                                                                                                                            \n
                                                                                                                          • \n

                                                                                                                            Convert all contracts to written form<\/p>\n<\/li>\n

                                                                                                                          • \n

                                                                                                                            Update existing contracts to comply with new requirements<\/p>\n<\/li>\n

                                                                                                                          • \n

                                                                                                                            File written evidence of agreements<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                                                                          • \n

                                                                                                                            System Implementation<\/strong><\/p>\n

                                                                                                                              \n
                                                                                                                            • \n

                                                                                                                              Launch new payroll procedures<\/p>\n<\/li>\n

                                                                                                                            • \n

                                                                                                                              Activate leave management system<\/p>\n<\/li>\n

                                                                                                                            • \n

                                                                                                                              Begin OHS risk assessments<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

                                                                                                                            • \n

                                                                                                                              Compliance Monitoring<\/strong><\/p>\n

                                                                                                                                \n
                                                                                                                              • \n

                                                                                                                                Quarterly audits of compliance<\/p>\n<\/li>\n

                                                                                                                              • \n

                                                                                                                                Track labor inspectorate guidance and case law<\/p>\n<\/li>\n

                                                                                                                              • \n

                                                                                                                                Update policies as clarifications emerge<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n

                                                                                                                                \n

                                                                                                                                VI. RECOMMENDATIONS FOR EMPLOYERS<\/h2>\n

                                                                                                                                1.\u00a0Strategic Recommendations<\/strong><\/h2>\n