День: 19.01.2026

COMPREHENSIVE ANALYSIS: DRAFT LABOR CODE OF UKRAINE (2026) vs. CURRENT LABOR CODE (1971)

COMPREHENSIVE ANALYSIS: DRAFT LABOR CODE OF UKRAINE (2026) vs. CURRENT LABOR CODE (1971)

Prepared for: Legal Review
Date: January 2026
Analysis Type: Comparative Legal Analysis of Draft Trудовий Кодекс України
Language: English (Based on Ukrainian Law Sources)

EXECUTIVE SUMMARY

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 (Кодекс законів про працю України) adopted in 1971, which the Draft aims to replace entirely.

Key Strategic Changes:

  • De-communization of labor legislation and removal of Soviet-era paternalistic state regulation

  • Implementation of EU directives and ILO (International Labour Organization) standards

  • Shift from employer-protective to balanced regulation

  • Legalization and formalization of informal employment

  • Risk-based occupational health and safety management system

Risk Assessment for Employers: MODERATE TO HIGH

The Draft introduces significant procedural and substantive changes that require immediate strategic compliance planning.

I. COMPARISON TABLE: CORE PROVISIONS

A. EMPLOYMENT CONTRACT FRAMEWORK

Aspect Current Code (1971) Draft Code (2026) Impact on Employers Risk Level
Contract Requirement Verbal contracts allowed for temporary workers; written required for permanent MANDATORY WRITTEN CONTRACT for ALL employment relationships Administrative burden increases; all relationships must be documented MEDIUM
Contract Formats Single model; limited options Multiple types: permanent, fixed-term, short-term, seasonal, apprenticeship, domestic work, part-time Requires new HR policies and procedures for each type HIGH
Proof of Employment Relationship Difficult to prove; burden on worker Explicit criteria: work performed under employer’s direction/control, subordination, remuneration at employer’s discretion Makes avoiding employment classification difficult; impacts gig economy models HIGH
Fixed-Term Contracts Permitted but highly regulated; rarely exceeds 2-3 renewals Clearly permitted with defined notice and termination procedures; up to 4 renewals allowed (subject to specific conditions) More flexibility in workforce planning; but strict renewal limits create compliance risk MEDIUM
Probationary Period Up to 3 months Up to 3 months (unchanged); but more clearly defined Minimal change; familiar framework LOW
Remote/Home Work Not regulated; treated as standard employment NEW: Specific regulations for remote and home work; must be in written contract with clear terms Employers must distinguish remote positions; requires explicit agreements MEDIUM
Temporary Agency Workers Not regulated NEW: Regulated status; agencies must be licensed; workers’ rights protections Creates liability for compliance with temp worker regulations MEDIUM

B. WORKING TIME REGULATION

Aspect Current Code (1971) Draft Code (2026) Impact on Employers Risk Level
Standard Working Hours 40 hours/week 40 hours/week (unchanged) Minimal change; familiar framework LOW
Daily Working Time Not strictly regulated; 40 hours/week rule dominant Maximum 10 hours/day (standard); split shifts permitted but regulated Stricter daily limits; split shifts require specific justification MEDIUM
Flexibility Mechanisms Aggregated accounting (подсумований облік); flexible within quarter Aggregated accounting retained but redefined; can exceed daily/weekly limits if compensated within accounting period (month, quarter, year) Employers gain flexibility BUT documentation becomes critical for proof MEDIUM-HIGH
Break Entitlements Meal breaks required (not specified in hours) Explicit: 30 min minimum break in shifts 4-6 hours; 60 min in longer shifts; breaks must be rest periods Clearer rules; must provide documented rest breaks LOW-MEDIUM
Night Work Limited definition NEW: Night = 22:00-06:00; limited to 8 hours/shift; higher pay (25%+ premium) required Significant cost impact for 24/7 operations; must pay night differentials MEDIUM-HIGH
Irregular Work Schedule Allowed; limited regulation NEW: “Unfixed work schedule” (нефіксований робочий час) explicitly regulated; 2-week notice for changes; compensation for short-notice changes Requires new HR systems for schedule management; notice requirements increase compliance burden MEDIUM
Work on Rest Days Permitted with compensation (1.5x wage for first 4 hours, 2x for rest) NEW: Weekend work distinguished from statutory rest days; specific compensation formulas apply; 2 consecutive rest days/week mandatory Changes compensation calculations; stricter rest day protections MEDIUM-HIGH
Overtime Permitted; no maximum; payment 1.5x-2x No mention of removal of overtime caps; compensation structure unchanged Minimal change anticipated; traditional rules likely apply LOW

C. LEAVE AND VACATION

Aspect Current Code (1971) Draft Code (2026) Impact on Employers Risk Level
Annual Leave Duration Minimum 15 calendar days Minimum 20 working days (approximately 28 calendar days) SIGNIFICANT INCREASE in paid leave liability; approximately +45% in minimum leave entitlement HIGH
Entitlement Schedule Full entitlement after 11 months; prorated before Accumulation begins from first day; 1.67 days/month accrual; new calculation method Changes financial planning; potential for higher accrual liabilities for departing employees MEDIUM
Maternity Leave 126 calendar days; 70 before birth, 56 after NEW GENDER-NEUTRAL APPROACH: Maternity = 126 days; Paternity = 14 days (for fathers); Parental leave = up to 3 years (unpaid) Fathers gain specific rights; expanded unpaid leave options; potential gender discrimination claims if eligibility not carefully managed MEDIUM
Childcare Leave Up to 3 years (unpaid); for child under 3 Maintained BUT with expanded flexibility: can take partially (part-time work during leave); clearer conditions More options for employees; requires new tracking systems MEDIUM
Sick Leave Full payment for first 3 days (employer); state thereafter CHANGED: First 6 days paid by employer; state funds days 7-30 Higher costs for employer sick leave; more documentation required MEDIUM-HIGH
Educational Leave Paid leave for vocational/professional training Maintained; expanded to include lifelong learning; clearer employer obligations for paid educational leave Support for training requirements; cost implications MEDIUM
Military Service Leave Available under special conditions NEW: Clearly regulated in context of wartime/mobilization Significant implications given Ukraine’s current security situation; exemption requirements MEDIUM-HIGH
Additional Leave Types Limited (only specially hazardous work, etc.) EXPANDED: Additional leave for hazardous work, healthcare workers, cultural professionals, blood donors, adoption, etc. More leave categories create compliance complexity; sector-specific leave obligations MEDIUM

D. WAGES AND REMUNERATION

Aspect Current Code (1971) Draft Code (2026) Impact on Employers Risk Level
Minimum Wage Indexed to inflation; set by Cabinet of Ministers Minimum wage mechanism continues; indexed annually; Cabinet of Ministers authority retained Follows current practice; periodic adjustment likely LOW-MEDIUM
Wage Payment Frequency At least twice per month At least twice per month (unchanged); but with stricter deadlines defined Minimal change; familiar framework LOW
Wage Payment Timing Must be paid regularly (no specific deadline days) NEW: Must specify exact payment dates in contract; deviations from schedule create liability Requires explicit contract terms; documentation of payment schedules needed MEDIUM
Withholding/Deductions Limited to court decisions, garnishments, taxes Expanded but still limited; only lawful deductions allowed; explicit contract authorization required for voluntary deductions Clearer rules; union agreements may specify deductions; requires employee consent MEDIUM
Gender Pay Equality Principle of equal pay for equal work (limited enforcement) STRENGTHENED: Equal pay for work of equal value; must provide justification for wage differences; applies to indirect discrimination Requires wage audits; gender pay gap analysis needed; documentation requirements increase MEDIUM-HIGH
Night Work Premium Typically 25% Upgraded to minimum 25%; Draft suggests higher rates for hazardous night work Cost increase for night operations; must budget additional premiums MEDIUM
Bonus/Incentive Programs Permitted; no specific regulation Allowed but must be clearly documented in collective agreement or individual contract; cannot be below minimum wage after inclusion Creates documentation requirements; prevents wage reduction via “incentive” structures MEDIUM
Wage for Training Period Set by regulation; usually reduced Training wage (80-100% of standard wage) permitted; must be specified in contract Clearer framework; requires explicit documentation LOW

E. TERMINATION OF EMPLOYMENT

Aspect Current Code (1971) Draft Code (2026) Impact on Employers Risk Level
Notice Periods – Employer Termination 2 weeks (general rule); shorter for probation (3 days) or justifiable cause (no notice) CHANGED: 2 weeks (general); 7 days for probationary dismissal (extended from 3); immediate for cause Longer notice for probation dismissal; causes must be well-documented MEDIUM
Notice Periods – Worker Resignation 2 weeks; immediate in certain cases 2 weeks (unchanged) Minimal change LOW
Termination for Cause 10 grounds listed (drunkenness, absenteeism, violence, etc.) EXPANDED to include: gross breach of obligations, safety violations, theft, fraud, and others; but with stricter procedural requirements More grounds available but HIGHER EVIDENTIARY BURDEN; must conduct proper investigation MEDIUM-HIGH
Severance Pay 2 weeks average wage (general dismissal); varies by reason Maintained at 2 weeks but with recalculation method; additional severance for collective dismissals Familiar amount; potentially higher costs for collective terminations MEDIUM
Collective Dismissals Defined as 10+ workers in 30 days; 2-3 months notice CHANGED: Collective dismissal threshold likely modified; stricter notice to workers and union (if applicable); potential state notification Requires careful planning; state/union notification adds compliance steps MEDIUM-HIGH
Termination for Incapacity Limited grounds; must offer retraining NEW FRAMEWORK: Incapacity dismissals must follow strict procedure; medical documentation required; offers of alternative work required before dismissal Stronger worker protections; documentation requirements increase significantly MEDIUM-HIGH
Restrictions on Dismissal Cannot dismiss pregnant women, women on maternity leave, workers on military leave EXPANDED: Protections maintained; amplified for protected categories; clearer procedures for exceptions during wartime Familiar protections; must maintain careful documentation of exceptions MEDIUM
Wrongful Dismissal Remedies Reinstatement; back wages; compensation ENHANCED: Reinstatement; back wages; compensation for moral damages (now explicitly included); potential for greater liability Damages awards potentially larger; compensation scope expanded MEDIUM-HIGH

F. OCCUPATIONAL HEALTH AND SAFETY

Aspect Current Code (1971) Draft Code (2026) Impact on Employers Risk Level
OHS System Reactive model: respond to incidents; prescriptive regulations NEW: Proactive risk-based system; hazard assessment and risk management required (similar to EU model) Fundamental shift in approach; requires new assessment methodologies and documentation HIGH
Hazard Assessment Required but limited scope MANDATORY COMPREHENSIVE: Regular risk assessment; documentation; control measures; monitoring; reviews New compliance infrastructure needed; consultants may be required HIGH
Employer Responsibility Provide safe conditions; limited liability for systemic failures ENHANCED: Active duty to assess, control, and manage risks; personal liability for employer/manager failures increased Criminal liability risk increased for serious violations MEDIUM-HIGH
Medical Examinations Periodic checks for hazardous work RETAINED but clarified: Initial and periodic exams; psychometric testing for certain roles; results must inform accommodations Clearer procedures; medical documentation requirements increase MEDIUM
Personal Protective Equipment (PPE) Provided; rules basic CLARIFIED: Employer must provide, maintain, train on use; workers obligated to use; defective PPE creates strict liability Standards and documentation requirements increase MEDIUM
Accident Reporting Investigation required; reporting to authorities ENHANCED: Immediate reporting for serious incidents; systematic investigation; external audit of findings in serious cases Tighter timelines; external audit potential increases cost MEDIUM-HIGH
Worker Rights Right to refuse unsafe work; limited protections against retaliation EXPANDED: Enhanced right to refuse unsafe work; explicit protection from retaliation; can report to inspectorate without notice to employer Strengthened whistleblower protections; management retaliation carries heavy penalties MEDIUM

G. COLLECTIVE LABOR RELATIONS

Aspect Current Code (1971) Draft Code (2026) Impact on Employers Risk Level
Union Recognition Unions recognized; must negotiate in good faith MAINTAINED with enhanced procedural clarity; union rights reinforced; must negotiate on wages, working conditions Familiar framework; clearer obligations may require updated negotiation protocols LOW-MEDIUM
Collective Agreements Permitted; set floors for worker protections EXPANDED SCOPE: Agreements can now set higher standards in various areas; must extend to non-union employees if broadly applicable Collective agreements carry more weight; wider application increases costs MEDIUM
Industry/Sectoral Agreements Limited framework NEW: Framework for sector-wide collective agreements; can be extended to non-parties by government order Potential exposure to sectoral obligations beyond direct negotiation MEDIUM-HIGH
Strike Rights Permitted with notice; procedural restrictions ENHANCED: Right to strike clarified; mediation/arbitration procedures defined; government role in resolution expanded Mediation requirements add steps; potential for government arbitration outcome MEDIUM
Dispute Resolution – Grievances Limited mechanisms; mostly through courts NEW PROCEDURES: Internal grievance process (15-30 days); mediation (optional but encouraged); labor arbitration (voluntary); only then courts Multi-step dispute resolution required; may increase compliance burden but may reduce litigation MEDIUM
Labor Disputes Committee Exists but weak mechanisms REFORMED: Committees have enhanced role; must attempt resolution before litigation; recommendations carry weight Mandatory pre-litigation process increases time but may reduce court disputes MEDIUM
Inspections and Oversight Labor inspectorate; limited surprise inspections ENHANCED AUTHORITY: Inspectors can conduct unannounced inspections; broader access to records; financial penalties increased More frequent inspections likely; documentation requirements increase MEDIUM-HIGH

H. DISCRIMINATION AND EQUAL TREATMENT

Aspect Current Code (1971) Draft Code (2026) Impact on Employers Risk Level
Protected Characteristics Race, nationality, religion, disability, union membership EXPANDED: Adds sexual orientation, gender identity, marital/family status, political views, and others; aligns with EU anti-discrimination directive Broader scope requires more inclusive policies; documented non-discrimination required MEDIUM
Discrimination Definition Less detailed; based on case law DETAILED: Includes direct, indirect, harassment, and instruction to discriminate; employer liability for 3rd party discrimination Requires proactive harassment policies; training programs recommended MEDIUM
Burden of Proof Generally on complainant (employee) SHIFTED: Once prima facie case shown, burden shifts to employer to prove non-discrimination Reverses burden of proof; employers must document legitimate reasons MEDIUM-HIGH
Gender Pay Gap Principle exists; enforcement weak STRENGTHENED: Employers must conduct pay audits; justify wage differences; gender pay gap transparency required Requires documentation of wage justifications; transparency obligations increase MEDIUM-HIGH
Pregnancy/Maternity Discrimination Protected; but enforcement challenging ENHANCED: Explicit prohibition on discrimination; cannot penalize pregnancy or family leave; status-based decisions prohibited Stricter protections; fewer exceptions permitted MEDIUM
Remedies for Discrimination Back wages; reinstatement; limited damages EXPANDED: Higher compensation ranges; moral damages included; possible punitive elements Greater financial exposure for discrimination violations MEDIUM-HIGH

II. DETAILED RISK ASSESSMENT FOR EMPLOYERS

HIGH-RISK PROVISIONS (Immediate Action Required)

1. Mandatory Written Employment Contracts

  • Current State: Verbal contracts common; difficult to prove employment status in disputes

  • New Requirement: ALL employment must be in writing

  • Employer Risk:

    • Current informal arrangements become non-compliant

    • Every relationship requires documented contract

    • Disputes over contract terms easier to resolve (but must be documented correctly)

  • Mitigation Strategies:

    • Develop comprehensive contract templates for each employment type

    • Implement new hire procedure with mandatory written contract

    • Digitize contract management system

    • Conduct audit of current informal employment relationships

2. Increased Annual Leave Entitlement (20 working days minimum)

  • Current State: 15 calendar days

  • New Requirement: 20 working days (~28 calendar days) minimum

  • Employer Risk:

    • Approximately 40-50% increase in annual leave liability

    • Higher accrual rates impact balance sheet

    • Staff scheduling complexity increases

  • Financial Impact Example:

    • Employee salary: 40,000 UAH/month = 480,000 UAH/year

    • Daily rate: 480,000 ÷ 248 working days = 1,935 UAH/day

    • Current: 15 days × 1,935 = 29,025 UAH

    • New: 20 days × 1,935 = 38,700 UAH (+33% cost increase per employee)

  • Mitigation Strategies:

    • Review and adjust annual compensation budgets

    • Evaluate leave scheduling software

    • Model multi-year accrual liability

    • Consider phased implementation for sector-specific adjustments

3. Enhanced Occupational Health & Safety (Risk-Based System)

  • Current State: Reactive, prescriptive regulations; limited risk assessment

  • New Requirement: Proactive hazard identification, assessment, and management; documentation required

  • Employer Risk:

    • Requires fundamental shift in OHS management approach

    • Regular risk assessments with documentation needed

    • Non-compliance with risk management = presumption of negligence

    • Personal liability of employer/managers for serious violations

  • Compliance Burden:

    • Hire or train OHS specialists

    • Conduct comprehensive risk assessments

    • Document control measures

    • Implement monitoring/review system

  • Mitigation Strategies:

    • Engage external OHS consultants for baseline assessment

    • Implement ISO 45001 or similar system

    • Document all hazard assessments and corrective actions

    • Train management on new OHS obligations

    • Budget for OHS infrastructure improvements

4. Termination for Cause with Expanded Grounds but Stricter Procedures

  • Current State: 10 defined grounds; limited procedural requirements; quick dismissal possible

  • New Requirement: Expanded grounds BUT with mandatory investigation, documentation, right to response

  • Employer Risk:

    • Cannot dismiss without proper procedure

    • Wrongful dismissal claims easier to succeed if procedure flawed

    • Back wages + moral damages award potential

    • Retaliation claims possible if discharge perceived as retaliation

  • Specific Procedures Required:

    • Written notification of violation

    • Opportunity for employee response/explanation (period not specified; likely 3-10 days)

    • Investigation documentation

    • Disciplinary decision in writing with grounds

    • Notice period (7 days for some cases)

  • Mitigation Strategies:

    • Develop documented investigation procedures

    • Create templates for disciplinary letters

    • Train HR personnel on proper termination procedure

    • Document all performance issues contemporaneously

    • Consider progressive discipline approach

5. Wage Payment Deadlines and Schedule Requirements

  • Current State: “Regular” payment required; no specific schedule mandated

  • New Requirement: Exact payment dates must be specified in contract; deviation creates liability

  • Employer Risk:

    • Must have consistent, documented payment schedule

    • Delayed payment triggers automatic interest charges

    • Worker can claim breach even for 1-day delay

  • Mitigation Strategies:

    • Specify exact payment dates in all contracts

    • Implement accounting system to ensure on-time payment

    • Document any delays with explanations

    • Plan for payroll timing well in advance

6. Enhanced Strike and Collective Action Rights

  • Current State: Strikes permitted but limited; minimal procedures

  • New Requirement: Clearer strike procedures; mediation/arbitration requirements; broader participation rights

  • Employer Risk:

    • Potential for more frequent labor actions

    • Mediation required before formal labor arbitration

    • Government arbitration outcome binding

    • Retaliation against strikers is strictly prohibited

  • Mitigation Strategies:

    • Establish labor relations department

    • Develop communication protocol with unions

    • Understand mediation/arbitration procedures

    • Document all labor relations interactions

    • Avoid any action that could be perceived as retaliation

MEDIUM-RISK PROVISIONS (Planning Required)

1. Expanded Maternity/Paternity Leave Structure

  • Risk: Gender discrimination claims if paternity leave not properly offered

  • Action: Update HR policies to address gender-neutral parental leave

2. Working Time Flexibility and “Unfixed Schedule” Regulation

  • Risk: Must provide 2-week notice for schedule changes; compensation required for short-notice changes

  • Action: Evaluate current scheduling practices; plan for transition

3. Sick Leave Payment (First 6 Days by Employer)

  • Risk: Increased sick leave costs; requires documentation

  • Action: Budget for increased sick leave liability; implement medical certification process

4. Collective Agreement Extension to Non-Union Workers

  • Risk: Sectoral agreements may apply broadly; employers not party to negotiation

  • Action: Monitor sector-level collective agreement developments

5. Discrimination Claims with Shifted Burden of Proof

  • Risk: Once employee shows prima facie case, employer must prove non-discrimination

  • Action: Document all employment decisions; maintain objective criteria records

III. UNCLEAR/AMBIGUOUS PROVISIONS REQUIRING CLARIFICATION

1. Definition of “Work of Equal Value” for Gender Pay Equity

  • Current Text: States “equal pay for work of equal value” but does not define methodology

  • Problem: Different calculation methods produce different results

  • Guidance Needed:

    • What factors constitute “equal value”?

    • Can employers use job evaluation systems?

    • What documentation satisfies the requirement?

  • Recommendation: Await implementing regulations from Ministry of Economy

2. Aggregated Working Time Accounting Period Parameters

  • Current Text: References accounting periods but exact rules unclear

  • Problem: Can exceed daily/weekly limits within month? Quarter? Year?

  • Guidance Needed:

    • Clear maximum accounting periods

    • Compensation rules for exceeding limits

    • Dispute resolution for calculation disagreements

  • Recommendation: Seek clarification in implementing regulations

3. Unfixed Work Schedule (Нефіксований Робочий Час) Definition

  • Current Text: References “nonfixed work schedule” but definition sparse

  • Problem: Not clear which industries/positions qualify

  • Guidance Needed:

    • Criteria for “unfixed” designation

    • Distinction from part-time or flexible scheduling

    • Compensation formulas

  • Recommendation: Wait for ministerial guidance; consult sector agreements

4. Protected Categories in Discrimination Definition

  • Current Text: Lists 10+ protected characteristics but some vague (e.g., “other grounds”)

  • Problem: “Other grounds” creates uncertainty about what’s protected

  • Guidance Needed:

    • What qualifies as “other grounds”?

    • Case law development needed

  • Recommendation: Adopt broadest interpretation; review case law as Code implemented

5. Collective Dismissal Threshold and Notification

  • Current Text: References collective dismissal but threshold may be modified from 10 workers/30 days

  • Problem: Exact threshold not clear in Draft excerpts

  • Guidance Needed:

    • Is 10+/30 days maintained?

    • What authorities must be notified?

    • State approval needed?

  • Recommendation: Clarify with Ministry before implementing mass layoffs

6. Relationship Between Collective Agreements and Individual Contracts

  • Current Text: States agreements can extend to non-party workers if “broadly applicable”

  • Problem: “Broadly applicable” undefined; creates exposure for non-union employers

  • Guidance Needed:

    • Percentage of workforce coverage threshold?

    • Can employers opt out of sectoral agreements?

    • Government authority to extend agreements?

  • Recommendation: Monitor government decisions on sectoral agreement extension

7. Hazard/Risk Categories for Enhanced Leave and Protections

  • Current Text: References “hazardous work,” “special conditions,” etc. but categories undefined

  • Problem: Existing lists (e.g., 1997 Cabinet Decision No. 1290) may not align with new Code

  • Guidance Needed:

    • Which occupations/industries get additional leave?

    • How are new categories added?

    • Retroactive application to existing employees?

  • Recommendation: Request Ministry guidance; review industry-specific regulations

8. Night Work Premium Rates for Different Sectors

  • Current Text: Minimum 25% but suggests “higher rates for hazardous night work”

  • Problem: No definition of which sectors get higher rates

  • Guidance Needed:

    • Specific percentages for hazardous industries

    • Determination process

  • Recommendation: Baseline at 25%; adjust based on sector guidance

9. Mediation Procedure Timelines and Binding Effect

  • Current Text: References mandatory mediation but procedures sparse

  • Problem: Not clear if mediation recommendation binding; timelines vague

  • Guidance Needed:

    • Mandatory vs. recommended mediation

    • Mediator qualifications

    • Timeline for mediation before arbitration

    • Effect of “agreement” in mediation

  • Recommendation: Await detailed implementing regulations

10. Interim Provisions and Transition Rules

  • Current Text: References “transitional provisions” but scope unclear

  • Problem: Not certain how existing contracts/agreements transition

  • Guidance Needed:

    • Do existing contracts auto-convert to new framework?

    • Phase-in periods for compliance

    • Treatment of ongoing disputes under old Code

  • Recommendation: Carefully track final version of transitional provisions

IV. POTENTIAL COMPLIANCE GAPS AND RISKS

Gap 1: Technology and Data Privacy

  • Issue: Draft addresses remote work but does not reference data privacy regulations (GDPR-equivalent)

  • Risk: Monitoring remote workers may violate privacy rights

  • Recommendation: Review compliance with Ukrainian data protection laws

Gap 2: Interaction with Collective Security/Wartime Provisions

  • Issue: Ukraine is in active conflict; military mobilization/service leave requirements unclear

  • Risk: Potential conflict between demobilization and new labor code

  • Recommendation: Await clarification on interaction between defense laws and Labor Code

Gap 3: Apprenticeship and Training Wage Framework

  • Issue: Training wages mentioned but detailed framework sparse

  • Risk: Disputes over classification as “training” vs. regular employment

  • Recommendation: Develop clear apprenticeship program documentation

Gap 4: Applicability to Special Employment Categories

  • Issue: Civil servants, military, public utilities workers may have separate rules

  • Risk: Unclear which provisions apply to all employers vs. private sector only

  • Recommendation: Clarify with Ministry whether special categories fully covered

V. IMPLEMENTATION TIMELINE AND RECOMMENDATIONS

Phase 1: IMMEDIATE (Now – February 2026)

  1. Conduct Legal Audit

    • Review all employment contracts against new requirements

    • Identify non-compliant arrangements (verbal contracts, foreign-only contracts)

    • List all informal employees

  2. Prepare Policy Updates

    • Contract templates (all types)

    • Leave calculation procedures

    • Wage payment schedule documentation

    • Termination procedures

    • OHS risk assessment methodology

  3. Budget Planning

    • Quantify increased leave liability

    • Model increased sick leave costs

    • Plan for compliance infrastructure

Phase 2: PRE-ENACTMENT (February – Expected Passage Q2-Q3 2026)

  1. Stakeholder Engagement

    • Monitor Verkhovna Rada committee discussions

    • Participate in public consultations if available

    • Join employer associations to coordinate advocacy

  2. Technical Compliance Preparation

    • Implement payroll system updates for payment deadlines

    • Develop leave tracking software

    • Plan OHS assessment methodology

  3. Training

    • HR staff training on new procedures

    • Management training on disciplinary process

    • OHS coordinator training on risk assessment

Phase 3: POST-ENACTMENT (Upon passage; likely 6-month transition)

  1. Immediate Conversion

    • Convert all contracts to written form

    • Update existing contracts to comply with new requirements

    • File written evidence of agreements

  2. System Implementation

    • Launch new payroll procedures

    • Activate leave management system

    • Begin OHS risk assessments

  3. Compliance Monitoring

    • Quarterly audits of compliance

    • Track labor inspectorate guidance and case law

    • Update policies as clarifications emerge

VI. RECOMMENDATIONS FOR EMPLOYERS

1. Strategic Recommendations

  • Engage external legal counsel specializing in Ukrainian labor law for specific guidance

  • Join employer associations for collective advocacy and guidance

  • Conduct gap analysis against Draft provisions now, before enactment

  • Plan financial impacts separately by functional area (HR, payroll, OHS)

2. Immediate HR Policy Updates Needed

  • Written contract requirement (all new hires immediately)

  • Leave calculation methodology (new 20-day minimum)

  • Payment schedule documentation (specify exact dates)

  • Termination procedure with investigation and documentation

  • Anti-discrimination policy with expanded protected categories

  • Occupational health and safety risk assessment procedure

3. Documentation and Record-Keeping

  • Maintain detailed employment records

  • Document all employment decisions with reasoning

  • Create investigation files for disciplinary actions

  • Track leave accrual and usage carefully

  • Maintain hazard assessment and OHS control records

4. Sectoral Considerations

  • 24/7 Operations (Security, Healthcare, Hospitality): Prepare for night work premiums and aggregated time accounting

  • Hazardous Industries: Early implementation of risk-based OHS system

  • Unionized Workforces: Prepare for expanded collective agreement obligations

  • Remote/Flexible Work Organizations: Develop explicit schedule policies

  • Sector with High Turnover: Prepare for increased severance/exit costs

5. Risk Mitigation Priorities (in order of implementation)

  1. Convert all informal employment to written contracts

  2. Update termination procedures to include documentation and investigation

  3. Implement leave tracking and recalculation system

  4. Establish occupational health and safety risk assessment program

  5. Conduct wage audit for gender pay equity

  6. Update discrimination and anti-harassment policies

  7. Modify payment schedule to specify exact dates

  8. Prepare for collective bargaining under new framework

VII. CONCLUSION

The Draft Labor Code of Ukraine represents a fundamental modernization of Ukrainian labor law, moving from Soviet-era paternalistic state regulation to a balanced framework emphasizing worker protections while enabling business flexibility. For employers, the changes are substantial and require immediate planning.

Overall Assessment:

  • Compliance Complexity: MEDIUM-HIGH

  • Financial Impact: HIGH (primarily due to increased leave entitlement)

  • Operational Impact: MEDIUM-HIGH (new procedures required)

  • Timeline to Full Compliance: 6-12 months post-enactment

The most significant challenges will be:

  1. Increased leave liability (40-50% increase in minimum annual leave)

  2. Shift to proactive occupational health and safety management

  3. Enhanced procedural requirements for termination

  4. New documentation and record-keeping obligations

Critical Success Factor: Proactive engagement with legal counsel and sector peers to develop transitional implementation strategy before the Code takes effect.

APPENDICES (Recommended for separate research)

  1. Current Labor Code Articles (1971) – key provisions

  2. Draft Code Articles (2026) – comparative sections

  3. Implementing Regulations – issued by Ministry of Economy

  4. EU Directives referenced in Draft – comparative text

  5. ILO Conventions – summary of obligations

  6. Case Law – Ukrainian Supreme Court decisions on key issues

  7. Collective Agreement Templates – sector-specific examples

  8. OHS Risk Assessment Methodologies – EU/ILO standards

  9. Sample Contracts – new code-compliant templates

  10. Financial Impact Model – template for cost calculation

Document Prepared By: Ukrainian Labor Law Analysis Team
Verification Status: Based on Draft Code as of January 15, 2026
Caveat: This analysis is based on the Draft Code as submitted. Final enacted version may differ. Legal counsel should review final enacted text.

Complete List of Payroll-Relevant Human Resource Documents for Employees in Ukraine

Complete List of Payroll-Relevant Human Resource Documents for Employees in Ukraine

Reference Guide for Ukrainian Labour Law Compliance (2026)

TABLE OF CONTENTS

  1. Pre-Employment Documents

  2. Hiring and Onboarding Documents

  3. Personnel Records and Registration

  4. Ongoing Employment Documents

  5. Time and Attendance Records

  6. Leave Management Documents

  7. Payroll and Compensation Documents

  8. Tax and Social Insurance Documents

  9. Employment Changes and Transfers

  10. Termination and Exit Documents

  11. Compliance and Regulatory Documents

  12. Digital Records (2026 Transition)

1. PRE-EMPLOYMENT DOCUMENTS

Documents Required from Employee

Document Ukrainian Name Legal Basis Mandatory? Notes
Passport or ID Card Паспорт громадянина України Labour Code Art. 24 ✓ Yes Primary identification document
Taxpayer Identification Number (TIN) Реєстраційний номер облікової картки платника податків (РНОКПП) Tax Code ✓ Yes 10-digit unique tax ID
Labour Book Трудова книжка Labour Code Art. 48 ✓ Yes (if exists) Physical book being phased out by June 2026
Employment History Extract Виписка з Реєстру застрахованих осіб Pension Fund ✓ Yes (alternative to labour book) From State Register of Compulsory State Social Insurance
Education Documents Диплом, атестат, сертифікат Labour Code Art. 24 ~ If required by position Diplomas, certificates, professional qualifications
Medical Certificate Медична довідка Labour Code Art. 24 ~ If required by law Mandatory for certain industries (food, childcare, healthcare)
Military Registration Documents Військово-облікові документи Law on Military Duty ✓ Yes (for conscripts) For Ukrainian citizens liable for military service
Social Insurance Certificate Страхове свідоцтво Pension Fund regulations ~ Optional Being replaced by electronic records
Bank Account Details Реквізити банківського рахунку Internal requirement ✓ Yes (for salary transfer) IBAN for bi-weekly salary payments
Work Permit Дозвіл на працевлаштування Law on Employment ✓ Yes (for foreigners) Required for non-residents unless exempt

Internal Pre-Employment Documents

Document Purpose Retention
Job Application Formal request for employment 3 years
CV/Resume Candidate background information During employment + 3 years
Consent to Personal Data Processing GDPR compliance (Law on Personal Data Protection) During employment + 1 year after termination
References/Background Checks Due diligence records 3 years
Medical Examination Results Health clearance (if required) During employment + 50 years (if hazardous work)

2. HIRING AND ONBOARDING DOCUMENTS

Form P-1: Employment Order (Наказ про прийняття на роботу)

Detail Information
Legal Basis Labour Code Art. 24, Order No. 489 of 05.12.2008
Purpose Official document confirming employment commencement
Mandatory Fields – Employee full name
– Position/job title
– Structural unit/department
– Employment start date
– Salary amount
– Type of employment (permanent/fixed-term)
– Probationary period (if applicable)
– Basis for hiring (employment contract reference)
Signatures Required – Authorised company representative (director/HR)
– Employee (acknowledgement)
Copies Original in personnel file, copy to employee, copy to accounting/payroll
Retention Period 75 years

Employment Contract (Трудовий договір)

Detail Information
Legal Basis Labour Code Art. 21-29
Form Must be in writing (mandatory since 2022)
Language Ukrainian (state language) – translations permitted but Ukrainian version binding
Mandatory Content – Employer and employee identification
– Job title and duties
– Place of work
– Start date (and end date if fixed-term)
– Salary (in UAH)
– Working hours and days off
– Leave entitlements
– Probationary period (max 3 months, extendable to 6 months)
– Termination conditions
– Compensation and benefits
Copies Original to employee, copy in personnel file
Retention During employment + 75 years after termination

Additional Onboarding Documents

Document Purpose Mandatory?
Job Description Detailed duties, responsibilities, KPIs Recommended
Non-Disclosure Agreement (NDA) Confidentiality obligations If applicable
Conflict of Interest Declaration Anti-corruption compliance (Law on Prevention of Corruption) For public officials, SOEs
Workplace Safety Training Certificate Occupational health and safety training completion ✓ Yes
Internal Labour Regulations Acknowledgement Confirmation employee received and read the internal rules ✓ Yes
Password/Access Control Forms IT systems, physical access As needed

3. PERSONNEL RECORDS AND REGISTRATION

Form P-2: Personal Card (Особова картка працівника)

Detail Information
Legal Basis Order No. 489 of 05.12.2008
Purpose Comprehensive personnel record for each employee
Maintenance Not legally mandatory since labour liberalisation, but widely maintained
Sections Section I: General Information
– Full name, date of birth
– Citizenship, passport details
– Tax ID (RNOCPP)
– Address, contact information
– Education, qualifications
– Previous work experienceSection II: Military Registration
– Military rank, speciality
– Military registration documents
– Recruitment centre informationSection III: Professional Development
– Training courses
– Qualifications obtained
– CertificationsSection IV: Appointments and Transfers
– Position changes
– Department transfers
– Promotion history

Section V: Leave Records
– Annual leave
– Sick leave
– Unpaid leave
– Maternity/paternity leave
Updates Throughout employment (transfers, promotions, training, leave)
Employee Signature Required on key entries (hiring, transfers, termination)
Photo 3×4 cm colour photograph attached
Retention 75 years after termination

Labour Book (Трудова книжка) – Physical Format (Until June 10, 2026)

Detail Information
Legal Basis Labour Code Art. 48; Resolution of CMU No. 301 (25.03.1993)
Purpose Official record of employment history
Employer Obligations – Make entry within 5 days of hiring
– Record all position changes, awards
– Record termination with legal basis
– Return to employee on last working day
– Store if employee works >5 days
Entry Requirements – Chronological order
– Reference to Form P-1 (hiring) or P-4 (termination) order
– No abbreviations
– No corrections without attestation
– Seal and signature required
Transition Deadline June 10, 2026 – All labour books must be scanned and uploaded to the electronic Register of Insured Persons
2026 Note ⚠️ After June 10, 2026, paper labour books no longer be accepted for pension calculations

Electronic Labour Book / Employment History (Електронна трудова книжка)

Detail Information
Legal Basis Law No. 1217-IX (05.02.2021) “On Electronic Recordkeeping of Employee Work Activity”
Effective Date June 10, 2021 (5-year transition period ending June 10, 2026)
Administrator Pension Fund of Ukraine via the State Register of Mandatory State Social Insurance
Access Employees access via portal.pfu.gov.ua with a digital signature
Employer Obligations – Upload employment data to the Register
– Scan physical labour books (all pages, 300 dpi, colour, JPG/PDF, <1MB)
– Submit via XML file or web portal
– Complete by June 10, 2026
Data Included – Employment periods
– Positions held
– Salary contributions (post-2004 automatic)
– Termination reasons
Benefits – No loss/damage risk
– Automatic pension calculation
– Instant access for employees
– Reduced administrative burden

Staffing Table (Штатний розпис)

Detail Information
Purpose Organisational structure showing all positions, salaries, and headcount
Mandatory? Recommended but not legally required for private companies
Content – Position titles
– Number of positions per title
– Salary ranges
– Department/unit allocation
– Total payroll budget
Updates When organisational changes occur
Approval Company director/owner

4. ONGOING EMPLOYMENT DOCUMENTS

Personnel Orders (Накази з особового складу)

Order Type Form Purpose Retention
Hiring Order P-1 Document employment commencement 75 years
Transfer Order Custom/internal Document position/location changes 75 years
Promotion Order Custom/internal Document advancement, salary increase 75 years
Leave Order P-3 Grant annual, sick, unpaid leave 75 years
Termination Order P-4 Document employment end 75 years
Business Trip Order P-6 Authorize official travel 5 years
Disciplinary Action Order Custom Document warnings, sanctions 75 years
Award/Bonus Order Custom Document recognitions, bonuses 75 years

Employment Agreements and Amendments

Document Purpose Legal Basis
Amendment to Employment Contract Modify essential terms (salary, hours, duties) Labour Code Art. 32
Notice of Contract Change 2-month advance notice to employee (or immediate if martial law) Labour Code Art. 32
Supplementary Agreement Add new terms (benefits, responsibilities) Labour Code Art. 9

5. TIME AND ATTENDANCE RECORDS

Form P-5: Timesheet (Табель обліку робочого часу)

Detail Information
Legal Basis Order No. 489 of 05.12.2008
Purpose Record actual hours worked by each employee
Frequency Monthly (covers full calendar month)
Recording Method – Continuous recording (daily entries)
– Registration of deviations only (absences, overtime, holidays)
Codes Used – Я (Робота) – Work
– В (Вихідний) – Day off
– СВ (Святковий) – Holiday
– ВД (Відпустка) – Annual leave
– ЛН (Лікарняний) – Sick leave
– НВ (Неявка без поважних причин) – Unauthorized absence
– РВ (Робота у вихідний) – Work on day off
– НС (Надурочна робота) – Overtime
Content – Employee name, tabular number
– Daily attendance marks
– Total hours worked
– Total days worked
– Overtime hours
– Absences with reasons
Signatures – Prepared by: HR/timekeeper
– Approved by: Department head
– Authorised by: HR director
Use Basis for payroll calculation (hourly wages, overtime, leave deductions)
Retention 3 years (general) / 75 years (hazardous work)

Related Time Records

Document Purpose Retention
Overtime Work Record Track 120-hour annual overtime limit per employee (Labour Code Art. 65) 3 years
Night Work Register Document work between 10 PM – 6 AM (Labour Code Art. 54) 3 years
Shift Schedule Pre-approved work schedules for shift workers 1 year
Vacation Schedule Annual plan for employee leave (Labour Code Art. 79) 3 years

6. LEAVE MANAGEMENT DOCUMENTS

Form P-3: Leave Order (Наказ про надання відпустки)

Detail Information
Legal Basis Order No. 489 of 05.12.2008
Purpose Authorise employee leave (annual, unpaid, study, etc.)
Types of Leave – Annual basic leave (min 24 calendar days)
– Additional annual leave (hazardous work, irregular hours)
– Unpaid leave
– Study leave
– Maternity/paternity leave
– Social leave (family reasons)
Mandatory Fields – Employee name, position
– Type of leave
– Start and end dates
– Number of days
– Basis (vacation schedule, employee application, medical certificate)
Advance Payment Vacation pay must be paid at least 3 days before leave starts (Labour Code Art. 21)
Signatures Authorised representative, employee acknowledgement
Retention 75 years

Supporting Leave Documents

Document Ukrainian Name Purpose Mandatory?
Employee Leave Application Заява працівника про надання відпустки Request for leave ✓ Yes
Vacation Schedule Графік відпусток Annual plan approved at the beginning of the year ✓ Yes (Labour Code Art. 79)
Sick Leave Certificate Листок непрацездатності Medical proof of illness ✓ Yes (for sick leave)
Maternity Leave Certificate Лікарняний лист (вагітність та пологи) Medical certificate (issued at 30 weeks of pregnancy) ✓ Yes
Birth Certificate (for paternity leave) Свідоцтво про народження дитини Proof of child’s birth ✓ Yes
Certificate of Child Care Довідка про догляд за дитиною For parental leave entitlement ✓ Yes
Unpaid Leave Justification Документи, що підтверджують причини Proof of family/personal reasons ~ If required

7. PAYROLL AND COMPENSATION DOCUMENTS

Form P-7: Employee Payroll Statement (Розрахунково-платіжна відомість)

Detail Information
Legal Basis Order No. 489 of 05.12.2008
Purpose Detailed payroll calculation and payment record for each employee
Frequency Bi-weekly (Ukraine mandates 24 payroll cycles/year – Labour Code Art. 115)
Content – Employee identification (name, tabular number, position)
– Gross salary breakdown:
• Base salary
• Overtime
• Bonuses
• Allowances
• Vacation pay
• Sick pay (first 5 days employer-paid)
– Mandatory deductions:
• Personal Income Tax (18%)
• Military Tax (5% since Oct 2024, was 1.5%)
– Voluntary deductions (loans, alimony)
– Net salary
– Payment method (bank transfer, cash)
– Employee signature (if cash payment)
Retention 3 years

Form P-8: Consolidated Payroll Statement (Зведена відомість)

Detail Information
Purpose Summary of total payroll costs for accounting purposes
Content – Total gross payroll
– Total taxes withheld (PIT, Military Tax)
– Total net payroll
– Breakdown by department/cost centre
– Employer social contributions (USC – 22%)
Use Financial reporting, budgeting, and cost allocation
Retention 3 years

Payslip (Розрахунковий листок)

Detail Information
Legal Basis Labour Code Art. 110
Mandatory? ✓ Yes – employer must provide an itemised payslip
Distribution Each pay period (bi-weekly)
Required Information – Employee name, position, pay period
– Salary components (base, overtime, bonuses)
– Hours worked
– Gross salary
– Deductions:
• Personal Income Tax (18%)
• Military Tax (5%)
• Other deductions
– Unified Social Contribution (22% – employer pays, shown for transparency)
– Net salary
– Payment date and method
Format Paper or electronic (email, employee portal)
Retention Employee keeps, employer retains payroll register (3 years)

Salary Payment Documents

Document Purpose Retention
Bank Transfer Register Record of salary payments via bank 3 years
Payroll Deposit Slips Bank confirmation of payroll transfer 3 years
Cash Payment Register If salary is paid in cash (discouraged, rare) 3 years
Advance Payment Record First half of bi-weekly payment 3 years

8. TAX AND SOCIAL INSURANCE DOCUMENTS

Personal Income Tax (PDFO – ПДФО) – 18%

Document Ukrainian Name Purpose Frequency Deadline
Monthly PIT Report Податковий розрахунок сум доходу, нарахованого (сплаченого) на користь платників податків – фізичних осіб, і сум утриманого з них податку Report income paid and PIT withheld Monthly (since 2025) 20th of the following month
PIT Payment Перерахування ПДФО до бюджету Remit withheld PIT to the State Tax Service Monthly 20th of the following month
Annual PIT Reconciliation Річна податкова декларація про майновий стан і доходи Annual tax return (if employee has additional income) Annual May 1 following year

Military Tax (Військовий збір) – 5%

Document Purpose Frequency Deadline
Military Tax Report Included in monthly PIT report since 2025 Monthly 20th of the following month
Military Tax Payment Remit withheld military tax Monthly 20th of the following month
Notes Rate increased from 1.5% to 5% effective October 2024 (Law No. 4015-IX)

Unified Social Contribution (ЄСВ – Єдиний соціальний внесок) – 22%

Document Ukrainian Name Purpose Frequency Deadline
Monthly USC Report Звіт про суми нарахованого єдиного внеску на загальнообов’язкове державне соціальне страхування Report USC contributions on payroll Monthly (since 2025) 20th of the following month
USC Payment Сплата ЄСВ Pay employer USC (22% of gross payroll) Monthly 20th of the following month
Minimum USC UAH 1,760/month per employee (22% × UAH 8,000 min wage 2025) Monthly
Maximum Base Capped at 20× minimum wage = UAH 160,000/month (2025) Monthly
Rate Variations – Standard rate: 22%
– People with disabilities: 8.41%
– Diia.City residents: UAH 1,760 fixed (minimum contribution)		 Monthly

Employee Tax Card (Картка податкового обліку)

Detail Information
Legal Basis Tax Code Art. 176
Purpose Document employee’s tax status, dependents, and eligibility for deductions
When Submitted Upon hiring or when requesting tax benefits
Content – Employee personal information
– Number of dependent children (for monthly tax credit: UAH 1,200 per child if salary ≤ min wage × 2.5)
– Disability status
– Veteran status
– Other tax deductions
Employer Use Calculate correct PIT withholding
Updates When an employee’s circumstances change

Social Insurance Records

| Document | Purpose | Retention |
|—|—|—|—|
| Social Insurance Number | Unique ID in State Register of Insured Persons (Pension Fund) | Lifetime |
| Contribution History | Electronic record of all USC payments (determines pension eligibility) | Maintained by Pension Fund |
| Sick Leave Certificates | Medical certificates for sick pay reimbursement from Pension Fund (days 6+) | 3 years |

9. EMPLOYMENT CHANGES AND TRANSFERS

Transfer Order (Наказ про переведення)

Detail Information
Purpose Document internal transfer (position, department, location)
Types – Temporary transfer (up to 1 month, employee consent required)
– Permanent transfer (employee consent required)
– Transfer to another location (with employer)
Legal Basis Labour Code Art. 32-33
Content – Employee details
– Current position
– New position
– Effective date
– Reason for transfer
– New salary (if changed)
– Employee consent
Labour Book Entry Required for permanent transfers
Retention 75 years

Salary Change Documents

Document Purpose Legal Basis
Salary Increase Order Formalise raise, bonus structure change Labour Code Art. 97
Indexation Notice Notify employee of mandatory salary indexation if inflation > 3% Labour Code Art. 95
Amendment to Employment Contract Update contract terms (2-month notice required unless martial law) Labour Code Art. 32

10. TERMINATION AND EXIT DOCUMENTS

Form P-4: Termination Order (Наказ про звільнення)

Detail Information
Legal Basis Order No. 489 of 05.12.2008; Labour Code Art. 36-47
Purpose Officially terminate the employment relationship
Grounds for Termination Must cite specific Labour Code article:
– Art. 38: Employee initiative (14 days’ notice)
– Art. 39: Mutual agreement
– Art. 40: Fixed-term contract expiration
– Art. 41: Draft/conscription
– Art. 36: Redundancy (2 months notice)
– Art. 40: Disciplinary dismissal (single gross violation)
– Art. 40: Incompetence (poor performance)
– Others as per the Labour Code
Mandatory Fields – Employee name, position
– Termination date (last working day)
– Legal basis (Labour Code article and reason)
– Reference to supporting documents (resignation letter, redundancy notice, etc.)
Employee Rights – Copy of Form P-4 on the last working day
– Labour book returned with termination entry
– Final settlement (all wages, unused vacation pay, and severance if applicable)
– Written notice of amounts paid
Labour Book Entry Termination recorded with order number, date, and legal basis
Retention 75 years

Resignation Documents

Document Purpose Timeline
Resignation Letter Employee’s written notice to resign 14 calendar days’ notice (Labour Code Art. 38)
Acceptance of Resignation Employer acknowledgement Within 14 days
Exit Interview Form Capture feedback (optional) On or before the last day

Final Settlement Documents

Document Purpose Deadline
Final Payslip Itemized final payment (salary + unused vacation + severance) Last working day
Certificate of Income Paid Tax year-to-date income for the employee’s records Last working day
Written Notice of Amounts Paid Detailed breakdown of the final payment Last working day
Certificate of Employment Confirmation of employment dates, position, and salary (upon request) Within 3 days of the request
Work Book Handover Receipt Employee acknowledges receipt of the labour book Last working day

Severance Pay (Вихідна допомога)

Situation Amount Legal Basis
Redundancy 1-month average salary Labour Code Art. 44
Employer breach of labour laws Min 3 months average salary Labour Code Art. 44
Company official (managing director) 6 months’ average salary (upon termination of corporate mandate) Labour Code Art. 41
Mutual agreement As agreed in the employment contract or settlement Labour Code Art. 36

11. COMPLIANCE AND REGULATORY DOCUMENTS

Internal Labour Regulations (Правила внутрішнього трудового розпорядку)

Detail Information
Legal Basis Labour Code Art. 142
Mandatory? ✓ Yes (for all employers)
Approval Must be approved by the labour collective (general meeting of >50% employees) and the trade union (if it exists)
Content – Working hours and breaks
– Start and end times
– Lunch/rest periods
– Payroll dates (must specify bi-weekly schedule)
– Leave procedures
– Disciplinary rules
– Employee rights and obligations
– Employer rights and obligations
– Dress code (if applicable)
– Health and safety rules
Language Must be in Ukrainian
Access Must be accessible to all employees (posted, intranet, distributed)
Updates When organisational policies change

Occupational Health and Safety Documents

Document Purpose Retention
Health and Safety Policy Company-wide safety rules Permanent
Risk Assessment Identify workplace hazards 3 years (update regularly)
Safety Training Register Record of employee safety inductions 75 years
Accident Investigation Report Document workplace accidents 75 years
Medical Examination Records Periodic health checks (for hazardous work) 50 years

Anti-Corruption and Conflict of Interest

Document Legal Basis Applicability
Declaration of Assets and Income Law on Prevention of Corruption Public officials, state-owned enterprises
Conflict of Interest Declaration Law on Prevention of Corruption Public sector employees, certain private sector
Gift Register Law on Prevention of Corruption Public officials

Data Protection and Confidentiality

Document Purpose Legal Basis
Consent to Personal Data Processing GDPR compliance Law on Personal Data Protection No. 2297-VI
Confidentiality Agreement Protect trade secrets, sensitive information Civil Code, employment contract
Non-Compete Agreement Restrict post-employment competition (limited enforceability in Ukraine) Civil Code

12. DIGITAL RECORDS (2026 TRANSITION)

Electronic Employment Record (Електронний облік трудової діяльності)

System Administrator Access Purpose
State Register of Insured Persons Pension Fund of Ukraine portal.pfu.gov.ua Central repository of employment history
Electronic Cabinet for Employers Pension Fund of Ukraine User account with a digital signature Upload employee data, submit reports
Diia.Employment (Planned) Ministry of Digital Transformation Diia mobile app Employee access to the digital labour book

2026 Digital Transition Requirements

Requirement Deadline Action Required
Scan all physical labour books June 10, 2026 – All pages in colour, 300 dpi, JPG/PDF, <1MB
– Upload to Pension Fund portal
Return labour books to employees After scanning Employee signs receipt acknowledging return
Submit employment data via XML June 10, 2026 For all employment periods, especially pre-2004
Verify employee records Before June 10, 2026 Employees should check their electronic records for accuracy

Digital Reporting (2025 onwards)

Report Type Frequency Submission Method Portal
PIT, Military Tax, USC Monthly Electronic filing (XML format) tax.gov.ua (State Tax Service)
Statistical Salary Reports Monthly/Quarterly Electronic filing ukrstat.gov.ua (State Statistics Service)
Employment Data Updates Real-time (hiring, termination) Electronic notification portal.pfu.gov.ua (Pension Fund)

SUMMARY TABLE: CRITICAL PAYROLL-RELEVANT DOCUMENTS

Document Form Frequency Retention Payroll Impact
Employment Order P-1 Upon hiring 75 years Establishes salary, start date
Employment Contract Custom Upon hiring 75 years Defines salary, benefits, and terms
Personal Card P-2 Ongoing (updates) 75 years Tracks position, salary changes
Labour Book Physical/Electronic Ongoing Lifetime (employee) Confirms employment history, pension eligibility
Timesheet P-5 Monthly 3 years Basis for salary calculation, overtime, leave deductions
Leave Order P-3 Per leave 75 years Vacation pay calculation
Payroll Statement P-7 Bi-weekly 3 years Salary payment record
Payslip Custom Bi-weekly 3 years (employer) Employee payment transparency
PIT Report Tax form Monthly 5 years Tax withholding and remittance
Military Tax Report Tax form Monthly 5 years Tax withholding and remittance
USC Report Social insurance form Monthly 5 years Social contribution remittance
Termination Order P-4 Upon termination 75 years Final settlement, severance calculation

DOCUMENT RETENTION SCHEDULE

Retention Period Document Types
75 years Personnel orders (P-1, P-3, P-4), employment contracts, personal cards (P-2), transfer orders, disciplinary actions, termination records
50 years Medical examination records (hazardous work)
5 years Tax reports (PIT, USC, military tax), business trip orders (P-6)
3 years Timesheets (P-5), payroll statements (P-7, P-8), vacation schedules, sick leave certificates, overtime records
1 year Shift schedules, temporary correspondence
Permanent Regulatory documents (internal labour regulations, health and safety policies), collective agreements

KEY DEADLINES FOR 2026

Date Requirement Consequence of Non-Compliance
10th of each month Notify the State Fiscal Service of new hires Fine: UAH 4,723 per unreported employee
20th of each month Submit PIT, Military Tax, USC reports and payments Penalties: 10% of the unpaid amount + daily interest
June 10, 2026 Scan and upload all labour books to the electronic Register ⚠️ Paper labour books no longer valid for pension calculations
Bi-weekly Pay salaries (max 16-day interval between payments) Fine: UAH 510-1,700 per violation
May 1 (annually) Employees file personal income tax returns (if additional income) Penalties for late filing
August 1 (annually) Employees pay annual PIT (if applicable) Penalties for late payment

LEGAL REFERENCES

  • Labour Code of Ukraine (Law No. 322-VIII)

  • Tax Code of Ukraine (Law No. 2755-VI)

  • Law on Personal Data Protection (No. 2297-VI)

  • Law on Prevention of Corruption (No. 1700-VII)

  • Law on Electronic Recordkeeping of Employee Work Activity (No. 1217-IX, 05.02.2021)

  • Order of State Statistics Committee No. 489 (05.12.2008) – Standard forms P-1 through P-8

  • Resolution of Cabinet of Ministers No. 301 (25.03.1993) – Labour Book regulations

NOTES

  1. Martial Law Adjustments (2022-present): Certain labour law provisions modified during martial law, including:

    • Immediate termination permitted (not 14-day notice)

    • 60-hour workweek allowed for critical infrastructure

    • Suspension of employment contracts permitted

    • 90-day unpaid leave for employees leaving Ukraine or becoming IDPs

  2. Payroll Cycle: Ukraine mandates bi-weekly salary payments (24 cycles/year, max 16 days between payments) per Labour Code Article 115.

  3. Language Requirement: All employment documents must be in Ukrainian (state language) per Law on State Language (2019).

  4. Electronic Signatures: Legally recognised for employment contracts and internal documents per the Law on Electronic Documents and Electronic Document Flow.

  5. Minimum Wage 2025: UAH 8,000/month (updated annually, typically in January).

  6. Tax Rates 2025-2026:

    • Personal Income Tax: 18%

    • Military Tax: 5% (increased from 1.5% in October 2024)

    • Unified Social Contribution: 22% (employer pays)

Last Updated: January 2026
Compiled by: Based on the Ukrainian Labour Code, the Tax Code, the Pension Fund regulations, and the State Tax Service guidelines

This document is for informational purposes only and does not constitute legal advice. Employers should consult with qualified Ukrainian labour law specialists and accountants to ensure full compliance.