On 5 November 2015 the draft Labour Code (the “Draft Code”) was passed after its first reading in the Ukrainian Parliament, with 258 MPs voting in favour (226 are required for a bill to pass). The Draft Code is part of a legislation package to be adopted by the Ukrainian Parliament as a precondition for an EU visa free regime for Ukraine.

If adopted, the Draft Code will bring labour regulations up to speed with current business needs and align them with international standards, including the European Social Charter.

The Draft Code regulates many important aspects of a labour relationship, such as supervision at work places, suspension procedure, employee’s confidentiality duty, special working regimes (irregular hours, flexible schedule, working from home) etc. It also provides more options for employers to terminate employment agreements (for example, for breach of confidentiality) and simplifies redundancy procedures for small businesses. 

The Draft Code is now being prepared for its second reading in Parliament. It is expected that is will be adopted by the end of 2015.

Draft legislation: Draft Labour Code of Ukraine No. 1658 dated 27 December 2014