Author: Stanislav

The new Labor Code of Ukraine currently remains just a draft, but the discussion around it has already gone far beyond purely legal technique. Additional significance was given to this discussion by the White Paper prepared by the Tony Blair Institute. According to the Ministry of Economy, the document contains an independent analysis of the key provisions of the draft and their potential impact on the labor market, economy, and the system of labor relations. In this context, the White Paper should be perceived not as a source of law, but as analytical material that evaluates how the proposed model of labor regulation meets modern challenges, in particular, reconstruction, de-shadowing of employment, and European integration.

Basic Labor Guarantees

A separate block of conclusions concerns basic labor guarantees. According to data published by the Ministry of Economy, the authors of the White Paper positively evaluate the approach under which the minimum wage in the draft should gradually approach 50% of the average wage in the economy, and also be determined in monthly and hourly dimensions.

In addition, the draft provides for an increase in the minimum annual paid leave from 24 to 28 calendar days.

Here it is important not to confuse the draft and the current law: today the minimum wage is already established simultaneously in monthly and hourly amounts, and the annual basic leave, as a general rule, is not less than 24 calendar days. Thus, the novelty of the draft lies not in the very fact of the hourly and monthly dimension of the minimum wage, but in the new logic of its determination and in raising the leave standard.

Family Policy and Women’s Participation

Significant attention in the analysis is paid to family policy and women’s participation in the labor market. The White Paper positively evaluates the norm on an additional four months of parental leave for each child, of which two months are an individual right of each parent and cannot be transferred.

According to the given estimates, such an approach can yield about 86 thousand people of additional net employment and approximately UAH 7 billion of annual net benefit for the state. From a legal point of view, this shows an attempt to shift the focus from a formal declaration of guarantees to a real combination of work and family responsibilities, which corresponds to the European approach to work-life balance. At the same time, such changes themselves are not yet a current norm, but belong to the predicted effect of the possible adoption of the draft.

Inclusivity and New Groups in the Labor Market

The document also positively evaluated the block of decisions related to inclusivity and the entry of new groups into the labor market. It refers, in particular, to the student employment contract, which is supposed to formalize the combination of study with work and create a more understandable path to the first official employment.

Under a conservative scenario, this could yield about 56 thousand additionally formalized employees and approximately UAH 3.4 billion in tax revenues annually. The White Paper also draws attention to the agreed provisions regarding non-discrimination and support for veterans. In a legal sense, this indicates an intention to form not just a new code, but a framework that covers a broader spectrum of social and labor risks than the current fragmented regulatory system.

Predictability of Rules and Dispute Resolution

Special attention should be given to the conclusion regarding the predictability of rules for employees and businesses. The authors of the analysis emphasize that the draft can replace fragmented regulation with new standards, including the electronic written form, clearer rules regarding the minimum wage and vacations, as well as labor arbitration.

According to the document’s assessment, in the case of widespread use of arbitration, the total annual savings for employees and employers could reach UAH 5.3 billion, and the additional effect for the efficiency of the justice system — about UAH 970 million. This block is important precisely for business, because it shows: it is not only about expanding guarantees, but also about attempting to make labor rules more predictable, and dispute resolution methods — less costly in time and resources.

For critically important enterprises, a simplified extension of employee reservation has started working in “Diia”. The main change consists in the fact that in the presence of an active reservation, it is no longer necessary to first cancel the previous status and only then submit a new application. If the body that granted the enterprise the critically important status has not changed, and the employee’s reservation is still valid, the extension occurs seamlessly. According to the “Diia” portal, such an application is processed within 24 hours.

In fact, this concerns electronic re-reservation without an administrative pause between the previous and new status. This is important for employers, because previously the need to first cancel the active reservation created a risk of a temporary gap in processing. Now the “Extension of employee reservation” service allows avoiding this problem and maintaining the continuity of reservation for key specialists.

Legal entities and their separate subdivisions can use the service if they are included in the List of companies for the reservation of persons liable for military service on the “Diia” portal. The head, a signatory according to the Unified State Register (EDR), or an authorized person has the right to submit an application.

The legal basis for this update is the Cabinet of Ministers of Ukraine Resolution No. 76 dated 27.01.2023. In the current wording of the Reservation Procedure, paragraph 29 stipulates: for persons liable for military service who work at critically important enterprises or in critically important institutions, subject to confirmation of such status and an unexpired reservation period, reservation is carried out without taking into account the period specified in the first subparagraph of this paragraph. Thus, the new service in “Diia” does not create a new rule, but implements the mechanism already enshrined in the Procedure in a convenient electronic format.

An employer can conclude an employment contract with a person liable for military service who is wanted for violating military registration rules, but only under certain conditions.

Corresponding changes were made to the Law of Ukraine dated 15.03.2022 No. 2136-IX “On the Organization of Labor Relations Under Martial Law” (hereinafter – Law No. 2136).

In particular, Article 2 of Law No. 2136 was supplemented with a third part.

Thus, it is provided that when concluding an employment contract with military-liable employees at enterprises, institutions, and organizations that are critically important for ensuring the needs of the Armed Forces of Ukraine, other military formations created in accordance with the laws of Ukraine, or the functioning of the economy and ensuring the livelihood of the population in a special period in the sphere of the defense-industrial complex, the probation period upon hiring cannot exceed 45 calendar days for any category of employees.

Persons liable for military service, conscripts, and reservists can sign up for territorial recruitment and social support centers through the “Rezerv+” mobile application. The electronic appointment allows choosing the date and time of the visit, tracking one’s queue, and receiving reminders about the appointment.

The Ministry of Defence reported that persons liable for military service, conscripts, and reservists can now plan a visit to the territorial recruitment and social support centers through the “Rezerv+” mobile application.

At the same time, the service helps TCC employees better plan their work: all appointments are formed in one list, queues decrease, and service becomes more organized and transparent.