The Draft Labor Code of Ukraine (Bill No. 14386), initiated by the Cabinet of Ministers of Ukraine, is an attempt to “reassemble” labor rules for the realities of the 2020s and move them away from the logic of the Labor Code (KzPP) of 1971. The idea is not to rewrite everything for the sake of rewriting, but to codify modern employment formats, make norms predictable, and reduce legal uncertainty in daily HR processes and labor disputes.

The Government and the Ministry of Economy, Trade and Agriculture of Ukraine report that the draft was prepared in a format of social dialogue and is aimed at approximating European Union standards through the implementation of over 30 directives (working time, transparent and predictable working conditions, work-life balance, occupational safety, etc.).

For the employee, this means clearer rules of the game and protection mechanisms, and for the employer — more understandable procedures and fewer “grey areas” that often end in prescriptions, fines, and courts.

Among the innovations declared by the draft:

• digitalization of labor relations (electronic documents are equated to paper ones, and an employment contract can be concluded in electronic form);
• systematization and expansion of types of employment contracts to legalize work formats that are already in use;
• introduction of signs of labor relations to distinguish them from civil law constructions and reduce the shadow economy;
• a more transparent approach to determining the minimum wage in monthly and hourly dimensions with a calculation formula consistent with international approaches;
• transition of labor inspection to a risk-oriented model with a focus on preventing violations and protecting the life and health of employees.