The new Labor Code may define Ukraine’s economic rules for decades to come
On March 10, a roundtable discussion of the draft of the new Labor Code of Ukraine was held in the small session hall of the Lviv Regional Council. The discussion brought together representatives of government, business, academics, lawyers, trade unions, veteran businesses, NGOs, and youth organizations.
The position of the Ukrainian National Lobbyists Association was presented by Anna Kostiuk.
The current Labor Code was created for a planned economy. At that time, there was no remote work, flexible forms of employment, or modern competition for personnel. Today, the labor market has changed dramatically, so labor legislation needs to be modernized.
The main objective of the new Code is to create a fair balance between employees and employers. The law should guarantee the basic rights of employees: decent pay, vacation, social guarantees and protection against discrimination. At the same time, it should allow businesses to operate efficiently, create jobs and develop.
The draft Code proposes new approaches: different types of employment contracts, digitalization of HR processes, and a clearer definition of labor relations. This is in line with modern European practices, but along with new opportunities come new risks.
Special attention should be paid to the integration of veterans into the labor market. After the war, their number may reach more than 1.5 million, and labor legislation should create real mechanisms for their employment and professional adaptation. Otherwise, there is a risk of formal employment through short-term or unstable contracts.
The reform also includes new rules for dismissal, overtime pay, an increase in vacation time to 28 days, linking the minimum wage to the average for the economy, and new requirements for the employment of people with disabilities. At the same time, remote work and electronic contracts will require careful legal regulation.
The new rules may create more opportunities for both employees and businesses. But their success will depend on how well the law is balanced, how the court practice works, and how quickly the labor market adapts to the new conditions.
Ukraine needs a modern Labor Code that simultaneously protects people, provides opportunities for business, and takes into account the realities of a country recovering from war.
Lobbyist. Member of the Ukrainian National Lobbyists Association. Anna Kostiuk
