As a rule, employment agreements are to be concluded in written form. The obligatory written form is applied if:
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Trial Period
Probation period may be established upon agreement of the parties.
Probation cannot be applied to certain categories of employees (e.g. minors, persons retired from military or alternative (non-military) service, pregnant women, single mothers with a child under the age of 14 or child with disability, internally displaced persons) or if a labour agreement is being concluded for a period of less than 12 months.
During the probation period the employee has all rights and obligations provided by the labour legislation. The only exception is an additional reason for dismissal of the employee as such who did not pass the probation period.
Duration of a probation period cannot exceed:
- one month – for workers (in this case, in order to define the term “worker” the Occupational
- Classification shall be used, - "blue-collar");
- three months – for any other employee categories;
- six months – in certain cases upon agreement with the trade union committee.
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Hours Of Work
Subject to certain exceptions, the regular working week is 40 hours. For certain categories of employees, the working week is established at the level of 36 or 24 hours, and for some categories irregular working hours are allowed. Overtime work is allowed by the legislation only in exceptional cases and may not exceed four hours within two days in a row or 120 hours per annum and is compensated at double rates.
Flexible Working hours
In 2020 and 2021 the Labour Code of Ukraine was amended with regulations on flexible working hours allowing employees to determine their working schedule at their own discretion.
Such working regime comprises of:
- flexible working hours;
- variable working hours (an employee determines the periods of work at her/his own discretion within the normal limits); and
- break time for rest and meals.
Flexible working hours shall not be applied at:
- continuously operating enterprises, institutions, organizations;
- in case of multi-shift organization of work;
- in other cases, due to the specifics of activity, when the performance of duties by an employee requires her/his presence within clearly determined working hours;
- when such regime is incompatible with the requirements for safe working conditions.
Flexible working hours may be set:
- at an employee's request (without observing with the notification requirements)
- by the employer – in case of production necessity with an at least 2-month notice of changed work mode.
In case of production and technical necessity to perform urgent or unforeseen tasks, the employer may temporarily (for a period of up to 1 month during a calendar year) apply the general work mode to such employees (provisions of part 3 of Article 32 of the Labor Code on changing the essential working conditions do not apply).
In case of violation of the established flexible working hours regime, additionally to appropriate disciplinary penalties, an employee can be transferred to the general work mode without observance of part 3 of Article 32 of the Labor Code.
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Special Rules For Part-time Work
There are no special rules for part-time employees. The salary for part-time work is usually calculated based on the monthly salary rate in proportion to the time actually worked for the working month.
Certain employees (e.g. pregnant women) have preferences in establishing the part-time work regime upon their request.
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Earnings
The monthly salary for the full time worked by the full-time employee must not be lower than the legislatively established minimum wage, which is subject to review on annual basis and approval by the law on the state budget for the respective year. The current monthly minimum wage amounts to appr. EUR 180.00 (UAH 6,000.00).
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Holidays/Rest Periods
Rest periods
Midday break – from half an hour up to 2 hours, must be provided not later than 4 hours after the start of the workday. If the type of work does not allow the employee to enjoy the midday break in full, the special short breaks must be provided, as well as places for food consuming must be organized by the employer.
Daily rest – not less than twice the lengths of the shift (in case of work in shifts). All the time between working hours of the two consequent working days of the employee pursuant to the Internal Labour Regulations of the employer is deemed to be the daily rest.
Weekly rest – a general day-off is Sunday (still may be altered). Usually, there are one or two days-off for all employees depending on their working schedule established by the labour agreement and/or Internal Labour Regulations of the employer. The duration of the weekly rest period must not be less than 42 subsequent hours.
Public holidays and free days (religious holidays)
Public holidays (8 per year) and free days (3 per year) are days-off, as envisaged by the legislation. If a public holiday or a free day concurs with a day-off, the day-off is postponed to the next working day after such public holiday or a free day.
Vacations
All vacations are calculated based on calendar days.
The statutory paid annual vacation is 24 calendar days (basic vacation). For certain categories of employees, the law provides for a longer vacation period, for example:
- employees with disability – 26 or 30 calendar days depending on the group of disability;
- employees under the age of 18 – 31 calendar days.
There are also some additional vacation types in Ukraine, for example:
- additional annual vacation for work under arduous and harmful work conditions – up to 35 calendar days;
- additional annual vacation for special work nature (e.g. for non-standard working hours – up to 7 calendar days);
- additional annual vacation for employees with two or more children under the age of 15 or an adult child of type A, group I of disability – 10 calendar days;
- additional annual vacation for the participants of military actions, war-disabled persons –14 calendar days;
- additional study vacation – for the period of passing the exams;
- research leave – for scientists – up to 4 months;
- maternity leave – 70 calendar days prior to the birth plus 56 calendar days after the birth (70 in case of complications);
- paid leave for a father (or another adult family member of a single father/mother, such as a grandparent) to take care of the child after birth – up to 14 calendar days;
- childcare leave up to three years of age (6 years – if the child requires home care);
- adoption leave – 56 calendar days (70 calendar days in case of adoption of two or more children);
- unpaid vacations – up to 15 calendar days if negotiated or for the period established by law (if the employer is obliged to provide such leave).
All vacations may be roughly divided into two types depending on the frequency:
- annual vacations (e.g. for employees with children);
- one-time vacations (e.g. research leave, adoption leave, etc.).
Please also be aware that annual vacations are provided depending on the vacations type:
- for a calendar year calculated from 1st January until 31st December (e.g. additional vacation for employees with children);
for a year calculated from the date of beginning of employee's work (e.g. basic annual vacation, additional annual vacation for special work nature.).
The total number of days of annual vacations (both basic and additional) cannot exceed 59 calendar days. In addition to that an employee may use one-time vacations, if there is a necessary ground.
The Collective Bargaining Agreement and/or labour agreements may contain higher guarantees for employees regarding these matters.
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Minimum/Maximum Age
The minimum age for employment is 16 years (14 or 15 in certain cases upon approval by the parents/legal guardian and respective child-caring state authority).
There are no limits for the maximum employment age. There also may be age limitations for certain state (civil) service and military service.
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Illness/Disability
The employees in Ukraine are insured by their employers (and at the employer's expense) in case of illness or temporary disability via payment of the Unified Social Contribution (mandatory payment). The first five days of illness or temporary disability are to be reimbursed by the employer subject to provision of the medical certificate by the employee. The State Social Security Fund reimburses loss of earnings to the employee for the period of illness or temporary disability starting from the 6th day of illness or temporary disability (with some exceptions).
Due to the COVID-19 pandemic Ukrainian legislation was supplemented with the provisions on possibility to grant a sick leave and sick leave payment of 50% of the average daily earnings regardless of the work seniority (100% for medical workers) to the employees on self-isolation (if instructed by the doctor and under medical observation).
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Location Of Work/Mobility
The Law of Ukraine defines workplace as a place (space) at which the employee permanently or temporarily provides work and which must be determined, in particular, under the employment agreement (contract).
The other type of work location is called home-based. The workplace of home-based workers coincides territorially with their place of residence. The home-based workplace has a fixed area and the technical means necessary to manufacture products, render services. An employee's fixed workplace may not be changed without the parties' agreement, except when reasons occur that render an employee's work impossible
Certain employees have a pre-emptive right to work from home (pregnant women, women with children under 15, persons with disabilities and their family members, persons who, for objective reasons, cannot be employed directly at the employer's location, etc.).
Home-based work can be established only for persons who have or may be taught the necessary practical skills.
Under the agreement on home-based work employees are subject to the employer's general work mode, unless otherwise provided by the labour agreement.
Under the agreement on remote work (telework) an employee shall independently determine her/his workplace anywhere outside the employer's premises/territory and is responsible for ensuring safe and harmless working conditions. It is also possible to combine remote work with working on the employer's territory. One of the differences from the home-based work is that under remote work agreement the work is performed with the use of information and communication technologies.
The agreement for remote work may be concluded only for work that does not imply any dangerous and harmful production (technology) factors.
Under the agreement on remote work an employee distributes the working time at her/his own discretion, (s)he is not subject to internal labor regulations, unless otherwise determined by the labour agreement. Also, employees are entitled to right to disconnect.
In both remote and home-based work modes the employer is responsible for the safety of the equipment provided to the employees (if any) as well as for conducting occupational safety trainings, but employees are responsible for ensuring their occupational safety at their workplaces.
Work mobility
The work mobility results in transfer to different location together with the company and transfer within the employer's units.
Transfer to different location together with the company ("переведення на роботу в іншу місцевість разом із роботодавцем" in Ukrainian)
Relocation of the business (to another city, region) is regarded as a significant change in the employment agreement. Thus, consent of the employee is required. The employer is to notify the employee about it at least 2 months prior to the event. In case the employee does not accept the changes proposed by the employer the employment agreement is subject to termination. Severance pay will also be due to a dismissed employee in the amount of at least 1 average monthly salary. All reasonable cost connected with relocation of the business incurred by employee is subject to reimbursement by the employer.
Mobility clauses can be included into the employment agreement. Where the job requires travel to other temporary locations, it is normal for the employer to reimburse all reasonable travel expenses.
Transfer within the employer's units located at the same town, city, etc. ("переміщення" in Ukrainian)
The employee may be transferred (relocated) within the employer's units located at the same town, city, etc. without change in his/her labour functions on the permanent or temporary basis without his/her consent.
If such transfer has led to the decrease in the salary of the employee, he/she is entitled to retain his/her previous average salary for 2 months (or 2 weeks - if employee was transfered to another position with a lower salary due any changes in the organization of work and production).
Business trips
The employers have the right to send employees on business trips and unreasonable refusal of the employee from the assigned business trip may be a ground for the application of disciplinary measures to such an employee. However, there are certain restrictions regarding organization of business trips:
- A pregnant woman, a woman with a child under 3 years of age, or a single father/guardian/one of the adoptive parents with a child under 3 years of age may not be sent on a business trip by the employer; and
- a woman or a single father/guardian/one of the adoptive parents with a child under 14 years of age or a child with disability of group I subgroup A may not be sent on a business trip by the employer without prior consent of the employee.
If sent on a business trip, employees must be paid daily allowance and costs for transportation and accommodation.
Also, certain employees may work on the itinerant work terms while having no fixed workplace and performing their work from different locations based on the employer's assignment.
The Collective Bargaining Agreement and/or labour agreements may contain higher guarantees for employees regarding mobility matters.
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Pension Plans
The employer is required to make obligatory payments to the State Pension Fund on behalf of employees. The rate of the Unified Social Contribution is 22% of an employee’s remuneration (is paid by the employer). Any other social insurance (voluntary) is left to the employer’s discretion.
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Parental Rights (Pregnancy/ Maternity/ Paternity/ Adoption)
It is prohibited to dismiss certain categories of employees, such as pregnant women, women with a child under 3 years of age (6 – if the child requires homecare), and single mothers with a child under 14 years of age or child with disabilities, single fathers, adoptive parents/guardians, except for some cases (e.g. company's liquidation with the obligatory subsequent employment).
Leaves:
- maternity leave – 70 calendar days prior to the birth plus 56 calendar days after the birth (70 in case of complications);
- childcare leave up to three years of age (6 years – if the child requires home care) (may be used by any of the parents or another child-caring member of the family);
- adoption leave – 56 calendar days (70 calendar days in case of adoption of two or more children) (may be used by any of the parents or another child-caring member of the family);
- additional annual paid leave for child-care (for mothers or single fathers with a child of up to 14 years of age or older child with disability of group 1 sub-group A) – 10 calendar days (17 – if there are two or more grounds for such leave);
- paid leave for a father (or another adult family member of a single father/mother, such as a grandparent) to take care of the child after birth – up to 14 calendar days;
- additional unpaid leaves as prescribed by the relevant laws for specific aims (e.g. in case of necessity to care for a child whose school or kindergarten has declared a quarantine).
The Collective Bargaining Agreement and/or labour agreements may contain higher guarantees for employees regarding these matters.
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Compulsory Terms
Though the legislation doesn't explicitly envisage compulsory terms of the employment agreement, in practice the following obligatory terms may be singled out:
- the names of the parties to the agreement;
- the date of the employment commencement;
- the remuneration and terms of its payment;
- the hours of work;
- the place of work;
- the job title/job description.
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Non-Compulsory Terms
The parties to a labour agreement are free to agree any other terms in addition to the compulsory provisions, provided that these terms do not contradict the law (except for cases when it is allowed – e.g. additional grounds for termination of the labour contract as a special form of the labour agreement (may be concluded only with certain categories of employees, if envisaged by laws – e.g. CEOs, members of the executive body of the company, etc.).
There are also certain types of labour agreements related to short-term and seasonal types of work; however, they are currently regulated only by the outdated legislative acts from the Soviet era.
Also, there is a special type of labour agreement – labour contract, which may be concluded only with a limited number of employees as envisaged by the law (e.g. CEOs of the companies, members of the executive body etc.).
As a rule, there is no implied duty for the employee to respect the confidentiality of the employer’s commercial and business information in Ukraine. To protect secret and confidential information, the employers must include such a provision in the employment agreement and/or job instruction, and/or internal regulations or conclude a separate NDA. It is recommended to specify the type of information that is regarded as a trade secret, and therefore protected, to prevent future disclosure in such NDA.
Moreover, the LLC's officials cannot disclose the information that constitutes trade secret or is confidential (in case of breach of such duty – the official may be dismissed immediately without any compensation granted). This prohibition also applies for the period of one year after the termination of the labour agreement (contract) with such an official, unless otherwise specified in the agreement (contract) (e.g. longer).
Ukrainian law provides creation of IP objects in the course of labour relations, but the classic “work for hire” concept is not directly applicable here because of the following:
Ukrainian labour and employment laws do not envisage any rules on pre-employment relations. Also, a job offer is not deemed to be a proper legal document that may entail any consequences for the parties.
Non-nationals may be employed by Ukrainian employers subject to prior obtaining of the Ukrainian work permit according to the procedure, established by legislation.
A work permit may be issued in case of payment of salary in the amount of not less than 10 minimal salaries (5 minimal salaries in some cases) per month (except for special categories of foreign employees – IT-specialists, graduates of a university that is included into the list of world top 100 universities, participants/founders/beneficiaries of a Ukrainian legal entity, highly paid professionals etc.).
A work permit is issued as a rule for one year (may be issued for a longer period for special categories of foreign employees – up to 3 years) and is subject to renewal.
If a non-national has a permanent residence permit for living in Ukraine, the employer does not need to obtain any work permit.
There are restrictions on the admission to certain hazardous activities, and restrictions on the types of work that vulnerable groups (e.g. children, persons with disability or pregnant women) can be required to undertake.
The current legislation of Ukraine also provides a quota of workplaces for persons with disabilities in the amount of 4% of the average number of employees per annum o,; if there are 8-25 employees, in the amount of one workplace.
Labour and employment legislation are not applicable to the Outsourcing and Sub-contracting relations (civil law contracts/relations).
Temporary Agency Work as a non-standard form of work was partly implemented in 2013 via the so called "outstaffing"/personnel lease introduced into the Law of Ukraine "On Employment of Population". Under the respective provisions of the mentioned law one employer may use the workforce of another employer (specifically hired by such other employer for provision to the employer-client) under the contract between them (subject to certain limitations and requirements).
The legislation in this part still has a lot of gaps and outstaffing belongs to the grey zone, though it is rather popular in Ukraine. It is worth to mention that the government has recently announced the reform in the sphere of labour laws that will also consider changing and adapting of the Temporary Agency Work (currently, outstaffing) to the Ukrainian realities.
The Collective Bargaining Agreement may contain certain restrictions regarding these matters.