Ukraine Labor Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Labor Code of Ukraine
  • Law of Ukraine on Employment
• Legal Characteristics:
  • Aims to protect employee rights and promote a fair employment environment
  • Sets standards for minimum wage, working hours, vacation, severance pay, and health insurance

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts (up to 5 years)
  • Indefinite-term contracts
• Contract Provisions:
  • Must include terms on job description, compensation, working hours, vacation, and termination conditions
• Language and Currency:
  • Contracts must be in Ukrainian and use the Ukrainian hryvnia (UAH) as the currency

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day
• Rest Days and Breaks: At least 24 hours of rest per week, at least 1 hour of rest per day

Vacation Policy

• Annual Leave: Minimum of 24 days of paid annual leave per year
• Public Holidays: 11 statutory public holidays
• Special Leaves:
  • Sick leave: 4 months of paid sick leave
  • Maternity leave: 126 days of paid maternity leave
  • Paternity leave: 2 weeks of unpaid paternity leave
  • Childcare leave: Unpaid childcare leave until the child reaches 3 years of age

Employee Dismissal and Contract Termination

• Notice Period:
  • 2 months (for dismissal due to business reasons)
  • 14 days (for voluntary resignation by employee)
• Severance Pay:
  • Minimum of one month's salary
• Protection Against Unfair Dismissal:
  • Pregnant women, mothers of children under three, and employees close to retirement age are protected from dismissal

Taxation

• Personal Income Tax:

  • Salary Range	Tax Rate
    0 - 30,000	0%
    30,000 - 45,000	10%

• Social Security Contributions: 22% social security contributions paid by both employer and employee

Health Insurance

• Insurance Policy: Employees are required to participate in the state healthcare system
• Insurance Coverage: Basic medical services

Compensation and Benefits

• Minimum Wage: UAH 6,700 per month
• Compensation Structure:
  • Base salary
  • Bonuses (common)
  • Allowances

Work Permits and Visas

• Permit Requirement: Non-Ukrainian citizens require a work permit or visa
• Application Process:
  • Employer applies for work permit with the State Migration Service of Ukraine
  • Employee applies for visa with the Ukrainian consulate

Confidentiality and Non-Compete Clauses

• Enforceability: Confidentiality and non-compete clauses are enforceable in Ukraine
• Common Provisions:
  • Prohibition on disclosing confidential information
  • Prohibition on working for competitors for a specified period

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skills enhancement training
• Government Support:
  • Government provides training subsidies and programs

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on race, gender, religion, or disability
• Enforcement Measures:
  • Employers must develop and implement diversity and inclusion policies

Remote Work Policy

• Legal Framework: No specific legal framework for remote work in Ukraine
• Tax and Insurance Implications: Tax and social security implications of remote work depend on specific circumstances

Key Website Addresses

• Ministry of Labor and Social Policy of Ukraine: https://www.mlsp.gov.ua/