Thursday, November 5, 2015

Rada adopts new Labor Code in first reading: Same workweek, longer vacation

The Ukrainian parliament has adopted a new Labor Code in the first reading, merging multiple changes and amendments to the current Code and bringing the labor legislation of Ukraine in line with international standards.

A total of 258 lawmakers voted for the adoption of the draft Labor Code in the first reading, with 226 votes required for the decision to be passed.

The draft document was presented by co-author MP Lyudmyla Denisova. She noted that Ukraine was the only post-Soviet country that had not yet adopted a new labor code. According to her, the new draft Code provides that any discrepancies in the provisions of different acts related to labor issues will be interpreted in favor of an employee. The draft Code requires that an employment contract should be concluded in writing only. According to the document, it is prohibited to amend the terms of the employment contract and the amount of salary without an employee's consent. The annual leave has been extended from 24 to 28 days.


Denisova also noted that the draft Code had been approved by four out of five Ukrainian trade unions that represent interests of nine million workers. At the same time, the new Code will be finalized before submission to the second reading, also by sending to the International Labor Organization for expert review.

According to MP Oleksandr Drozdyk, who was a co-rapporteur, the new Code has maintained a provision setting a 40-hour and 5-day working week. The provision on a three-month probation period has also remained unchanged. At the same time, overtime work must be paid at a three-fold rate, as compared to the current requirement to pay overtime work at a double rate.

As stated in the explanatory note to the document, 235 out of 265 provisions in the Labor Code, which has been in effect since 1972, have been changed by means of adopting 60 news acts. There are also many other regulatory acts, which quite often contradict the acts having a higher legal force.

As UNIAN reported earlier, the draft Labor Code was registered in the Verkhovna Rada on December 27, 2014, under No. 1658. As noted in the explanatory note, the Labor Code is aimed at bringing the labor legislation in Ukraine in line with the European standards and current market trends.

In July 2015, Prime Minister of Ukraine Arseniy Yatsenyuk called for a parliamentary coalition to support the draft Labor Code. According to the prime minister, Ukraine will not be able to develop a modern labor market as long as the country relies on the employment system inherited from the Soviet era.



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