Date of entry into
force:
January 1, 2013
(Abstract)
The Law determines the legal, economic and organizational foundations for
implementing the state policy in the sphere of public employment, and the state
guarantees on protecting the citizens’ right to labor and on exercising their
rights to social protection against unemployment.
Article 1 of the Law provides definitions of terms used in it. For example,
employment is the activity of persons, not prohibited by law and related to
satisfaction of their personal and social needs, with the purpose of receiving
income (wage) in monetary and other forms, as well as the activity of the
members of one family that carry out business activity or work in business
entities founded of their property, including free of charge. The labor market
is a system of legal, social-labor, economic and organizational relations that
arise between seekers of employment, employers, trade unions, employers and
their organizations, and state authorities in the sphere of satisfying the need
for employment, and with employers, in the course of employing persons
according to the legislation.
Everyone has the right to freely chosen employment. Any form of coercion to
labor is forbidden. Voluntary unemployment of a person cannot constitute basis
for prosecution. Employment of the population is ensured by establishing
relations regulated by labor agreements (contracts) and carrying out
entrepreneurial and other types of activity not prohibited by law (Article 3 of
the Law).
According to Article 4 of the Law, employed population includes persons
working for hire under a labor agreement (contract) or under other terms
provided for by the legislation; self-employed persons (including members of
private farming enterprises); persons in military or alternative (non-military)
service; persons legally working abroad and receiving income from such
employment; and persons studying full-time in general, vocational and higher
educational institutions and combining education with work. Employed population also includes:
·
unemployed able-bodied persons taking care of a
disabled child, a category I disabled person, or an elderly person aged 80 or
over, or one that, according to the opinion of a medical institution, requires
constant outside supervision, and receiving assistance, compensation and/or
allowance according to the legislation;
·
caregiver parents in family child care homes, or
foster parents, if they receive monetary support according to the legislation;
·
persons living together with a category I or II
mentally disabled person that, according to the opinion of the panel of a
medical institution, requires constant outside supervision, and receives a
caregiver’s allowance according to the legislation.
Employed population does not include foreigners and stateless persons that
are staying in Ukraine and whose employment is related to supporting the work
of foreign embassies or missions, or to their professional or labor duties
before a non-resident employer.
According to Article 5 of the Law, the state guarantees the following in
the sphere of employment:
·
free choice of the place and type of work, free choice
or change of profession;
·
receiving wage (compensation) according to the
legislation;
·
professional orientation for the purposes of
self-determination and actualization of work abilities;
·
professional education according to the abilities and
with regard to the needs of the labor market;
·
certifying the results of informal professional
education of persons of blue-collar professions;
·
free assistance in employment, job selection, and
receiving information about the current situation and the development prospects
of the labor market;
·
social protection in case of unemployment;
·
protection against discrimination in the sphere of
employment, unfounded refusal of employment and unlawful dismissal;
·
additional assistance in employment for certain
categories of people.
Articles 6-13 of the Law establish the rights to:
·
select the place, type and nature of work;
·
professional orientation;
·
professional education;
·
social security in case of unemployment;
·
work abroad;
·
protection against discrimination in the sphere of
employment;
·
access to information in the sphere of employment;
·
protection of rights in the sphere of employment.
According to Article 14 of the Law, the categories of citizens that receive
additional guarantees in employment assistance are:
·
a parent or guardian that 1) supports children under
six years of age; 2) raises a child under 14 or a disabled child as a single
parent; 3) supports a lifelong disabled person (of any age) and/or category I
disabled person (regardless of the reasons for disability) as a single parent;
·
orphans and children deprived of parental care;
persons that turned 15 and, by consent of a parent or guardian, can be
employed, as an exception;
·
persons released after serving punishment or
undergoing compulsory treatment;
·
young people that completed or stopped their education
in general, vocational and higher educational institutions, left compulsory
military or alternative (non-military) service (within 6 months after
completing or stopping education or service) being employed for the first time;
·
persons that are 10 years or less away from acquiring
the right to old age pension according to Article 26 of the Law of Ukraine “On
Mandatory State Pension Insurance”;
·
disabled people that did not reach the retirement age
established by Article 26 of the Law of Ukraine “On Mandatory State Pension
Insurance”;
·
persons that turned 15 and, by consent of a parent or
guardian, can be employed, as an exception.
The contents and terms of implementation of the state policy in the sphere
of employment are determined in Chapter II of the Law.
Creation and implementation of state policy in the sphere of employment of
population are provided for, within the scope of their authority, by the
Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, the central
executive authority in the sphere of social policy, other central executive
authorities, the Verkhovna Rada of the Autonomous Republic of Crimea and the
Council of Ministers of the Autonomous Republic of Crimea, local stat administrations,
and bodies of local self-government. The main authority in the system of
central executive authorities for creation and implementation of state policy
in the sphere of employment of the population is the central executive
authority in the sphere of social policy (Article 17 of the Law).
Chapter III of the Law determines the legal status, tasks, authority,
procedure and terms of work of the central executive authority that implements
state policy in the sphere of employment of the population and labor migration.
Assistance of employment of the population is envisaged by Chapter IV of
the Law.
Article 24 of the Law lists the following measures for assisting employment
of the population:
·
professional orientation and professional education;
·
stimulating the activities of employers aimed at
creating new workplaces and employing the unemployed;
·
creating conditions for self-employment of the
population and supporting entrepreneurial initiatives;
·
facilitating the first employment of young people and
creating incentives for enterprises, institutions and organizations of all
forms of property, types and nature of business, and natural persons employing
hired labor, to provide practical training for young people still in education;
·
facilitating employment of disabled persons;
·
ensuring participation of unemployed persons in
community work and other temporary work.
An employer that, during a period of 12 calendar months, was providing for
creation of new workplaces, employing people to them, and paying each of them
wages of at least 3 times the minimum wage, shall receive compensation of the
actual expenses, from the Pension Fund of Ukraine, in the amount of 50% of the
single contribution to the mandatory state social insurance accrued per such
employee, on a monthly basis, during the following 12 calendar months, provided
that the wage level of such employees remain at least 3 times the minimum wage.
Article 26 of the Law provides for measures to stimulate the employment of
citizens that are insufficiently competitive on the labor market.
Small business entities that hire unemployed persons to newly-created
workplaces in the priority areas of economy for a minimum of 2 years, by
recommendation of territorial bodies of the central executive authority that
implements state policy in the sphere of employment of the population and labor
migration, are compensated actual expenses in the amount of the single
contribution to mandatory state social insurance paid during the month per such
employee, on a monthly basis (Article 27 of the Law).
According to Article 28 of the Law, in order to facilitate employment in
certain professions (specialties) in villages and townships, young employees
that conclude a labor agreement for a minimum of three years with companies,
institutions and organizations located in such population centers, are provided
with accommodation for the term of their employment, and a one-off financial
assistance of ten times the minimum wage, at the expense of the State Budget of
Ukraine, for according to the procedure and for the professions (specialties)
approved by the Cabinet of Ministers of Ukraine. If the young employee works at
least 10 years in such population center, they are granted ownership of the
accommodation.
Students of higher educational and vocational institutions that receive a
professional (qualification) degree at the level of “qualified employee”,
“junior specialist”, “bachelor” or “specialist”, and continue their education
to the next qualification level, have the right to undergo practical training
in their profession (specialty) at companies, institutions and organizations of
any form of property, type and nature of business, on the terms determined in
the practical training agreement, in their free time.
The purpose of practical training is gaining experience in carrying out
professional tasks and obligations, honing professional knowledge, skills and
abilities, learning and mastering new technologies and equipment, and acquiring
additional competences. The term of practical training under an agreement must
not exceed 6 months. The work of supervisors over practical training, appointed
from among the employees of the company, organization or institution, may be
compensated by the company, organization or institution at the expense of the
funds allocated for training, retraining or advanced training of staff; the
compensation, paid during the term of practical training in addition to the
main wage, must not exceed 5% of the main monthly wage. Together with
employers, higher educational and vocational institutions assist students and
pupils in accessing information about opportunities for practical training
(Article 29 of the Law).
Article 30 of the Law provides for expanding the opportunities to increase
the competitiveness of citizens aged 45 and over.
The terms and organization procedure for community and temporary work are
determined in Article 31 of the Law.
Mediation services in employment are regulated by Chapter VI of the Law.
The work of business entities providing mediation services in employment
and other business entities hiring employees to subsequently direct them to
work for other employers in Ukraine is regulated by the Law and other
legislative acts of Ukraine (Article 36 of the Law). Mediation services in
employment include job search, employment assistance, and staff selection
according to the request of employers (including foreign employers) under
agreements (contracts) concluded with employers. Business entities providing
mediation services in employment and business entities hiring employees to
subsequently direct them to work for other employers in Ukraine must:
·
provide citizens with complete and reliable
information about employer demand for staff (vacancies), its requirements to
qualification, work experience, and the terms, nature and compensation of the
work;
·
cooperate with the respective territorial body of the
central executive authority that implements state policy in the sphere of
employment of the population and labor migration, with companies, institutions
and organizations, trade unions and their associations, employer organizations
and their associations;
·
ensure protection of information received from
citizens addressing them for the purposes of employment, and adhere to the
rules for using and distributing such information, as established by the Laws
of Ukraine “On Information” and “On Personal Data Protection”, and preserve the
confidentiality of the commercial information of employers according to the
law;
·
supply territorial bodies of the central executive
authority that implements state policy in the sphere of employment of the
population and labor migration with information about the number of people
placed into employment by them, according to the procedure established by the
central executive authority that implements state policy in the sphere of
employment of the population and labor migration, by approval of the central
executive authority that implements state policy in the sphere of statistics.
Articles 37 - 39 of the Law regulate the work of business entities that:
·
provide mediation services in employment in Ukraine;
·
provide mediation services in employment abroad;
·
hire employees to subsequently direct them to work for
other employers in Ukraine.
According to Article 41 of the Law, state regulation of the work of
business entities providing mediation services in employment is carried out, in
particular, through:
·
keeping a list of such business entities;
·
legal support of business entities providing mediation
services in employment that provide such services as job search, employment
assistance, and staff selection for employers;
·
supervision and control over adherence to the
legislation in the sphere of labor and employment of the population, carried out
by the authorized body that implements state policy in the sphere of state
supervision and control over adherence to the legislation on employment of the
population.
The procedure for employing the labor of foreigners and stateless persons
in Ukraine is established by Chapter VII of the Law.
Companies, institutions and organizations have the right to employ the
labor of foreigners and stateless persons on the territory of Ukraine on the
basis of a permit issued by the territorial bodies of the central executive
authority that implements state policy in the sphere of employment of the
population and labor migration, for the duration of one year, unless otherwise
provided by international agreements of Ukraine ratifies by the Verkhovna Rada
of Ukraine (Article 42 of the Law). Such a permit is not necessary to employ
the following:
·
foreigners permanently residing in Ukraine;
·
foreigners that acquired refugee status according to
the legislation of Ukraine or received an immigration permit;
·
foreigners declared to be persons requiring additional
protection or granted temporary protection in Ukraine;
·
representatives of a foreign sea (river) fleet and air
companies, that service such companies on the territory of Ukraine;
·
employees of foreign mass media companies accredited
to work in Ukraine;
·
professional sportsmen, actors and artists
professionally working in Ukraine;
·
employees of emergency rescue services carrying out
urgent work;
·
employees of foreign representative offices registered
on the territory of Ukraine according to the procedure established by the
legislation;
·
foreign religious ministers temporarily residing in
Ukraine by invitation of religious organizations, to carry out canonical work
only in such organizations, by official approval of the body that registered
the statute (provision) of the appropriate religious organization;
·
foreigners arriving in Ukraine to take part in
projects for international technical assistance;
·
foreigners arriving in Ukraine to carry out
professional teaching in state higher educational institutions, by invitation
of the latter;
·
other foreigners, in cases provided for by laws and
international agreements of Ukraine ratified by the Verkhovna Rada of Ukraine.
Chapter VIII of the Law establishes the terms of unemployment, determines
the legal status of an unemployed person, their rights, obligations and
responsibility, and the procedure for registration and de-registration of an
unemployed person.
According to Article 43 of the Law, the status of an unemployed person can
be acquired by:
·
a person of employable age before the award of pension
(including privileged terms of pension or long service pension) which, due to
lack of employment, has no earnings or other income provided for by the
legislation, and is ready and able to start work;
·
a disabled person that has not reached the pension age
established by Article 26 of the Law of Ukraine “On Mandatory State Pension
Insurance” and receives a disability pension or social benefits according to
the laws of Ukraine “On the State Social Benefits for Lifelong Disabled Persons
and Disabled Children” and “On the State Social Benefits for Persons Not
Entitled to Pension, and Disabled Persons”;
·
a person under 16, which has been employed and
dismissed due to changes in production and labor organization, such as
termination or reorientation of companies, institutions and organizations, or
downsizing.
A job is considered suitable for an unemployed person if it corresponds to
the person’s education, profession (specialty) and qualification, with regard
to transport accessibility, as established by decision of the local state
administration or the executive body of a respective council. The wage must be
no lower than the person’s wage at the last place of their work, with regard to
the average wage in the region where the person is registered as unemployed,
during the last month. The offer of suitable job takes into consideration the
person’s duration of work in the profession (specialty), qualification,
experience, duration of unemployment, and the demand on the labor market
(Article 46 of the Law).
Article 47 of the Law provides that partial unemployment benefits are
provided by the territorial body of the central executive authority that
implements state policy in the sphere of employment of the population and labor
migration to insured persons, in case they lose part of their wage through
forced reduction of the statutory work time due to stopped (decreased) production,
without termination of labor relations, when:
·
the stopping (decrease) of production in a company or
workshop, or a closed production cycle division (a business unit where all
stages of the technological process to manufacture a certain product are
carried out within such unit) is unavoidable and temporary, lasts no less than
3 and no more than 6 months, does not depend on the employees or the employer,
and involves at least 20% of the staff in the company, workshop or division,
where the work time is reduced by 30% or more per month;
·
the stopping (decrease) of production and work time of
employees is forced, because all possible measures to prevent it have been
exhausted, as confirmed by the common resolution of the employer and the
elective body of the trade union organization with which the collective
agreement is concluded, based on the results of consultation between them.
According to Article 48 of the Law, mass dismissal on the employer’s
initiative (except in case of liquidation of a legal entity) is a one-off
dismissal of the following number of employees, or their dismissal during the
following periods:
·
during one month: 1) dismissal of 10 and more
employees in a company, institution or organization employing between 20 and
100 employees; 2) dismissal of 10% and more employees in a company, institution
or organization employing between 101 and 300 employees;
·
during three months – dismissal of 20% or more
employees in a company, institution or organization, regardless of the total
headcount.
The parameters for mass dismissal of employees, measures to prevent them
and to minimize their negative consequences are established in collective
agreements and agreements concluded on the national, industrial and regional
levels. A set of measures to ensure employment of employees being dismissed is
implemented by respective executive authorities and bodies of local
self-government, with involvement of the parties of social dialogue. If mass
dismissal of employees caused a rapid increase of unemployment in the region,
or on the respective territory, by 3% or more during the reporting period, the
situation on the labor market is considered to be a crisis.
A special guarantee for separate categories of unemployed persons that lost
their job due to changes in organization of production and labor is established
by Article 49 of the Law.
Chapter IX of the Law is dedicated to social dialogue on the labor market.
State control over adherence to the legislation on employment of the
population is carried out by the authorized body for implementation of state
policy in the sphere of state supervision and control over adherence to the
legislation on employment of the population, and by the central executive
authority that implements state policy in the sphere of employment of the
population and labor migration, within the scope of their authority (Article 52
of the Law).
Liability for violation of the legislation on employment of the population
is established by Article 53 of the Law.
The Law declares the Laws of Ukraine “On Employment of the Population”
N803-XII of March 1, 1991 and “On Providing Young People with Higher or
Vocational Education with First Employment and Subsidizing Employers” N2150-IV
of November 4, 2004, to be null and void.
The Law also envisages introducing appropriate amendments to the Code of
Ukraine on Administrative Offences, the Budget Code of Ukraine, and the Laws of
Ukraine “On Local Self-Government in Ukraine”, “On Local State
Administrations”, “On Mandatory State Social Unemployment Insurance”, “On
Facilitating Social Formation and Development of Young People in Ukraine”, “On
Advertisement”, “On Central Bodies of Executive Power” and “On Professional
Development of Employees”.
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