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Wednesday, December 30, 2015

Termination of Labour Contract on the initiative of the owner of Authorized by Him/Her Body by Ukrainian Law

It has the basic and additional grounds for termination of Labour Contract on the initiative of the owner of Authorized by Him/Her Body:

The basic grounds:

Art. 40 of Labor Code of Ukraine - "Termination of Labour Contract on the Initiative of Owner of Authorized by Him/Her Body":

Labour contract entered into for indefinite period of time, as well as term labour contract prior to completion of its validity period may be terminated by the owner or authorized by him/her body only in the following cases:


1) changes in production and labour organization, including liquidation, reorganization, bankruptcy or conversion of enterprise, institution, organization, reduction of number or staff of employees;

2) revealed inconsistency of the employee with job or with work performed as the result of insufficient qualification or state of health which prevent continuing this work, as well as in case of cancellation of access to state secret, if fulfilment of obligations imposed on him/her requires an access to state secret;

3) systematic failure to fulfil by the employee without good reasons obligations imposed on him/her under labour contract or internal regulations, if disciplinary or civil sanctions have been previously applied thereto;

4) absence from work (including absence from work for over three hours during the working day) without good reasons;

5) absence from work within more than four successive months as the result of temporary disablement, except for maternity leave, unless longer period of workplace (office) preservation at particular disease established by legislation. Employees who lost capability in connection with labour injury or occupational disease shall retain their workplace (office) until rehabilitation or establishment of disablement;

6) reinstatement in a job of the employee who had been previously performing this work;

7) showing up for work intoxicated with alcohol, narcotics or other toxic substances;

8) on-the-job embezzlement (including petty one) of owner’s property established by court judgment that became effective, or by resolution of the body which competence includes imposing administrative sanction or taking measures of social influence.

Dismissal of the employee on the initiative of the owner or authorized by him/her body shall not be allowed within the period of his/her temporary disablement (except for dismissal according to clause 5 of this Article), as well as within the period of his/her staying on leave. This rule shall not apply to cases of full liquidation of enterprise, institution or organization.

The additional Grounds:

Art. 41 of Labor Code of Ukraine - "Additional Grounds for Termination of Labour Contract on the Initiative of Owner or Authorized by Him/Her Body with Particular Categories of Employees under Certain Conditions":

In addition to grounds prescribed by Article 40 of this Code, the contract may be terminated on the initiative of the owner or authorized by him/her body in the following cases:

1) single gross violation of labour obligations by the director of enterprise, institution or organization of all forms of ownership (subsidiary, representative office, division and other separated subdivision), his/her deputies, chief accountant of enterprise, institution or organization, his/her deputies, as well as officials of customs authorities, state tax inspectorates who were given personal ranks, and officials of state supervision and auditing service and state authorities exercising control over prices;

1-1) guilty actions of the director of enterprise, institution or organization which resulted in untimely salary payment or in the amounts lower than minimum salary amount established by legislation;

2) guilty actions of employee directly servicing monetary, commodity or cultural valuables, if these actions give reasons to loose trust thereto on part of the owner or authorized by him/her body;


3) commitment by the employee who fulfils educational functions of immoral act being incompatible with continuing this work.

Important Note: The current legislation of Ukraine are constantly amended.

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