Publication date: 18.04.2024
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Simplification of the regulation of labor relations in the field of entrepreneurship
Law of Ukraine dated July 19, 2022 No. 2434-IX "On Amendments to Certain Legislative Acts of Ukraine on Simplifying the Regulation of Labor Relations in the Field of Small and Medium-Sized Entrepreneurship and Reducing the Administrative Burden on Business Activity" (hereinafter Law No. 2434) is in effect during the period of military of state and loses its validity from the date of termination or cancellation of martial law.
Law No. 2434 amended the Code of Labor Laws of Ukraine (hereinafter referred to as the Labor Code) and introduced a number of important changes.
Thus, in particular, Article 9 of the Labor Code is set forth in a new version, according to which terms of employment contracts that worsen the position of employees compared to the labor legislation of Ukraine are invalid.
It is prohibited to force an employee to enter into an employment contract that contains conditions on which the employee and the employer have not mutually agreed.
Also, Article 21 of the Labor Code is supplemented with provisions according to which, in the conditions of the simplified regime for the regulation of labor relations, defined by Chapter III-B of the Labor Code, the labor contract is the main means of regulating the labor relations of employees and employers (owners of private enterprises), in which the number of employees or the level of wages meets the criteria established by Article 49-5 of the Criminal Code.
In case of application of the simplified regime of regulation of labor relations, by mutual agreement of the parties, the employment contract may define additional rights, duties and responsibilities of the parties, conditions of material support and organization of the employee's work, conditions of termination or early termination of the contract.The Labor Code was supplemented by Chapter III-B "Simplified mode of regulation of labor relations".
The norms of Article 49-5 of the Labor Code establish the peculiarities of the application of the simplified regime of regulation of labor relations
Thus, the simplified mode of regulation of labor relations is applied to labor relations that arise:
• between an employee and an employer who is a subject of a small or medium-sized business in accordance with the law with an average number of employees for the reporting period (calendar year) of no more than 250 people;
• between an employer and an employee whose monthly salary is more than eight times the minimum wage established by law.
The simplified regime can be applied in relations between employees and employers exclusively on a voluntary basis. This regime provides for the possibility of establishing individual working conditions of the employee directly in the employment contract.
Management of personnel records
The requirements for keeping documentation on personnel issues, adopting local regulations and organizational and administrative documentation, including regarding the regime of working hours and rest time, vacations, as well as other documents on matters regulated by the employment contract, do not apply to employers who apply simplified mode.
The employer is responsible for keeping records of the employee's labor activities in electronic form, and submitting personnel reports to state bodies.In the conditions of the simplified regime and provided that this does not contradict other provisions of the Labor Code, the parties to the labor contract may, taking into account the provisions of Chapter III of the Labor Code, at their own discretion and by mutual agreement, regulate their relations in terms of the creation and termination of labor relations, the wage system, labor standards, the amount of wages, taking into account the legally established minimum wage, allowances, additional payments, bonuses, rewards and other incentive, compensation and guarantee payments, norms of working hours and rest with observance of the normal duration of working hours per week, duration of weekly uninterrupted rest and other rights and guarantees , defined by the Labor Code.
Holidays in the conditions of a simplified regime of labor relations
Under the conditions of the simplified regime, annual paid vacations and vacations without salary are granted to employees in accordance with the procedure and conditions specified in Articles 79, 84 and 115 of the Labor Code, taking into account the features defined in Article 49-5 of the Labor Code.
Regulation of labor relations of employees and employers, which are covered by the simplified regime, is carried out by the labor contract.
By mutual agreement of the employee and the employer, an open-ended or fixed-term employment contract may be concluded. A fixed-term employment contract is concluded for a specified period of time or for the time of performing certain work.
If the fixed-term employment contract does not specify the conditions for its renewal, such employment contract is considered terminated within the term specified in the contract
