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Legal regulation of hourly wages

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Ланткевич Кирило
Ланткевич Кирило
Lawyer
Ukraine / Dnipropetrovsk Oblast

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Publication date: 18.04.2024

I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.

Wages at enterprises in Ukraine are regulated by the country's legislation and contain a number of requirements that employers must take into account. The main principles of remuneration in Ukraine include:

Minimum Wage: The government sets a minimum wage that must be paid to workers. This amount is periodically reviewed and updated.

Wage rates: Employers must set wage rates for different categories of workers based on qualifications, experience and other factors.

The procedure for determining wages: The legislation defines the procedures and criteria for determining wages, including the regulation of hourly, monthly and other forms of wages.

Additional benefits: Employees may be provided with additional benefits such as bonuses, compensation for working on weekends or holidays, additional payments for harmful or dangerous working conditions, etc.

Taxes and deductions: Taxes and other mandatory payments are deducted from the wages of employees in accordance with the tax legislation of Ukraine.

Protection of workers' rights: Legislation provides for the protection of workers' rights in the field of remuneration, including the establishment of mechanisms for consideration of grievances and conflicts related to remuneration.

Legal features of hourly wages at the enterprise:

Hourly wages are a payment system where an employee is paid for each hour they work. This system can be used in various businesses, especially in those areas where working hours can vary significantly or where flexibility in work schedules is required.

To determine the hourly wage at the enterprise, several factors must be taken into account:

Hourly Rate: This is the amount an employee receives for each hour worked. The rate can be determined for each type of work separately or have the same amount for all employees.

Work schedule: Employees may have different work schedules, so it is important to determine what time they work and how many hours per week will be worked

Additional Payments: Sometimes additional payments are added to the base hourly rate, such as performance bonuses, weekend or holiday pay, etc.

Taxes and Deductions: Wages paid may be subject to taxes and other deductions in accordance with national or regional laws.

These factors help to determine the total compensation to the employee for working at the company for a certain period of time.
Part-time pay has both advantages and disadvantages that should be considered:

Advantages:

Flexibility: For employees, it allows more flexibility in choosing a work schedule and changing it according to needs.

Fairness: The payment process becomes more transparent, as the employee is paid for each hour worked, rather than for a fixed period.

Productivity incentives: Employees can be incentivized to work longer hours or more intensively because their wages are directly related to working hours.

Disadvantages:

Management costs: Hourly pay can lead to increased HR costs, as each employee's hours must be tracked.

Unstable income: For workers, hourly pay can mean unsteady income, especially if their work schedule is erratic or if there are insufficient hours.

In general, the establishment of specific wage systems, determination of forms, labor standards and other aspects is implemented by concluding a collective agreement at the enterprise, in which all these features are specified. If the enterprise does not have such an agreement, then the issue of payment of labor in accordance with Art. 97 of the Labor Code are negotiated by the employer with the trade union organization, and in its absence - with the body authorized to represent the labor collective.

Legal assistance in labor disputes: 

There are cases when employers do not pay wages in accordance with the wage system established at the enterprise. In connection with this, the so-called individual labor contract arises, for the settlement of which the employee may need the consultation of a labor lawyer. A labor dispute can be resolved both out of court and by going to court, but in any case, a labor law lawyer will accompany his client and ensure a successful settlement of the dispute. In particular, the labor dispute lawyer will prepare procedural documents, collect evidence, represent the client's interests in court and implement the chosen defense strategy.

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