Improving labour relations for business

On the 19th of August 2022 the Law "On Amendments to Certain Legislative Acts of Ukraine on Simplifying the Regulation of Labour Relations in the Field of Small and Medium-Sized Entrepreneurship and Reducing the Administrative Burden on Business Activity" entered into force.

Such changes, finally, rid the Code of Labour Laws of contradictions related to the strict regulation of labour relations, contrary to the principles of market self-regulation and modern principles of personnel regulation.

The Law foresees, in particular, the following changes:

• a contractual regime for the regulation of labour relations is introduced with the possibility, at the sole discretion and with the agreement of the parties, to include provisions regarding the creation and termination of labour relations, labour standards, the amount of wages, allowances, surcharges, bonuses, rewards and other incentives, compensations and guarantee payments, norms of working hours and rest, and other rights and guarantees, defined by the Code of Labour Laws, in the written labour contract;
• such a contractual regime is offered for interaction between an employee and an employer (an entity of a small or medium-sized business, the number of employees per year does not exceed 250 people); an employer and an employee whose salary is more than 8 minimum wages per month.