The new Law of Ukraine “On Employment of the Population”: changes regarding quota of work places for citizens having additional employment guarantees

23 January, 2013 Newsletters

Since January 1, 2013 the Law of Ukraine “On Employment of the Population” as of July 5, 2012 No. 5067-VI (hereinafter “the new Law”) came into force. The new Law introduces changes to the legislation of Ukraine on employment, in particular, regarding quota of work places for citizens having additional employment guarantees.

In accordance with the previous Law of Ukraine “On Employment of the Population” as of March 1, 1991 No. 803-XII (hereinafter “the previous Law”) quota of work places for citizens having additional employment guarantees was established at the rate “up to 5 percent of the total number of work places” for the enterprises (irrespective of the form of ownership) with more than 20 employees. The new Law stipulates the exact rate of quota as follows “5 percent of the medium-headcount of the previous year”.

The new Law changes the order of quota  determination and employment of citizens on the account of quota. Before year 2013 quota was determined by the local state administrations, executive authorities of the respective counsels in accordance with the state employment centers. Since year 2013 the obligation of quota determination is vested to the employer. According to the previous Law the obligation to assign to the job citizens having additional employment guarantees was vested to the state employment centers (the employer had to solve the issue on employment of such citizens within 3 days and inform the employment center on his decision, or in case of the refusal on employment – to inform on the grounds for refusal)1. New Law provides that the employer is obliged to provide employment of citizens on the account of quota.

The new Law prescribes that “employers may ask the central body of the executive authorities carrying out the state policy in the sphere of employment of population and labour migration2 for assistance in employment of such category of citizens”. In other words, the employers may ask the respective body for assistance, but the obligation of search and employment of citizens with additional employment guarantees is vested to the employer.

The previous Law established the liability of the employer for refusal to employ the citizens of the aforementioned category within the established quota. Every refusal was fined at the amount constituting four minimum wages. Notwithstanding the changed order of quota determination and employment of citizens on the account of quota, the new Law does not envisage the liability of the employer for non-provision of employment of respective categories of citizens on the account of quota, but, as previously, establishes liability only for the refusal to employ citizens having additional employment guarantees. The new Law specifies that the employer is liable only for the ungrounded refusal to employ such citizens and reduces the fine to two minimum wages.

Additionally we are to mention that the new Law introduces amendments to the categories of citizens having additional employment guarantees. Such categories of citizens, inter alia, include people of the preretirement age. According to the previous Law these are the people who have 2 years left to the retirement age. The new Law determines that such people are citizens who have 10 years and less to the retirement age. The previous Law included to the category of citizens having additional employment guarantees women who have children up to 6 years old and single mothers who have children up to 14 years old or a disabled child. The new Law extends the guarantees in employment to any parent (not only women), and also establishes the new category of people who are entitled to additional employment guarantees – one of the parents who maintains person disabled since childhood or disabled person of the I group on his/her own.

Though the new Law leaves many issues unsettled and there is a chance that amendments will be introduced to it, one may forecast the increase of the audits of employers on fulfillment of the quota of work places for citizens having additional employment guarantees. In view of such forecast we draw your attention that according to the new Law quota determination and employment on the account of quota of the respective category of citizens is employer’s own obligation.

The above commentary presents the general statement for information purposes only and as such may not be practically used in specific cases without professional advice.

References:

1Regulation on the order of booking of work places for employment of citizens who require social protection at the enterprises, in organizations and institutions, approved by the Resolution of the Cabinet of Ministers of Ukraine No. 578 as of April 27, 1998.

2“The central body of the executive authorities which carries out the state policy in the sphere of employment of population and labor migration” – State Employment Center in accordance with the Decree of the President as of January 16, 2013 No. 19/2013.

3The central body of the executive authorities which carries out the state policy in the sphere of employment of population and labor migration” – State Employment Center in accordance with the Decree of the President as of January 16, 2013 No. 19/2013. 

Kind regards,

© TOV "KM Partners", 2013

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