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A new approach to the regulation of labor relations by agreement

22 August, 2022 Newsletters

Law of Ukraine «On amendments to certain laws of Ukraine on simplifying regulation of labor relations for small and medium entrepreneurship and decrease of administrative burden on entrepreneurial activity» introduces a simplified regime for the regulation of labor relations, where the employer and employee independently determine conditions of labor relations.

By mutual agreement of the parties, the employment agreement may define additional rights, duties and responsibilities of the parties, conditions for material support, and organization of the employee’s work, conditions for termination or early termination of the agreement. If the employee and the employer do not reach an agreement on some issue in the employment agreement, then the provisions of the Labor Code of Ukraine shall apply.

The simplified regime of regulation of labor relations shall be applied in the following cases:

  • between an employee and an employer who is a subject of a small or medium-sized business with an average number of employees for the reporting period (calendar year) of no more than 250 people (according to the data of the corresponding statistical reporting with the corresponding indicator);
  • or between an employer and an employee whose monthly salary is more than 8 minimum salaries established by law (UAH 52 000).

The full version of the article is available in Ukrainian by the link.

Kind regards,

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