New changes in the Codex of Laws on Labor as a driving force behind the labor reform.

Not long ago, on 2 February to be precise, the Law of Ukraine “On changes to the Codex of Laws on Labor in Ukraine” came into force. It is worth noting that these changes are not overarching. They had been kept under the veil of secrecy until the day they were actually enacted. Therefore, let’s take a look at how significant such changes are and what their implications might be.

Action Group, which has been successfully active in Ukraine since 2001 and has its representative offices in 26 countries over the world, is implementing many activities in this sector, aiming to contribute to its rapid growth. It’s an open secret that no entrepreneur would welcome the idea of going through the procedure of an audit. Some of them might be even afraid of it. This can also be said even about the most respectable and law-abiding businesspeople. This phenomenon may occur due to the low level of media literacy and weak coordination between the state and entrepreneurs, which, in turn, has led to the latter requiring concrete answers and a softer and more flexible system of fines.   

A positive change that concerns employers lies in decrease in fines. As of now, the fine amount may vary from 1 to 30 minimum wages. Before the law was adopted, the highest fine stood at 100 minimum wages. If an employer manages to pay the fine within the period of 10 days, only half of it would be normally paid. For the time being there is no clear understanding of what measures will be taken in case of a repeated violation or first warning. Needless to say, this matter is of a crucial importance and its solution should not be postponed. Another important part of changes concerns the section of audits. A question of sending a notice prior to the audit had been contentious. It was then agreed that there would be no notices at all. Is it a good solution? It remains to be seen.

The reason for a possible audit, obtained from different sources, is also of essential importance. In this case it all depends on employees’ conscience. If their complaints prove serious and reasonable, this will only help overcome problems in the labor sector. Otherwise, we will need to react on any complaint, even the most absurd one posted on social networks.

To sum up, one may say that our agency has completed a mammoth task of discussing this issue and making our own contribution. It is important to bear in mind that sanctions towards businesspeople have been loosened. This will encourage them to do transparent business and convince them that there never will be any unfounded fines. A more concrete list of audits was also published, which is another important step on the way to implementing the labor reform. However, there is still a lot to be done, including solving the issues that are still up in the air.

The main goals remain the same – restoring order in the sphere of labor; implementing the labor reform; revealing and eliminating the hidden employment and major labor violations.