Seeking for the balance of powers
For a long time, the Labour Code of Ukraine has remained substantially unchanged, incorporating Soviet model of labour relations with its pro-employee approach and disregarding the needs of the market economy. There has been a call for a new law, which would even out the imbalance of power between employers and employees, legitimize modern types of employment and make the labour market more flexible. Giving to employers more discretion in hiring and firing staff, establishing compensations and benefits, work regimes and conditions on a contractual basis envisaged by the Draft should add more flexibility to the relations of the parties and, as a result, help reduce the shadow employment in Ukraine.
At the same time, the Draft has been blamed widely for making employees less socially secure that, eventually, may result in the increasing labour migration and unemployment.
Of course, the Draft requires significant improvement and elaboration. Its adoption in 2020 is very likely, particularly because it has been initiated by the Government which is now the strongest player on the Ukrainian political arena. Hopefully, by the moment of adoption all imperfections of the Draft are given considerable thought by MPs and the relevant Parliamentary committee. That will result in making the new Law on Labour a functional tool to balance the needs of both employers and their staff.
By Inna Kostrytska, Senior Associate, and Yuliya Bleshmudt, Associate, Integrites