Prime Minister of Ukraine Yuliia Svyrydenko announced that the Cabinet of Ministers has approved the draft of a new Labour Code and submitted it to the Verkhovna Rada for consideration. The document is intended to replace the 1971 Code of Labour Laws and to initiate a large-scale renewal of labour market regulations.
The key idea of the draft is to move away from the Soviet model of labour relations and to bring Ukrainian legislation closer to the standards of the EU and the International Labour Organization (ILO). The code defines eight criteria of employment, most of which indicate an employment relationship rather than cooperation under a civil contract. This means fewer grey schemes, but greater attention to proper staff formalisation.
The draft expands the range of employment contracts and directly regulates remote work, home-based work and employment with non-fixed working hours. Employees will be able to combine several contract formats, and all contracts will be concluded in written form.
The document allows the use of electronic documents on an equal footing with paper ones in labour relations. It also establishes a transparent mechanism for determining the minimum wage as a share of the average wage, in line with EU approaches, and sets clear rules for overtime pay. For companies, this may increase labour costs, especially during peak seasons.
The code also strengthens requirements for recording working time and rest periods. Parents receive more opportunities for flexible work, and both mothers and fathers will be able to take part of parental leave for childcare separately.
Analytical reviews note that the code details dismissal procedures, introduces provisions against mobbing and harassment, and enshrines the employee’s right to rest and to disconnect from work communications outside working hours. This may change court practice in labour disputes.
For business, an important signal is the reform of the labour inspectorate. The draft provides for a risk-based approach that will focus inspections on problematic companies, and a clear system of fines for violations, including undeclared employment. For compliant businesses, this reduces pressure but increases requirements for internal procedures and documentation.
Experts agree that the code significantly complicates, but at the same time makes more transparent, the rules of the game. Businesses will need to review HR processes in advance, while employees will receive clearer guarantees and protection mechanisms.
The next step will be consideration of the draft law at first reading in parliament. The government expects support from MPs and further refinement of the document between readings.
Photo: OKNA.ua
The new Labour Code offers businesses flexible contracts and electronic documents, but carries risks of higher costs and stricter oversight.
The government of Ukraine submitted a draft of the new Labour Code to parliament
ID no: 24091
Dec 26, 2025
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