On Amendments to Certain Legislative Acts of Ukraine on Simplifying the Regulation of Labor Relations in the Field of Small and Medium-Sized Entrepreneurs and Reducing the Administrative Burden on Entrepreneurial Activity*

Categories of workers affected

Workers at private enterprises with staff below 250 employees (near 70% of all employed population)

How it will liberalize dismissal procedure

‘Simplified’ contracts may provide additional grounds for dismissal. Member of trade union could be dismissed on such grounds without the consent of trade union. The employer has the right to dismiss the employee without reason and warning (at will), but with payment of compensation (not less than half of minimum wage)

Most dangerous provisions

Introduction of a special contractual regime on small and medium enterprises (up to 250 employees), namely the possibility of concluding a ‘simplified’ employment contract. The parties will be able to agree on some issues of working time (e.g., extra grounds for overtime)

Number and date of adoption

No 2434 19.07.2022