On the Draft Law Regarding Timely and Full Payment of Wages

On April 30, 2025, the Verkhovna Rada of Ukraine, at its plenary session, adopted as a basis the Draft Law of Ukraine “On Amendments to Certain Laws of Ukraine Aimed at Strengthening the Protection of Employees’ Claims Regarding Wage Arrears, Including in the Event of Employer Insolvency” (Reg. No. 9510 dated July 19, 2023), submitted by Members of Parliament H.M. Tretyakova, O.V. Bondarenko, P.V. Frolov, and a total of 17 MPs.

This draft law provides, in particular, for the following:

– Employers will be required, in the event of a delay in wage payments exceeding 15 calendar days after the end of the month for which wages are due, to pay the employee a penalty. The amount and conditions of this penalty shall be defined by the employment or collective agreement, but not less than the National Bank of Ukraine’s base interest rate per annum for each day of delay;

– Employees shall have the right to temporarily suspend work if wage payments are delayed for more than 15 calendar days;

– Employees shall be entitled to compensation in the amount of three average monthly wages (calculated over the twelve months preceding the month in which bankruptcy proceedings are initiated or the employment contract is terminated, if such termination occurs before the initiation of said proceedings).

The draft law also stipulates that compensation in the event of the employer’s insolvency shall be paid only for claims submitted in commercial proceedings concerning the employer, provided that the date of commencement of bankruptcy proceedings occurs no earlier than the date on which the proposed law enters into force.

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