Ministry of Economy Completes Drafting of a New Labor Code

The Ministry of Economy, Ecology and Agriculture of Ukraine has announced the completion of the draft of a new Labor Code—a document intended to become the most far-reaching reform of labor relations since Ukraine’s independence.

The draft has undergone consultations with employers, trade unions, experts, and international partners and is now being prepared for consideration by the Cabinet of Ministers. Following this, it will be submitted to the Verkhovna Rada of Ukraine.

What the New Code Changes

The Government presents the document as a comprehensive modernization of labor legislation. It предусматривает the digitalization of key procedures, a transparent mechanism for determining the minimum wage, and an expanded range of types of employment contracts.

According to Vice Prime Minister of Ukraine T.V. Berezhna, the document ensures a “balanced approach” to the rights of employees and employers and implements key EU directives.

Among the priorities are enhanced protection for employees with family responsibilities, veterans, and persons with disabilities, as well as clear rules governing remote work, flexible working hours, and part-time employment.

The Government also places particular emphasis on preventing undeclared work and regulating new forms of employment that have become more widespread in recent years.

Inspections and State Supervision

The draft introduces a risk-based labor inspection model aimed at making inspections more predictable and standardizing the rules of interaction between businesses and the state. This approach reflects a broader reform of the State Labor Service previously announced by the Government, which envisages the redistribution of certain powers among other authorities.

Why the Reform Is Timely

According to the State Tax Service, during the first seven months of 2025 alone, auditors identified nearly two thousand cases of violations of labor legislation, including improper employment formalization. Despite the Government’s expansion of employment support programs, including compensation schemes for employers, the problem of shadow employment remains significant.

Government officials emphasize that the new Labor Code is intended to serve as the foundation for a future Employment Strategy and the “Obrii” labor market reform, which is focused on increasing labor productivity and expanding formal employment in Ukraine.

For more details, see: https://komersant.ua/ukraina-hotuietsia-onovyty-trudovi-pravyla-uriad-finalizuie-proiekt-novoho-trudovoho-kodeksu/.

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