The Cabinet of Ministers Approves the Draft Labor Code of Ukraine

At its meeting on 7 January 2026, the Cabinet of Ministers of Ukraine approved the draft Labor Code of Ukraine, launching a comprehensive reform of the labor market.

Key proposed changes include:

1. Clear definition of employment relationships.
   The Code establishes eight specific criteria for determining the existence of an employment relationship. This is intended to reduce legal uncertainty and help bring employment out of the shadow economy.
2. Flexible employment contracts.
   The number of types of employment contracts is increased from six to nine. The Code clearly regulates modern forms of work, including remote work, home-based work, and work with non-fixed working hours.
3. Digitalization of labor relations.
   Electronic documents are legally equated with paper documents.
4. Transparent mechanism for determining the minimum wage.
   The Code introduces a clear mechanism for setting both monthly and hourly minimum wages in line with European Union standards. The minimum threshold will be defined as a percentage of the average wage, as determined by the Government.
5. Flexible working arrangements for employees with children.
   The Code secures the right to flexible forms of work (remote work, work from home) and provides expanded opportunities for working parents.
6. Reform of the labor inspection system.
   A risk-based approach to labor inspections is introduced.
7. Expanded employment opportunities for young people.
   In particular, the Code introduces a separate mechanism to safely combine education with first employment through an apprenticeship employment contract.

The adoption of the Labor Code represents an important step toward Ukraine’s further European integration, as it provides for the implementation of more than 30 European Union directives, regulations, and conventions of the International Labour Organization.

The next step will be consideration of the draft Labor Code in its first reading by the Verkhovna Rada of Ukraine.

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