In January 2026, a draft of a new Labor Code was submitted to the Verkhovna Rada of Ukraine for consideration; it is intended to replace the current Labor Code of 1971. The need to update it stems both from the outdated nature of the current regulations and from the need to adapt labor legislation to modern economic conditions and European Union standards. <\/p>\n
The proposed bill calls for comprehensive changes in approaches to the regulation of labor relations, particularly with regard to the formalization of employment, flexible employment arrangements, the digitization of processes, and strengthening the role of the employment contract. <\/p>\n<\/p>\n
One of the key changes is the establishment of the characteristics of an employment relationship, on the basis of which a relationship may be recognized as an employment relationship regardless of its formal structure. <\/p>\n
This approach is of practical significance in cases where cooperation is formalized through civil law contracts or involves individual entrepreneurs. If there are established signs of control, subordination, systematic performance of work, and other criteria, there is a risk that such relationships will be reclassified as employment relationships. <\/p>\n
For employers, this means the need to review existing models of cooperation and assessing potential legal risks. <\/p>\n<\/p>\n
The bill provides for an expansion of the types of employment contracts and the ability to determine their terms by mutual agreement between the parties. <\/p>\n
Specifically, it is proposed to introduce the following types: <\/p>\n
These changes are aimed at legalizing flexible forms of employment that are already in use in practice. At the same time, expanding contractual freedom requires a more careful approach to drafting contract terms, as these terms will determine the scope of the parties\u2019 rights and obligations. <\/p>\n<\/p>\n
The bill provides for the possibility of conducting employment relationships electronically. <\/p>\n
Specifically, the following is permitted: <\/p>\n
The introduction of such tools should simplify HR administration and enable the remote onboarding of employees. <\/p>\n<\/p>\n
The bill also calls for changes to the regulations governing working hours and rest periods. <\/p>\n
Specifically: <\/p>\n
These changes are intended to balance the interests of employees and employers, but they may affect the organization of work processes and business costs. <\/p>\n<\/p>\n
Special attention has been given to regulating the termination of employment relationships. <\/p>\n
The bill provides for a more structured approach to the grounds and procedures for termination, as well as the option to specify the relevant terms in the employment contract. <\/p>\n
This is expected to reduce the number of disputes related to procedural formalities, but at the same time, it increases the importance of properly preparing documents. <\/p>\n<\/p>\n
It has been proposed to change the approach to state oversight of compliance with labor laws. <\/p>\n
In particular, the plan calls for the use of a risk-based approach, under which inspections will focus on employers with a higher risk of violations. <\/p>\n
This approach is intended to reduce the administrative burden on law-abiding businesses. <\/p>\n<\/p>\n
Despite the positive changes, certain provisions of the draft may pose challenges in practice. <\/p>\n
The main risks include: <\/p>\n
The draft of Ukraine’s new Labor Code aims to modernize labor legislation and adapt it to current labor market conditions. <\/p>\n
It expands the options available to employers in terms of organizing work, while at the same time raising the standards for the legal formalities of employment relationships. <\/p>\n
If the code is adopted, employers would be well advised to take the following steps in advance: <\/p>\n
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