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Human Capital

Policy Progress: Draft Law #5388 on Deregulation of Labor Relations was Passed in the First Reading

Policy Progress: Draft Law #5388 on Deregulation of Labor Relations was Passed in the First Reading

The American Chamber of Commerce in Ukraine welcomes passing Draft Law #5388 on deregulation of labor relations (Draft Law) in the first reading by the Verkhovna Rada of Ukraine on September 21, 2021.

The Draft Law envisages the following:

  • parties of the labor contract will be able to regulate and determine additional conditions of employment
  • simplification of the procedure for concluding a fixed-term labor contract and passing the probation period
  • optimization of the procedure for providing the employee with information by the employer regarding conditions applicable to the labor contract

Experts of the Chamber Human Capital Committee expressed support to Draft Law #5388 in general but believe that some of its provisions need to be refined. Hence the Chamber submitted member companies’ proposals for improving the Draft Law and is ready to cooperate with responsible state officials. Once improved, the Draft Law’s adoption will reduce the level of labor relations' bureaucratization and burden on business as well as contribute to legalization of labor relations.