Permission for the supervision of employees with the help of recording devices, abandoning of Dictionary of Occupational Titles, provision of written explanation for the rejection of job application and other major changes to the new Labor Code.  

The adoption of the new Labor Code is planned for June 2017. The draft law is currently pending consideration by the Verkhovna Rada of Ukraine. The draft was adopted in the first reading in 2015, but for almost 1,5 years already it has been improved by the working group which consists of representatives of government and labor unions, lawyers, and professional experts. During this period over 2000 amendments were considered and recommendations of the International Organization for Migration (IOM) were taken into account. Let’s take a closer look at changes which are likely to appear in the new Labor Code after its publication.  

It was one of the most disputable issues of the agenda during the preparation of the first draft as well as its further improvement. Some members of parliament (MPs) participating in the working group proposed to give employers the right not to inform employees about the application of audio and video recording devices in offices. Though, labor unions’ representatives refuted this proposition. Other MPs insisted that employers should be obliged not only to inform in writing about the application of such devices but to receive written consent from employees on its usage as well.  

The compromise was finally achieved, stipulating that employer should inform employees on the application of such devices in free format, but are obliged to mark premises where the video monitoring is conducted with special signs. Though, the receipt of the consent from the employee is not stipulated by the draft Labor Code. At the same time, there is a provision in the draft Labor Code which will be considered during the second reading providing that conditions of devices application should be laid out in the labor contract or in local statutory documents of the employer.  

The updated draft of the Labor Code obliges the employer to provide a written explanation of the reasons for rejection of the job application, in case the candidate requested such explanation. Implementation of this provision may put an additional burden on courts: it will become easier to appeal the rejection of job application if the candidate will have written a justification of the inconsistency of the rejection. 

Currently, there is a provision obliging an employer to notify the employee on the dismissal two months in advance. In the second draft of the Labor Code, it’s indicated that notification on dismissal may be replaced with the financial compensation. Though, the current version of the Labor Code of Ukraine doesn’t prohibit negotiation of dismissal conditions between the employer and the employee, including reaching agreement on financial compensation to the employee in case of dismissal. The reason for dismissal will be indicated as «based on parties’ agreement».  

This provision was aimed at liberalization of work conditions. At the same time, participants of the working group tried to simplify it in order not to complicate the Labor Code with detailed descriptions of employer-employee relations. The provision which allows employees to work remotely (outside the employer’s office) is a vivid example of such liberalization.  

At first, participants of the working group wanted to make these Dictionaries obligatory in order to facilitate standardization of job titles and employees’ functions. Though, representatives of the private sector rejected this initiative and IOM didn’t support it either. IOM reiterated that it would be impossible to standardize job functions for the whole employment market as employees obligations are constantly changing depending on the company’s needs. That’s why functions and the scope of responsibilities of employees with the same job title may differ depending on the size of the company.  

Thus, the provision obliging employers to use Dictionaries of Occupational Titles, regulatory standards as well as other normative and technical documents regulating relations between the employer and employee was excluded from the Code. In case the new draft of the Labor Code will be adopted, the usage of the Dictionary of Occupational Titles will become redundant. There will be no need to adjust job titles to the formal list or to assign a title to the job that will fit into the regulatory framework.  

Adoption of the new Labor Code is a priority, as currently the labor relations are regulated by the Soviet laws adopted back in 1971. Of course, it’s quite complicated to balance interests of employers and employees in one document and thus both parties may express their dissatisfaction with adopted changes. Though, employees may find themselves in more disadvantageous position as labor unions lack authority.