Ukraine is expected to move away from outdated Soviet norms
Key innovation adopted yesterday on the basis of the bill №5371 on amendments to the Labor Code of Ukraine, voted for by 246 deputies – the creation of a contractual regime for labor relations for small and medium business and fixing it as the main means of regulating these relations.
Such a contractual regime is established if the employer is not a legal entity under public law, but is a small or medium-sized business with no more than 250 employees, and this regime can be applied to employment relationships that arise between employer and employee, whose salary is more than 8 minimum wages per month (today it is more than 52 thousand UAH).
According to the provisions of the project, within the framework of a free employment contract, the parties will regulate their relations at their own discretion: regarding the system and regime of payment, employment and dismissal, working hours, working week, holidays and weekends, etc.
After all, in the modern world there are hundreds of new creative professions that require a special regime of organization and remuneration.
At the same time, this free employment contract has everything necessary to protect the employee – it must contain all the guarantees for the employee provided by international conventions, as well as essential conditions (place of work, date, term, terms of payment).
It is expected that the implementation of this bill will finally lead to the modernization of archaic labor legislation in Ukraine, departure from outdated Soviet norms, approximation to global trends of leading economies. The document will allow workers and employers to more flexibly change the terms of cooperation, reduce administrative costs, which will ultimately allow to establish better working conditions. By mutual agreement, they will be able to conclude employment contracts, which will determine most of the terms of cooperation, which will eliminate the need to draw up dozens of extra papers and pay archaic fines, as well as increase wages for workers with flexible working conditions.
Currently, experts consider the following problems of Ukrainian labor legislation critical:
- outdated and too complex system of rationing and remuneration of labor, rationing and accounting of working time, granting leave, etc .;
- inconsistency of outdated methods of state regulation of labor relations to the realities of a market economy;
- critical bureaucratization and complexity of labor relations for employers and employees, which negatively affects the dynamics of economic processes and suppresses economic incentives;
- excessive complexity of current personnel accounting procedures and a large array of personnel documentation, which requires significant amounts of financial, time and human resources;
- unjustified pressure on business from regulatory authorities and the constant threat of sanctions and fines for violating numerous bureaucratic procedures under outdated labor laws.
The bill solves these problems.
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