Ukraine is preparing to update labor rules: the government is finalizing the draft of the new Labor Code
12 December 20:25
The Ministry of Economy has announced the completion of the new Labor Code, a document that is expected to be the largest labor reform since independence, reports "Komersant Ukrainian".
The draft has been consulted with employers, trade unions, experts and international partners and is now being prepared for consideration by the Cabinet of Ministers, after which it will be submitted to the Verkhovna Rada.
What does the new code change?
The government positions this document as a systemic modernization of labor legislation. It envisages the digitalization of key procedures, a transparent mechanism for determining the minimum wage, and an expansion of the list of types of employment contracts.
According to Deputy Prime Minister Tetiana Berezhna, the document provides a “balanced approach” to the rights of employees and employers and implements key EU directives.
The priorities include enhanced protection for employees with family responsibilities, veterans, and people with disabilities, as well as clear rules for remote work, flexible schedules, and part-time work.
The government also emphasizes preventing undeclared labor and regulating new employment models that have become more common in recent years.
Inspections and state supervision
The draft law introduces a risk-based model of labor inspections, which should make inspections more predictable and unify the rules of interaction between business and the state. This approach reflects the broader reform of the State Labor Service, which was previously announced by the government and involves the redistribution of some of its powers to other agencies.
Why the reform is timely
According to the State Tax Service, in just seven months of 2025, auditors found almost two thousand cases of violations of labor laws, including improper registration of employees. Despite the fact that the government is expanding employment support programs, including compensation for employers, the problem of shadow employment remains significant.
Government officials emphasize that the new code should serve as the foundation for the upcoming Employment and Labor Market Reform Strategy “Obriy”, which is focused on increasing productivity and expanding formal employment in Ukraine.
