The Advantages and Disadvantages of New Labor Law Bill / ANALYTICS

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The Advantages and Disadvantages of New Labor Law Bill / ANALYTICS


The participants of the panel discursion agreed that it’s a high time to pass this bill, but they divided in opinion concerning one question: does this Labor Law bill in the interests of employers or employees?

Andrii Nechyporenko noted some of the innovations which can be appreciated by employees and they are following:

  • a refusal to give an employment to the citizen must be given in written form (it gives more chances for the potential contest in the court for employee);
  • a probation period can be set up by mutual consent of two sides;
  • an information gathering about previous place of employment is possible just in the presence of written consent of the employee;
  • the employee who was dismissed because of stuff reduction has a priority in a right to be employed if his established post was renewed during one year after the quit moreover the employer has to inform him in written form about this;
  • the employer has to pay a fine for the employees in case of the salary delay and the amount of the fine depends on the quantity of the days during which the employer has failed to pay on time;
  • the new category of employees is introduced who have “liability to family” and that’s why they have additional benefits;
  • the definition of irregular working hours is sharply defined and how irregular working hours can be adopted in practice;
  • a term while which the employee can be called to account for the violation of the discipline is decreased. One month team has to be counted not from the point when disciplinary case was discovered, but from the day when it was done;
  • a term during which a claim (labour controversy) can be registered is increased from 3 months to 3 years term etc.

The innovations which can be very interesting for the employers might be following:

  • the term construction “changes in organisation of production and labour management” becomes more detailed and new reasons for stuff reduction are given;
  • the employer is not obliged to deliver a work-book and dismissal in case of quit if the employee is absent during last working day as it is now according to the law. The employer will have to give out the work-book and dismissal upon first request according to the new bill;
  • a labour contract can contain a duty to keep a trade secret and if the employee clue it then the employer has a right to dismiss him for such a violation or/and to claim damages in full measures of caused harm;
  • the peculiarities of the labour relations’ regulation in private business where up to 20 employees are working for natural person (businessman);
  • the peculiarities of the labour relations’ regulation with those employees who signed labour contract at a short date etc.

The Labor Law bill suggests in general labour agreement in written form and the contract is liquidated as a legal institution, the bill foresees the peculiarities of labour relations with infants first of all with those, who take part in film shooting or in performance etc.

At the same time the bill contains a number of provisions which has to be improved. Andrii Nechyporenko pointed to unclear division between abstract concept “non-discrimination” in labour relations with demands, which has to be fulfilled according to the employer’s request before giving an employment to the employee, the disadvantages of a new legal institution (labour agreement in written form) and nullifying the labour agreement.

The Labor Law bill keeps the provision which obliges employers to pay salary twice a month. This provision contradicts actual practice of labour-market for a long time. An execution of this provision can be not lucrative neither for employers, nor for employees.

Andrii Nechyporenko is sure that in spite of these and other omissions the Labor Law bill is an issue of current importance. Its positive provisions will be appreciated by employers and employees.

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