Employment Law Review 2013/2014: Ukraine

  • 39 views
Uploaded on

There have been two recent legislative reforms in the Ukraine. The new Law of Ukraine “On Public Employment" was adopted on 5 July 2012 and came into force on 1 January 2013. This legislation …

There have been two recent legislative reforms in the Ukraine. The new Law of Ukraine “On Public Employment" was adopted on 5 July 2012 and came into force on 1 January 2013. This legislation introduced a number of changes to employment regulation in the Ukraine. In addition, the Law of Ukraine “On Personal Data Protection” was amended on 3 July 2013 and came into force on 1 January 2014. To find out more about these two recent reforms have a look at our Ukraine Employment Law Review 2013/2014.

With thanks to our Ukrainian member firm Vasil Kisil & Partners. Originally posted on the Ius Laboris Knowledge Base: www.globalhrlaw.com

More in: Law , Business , Career
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
39
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Employment Law Review 2013/2014: Ukraine Publication Date: 4 April 2014 | Author(s): Oksana Voynarovska, Vladyslav Podolyak Member Firm(s): Vasil Kisil & Partners Country: Ukraine What were the material changes to employment legislation in the Ukraine in 2013-2014? There have been two recent legislative reforms in the Ukraine. The new Law of Ukraine “On Public Employment” was adopted on 5 July 2012 and came into force on 1 January 2013. This legislation introduced a number of changes to employment regulation in the Ukraine. In addition, the Law of Ukraine “On Personal Data Protection” was amended on 3 July 2013 and came into force on 1 January 2014. I. Employment developments Concept of “subsidised categories of employees”. The new Law of Ukraine “On Public Employment” imposes employment quotas on certain employers for “subsidised categories of employees”, such as: • pre-retirement employees (men between 50-60 years old and women between 45-55 years old) • young specialists (who are employed for the first time during the first six months after graduation) • unemployed persons • disabled persons • single parents (mothers and fathers) Quotas for subsidised categories of employees. For companies with 20 or more employees in the previous calendar year, the workplace quota for the employment of subsidised categories of employees is 5% of the workforce (e.g. 1 person for a company with 20 employees; 5 people for a company with 100 employees). These quotas exclude disabled employees (who are entitled to employment under a separate quota system). Quotas for disabled employees. For companies with between 8-25 employees in the previous calendar year, the workplace quota for the employment of disabled persons is one position. For companies with more than 25 employees in the previous calendar year, the quota is 4% of the workforce (e.g. 1 person for a company with 25 employees; 4 people for a
  • 2. 2 company with 100 employees). Financial benefits for companies facilitating employment. Companies can benefit from social tax refunds of: • 50% for every new employee hired to the newly created workplace, provided that the monthly salary of that employee is more than three times the minimum wage (according to Article 24 of the Law “On Public Employment”); • 100% for every unemployed subsidised person hired by the company for a period of more than two years; and • 100% for every unemployed person hired by the company for a period of more than two years in priority economic spheres which are approved by the Government (such as agriculture, food industry, energy sector, water supply, automotive industry and telecom). Regulation of outsourcing. In the past, there was no legal framework for outsourcing. Since 1 January 2013, companies engaging in employment agency activities (such as job placement services) and other companies which provide job placement, vacancy search and/or employment assistance services must obtain a permit from the Ministry of Social Policy in Ukraine (although the procedure for obtaining the permit is not yet in force). There are penalties for engaging in any of these activities without a permit. Furthermore, it is compulsory for companies who provide employment-related services in foreign countries to obtain a licence (special document which is mandatory for a number of business activities in Ukraine and which differs from a permit). New anti-discriminatory measures. Any discrimination based on age or membership of a trade union or other organisations is unlawful. Since 1 January 2013, it is now unlawful for job adverts to specify requirements relating to the age or sex of the candidate or require the candidate to provide the employer with information about his or her private life. Paid internship. A new legal framework for paid internship contracts between the intern and the organisation is now in force. II. Data protection developments “Risky data”. The Ukrainian Parliament Commissioner for Human Rights (the Ombudsman) became the new privacy regulator on 1 January 2014. On 8 January 2014, the Ombudsman approved new procedures for data processing and introduced the legal term “risky data”. “Risky data” includes data on: race, ethnic or national origin; political, religious and ideology beliefs; membership in political parties, trade unions or ideology NGOs; health; sexual life; biometrical data; genetic data; administrative or
  • 3. 3 criminal liability records; criminal prosecution and police investigation measures; being victim of certain violence; personal location. New notification rules. In the past it was mandatory for companies to register databases containing personal data. Since 8 January 2014, companies are only required to notify the Ombudsman about “risky data”. When processing any categories of “risky data”, the data controller must notify the Ombudsman in accordance with the new data processing procedures. Notification may be carried out in different ways (e.g. by letter, e-mail, fax, etc) and the Ombudsman has approved notification templates to streamline the procedure for data controllers. Companies that process “risky data” about their employees (e.g. health records, temporary disability information) may be exempted from the notification procedures if that data is processed for employment purposes only. Developments in standard data protection procedure. Companies which process employee data should ensure their privacy policies comply with the requirements of the new data protection procedures for data processing. Privacy compliance audit procedure. Since the Ombudsman became the new regulatory authority, it has approved a new privacy compliance audit procedure and is authorised to perform data compliance audits. The privacy compliance audit procedure contains the rules governing audits and describes the types of the audits that may be undertaken (such as on- site or internal, scheduled or unscheduled). Following an audit, the Ombudsman or its authorised representative can issue an order for privacy compliance. This order is binding and failing to comply will give rise to liability. Penalties for data protection violations. Penalties can be imposed on companies for non-compliance with personal data protection rules. The penalty for privacy violations has increased and the maximum penalty for certain privacy violations is UAH 34,000 (approx. EUR 3,400). Originally posted on the Ius Laboris Knowledge Base: www.globalhrlaw.com About Ius Laboris Ius Laboris is an alliance of law firms offering employers cross-border employment and pensions law advice. It has 1,300 specialist HR lawyers in over 150 cities and 44 countries. Ius Laboris offers access to the best
  • 4. 4 local HR law experts in one global team with 20% more ranked employment lawyers (Chambers & Partners, November 2013) than any other global HR legal services organisation. Further, Ius Laboris has 50% more recommended lawyers than its nearest rival in a recent survey in PLC's employment law guide. Clients include many household names as well as multinational companies in all sectors ranging from energy, retail and technology to pharmaceuticals. For more information on Ius Laboris, please visit iuslaboris.com.