Draft Law No. 5054-1 on Amendments to the Labour Code of Ukraine Regarding the Regulation of Certain Issues of Labour Relations was registered in the Parliament

In particular, the document amends the Labour Code:

1. Definition of relations regulated by labour legislation;

2. Definition of labour relations and their parties;

3. The definition of an employment contract is clarified;

4. The signs of the existence of an employment relationship are established;

5. The Law regulates succession in labour relations and its conditions;

6. Under certain conditions, it provides for the possibility of concluding an employment contract in case of re-employment of employees with whom the employment contract was terminated in the event of liquidation of the enterprise;

7. Amendments to the terminology.

However, we have found a corruption risk here.The draft law creates grounds for arbitrary interference in the activities of business entities:

• The gaps in legal regulation allow government agencies to act at their own discretion. This will contribute to corruption risks and possible abuse.

• Adoption and implementation of the draft law will also create preconditions for arbitrary qualification of civil and commercial relations as labour relations.

• As a result, an individual entrepreneur will be forcibly deprived of the constitutional right to entrepreneurial activity established by Article 42 of the Constitution of Ukraine.

 

To eliminate corruption risks, the draft law needs to be revised.

More details in our opinion.