The ongoing war (martial law) in Ukraine has radically changed all spheres of life, and labor relations are no exception. Under martial law, the business community has faced unprecedented challenges that require a deep understanding of the law and adaptation to new realities. Understanding the importance of legal certainty in these difficult times, the ADVICE law firm has prepared an overview of the most pressing issues related to labor relations and provides practical recommendations for employers.
Legislative changes: a new focus on flexibility and protection
With the start of the full-scale invasion, the Verkhovna Rada of Ukraine adopted a number of legislative acts aimed at regulating labor relations under martial law. The key document was the Law of Ukraine “On the Organization of Labor Relations under Martial Law,” which made significant changes to the Labor Code of Ukraine.
Key changes to note:
• Option to suspend employment contracts: This provision allows employers and employees to temporarily suspend their obligations to perform work and pay wages, respectively. It is important to understand that suspending an employment contract does not terminate the employment relationship.
• Flexible work schedules and remote work: The law gives employers more freedom in establishing work schedules, including the possibility of introducing remote work without additional agreements if this is due to martial law.
• Features of dismissal: Basic guarantees for employees are retained, but some dismissal procedures may have their own features, especially in connection with the liquidation of an enterprise or staff reductions during martial law.
• Leave: The law temporarily limits the duration of annual basic leave to 24 calendar days. It also defines the specifics of granting unpaid leave, in particular for internally displaced persons.
• Conscription: Guarantees for employees called up for military service are retained, including job and position retention.
Key challenges for employers and how to overcome them
1. Relocation of businesses and employees: Moving a business to safer regions of Ukraine or abroad requires clear documentation of employment relationships. It is important to consider the specifics of transferring employees, changes in essential working conditions, and the possibility of introducing remote work.
2. Suspension of employment contracts: Although this option is a necessary step for many companies, its application requires careful legal justification. It is necessary to clearly establish the grounds for suspension, the terms and conditions for resuming work, and to inform employees.
3. Dismissal and staff reduction: If it is necessary to reduce staff, it is important to comply with all procedures provided for by law in order to avoid legal disputes. Particular attention should be paid to categories of employees who have additional guarantees of protection against dismissal.
4. Interaction with mobilized employees: Employers must ensure that the absence of such employees is properly documented, that their jobs and positions are retained, and that they understand the specifics of their return to work after demobilization.
5. Remuneration: In conditions of economic instability, the issue of timely and full payment of wages becomes critically important. It is necessary to take into account the possibility of changes in the wage system, the introduction of downtime, and its formalization.
6. Occupational safety: Ensuring safe working conditions in the context of hostilities or the threat of hostilities is of particular importance. Employers should review and adapt their safety protocols, briefings, and evacuation plans.
Recommendations from ADVICE: The key to stability
• Thorough study of legislation: Stay up to date with all changes in labor legislation relating to martial law. Regularly review official sources of information.
• Legal support: Do not neglect the advice of qualified lawyers. The specialists at the ADVICE law firm will help you to properly formalize all labor relations, minimize risks, and avoid conflicts.
• Open communication with employees: Transparency in relations with the team will help maintain trust and mutual understanding. Inform employees in a timely manner about any changes in working conditions.
• Documenting all decisions: Any actions related to changes in working conditions, suspension of contracts, dismissals, etc., must be properly documented. This will serve as your protection in the event of possible disputes.
• Adaptability and flexibility: In today’s environment, it is important to be prepared for rapid changes and to adapt your activities to new circumstances.
Labor relations under martial law are a complex maze that requires not only knowledge of the law, but also sensitivity to the needs of employees. The ADVICE law firm is ready to provide comprehensive support to your business in resolving any legal issues arising in the field of labor relations.
Contact us and we will help you not only comply with the letter of the law, but also maintain the stability and efficiency of your team.
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