Labour Law Reform
Ukrainian business is on the threshold of a systemic renewal of labour legislation. A draft of the new Labour Code of Ukraine has been registered in the Verkhovna Rada, launching a reform of the labour market and aiming to establish modern rules for employment relations — clear, flexible, and aligned with European approaches.
For SUP, this is a principled and crucial stage. We consistently advocate for the interests of entrepreneurs and believe that new labour legislation should be a logical continuation of the solutions that proved effective during wartime, rather than a return to outdated norms of the 1970s.
Today, a significant share of labour relations is still governed by the Labour Code of 1971. Despite numerous amendments, it does not reflect the realities of the modern economy, digital work models, new forms of employment, or the needs of businesses and employees. Temporary wartime regulations — in particular Laws No. 2136-IX and No. 5371-IX — provided the necessary flexibility, but they will lose force after the end of martial law. Without a comprehensive reform, this creates the risk of legal uncertainty and a return to inefficient rules.
That is why SUP views this draft law as an opportunity to shape a coherent, modern, and predictable legal framework for the labour market.
What is critically important for business
The position of the business community must be clearly heard during the parliamentary review. For entrepreneurs, the key priorities include:
- preserving provisions that simplify the administration of labour relations;
- enabling full digitalisation of HR processes;
- clear and unambiguous definitions of types of employment contracts;
- alignment of legislation with real employment models;
- a risk-based approach to labour inspections — focused on combating undeclared work rather than exerting formal pressure.
We also emphasise the importance of properly defining the characteristics of employment relationships — with a presumption of good faith by the parties, transparent evidentiary procedures, the possibility to remedy violations without immediate fines, and a transition period for business adaptation.
Equally important is the legislative process itself: transparent parliamentary consideration, avoidance of substantial amendments without consultations, and genuine tripartite dialogue between the state, employers, and employees.
Invitation to SUP members
SUP is forming a consolidated position of Ukrainian business regarding the draft law. We invite member companies to submit their proposals, views, and expectations on the new Labour Code by 1 February.
Please send your materials to Anatolii Butych at
AC_COORD@SUP.ORG.UA
This is our shared opportunity to influence the rules of the game that will define the labour market for years to come. Together, we can shape modern labour law as a foundation for economic resilience, legal employment, post-war recovery, and Ukraine’s European future.