COUNTRY

Written Agreements

In Ukraine, employment contracts are generally concluded in writing. Written employment contracts are mandatory in the following cases:

• When the employer organizes recruitment of employees
• When concluding an employment contract for work in areas with special natural geographical and geological conditions and conditions of increased health risk
• In cases where the employee insists on concluding an employment contract in writing
• When concluding an employment contract with a minor
• When concluding an individual employment contract
• When concluding an employment contract for remote (home) work
• When concluding an employment contract with non-fixed working hours

Martial law is in effect in Ukraine from March 2022. Under this regime, the norms of Law of Ukraine "On the Organisation of Labour Relations Under the Martial Law" prevail over the norms of the Labor Code. Written contracts are not mandatory, and the form of an employment contract is determined by mutual agreement of the parties.

Oral Agreements

The Ukrainian Labor Code does not universally mandate the use of written contracts. However, written employment contracts are mandatory in several statutorily defined circumstances.

Martial law is in effect in Ukraine from March 2022. Under this regime, the norms of Law of Ukraine "On the Organisation of Labour Relations Under the Martial Law" prevail over the norms of the Labor Code. Written contracts are not mandatory, and the form of an employment contract is determined by mutual agreement of the parties.

Implied Agreements

The Ukrainian Labor Code does not contain provisions on implied employment contracts.

In Ukraine, the normal working hours cannot exceed 40 hours per week.

Reduced working hours are established by law for certain categories of employees:

• For employees aged 16 to 18 - 36 hours per week
• For persons aged 15 to 16 (and students aged 14 to 15 who work during the holidays) - 24 hours per week
• The working hours of students who work during the school year in their free time may not exceed half of the maximum working hours provided for above for persons of the appropriate age
• For employees engaged in work with harmful working conditions - no more than 36 hours per week.

Martial law is in effect in Ukraine from March 2022. Under this regime, the norms of Law of Ukraine "On the Organisation of Labour Relations Under the Martial Law" prevail over the norms of the Labor Code. The normal working hours can be increased to 60 hours per week for employees employed at critical infrastructure facilities. Reduced working hours can be increased to 40 per week. A 5-day or 6-day working week is established by the employer. The start and end time of daily work (shifts) is determined by the employer.

1st of January - The New Year Day; 7th of January - Christmas; 8th of March - International Women’s Day; 1st and 2nd of May - International Worker’s Day; 9th of May - Victory Day; 28th of June - Ukraine Constitution Day; 24th of August - Ukraine Independence; One day (Sunday) - Easter; One day (Sunday) - Trinity Day.

Ukrainian employees become eligible for annual leave after 6 months of continuous service with their employer. Adult employees are generally entitled to at least 24 calendar days of annual basic leave. Minors under the age of 18 are entitled to an annual basic leave of at least 31 calendar days.

Payment for annual leave must be made at least 3 working days before its start. The amount of annual leave pay is calculated by multiplying the average wages by the number of vacation days. At the request of the employee, part of the annual leave (above 24 calendar days) may be replaced by monetary compensation.

Annual leave at the initiative of the employer may be transferred to another period only with the written consent of the employee and agreement of the trade union, when giving annual leave due to the earlier period may adversely affect the normal functioning of the enterprise.

Under martial law, all employees can be granted only 24 days annual leave by their employer's decision. If the employee is entitled to annual basic leave for more than 24 calendar days, they can use their unused leave days after the termination or cancellation of martial law. At the employer's decision, unused days of such leave may be granted without salary. Employees working in critical roles can be denied leave by their employers. Employers can also dismiss an employee on annual leave by giving a notification that the last working day is the first day after leave.

In Ukraine, employees are entitled to sick leave with job protection. The period of sick leave must be confirmed by a special form certificate issued by a medical institution. Employers are responsible for paying the employee during the first 5 days of sick leave. After the initial 5 days, sick employees receive benefits from the Social Security Fund. Normally, sick leave is granted for a period necessary for a full recovery. However, an employer, with some exceptions, can unilaterally terminate an employment contract in the case of an employee's absence due to a temporary disability that lasts more than 4 months.

Martial law is in effect in Ukraine from March 2022. Under this regime, the norms of Law of Ukraine "On the Organisation of Labour Relations Under the Martial Law" prevail over the norms of the Labor Code. Employers can dismiss employees during their sick leave by indicating the date of dismissal, which is the first working day following the end of the temporary incapacity for work. Social insurance allowances continue as usual. Employers can also deny the request for sick leave.

In Ukraine, maternity leave is granted upon the presentation of a medical certificate. The total length of maternity leave is 18 weeks (126 calendar days) out of which ten weeks are given as prenatal leave while the remaining eight are given as postnatal leave. The postnatal leave is increased to ten weeks (70 calendar days) in cases of complicated delivery or multiple births. The cumulative duration of maternity leave is 126 or 140 calendar days and is given in full regardless of the number of days actually used before childbirth.

Ukrainian legislation protects pregnant women from loss of income during maternity leave by providing a maternity allowance. The state maternity allowance covers 100% of the mother's average earnings.

Under the martial law, employers are not allowed to deny maternity leave, and employees cannot be dismissed during their maternity leave. Pregnant women are not allowed to work in night work without their consent. It is also allowed to employ them in heavy and dangerous works with their consent. State benefits continue as usual.

Effective May 9, 2021, Ukrainian employees are entitled to a one-time paid leave at the birth of a child. The leave lasts for 14 calendar days (excluding holidays and non-working days) and is available to:

• A husband whose wife has given birth to a child
• The child's father, who is not in a registered marriage with the child's mother, provided that they live together, are related by common life, and have mutual rights and obligations
• Grandparents or other adult relatives of the child who actually care for the child, whose mother or father is a single mother (or single father)

Under martial law effective March 2022, employers can deny paternity leave to employees. It is also allowed to dismiss employees during their leave by mentioning the end date as the first day after leave.

Minimum Wage

Under Ukrainian law, the parliament (Verkhovna Rada) establishes the minimum wage at the request of the Cabinet of Ministers at least once per year in the State Budget of Ukraine. The minimum wages are determined after taking into consideration proposals made by trade unions and employer groups.

The current monthly minimum wage is UAH 8,000 (Ukrainian hryvnia), effective January 1, 2025.

Overtime, Holiday & Vacation Pay

In Ukraine, the normal working hours cannot generally exceed 40 hours per week. Overtime is only allowed in certain statutorily prescribed cases.

An employee cannot be required to work more than 4 hours of overtime over 2 consecutive days and 120 hours of total overtime per year. Overtime work for unionized employees may be carried out only with the permission of the trade union. Overtime work is to be paid at a rate of at least double the normal hourly rate (200% of the normal wage rate).

Work on a public holiday must be compensated, with the consent of the employee, by providing another day off or 200% of the normal hourly wage in overtime.

Payment for annual leave must be made at least 3 working days before its start. The amount of annual leave pay is calculated by multiplying the average wages by the number of vacation days. At the request of the employee, part of the annual leave (above 24 calendar days) may be replaced by monetary compensation. Minors cannot be paid monetary compensation in lieu of basic or additional paid annual leave.

Under martial law that is in effect in Ukraine from March 2022, the restriction of 4 hours overtime within 2 days does not apply. There is no obligation to transfer the day off if it coincides with a holiday.

Notice Period

In Ukraine, employees may voluntarily terminate an indefinite term employment contract after serving 2 weeks' written notice. When an employer is seeking to terminate an employee for economic or organizational reasons, the required notice period is at least 2 months. If the employee commits a gross violation of the employment contract, they may be dismissed without notice.

During a probationary period, an employer may cancel the employment contract by giving notice to the employee in writing at least 3 calendar days before terminating the contract.

Martial law is in effect in Ukraine from March 2022. Under this regime, the norms of Law of Ukraine "On the Organisation of Labour Relations Under the Martial Law" prevail over the norms of the Labor Code. Employees can terminate their employment contract without a notice in case of conduct of hostilities in the areas in which their workplace is located, and the existence of a threat to their life and health. It is also possible for employers to dismiss an employee during the period of temporary incapacity for work, as well as during the period of the employee's vacation by just specifying the date of dismissal which is the first working day following the date when a temporary inability to work or a vacation ends.

Severance Benefits

The Ukrainian Labor Code states that upon the termination of an employment contract for staff reduction or reorganization, the employee must be paid severance pay of at least 1 average monthly salary.

If the employment contract termination is due to the employer's violation of a labor law, collective agreement, or employment agreement, at least 3 months' average earnings is due as severance, although a collective agreement may stipulate a higher amount of severance. The termination of the employment contract of a corporate officer entitles the officer to 6 months' average salary of severance pay.

Martial law is in effect in Ukraine from March 2022. Under martial law, while employers must take all possible measures to ensure the realization of the right of employees to timely receipt of severance pay, they shall be exempted from liability for breach of the obligation regarding payment terms if they can prove that this breach occurred as a result of hostilities or other force majeure circumstances.

Pension

The Ukrainian Pension Fund provides for old-age pension benefits for eligible insured employees. The minimum age for eligibility for an old-age pension is 60 years for both men and women. Employees must have at least 31 years of insurance coverage, increasing to 35 years from January 2028.

The amount of the monthly pension is calculated as a product of coefficient of insurance experience of the insured person and the average monthly wage of the employee. It is increased by 0.5% - 0.75% for each month of insurance coverage over 35 years for men or 30 years for women. The minimum pension is the minimum subsistence level for people with a disability, while the maximum pension is 10 times this amount.

Social security contributions are paid only by employers.

Dependents/Survivors Benefits

Ukrainian law provides benefits to survivors in the case of the death of an insured employee who was insured on the day of their death, or a pensioner, or donor of human anatomical materials. The eligible survivors include a spouse, or a father or a mother who is of pensionable age or disabled. The eligible survivors include a spouse, or a father or a mother who is of pensionable age or disabled, and others who were fully supported by the deceased person. Surviving children under the age of 18 years (this age limit is raised to 23 for students or orphans; no age limit for disabled children) are also eligible survivors.

The survivors benefit is paid to the beneficiaries of the deceased employee in the following amounts:

• For 1 disabled family member - 50% of the deceased's retirement pension
• For 2 or more disabled family members - 100% of the deceased's retirement pension in equal shares

In the case of the death of an insured worker due to work injury, the pension for survivors is determined according to the degree of loss of professional capacity and the average monthly salary that the victim had before the injury. The minimum monthly pension is 100% of the minimum subsistence level for people with disabilities. The maximum monthly insurance payment cannot exceed 4 minimum wages.

Invalidity Benefits

In Ukraine, a disability pension is paid to insured employees in cases of partial or total permanent disability, regardless of when the disability occurred. A disability pension is paid as 100% of the old-age pension for Group I disability, 90% for Group II disability, and 50% for Group III disability.

In cases of disability due to work-related accidents or diseases, the temporary disability benefit is 100% of the insured's average earnings during the first five days of temporary disability and is paid by the employer. In the event of permanent disability, the level of benefit depends on the disability group, ranging from 40% to 70% of the employee's average earnings.

There is also a social assistance monthly pension for people with disabilities, paid as 30-100% of the minimum level of subsistence.