The Law On Arrangement of Labour Relations Under Martial Law Entered Into Force

On 24 March 2022, Law of Ukraine No. 2136-ІХ "On Arrangement of Labour Relations under Martial Law" (hereinafter – the Law) entered into force.

We already notified you of Draft Law No. 7160 voted for by the Verkhovna Rada of Ukraine on 15 March 2022. The published final text of the Law underwent some changes if compared with the primary draft law, which is as follows:

• The Law does not provide for the simplified procedure which was announced earlier to dismiss employees due to the company liquidation caused by the destruction of all productive, organizational, and technical capacities or property of the company in the military attack with a 10-day prior notice to such employees.
• The Law does not enable an employer to suspend the payment of salaries but stipulates that they must take all measures that may be required for their employees to exercise their rights to receive salaries in due time.
  However, the Law says that an employer may postpone the payment of salaries if its inability to pay salaries results from armed hostilities. Should this be the case, the employer becomes obliged to pay salaries as soon as the company recuperates to perform its activities.
• The Law directly stipulates that an employer shall be released from liability for the delayed payment of salaries if it proves that such a delay was caused by hostilities or other circumstances of insuperable force. However, this release does not mean that the employer is no longer obliged to pay salaries.
• The Law says that an employment agreement may be suspended due to military hostilities which exclude the opportunity to provide and perform the work. At the same time, it sets forth that the employer and the employee must notify each other of such suspension, if possible, by any available means.
  Thus, based on the analysis of the Law, we may conclude that:
  - An employment agreement may be suspended on the initiative of any of the parties: an employer or an employee
  - It is not required to comply with a deadline to notify the other party of the employment agreement suspension. Considering extraordinary circumstances, a respective party shall be notified if it is possible
  - The way of notification shall be chosen by the party who initiates the suspension. Therefore, the notice may be delivered in person with the signature of the recipient required, sent by mail, email, messenger etc.
• It is also stated that the employer shall keep faithful records of the works performed by their employees and payroll costs.

To find out more about the other changes set forth in the Law, please click here.

Authors:
Illya Tkachuk, Partner, Head of Corporate and M&A, Labour Law, Compliance
Inna Kostrytska, Attorney, Senior Associate in Corporate and M&A, Labour Law