Navigating employment termination in Ukraine requires a thorough understanding of the country's labor code, which provides specific regulations governing the process. Both employers and employees have rights and obligations that must be strictly adhered to to ensure a lawful and smooth separation. Failure to follow the correct procedures can lead to significant legal challenges, including potential reinstatement of the employee and financial penalties for the employer.
Understanding the nuances of notice periods, valid grounds for dismissal, required documentation, and severance entitlements is crucial for any company operating in Ukraine. This framework aims to protect employees while providing employers with clear guidelines for managing their workforce effectively and compliantly.
Notice Period Requirements
The required notice period for employment termination in Ukraine depends primarily on the grounds for termination. Generally, standard notice periods apply, but specific situations may alter these requirements.
| Grounds for Termination | Standard Notice Period | Notes |
|---|---|---|
| Termination by employer (e.g., redundancy, reorganization) | 2 months | For most employees. |
| Termination by employee (resignation) | 2 weeks | Standard period, unless otherwise agreed or specific circumstances apply. |
| Termination during probation period | 3 days | By either party. |
| Termination for gross misconduct | No notice required | Immediate dismissal is possible. |
| Termination by mutual agreement | As agreed | No statutory notice period applies. |
Specific categories of employees, such as top managers or employees under certain collective agreements, might have different notice period requirements. It is essential to consult the specific employment contract and any applicable collective bargaining agreements.
Severance Pay Calculations and Entitlements
Severance pay in Ukraine is typically mandated by law for specific grounds of termination and is calculated based on the employee's average monthly salary. The entitlement and amount depend on the reason for dismissal.
| Grounds for Termination | Severance Entitlement | Calculation Basis |
|---|---|---|
| Redundancy or reorganization (Article 40, part 1, para 1) | Not less than one average monthly salary. | Based on the employee's average monthly salary for the last two calendar months. |
| Employee's refusal to relocate with the company | Not less than one average monthly salary. | Based on the employee's average monthly salary for the last two calendar months. |
| Employee's refusal to continue working due to changes | Not less than one average monthly salary. | Based on the employee's average monthly salary for the last two calendar months. |
| Reinstatement of an employee previously holding the job | Not less than one average monthly salary. | Based on the employee's average monthly salary for the last two calendar months. |
| Termination due to military service call-up | Two average monthly salaries. | Based on the employee's average monthly salary for the last two calendar months. |
| Termination due to disability | Not less than one average monthly salary. | Based on the employee's average monthly salary for the last two calendar months. |
| Termination due to illness preventing continued work | Not less than one average monthly salary. | Based on the employee's average monthly salary for the last two calendar months. |
Severance pay is calculated based on the average salary over the two calendar months preceding the month of termination. All payments due to the employee, including severance, final salary, and compensation for unused vacation, must be paid on the day of dismissal.
Grounds for Termination
Employment contracts in Ukraine can be terminated based on various grounds, categorized broadly as termination initiated by the employee, by the employer (with or without cause), or by mutual agreement.
Termination Initiated by the Employee:
- Resignation (standard 2 weeks' notice).
- Resignation due to valid reasons (e.g., illness, relocation, employer's breach of contract), allowing termination within the period requested by the employee.
Termination Initiated by the Employer (With Cause):
- Systematic failure to perform duties without valid reason.
- Absenteeism (including absence from work for more than three hours during the working day without valid reason).
- Appearing at work in a state of alcoholic, narcotic, or toxic intoxication.
- Theft of employer's property.
- Gross violation of labor duties by a manager or deputy.
- Guilty actions of an employee directly serving monetary or commodity values, if these actions lead to loss of trust.
- Guilty actions of an employee performing educational functions, if these actions are incompatible with the continuation of this work.
Termination Initiated by the Employer (Without Cause - requires severance):
- Changes in the organization of production and labor, including liquidation, reorganization, bankruptcy, or re-profiling of the enterprise, institution, or organization, reduction in the number or staff of employees.
- Employee's failure to meet the requirements of their position or the work performed due to insufficient qualifications or health status.
- Reinstatement of an employee who previously performed this work.
Termination by Mutual Agreement:
- Both parties agree to terminate the employment contract on terms they mutually define. This is a common and often preferred method as it minimizes legal risk.
Procedural Requirements for Lawful Termination
Strict adherence to procedural requirements is critical for a lawful termination in Ukraine. The specific steps vary depending on the grounds for dismissal.
| Step | Description | Applicable Grounds |
|---|---|---|
| Notification | Provide written notice to the employee within the statutory period. | Redundancy, reorganization, employee's refusal to relocate/continue working due to changes. |
| Consultation (if applicable) | Consult with the trade union (if one exists and the employee is a member) regarding the planned dismissal. | Redundancy, reorganization, systematic failure, absenteeism, intoxication, theft, gross misconduct by manager. |
| Documentation of Cause | Gather evidence and documentation supporting the grounds for termination (e.g., disciplinary reports, acts). | Termination with cause (systematic failure, absenteeism, intoxication, theft, etc.). |
| Issuance of Termination Order | Prepare and issue a formal order ( приказом) for termination, specifying the grounds and effective date. | All grounds for termination initiated by the employer. |
| Final Settlement | Calculate and pay all amounts due to the employee (final salary, unused vacation, severance if applicable). | All grounds. Must be paid on the day of dismissal. |
| Issuance of Work Book | Make the required entry in the employee's work book ( трудовая книжка) and issue it to the employee. | All grounds. Must be issued on the day of dismissal. |
| Issuance of Certificate of Employment | Provide a certificate of employment ( справка о работе) upon employee's request. | All grounds. |
Common pitfalls include failing to provide adequate notice, insufficient documentation of the grounds for dismissal (especially for cause), incorrect calculation or delayed payment of final settlement amounts, and failure to consult with the trade union when required.
Employee Protections Against Wrongful Dismissal
Ukrainian labor law provides significant protections for employees against unfair or unlawful termination. Employees who believe they have been wrongfully dismissed have the right to challenge the termination in court.
Key protections and potential consequences for employers include:
- Prohibition of Dismissal for Certain Categories: Specific categories of employees are protected from dismissal on the employer's initiative (except for liquidation), including pregnant women, women with children under three years old (or under six if requiring home care), single mothers with children under 14 or disabled children, and employees on temporary disability leave (with some exceptions).
- Requirement for Valid Grounds: Termination must be based on grounds explicitly provided by the Labor Code. Vague or unsubstantiated reasons are not permissible.
- Procedural Compliance: Any deviation from the mandatory termination procedure can render the dismissal unlawful, regardless of the validity of the grounds.
- Trade Union Consent: For certain types of dismissals, obtaining the consent of the primary trade union organization is mandatory. Failure to do so invalidates the termination.
- Judicial Review: Employees can file a lawsuit challenging the termination within one month from the date they received the copy of the termination order or the work book.
- Consequences of Wrongful Dismissal: If a court finds a dismissal unlawful, the employer may be ordered to:
- Reinstate the employee to their former position.
- Pay the employee their average salary for the period of forced absence.
- Potentially pay compensation for moral damages.
Employers must exercise diligence and ensure full compliance with the Labor Code to avoid costly and time-consuming legal disputes arising from wrongful dismissal claims.
