In Ukraine, the Labor Code stipulates the notice periods required for terminating employment contracts. These periods vary depending on who initiates the termination and the reason for it.

Notice Periods Initiated by the Employer

The duration of the notice period an employer must provide an employee depends on the circumstances:

• Redundancy or Company Liquidation: Employers are required to give employees a two months' written notice before termination due to workforce reductions or company closure.
• Other Reasons: For most other reasons for termination initiated by the employer, such as unsatisfactory performance, a one month's written notice is necessary.

There are certain exceptions where the employer is not required to provide notice:

• Gross Misconduct by Employee: In cases of severe employee misconduct, termination can occur immediately without notice.

Notice Periods Initiated by the Employee

The notice period required from employees is shorter than that required from employers:

• Voluntary Termination: Employees are required to provide the employer with a two weeks' written notice of their intention to resign.

Additional Points to Note

• Collective Bargaining Agreements: Collective bargaining agreements may override the general notice period requirements outlined in the Labor Code. It's crucial to consult the relevant agreement if one exists.
• Written Notice: The notice period officially begins on the day following the employee's receipt of the written notification.

In Ukraine, the Labor Code mandates severance pay, providing financial support to employees during a period of job transition.

Eligibility for Severance Pay

Employees in Ukraine are entitled to severance pay under various circumstances outlined in the Labor Code. These include termination by the employer due to redundancy, company closure, or other reasons beyond the employee's control, excluding gross misconduct. Severance pay is also applicable if both the employer and employee mutually agree to terminate the contract, or if the employee resigns due to the employer's violation of labor laws or the employment contract.

Calculation of Severance Pay

The severance pay an employee receives depends on the reason for termination and the employee's length of service. The minimum severance pay is one average monthly salary. For termination due to redundancy or company closure, the severance pay increases to an average monthly salary for each two months of service, capped at a maximum of six months' salary. The average monthly salary is calculated based on the employee's salary and other payments received in the two months preceding termination.

Important Notes

Employment contracts or collective bargaining agreements may stipulate higher severance pay amounts than the minimums mandated by law. Severance pay must be paid to the employee on their last working day.

The termination of employment contracts in Ukraine is governed by specific procedures outlined in the Labor Code. It's important for both employers and employees to understand these guidelines to ensure a smooth and legal termination process.

Initiating Termination

Termination can be initiated by either the employer or the employee. Here's a breakdown of the legal considerations for each party:

Termination by Employer

According to Article 36 of the Labor Code, the employer must:

• Provide written notice to the employee.
• Exceptions exist for severe employee misconduct as per Article 39.
• In cases of redundancy or company closure (Article 40), specific requirements must be followed.

Termination by Employee

As per Article 38 of the Labor Code, the employee must:

• Provide the employer with written notice of resignation at least two weeks in advance.
• There's no requirement to specify the reason for resignation unless the termination is due to a breach by the employer.
• If the employee resigns due to the employer's violation of labor laws or the contract, they may have a claim for unfair dismissal.

Procedural Requirements

Proper procedure is vital during termination. This includes:

• Written Communication: All termination notices must be provided in writing to the other party.
• Record Keeping: Employers must maintain a record of all termination documentation.
• Final Payment: All wages, including accrued vacation pay, must be paid to the employee on their last working day.

Additional Considerations:

• Collective Bargaining Agreements: Provisions within collective bargaining agreements may influence the termination process. Refer to the specific agreement if applicable.
• Dispute Resolution: If an employee believes their termination was unfair or illegal, they may file a complaint with the State Labor Inspectorate or local courts.