April 2013

Commissions to Prevent Unemployment in the Course of Mass Layoffs

On 22 April 2013 the Cabinet of Ministers approved Resolution "On Approval of the Procedure for Creation of Special Commissions for Taking Steps to Prevent Abrupt Rise in Unemployment in the Course of Mass Layoffs of Employees" No. 305, which took effect on 7 May 2013 (the "Procedure").

The Procedure superseded the Regulation of the Cabinet of Ministers of 31 December 1993 No. 1090, which provided for mandatory steps to be taken by businesses, local state administrations and state employment service in the event of mass layoffs.

Under the new Procedure, the local state administration may create a special commission to take steps to prevent sharp rise in unemployment (a "Commission") in case of a mass layoff at employer's initiative. The Employment of Population Law defines a mass layoff at employer's initiative (except for company liquidation) as (i) layoff of 10 and more employees at a company with 20 to 100 employees or layoff of 10 percent or more employees at a company with 101 to 300 employees, whether one-time or performed in several parts within one month, or (ii) layoff of 20 percent or more employees at a company regardless of the number of its employees, whether one-time or performed in parts within three months. Local state administrations receive information on planned mass layoffs from local departments of the State Employment Service.

The Commission's core tasks are to come up with proposed steps for a company planning a mass layoff in order to reduce the number of employees to be dismissed. The Commission is also tasked with proposing amendments to local employment programs that are developed by the local state administration. In order to accomplish its tasks, a Commission can request and obtain needed information from government and local authorities, as well as companies.

In the course of its work, the Commission prepares proposals and recommendations on issues within its competence and submits them to the head of local state administration, relevant government authorities and companies. The results of consideration of such proposals and recommendations shall be reported to the head of the local state administration and the Commission.

For further information please contact counsel Svitlana Chepurna
and associate Inesa Letych

© Asters 2013
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