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New Law Easing the Burden On Businesses During Labour Inspections Entered Into Force

On 4 March 2021, the Ukrainian Parliament adopted Law No. 0958 (the "Law"), aimed at easing the burden of labour inspections for businesses over compliance with labour legislation. The Law will enter into force on 27 April 2021.

The main novelties under the Law are as follows:

  • Municipal authorities will lose their power to carry out inspections over compliance with labour legislation (the "Inspection(s)"), except for Inspections of entities under municipal ownership. With regard to all other business entities and private entrepreneurs, municipal authorities will now only be entitled to notify the State Labour Service of any potential violations that would require for an Inspection to be conducted.
  • The Law improves existing legal regulations to hold businesses liable for obstructing the authorities in relation with Inspections. Firstly, the Law gives a clear legal definition of obstruction in this context, which covers failure to comply with lawful instructions by labour inspectors or failure to admit labour inspectors to carry out Inspections. Secondly, when charging business entities and private entrepreneurs with obstruction, labour inspectors will be required to include a detailed description of the imputed violation in the Inspection report.
  • At the same time, the Law amends Article 1886 of the Code of Administrative Offenses of Ukraine introducing administrative liability for failure to admit labour inspectors to carry out Inspections, which will be subject to fines of between UAH 850 and UAH 1,700.

For further information please contact Asters' Counsel Inesa Letych and Associate Iryna Shaposhnikova.

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