The new law on collective agreements

On 23 February 2023, the Parliament adopted a new Law of Ukraine "On Collective Agreements" (the ''Law"), which corresponds to the relevant legislation of the European Union. Most of the provisions of the Law enter into force in six months after the termination or cancellation of martial law.

The Law, particularly, introduces the following key changes:

  • Envisages a concept of sectoral collective agreements of limited effect, which can be concluded in the absence of representative parties at the level of relevant industry sector.
  • Provides that public associations may participate in consultations regarding the conclusion of collective agreements at all levels if the purpose and objectives of their activity correspond to the subject of consultations. Governmental authorities may be involved in the collective negotiation process, if their decisions regulate the working conditions of relevant employees and if so agreed by the decision of the parties to such negotiations.
  • Provides that an entity-level collective agreement can be suspended for a specified period by the decision of the parties to such agreement, as well as stopped for the duration of force majeure events listed in the agreement.
  • Sets forth the principles of application of an entity-level collective agreements to the entity employees. Particularly, provisions of the collective agreement regarding matters that must be regulated by collective agreements are mandatory for all employees irrespective of their membership in trade Applicability of other provisions of the collective agreement shall be determined by the agreement itself.
  • Determines the priority of application of collective agreements of different level, which simultaneously apply to the employer and the employees. In particular, if there are several sectoral (inter-sectoral) collective agreements, the one concluded with the participation of the central governmental authorities and representative participants of the social dialogue would apply. If there is a sectoral (inter-sectoral) and territorial collective agreement, only the sectoral (inter-sectoral) agreement applies. However, the provisions of relevant sectoral or territorial collective agreement would still apply if they provide a higher level of guarantees and benefits to employees.
  • Specifies certain rules on provision to primary trade unions of premises and equipment, payments from the remuneration fund of employees and withdrawal of membership fees from salaries of trade union members.

On 15 April 2023, certain provisions of the Law, which relate to the simplified procedure for confirming the representativeness of the parties of social dialogue, will enter into force and will be effective only during the period of martial law.

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

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