Simplified mode of regulation of labor relations (+ template of the Employment contract under the conditions of the simplified mode of regulation of labor relations)

According to Art. 3 of the Labor Code , the labor legislation regulates the labor relations of employees of all enterprises, institutions, organizations, regardless of the forms of ownership, type of activity and industry affiliation, as well as persons who work under an employment contract with individuals. Features and procedure of regulation of labor relations of subjects of small and medium-sized enterprises are determined by Chapter III-B   of this Code.

19.08.2023 The Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Simplifying the Regulation of Labor Relations in the Field of Small and Medium Enterprises and Reducing the Administrative Burden on Entrepreneurship" entered into force, which amended the Code of Labor Laws, in particular, supplemented the Code with Chapter III - B , (simplified mode of regulation of labor relations).

It should be noted right away that the simplified regulation of labor relations can only operate during martial law and becomes invalid from the day martial law is terminated or abolished.

Therefore , according to Art. 49 ⁵ of the Labor Code , the simplified regime for regulating labor relations (hereinafter - the simplified regime) applies to labor relations arising:

between an employee and an employer who is a subject of a small or medium-sized business in accordance with the law with an average number of employees for the reporting period (calendar year) of no more than 250 people;

or between an employer and an employee whose monthly salary is more than eight times the minimum wage established by law.

For the purposes of applying this article, the average number of employees for the reporting period (calendar year) is determined based on the data of the relevant statistical reporting, in which the corresponding indicator is indicated.

The simplified regime can be applied in relations between employees and employers exclusively on a voluntary basis. This regime provides for the possibility of establishing individual working conditions of the employee directly in the employment contract.

Under the conditions of a simplified regime and on the condition that this does not contradict other provisions of this Code, the parties to an employment contract may, taking into account the provisions of Chapter III of this Code, at their own discretion and by mutual agreement, regulate their relations in terms of the creation and termination of employment relations, the wage system, norms labor, the amount of wages, taking into account the legally established minimum wage, allowances, additional payments, bonuses, rewards and other incentive, compensation and guarantee payments, norms of working hours and rest with observance of the normal duration of working hours per week, duration of weekly uninterrupted rest and other rights and guarantees defined by this Code.

Under the conditions of the simplified regime, annual paid vacations and vacations without salary are granted to employees in accordance with the procedure and conditions determined by Articles 79 , 84 , 115 of this Code, taking into account the following features:

1) at the employee's request, the annual leave can be divided into parts of any duration or granted for the full duration, taking into account the norms of the duration of annual leave established by this Code;

2) due to family circumstances and for other reasons, an employee may be granted leave without salary upon the agreement of the parties for a period of more than 15 calendar days per year, if such a condition is provided for in the employment contract;

3) wages to employees for the entire period of annual leave are paid before the start of the leave, unless otherwise stipulated by the labor or collective agreement.

Labor relations between employees and employers under the conditions of the simplified regime, which are not regulated by the provisions of this chapter and/or the terms of the employment contract, are regulated by the relevant provisions of this Code.

An employment contract under the conditions of the simplified regime of regulation of labor relations is governed by Art. 49 ⁶ KZpP. Thus, the regulation of labor relations between employees and employers, which are subject to the simplified regime, is carried out by an employment contract.

By mutual agreement of the employee and the employer , an open-ended or fixed-term employment contract may be concluded. A fixed-term employment contract is concluded for a specified period of time or for the time of performing certain work.

If the fixed-term employment contract does not specify the conditions for its renewal, such employment contract is considered terminated within the term specified in the contract or after completion of the work.

The essential conditions of the employment contract are:

1) the place of work (with an indication of the structural unit) or another place of work, if the employee performs his duties on the basis of remote work;

2) the date of entry into force of the employment contract, and in the case of concluding a fixed-term employment contract - the term of validity of the contract;

3) duties of the employee;

4) conditions of payment of labor (including the amount of the tariff rate or salary (job salary), additional payments, bonuses, allowances, incentive and compensation payments, payment for work at night and overtime, on holidays, non-working days and weekends);

5) mode of operation, duration of working hours and rest, night and overtime work;

6) the duration of the main annual leave, the procedure for providing it in accordance with the legislation, the provision of additional annual leave (the amount of their payment);

7) guarantees and compensation for work with harmful and/or dangerous working conditions, in the event of the presence of relevant conditions at the employee's workplace, with an indication of their characteristics;

8) working conditions;

9) terms of notification of termination of the employment contract at the initiative of the employer;

10) the order and form of information exchange between the employer and the employee;

11) the procedure and terms of notifying the employee about a change in essential working conditions (in case of their deterioration). The employee must be notified of a change in essential working conditions no later than the term specified in Article 32 of this Code;

12) the conditions and procedure for introducing other changes to the employment contract, as well as the procedure and form of informing about changes to the employment contract;

13) conditions of non-disclosure of commercial secrets, provision of protection of intellectual property and use of copyright objects (in the case of their use or creation in the course of work) and responsibility for their violation;

14) the conditions of occurrence and the procedure for the settlement of the conflict of interests;

15) compensation payment to the employee in case of termination of the employment contract at the initiative of the employer;

16) the employer's responsibility for the violation of the terms of payment of wages, which provides for the determination in the employment contract of the amount of compensation (in percentage relation to the amount of wages (tariff rate or salary (postal salary)), which is paid by the employer to the employee for each day of delay in the payment of wages.

In case of deterioration of essential working conditions, the employer is obliged to notify the employee in the manner specified by the employment contract, no later than two months in advance.

The employment contract specifies information about the language of work, the presence/absence of dangerous and harmful production factors at the employee's workplace, the possible consequences of their impact on health, and also defines the employee's statutory rights to benefits and compensation for working in harmful conditions. The employee is considered informed about the working conditions and the presence/absence of dangerous factors at his workplace from the moment he signs the employment contract.

The employment contract is concluded in writing in the state language in two copies (one copy for each of the parties).

Upon agreement between the employee and the employer, the employment contract may be concluded in the form of an electronic document in accordance with the Law of Ukraine "On Electronic Documents and Electronic Document Management".

In the conditions of martial law, the provisions of the labor contract are applied to the extent that they do not contradict the legislation on the regulation of labor relations in the conditions of martial law, unless otherwise established by agreement of the parties.

In the conditions of the simplified regime, the salary is paid to the employee in the terms specified by the employment contract, but not less than twice a month after a time interval not exceeding sixteen calendar days ( Article 49 ⁷ of the Labor Code ).

Termination of the employment contract, termination of the employment contract at the initiative of the employee or the employer are carried out on the basis of reasons and are carried out in an orderly manner taking into account the features specified in Article 49 ⁸ of the Labor Code.

Create an employment contract under the conditions of a simplified regime of regulation of labor relations in the Instaco designer using the link . To create, you only need to enter the necessary data in the designer.