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New Grounds for Termination of Employment and Suspension of Employees

Ukraine
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On 25 April 2024, Ukrainian Parliament adopted the Law of Ukraine “On Amendments to the Labour Code of Ukraine on Establishing Additional Grounds for Termination of Employment Agreement at the Initiative of the Employer and Certain Other Issues” (the “Law”), which is aimed at strengthening the protection of Ukraine's national security.

On 4 June 2024, the Law was revised and re-adopted considering the proposals of the President of Ukraine. In particular, the provision on the mandatory notification of the employer about the existing ties of the employee with individuals located on the territory of the aggressor state or the temporarily occupied territory of Ukraine was excluded.

New grounds for dismissal. According to the Law, an employer may terminate an employment agreement on the following grounds:

  • conviction of an employee for committing a crime against the national security of Ukraine (except for exemption from serving a sentence with probation)
  • non-compliance by the employee with the rules that oblige employees not to disclose information with limited access (state, commercial secrets) and establish conditions for working with confidential information

The rules of conduct are a part of the internal labour regulations and, their adoption becomes mandatory for entities of strategic importance for the economy and security of the state and critical infrastructure facilities or operators.

New grounds for suspension from work. Commencement of an official investigation by an employer listed as state-owned object of strategic importance for the economy and security of the state or critical infrastructure facility may serve as a ground for suspension of an employee.

The changes come into force on 27 September 2024.

By Inesa Letych, Сounsel, Asters

Asters at a Glance

Founded in 1995, Asters is the largest Ukrainian law firm with offices in Kyiv, Washington D.C., Brussels and London.

The Firm provides efficient transactional legal advice and represents clients on a broad spectrum of matters arising in the course of doing business in Ukraine. Asters has extensive industry-specific experience and plays a leading role in advising clients in various market sectors.

Asters’ 130-strong legal team combines world-class professionalism and quality with clear understanding of local realities so that our clients receive practically oriented advice in the most client-friendly manner. Asters’ lawyers received law degrees from the best European, Ukrainian and US law schools, including Yale, Harvard, Chicago University.

Asters has consistently remained at the top of the Ukrainian legal market throughout its history being acknowledged as Ukraine Law Firm of the Year by Who's Who Legal (2018-2022), The Lawyer European Awards (2020-2021), Chambers Europe Awards 2020 and holds top positions in the most authoritative international market reviews: The Legal 500, Chambers Global and Chambers Europe, IFLR 1000, Who's Who Legal, Best Lawyers.

Firm's website.