What can actually be hidden behind the “employment” and what are real legal opportunities
It is planned to create 200,000 new jobs in 2020, and about a million new jobs during next 5 years, says the Prime Minister of Ukraine Alexey Goncharuk.
In his report, the prime minister shared his achievements: 202,000 people have already been employed. However, the essence is usually hidden in the details – all of them have already been working, but illegally. Thus, the fight against illegal work magically turned into “creating new jobs.”
However, we will not pay much attention on the details and try to figure out who and how will get work this year.
It is possible to employ Ukrainians in such a quantity
you can read in article of Viktor Zalyotin, lawyer of ESQUIRES law firm.
Caring hands for Ukraine
As you know, the princes in Kyiv began their dynasty from the Varangians, who were invited to reign. History repeats itself, and we can observe how almost everyone is trying to grand a concessions. However, it makes sense.
Concession is a form of public-private partnership, that provides the handover of objects of state property to private enterprises for temporary usage.
The new Managing Director may be obliged to invest in the object of his management and will be interested in its effectiveness. Ports, airports, railway stations, hospitals, educational institutions, etc. are planned to be transfered to concession.
How will it help: the new jobs will be created due to the development of objects provided for concession. Given the mood of the government and the size of potential objects, we are talking about thousands of potential jobs.
The latest sale
In Ukraine, there are a number of objects that are more profitable to be sold than to be provided for usage. And the first variant is the most widespread.
In order the estimate the potential of privatization for employment, lets consider an example. The state gives 35 alcohol plants for privatization. Each plant implies the creation of new jobs, from workers to services like transportation and marketing.
How it will help: creation of new jobs in various areas of the private sector based on privatized objects.
About the field of opportunity
The most discussed draft law in 2020 concerns the opening of the agricultural land market. The land in the hands of the new owners (farmers or large agricultural holdings) will work, but it is almost impossible to organize fully automated agriculture.
How will it help: creation of new jobs in villages and areas remoted from cities. Given the high value of the Ukrainian lands – there will be a lot of work.
Comfort for employers
The law on free trade zones came into force in Ukraine since 1992, but an ordinary citizen will not remember none of these zones. It is related to inaccuracy of the law in terms of the formation of benefits within the free economic zones. Income tax in free economic zones for domestic enterprises is bigger than in the rest of Ukraine (but smaller for foreign enterprises).
How it will help: new jobs will be created due to the attractiveness of free economic zones with reduced taxes.
Black and white employment
Draft Law of Ukraine “On Labor” No. 2708 is aimed to replace the 40-year-old Code of Laws on Labor of Ukraine. Earlier, bills from other parties were submitted to the Verkhovna Rada. The potential job opportunities for citizens depends on the basic law in the world of work.
The positive innovations:
An employment contract is concluded with each employee, and labor books are liquidated
New forms of contracts have been introduced (contracts with fixed termed, short-term contract with non-fixed working hours, contracts of apprenticeship, with a domestic worker – it will help the legislator to legitimize freelance, outstaff and other terms that were unknown to the Soviet parliament while drafting the Labor Code);
Flexible options for termination of the employment contract for the employer. So, the terms of the dismissal warning depends on the length of employment of the worker.
Employees can be reduced by paying equivalent compensation. This norm was criticized, however, the commentators forget about the newly introduced contractual regulation of labor relations – the employee does not obliged to work extra days before dismissal and warnings before dismissal saves time and can be regulated by an employment contract;
The duration of absence without valid excuses as a reason for dismission has been increased from 4 hours to 10 days, you can warn about the absence on the workplace by any means provided for in the contract – even by messengers (this norm may have been adapted in connection with the legalization of freelance and work at home).
A number of problematic issues have been resolved:
repatriation of employees (return of an employee who is outside Ukraine on a business trip or at a permanent place of work in case of illness, disaster, bankruptcy of the employer, state of emergency, etc.);
dismissal in the case of the death of the employer (if the employee learned about the death of the individual employer, he must inform the tax authorities about it within a week, which is much easier than dismiss through the court, as it was earlier);
a mediation procedure has been introduced to replace the Soviet past (Commissions for Labour Disputes) – the mediator is elected by the parties, an agreement is signed by him and all parties are interested to reach a consensus.
However, there are some highlighted issues that cause surprise and even concerns:
In accordance with article 14 of the law, the employer must warn about succession (reorganization or change of ownership) no later than before taking actions that will influence the labor rights and interests of workers. This wording allows the employer to warn about the reorganization in a day before it affects workers. We will not forget about contractual regulation, but the minimum guarantees should be provided – to give somebody a notice in two month in accordance with the current Labor Code as well as “no later than before” in the draft bill is disproportionately long / short. It is better to reach a reasonable compromise in this issue.
A literal interpretation of Part 5 of Article 16 of the draft bill allows us to conclude that the enforcement of rights on state guarantees by disabled people, ATO veterans, Chernobyl victims, etc. takes place only if this status is stated in an employment contract (and it is possible only at the request of an employee who is usually not informed of his rights). For example, Article 2 of the Vacation Leave Law of Ukraine guarantees the provision of leave for a certain duration, for disabled people this duration is longer. An ambiguous interpretation of the bill may affect on its implementation in practice.
In accordance with Part 2 of the Article 22 of the draft law, the number of labor contracts with flaxible working hours cannot exceed 1/10 from the total number per employer. This norm is aimed to prevent employers from avoiding taxation. Nevertheless, how and why shall employer hire another 9/10 workers?
How it will help: the creation of new jobs due to the formation of absolutely new forms of labor and more flexible conditions.