Ukraine proposes regulation to some matters of legal succession in labour relations.

Ukraine proposes regulation to some matters of legal succession in labour relations. The government has approved the respective Draft Law No.8244 and registered it with the Verkhovna Rada of Ukraine on 29.11.2022.

What does it mean?

The document contains amendments and alterations to the Labor Law Code, namely defines the legal succession in labour relations. It means that an employee proceeds with working at a company, institution, or organization after a replacement of its owner, reorganization (merger, restructuring, splitting, transformation), or complete or partial change of the ownership for assets used by the employee for running a business. 

Draft Law No.8244 also predetermines the employee’s liability to prolong a labour contract if a business owner passes the business ownership, completely or partially, to a third person, as well as to notify the employees and their representatives about:

– a date (estimated date) and reasons for the labour succession;

– legal, economic (technological, structural), and social consequences of the legal succession or similar ones, and the activities able to influence the employees’ labour rights.

With such a labour succession, the work relations of the employees shall continue with the labour successor.

Successors will be liable to provide employees and their representatives with the mentioned information in writing or on a digital bearer not later than ten business days before the beginning of the activities that can affect the employees’ labour rights and interests.