Ukrainian Lobbyists Association supports govt's initiative on new Labor Code as systemic labor market reform
The Ukrainian National Lobbyists Association (UNLA) supports the government's initiative on a new Labor Code as a systemic reform of the labor market and a step toward European standards.
"The initiative of the Cabinet of Ministers of Ukraine to approve a draft new Labor Code is a response to accumulated structural imbalances in the labor market, which have intensified as a result of the full-scale war, demographic losses, labor migration, and the transformation of the economy," UNLA said in a statement.
The association emphasizes that the current system of labor regulation, formed on the basis of the 1971 Labor Code, does not correspond to modern employment models, the needs of economic recovery, Ukraine's European integration commitments, or the logic of social dialogue adopted in EU countries.
"In this context, the government's initiative is strategic rather than situational, as it is aimed at shaping a new architecture of labor relations as one of the key elements of the state's economic and social policy. Taking into account the position of the Federation of Employers of Ukraine, UNLA assesses the government's initiative as one of the most comprehensive socio-economic reforms of recent decades," the association stressed.
UNLA notes that "the draft new Labor Code moves away from an overly directive regulatory model, shifts to a framework-based, risk-oriented approach, strengthens the role of contractual mechanisms, and creates a legal environment for lawful employment flexibility." In particular, it is especially important that the government views labor legislation not in isolation, but in conjunction with employment policy, investment attractiveness, reform of state supervision, and the digital transformation of the state.
This indicates an understanding that the labor market is development infrastructure, not merely a social sphere. From UNLA's perspective, a fundamental advantage of the government's approach is its attempt to institutionalize a balance between the interests of employees and employers, rather than to pit them against each other.
The draft Code preserves basic social guarantees while at the same time providing businesses with tools to adapt to economic fluctuations, reducing incentives for shadow employment, and increasing legal certainty.
"A strong point of the government's initiative is that it does not mechanically copy individual European norms, but seeks to adapt them to Ukrainian realities. This is precisely the logic that corresponds to the approaches of the International Labour Organization to reforming labor systems," said Oleksandr Kamenets, UNLA's representative in Brussels and adviser to the president of the Federation of Employers of Ukraine.
UNLA emphasizes that Ukraine's cooperation with the International Labour Organization (ILO) in this process is institutional rather than declarative in nature. ILO recommendations were used in shaping approaches to defining labor relations, in matters of social dialogue, in the model of state supervision over compliance with labor legislation, and in balancing worker protection with economic efficiency.
"This makes it possible to view the new Labor Code as part of the global system of decent work standards, which is critically important for Ukraine's integration into the European market, attracting international investors, and participation in recovery and development programs," the association noted.
UNLA views the Cabinet of Ministers' initiative not only as a legal reform, but also as an economic instrument for post-war recovery, since "modern labor legislation influences business decisions on relocation and investment, determines the pace of job creation, shapes conditions for the return of labor migrants, and strengthens trust between the state and the private sector."
"For Ukraine, the new Labor Code is not merely a replacement of an outdated document. It is a signal of the state's ability to think strategically and to set the rules of the game for decades ahead," said UNLA President Oleksiy Shevchuk.