NEW RULES FOR EMPLOYERS: THE LAW ON SUCCESSION IN LABOUR RELATIONS WILL COME INTO FORCE ON 15 MAY
On 15 May 2024, amendments to the Labour Code of Ukraine regarding labour relations in the course of transfer of a business entity (Law No. 3677) will come into force.
The Law is aimed at bringing national labour legislation into line with the provisions of Council Directive 2001/23/EC of 12 March 2001 on the approximation of the laws of the Member States relating to the protection of employees' rights in the case of transfers of undertakings, business establishments or parts of undertakings or business establishments, and establishing the employer's obligation to notify employees of the change of ownership of the undertaking.
The Law provides for the definition and procedure of succession in labour relations.
Thus, legal succession in labour relations is the continuation of labour relations with employees in the event of a change of ownership of an enterprise, institution or organisation, or reorganisation of an enterprise, institution or organisation (merger, accession, division, transformation, spin-off).
The continuation of labour relations with employees in the event of a change of ownership of property or parts thereof is considered to be a succession in labour relations between employees and an individual who uses hired labour.
The Law also provided that:
- in the event of a transfer of a business entity, the employment relationship of employees continues with the transferee. The existing rights and obligations under labour contracts between employees and the alienator are transferred to the acquirer;
- in case of transfer of a business entity, the status and functions of the elected body of the primary trade union organisation shall be preserved on the same terms and subject to the same conditions that existed before the transfer of rights and obligations from the alienator to the acquirer;
- the alienator and the acquirer shall inform the elected body of the primary trade union organisation in writing or by means of technical means of electronic communication no later than 10 working days prior to the transfer of the business entity about
the date or approximate date of the transfer of the business entity;
the reasons for the transfer of the business entity;
legal, economic and social consequences of the transfer of the business entity for employees;
any measures envisaged in relation to the employees;
- the employee must be notified of changes in essential working conditions caused by the transfer of the entity no later than 2 months in advance.
