There have been two recent legislative reforms in the Ukraine. The new Law of Ukraine “On Public Employment" was adopted on 5 July 2012 and came into force on 1 January 2013. This legislation introduced a number of changes to employment regulation in the Ukraine. In addition, the Law of Ukraine “On Personal Data Protection” was amended on 3 July 2013 and came into force on 1 January 2014. To find out more about these two recent reforms have a look at our Ukraine Employment Law Review 2013/2014. With thanks to our Ukrainian member firm Vasil Kisil & Partners. Originally posted on the Ius Laboris Knowledge Base: www.globalhrlaw.com

1. Employment Law Review 2013/2014:
Ukraine
Publication Date: 4 April 2014 | Author(s): Oksana Voynarovska,
Vladyslav Podolyak Member Firm(s): Vasil Kisil & Partners Country:
Ukraine
What were the material changes to employment legislation in the
Ukraine in 2013-2014?
There have been two recent legislative reforms in the Ukraine. The new
Law of Ukraine “On Public Employment” was adopted on 5 July 2012 and
came into force on 1 January 2013. This legislation introduced a number
of changes to employment regulation in the Ukraine. In addition, the Law
of Ukraine “On Personal Data Protection” was amended on 3 July 2013
and came into force on 1 January 2014.
I. Employment developments
Concept of “subsidised categories of employees”. The new Law of
Ukraine “On Public Employment” imposes employment quotas on certain
employers for “subsidised categories of employees”, such as:
• pre-retirement employees (men between 50-60 years old and women
between 45-55 years old)
• young specialists (who are employed for the first time during the first six
months after graduation)
• unemployed persons
• disabled persons
• single parents (mothers and fathers)
Quotas for subsidised categories of employees. For companies with
20 or more employees in the previous calendar year, the workplace quota
for the employment of subsidised categories of employees is 5% of the
workforce (e.g. 1 person for a company with 20 employees; 5 people for a
company with 100 employees). These quotas exclude disabled employees
(who are entitled to employment under a separate quota system).
Quotas for disabled employees. For companies with between 8-25
employees in the previous calendar year, the workplace quota for the
employment of disabled persons is one position. For companies with more
than 25 employees in the previous calendar year, the quota is 4% of the
workforce (e.g. 1 person for a company with 25 employees; 4 people for a

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company with 100 employees).
Financial benefits for companies facilitating employment. Companies
can benefit from social tax refunds of:
• 50% for every new employee hired to the newly created workplace,
provided that the monthly salary of that employee is more than
three times the minimum wage (according to Article 24 of the Law
“On Public Employment”);
• 100% for every unemployed subsidised person hired by the company for
a period of more than two years; and
• 100% for every unemployed person hired by the company for a period of
more than two years in priority economic spheres which are
approved by the Government (such as agriculture, food industry,
energy sector, water supply, automotive industry and telecom).
Regulation of outsourcing. In the past, there was no legal framework for
outsourcing. Since 1 January 2013, companies engaging in employment
agency activities (such as job placement services) and other companies
which provide job placement, vacancy search and/or employment
assistance services must obtain a permit from the Ministry of Social Policy
in Ukraine (although the procedure for obtaining the permit is not yet in
force). There are penalties for engaging in any of these activities without a
permit. Furthermore, it is compulsory for companies who provide
employment-related services in foreign countries to obtain a licence
(special document which is mandatory for a number of business activities
in Ukraine and which differs from a permit).
New anti-discriminatory measures. Any discrimination based on age or
membership of a trade union or other organisations is unlawful. Since 1
January 2013, it is now unlawful for job adverts to specify requirements
relating to the age or sex of the candidate or require the candidate to
provide the employer with information about his or her private life.
Paid internship. A new legal framework for paid internship contracts
between the intern and the organisation is now in force.
II. Data protection developments
“Risky data”. The Ukrainian Parliament Commissioner for Human Rights
(the Ombudsman) became the new privacy regulator on 1 January 2014.
On 8 January 2014, the Ombudsman approved new procedures for data
processing and introduced the legal term “risky data”. “Risky data”
includes data on: race, ethnic or national origin; political, religious and
ideology beliefs; membership in political parties, trade unions or ideology
NGOs; health; sexual life; biometrical data; genetic data; administrative or

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criminal liability records; criminal prosecution and police investigation
measures; being victim of certain violence; personal location.
New notification rules. In the past it was mandatory for companies to
register databases containing personal data. Since 8 January 2014,
companies are only required to notify the Ombudsman about “risky
data”. When processing any categories of “risky data”, the data controller
must notify the Ombudsman in accordance with the new data processing
procedures. Notification may be carried out in different ways (e.g. by letter,
e-mail, fax, etc) and the Ombudsman has approved notification templates
to streamline the procedure for data controllers. Companies that process
“risky data” about their employees (e.g. health records, temporary
disability information) may be exempted from the notification procedures if
that data is processed for employment purposes only.
Developments in standard data protection procedure. Companies
which process employee data should ensure their privacy policies comply
with the requirements of the new data protection procedures for data
processing.
Privacy compliance audit procedure. Since the Ombudsman became
the new regulatory authority, it has approved a new privacy compliance
audit procedure and is authorised to perform data compliance audits. The
privacy compliance audit procedure contains the rules governing audits
and describes the types of the audits that may be undertaken (such as on-
site or internal, scheduled or unscheduled). Following an audit, the
Ombudsman or its authorised representative can issue an order for
privacy compliance. This order is binding and failing to comply will give
rise to liability.
Penalties for data protection violations. Penalties can be imposed on
companies for non-compliance with personal data protection rules. The
penalty for privacy violations has increased and the maximum penalty for
certain privacy violations is UAH 34,000 (approx. EUR 3,400).
Originally posted on the Ius Laboris Knowledge Base:
www.globalhrlaw.com
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