іМоRе №131. Labor Market Reform – And That’s All

The coronavirus crisis has put the government’s fire for reform out.

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Index for the monitoring of reform (іМоРе) was +0,2 points for the period from March 23 to April 5 2020 out of possible range -5,0 до + 5,0. The index for the previous round was +0,02 points. Index was more than 0 thanks to the changes on the labor market — the definition of remote work and its registration was introduced. 

For the fifth round in the row, the Index does not exceed 0,6 points. The government directed all the efforts at battling the coronavirus, postponing the big reforms indefinitely.

Chart 1. iMoRe Dynamics

Chart 2. іMoRe and its components in the current round

The main event of the round:

Introducing the definition of the remote work and of a flexible work day, +1,0 points

At the end of March, the Verkhovna Rada of Ukraine adopted the Law 540-IX that introduced a lot of temporary quarantine rules and several permanent changes. The most important of these are changes in the labor market. The Code of Labor Laws of Ukraine introduced the concept of remote work and flexible working hours.

Previously, the legislation did not account for remote work, only home-based work, which was governed by the Regulations on working conditions of home workers, approved at the time of the Soviet Union. In order to organize home-based work, the employer first had to set up a commission to inspect the living conditions of the employees and to make sure their work would not interfere with the neighbors. Occasionally, the commission involved representatives of sanitary and fire control. An act was drawn up based on the inspection.

From now, employees can work from anywhere: home, cafes, coworking etc. (provided they officially indicated it in the employment contract). When working remotely, employees are not subject to the internal rules of the enterprise (unless otherwise provided in the employment contract) and may schedule time at their discretion. Remote work is paid for in full and should not exceed the standard working hours, 40 hours per week.

Flexible working time gives the employee the opportunity to work on a schedule different from that determined by the internal working schedule of the enterprise, provided that the person works the required number of hours (per day, week or month). Working time control should be provided by the employer. Choosing a flexible working time regime does not affect the amount of pay and labor rights.

Modern labor market offers more and more opportunities for remote work for journalists, translators, programmers, analysts, call center workers, etc. The new rules will facilitate the proper legal registration of remote work.

Chart 3. Value of іMoRe components and number of events

Note: Index for Monitoring Reforms (iMoRe) from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in five areas:

  1. Governance
  2. Public Finance
  3. Monetary system
  4. Business Environment
  5. Energy

For details please visit imorevox.org.

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