New Ukrainian Law Mandates Employer Payments for Wrongful Dismissal Periods.

Ukraine's Law No. 4697-IX Takes Effect

According to Novyny.live: As of Monday, January 26, Law No. 4697-IX is now in force in Ukraine. This legislation mandates that employers must count periods of forced absence due to wrongful dismissal towards an employee's insurance record. Furthermore, employers are required to pay the Unified Social Contribution (USC) for this time. This law aims to protect the rights of workers who have been illegally dismissed, ensuring they can preserve their insurance history for future benefits. This reform addresses a significant gap in worker protections, particularly relevant in economies with evolving labor markets.

Key Provisions of the Legislation

Under the new rules, employers are obligated to include the time an employee was forced to be absent from work following an unlawful termination in the worker's insurance seniority. This means the period during which the employee could not work will be factored into calculations for pension and social benefit eligibility.

The law also stipulates that the employer must pay the USC for each month of forced absence. However, the contribution amount cannot be lower than the legally established minimum. This provision is designed to offer financial security to employees during the uncertain period following their dismissal.

This law represents a significant step in protecting workers' rights in Ukraine, especially in conditions where issues with illegal dismissals can be widespread.

Requiring employers to cover social contributions for forced absence periods will help employees maintain their insurance record and secure access to future social payments. In the long term, this could improve labor market conditions and increase employer accountability for upholding workers' legal rights.