New Labour Code: what will change for employees and employers in 2026

New Labour Code is designed to replace the outdated Labour Code of 1971 and reset the rules of the labour market by combining stronger protection of employees with greater flexibility for business and EU‑integration standards. For employees, this will mean an updated set of guarantees, modern forms of employment, digitalised procedures and clearer mechanisms for protecting their rights, while for employers – simplification of HR processes, more transparent rules for formalising employment relations, but also increased liability for violations.​

Why a new Code is needed
The current Labour Code, adopted back in Soviet times, is only partially adapted to the modern economy, digitalisation and flexible employment, and therefore does not correspond to today’s labour‑market realities. The new Labour Code is being developed as a framework instrument for post‑war recovery, European integration and harmonisation with ILO conventions and EU law, with the aim of balancing the interests of employees and employers.​

The labour‑law reform is part of Ukraine’s commitments under the Association Agreement with the EU and memoranda on labour‑market reforms. Its logic is a shift from an overly regulated, formalistic model to a flexible but protected labour market with a stronger role for social dialogue.​

Key novelties for employees
Clear consolidation of the right to decent work, non‑discrimination, equal opportunities and protection against unfair dismissal, an expansion of occupational‑safety guarantees and tools against mobbing and discrimination, as well as more detailed mechanisms for compensation of damage.​

Systemic regulation of flexible forms of employment: remote and home‑based work, flexible schedules, temporary and seasonal contracts, traineeship agreements and work of domestic workers, with clear guarantees of pay, working time and rest.​

An updated list of types of leave (annual, social, educational, unpaid), aligned with European standards of duration and flexibility, giving more opportunities to plan work and personal time and strengthening protection of specific categories of workers.​

What will change for employers

1. Simplified procedures for conclusion, amendment and termination of employment contracts, unification of processes and transition to electronic HR document flow; broader use of standardised contracts, local policies and internal regulations.​
2. Greater flexibility in pay systems, bonuses, shift schedules, remote work and other modern formats of work organisation, provided employees are properly informed and minimum guarantees are respected.​
3. A stronger role of labour inspection: broader powers for control, access to documents and response to violations, which increases the risk of sanctions where “shadow” employment schemes are used.​
4. The need to revise policies on remote and home‑based work (working time, reimbursement of expenses, health and safety at remote workplaces, performance control).​
5. Alignment of labour practices with European compliance standards, reducing legal risks for employers engaged in cross‑border projects.​

Digitalisation and the new role of inspections
The new Labour Code is integrated with the digitalisation of labour relations: electronic employment record books, employment registers and electronic HR document management. This increases transparency of service record and guarantees for employees and enables employers to optimise personnel records and interaction with public authorities.​

At the same time, digital systems record violations in real time, so a merely formal approach to HR documentation becomes impossible: errors can quickly result in fines. Labour inspections strengthen not only punitive but also preventive functions – they provide guidance, recommendations and help settle disputes, changing the model of interaction between business and supervisory authorities.​

Practical steps for business and employees
Employees should already start carefully reviewing the content of their employment contracts, working‑conditions clauses, working‑time arrangements, opportunities for remote work and leave, and should monitor information about their service record in electronic registers. It is important to understand that the new Code expands the tools for protection of rights – from participation in social dialogue to individual labour disputes – but their effectiveness depends on how well employees are informed.​

Employers should audit their HR documents, update templates of employment contracts and internal regulations in line with the planned changes, and prepare for the transition to electronic record‑keeping. It is advisable to invest in training HR specialists and lawyers and to build dialogue with employees and trade unions so that the new rules are implemented not only formally but as part of a sustainable HR policy that meets European standards of decent work.​

If you have any questions or issues related to the application of the new Labour Code, assessment of risks for employees or business, preparation of employment contracts, internal regulations or HR documentation, you should seek professional legal support – timely advice will help you avoid fines, disputes and financial losses.​

Author – Svitlana Krutorohova, attorney at the Law Firm “Legal Company WINNER”.