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Workforce Flexibility and Government Incentives in times of Covid-19 - Ukraine

Short-term State Aid

Covid-19 Questionnaire

Are there any regulations in place providing an employer with possibility for flexible workforce planning such as part-time work/temporary leave which are triggered in a situation similar to a pandemic outbreak as Covid-19?

Yes

If YES on question 1, please describe which type of regulation. Please confirm if and to what extent such leave can be supported by state aid and/or other extra-ordinary governmental support.

On 10 March 2020 the State Labor Service of Ukraine issued the recommendations to the Ukrainian employers on the preventive measures against the spread of COVID-19 at workplaces. Other government bodies (e.g. local city authorities) are issuing similar recommendations. According to the recommendations, it is advisable for employers to introduce possibility for the employees, who show signs of illness (such as fever), to stay home or work from home. The State Labor Service of Ukraine also recommends employers to utilize existing options of workforce planning / work arrangement, such as part-time work, paid and unpaid vacations. However, utilization of these options may be done only upon agreement with an employee.

Regarding work from home, the Ukrainian Parliament adopted the Law of Ukraine #3219 which entitles Ukrainian employers to introduce remote work (work from home) in companies. That said, the Ukrainian law provisions regulating the process of work from home are rather outdated and, in many terms, lack clarity, especially with respect to responsibility of the employer on labor safety of the employees working from home.

In case it is not possible to implement the above measures the State Labor Service suggest to implement enity downtime for the period of quarantine. For the period of downtime the employees shall be paid not less than two-thirds of established compensation rate (salary).

It is also worth mentioning that, much like in another countries, in Ukraine the situation is rapidly changing and there are currently other legislative developments, which can be adopted in the nearest future.

if YES on question 1, please describe which contacts that may need to be initiated with trade unions and/or works councils. Must a special process be followed?

So far, no specific regulations due to COVID-19 situation in this regard, so the general processes should be followed (e.g. part-time arrangement / unpaid vacation may be provided only upon the employee's request).

Are there any governmental programs if a company needs to close totally or partially for a certain time period?

So far no specific government programs are developed to support businesses during quarantine period. However, it was announced by the Prime Minister of Ukraine that the government is now developing business supporting programs to prevent mass unemployment in Ukraine.

If state aid and/or other extra-ordinary governmental support is available, please describe the necessary prerequisites to qualify for such state aid.

See comments above

If state aid and/or other extra-ordinary governmental support is available, please describe the application procedure for such state aid (e.g. how and when is the application filed with the government etcetera; what shall such application include).

See comments above

Please note that the COVID-19 scenario is constantly changing and that this information is current as at 27 March 2020. This publication should not be regarded as offering a complete explanation of the legal matters referred to and is subject to changes in the law and other applicable rules.