The Cabinet of Ministers of Ukraine has registered in the Verkhovna Rada a draft of the new Labor Code of Ukraine (No. 14386), which aims to modernize labor legislation and bring it into line with European integration standards. The document codifies the norms of current labor legislation and introduces new approaches to regulating employment, in particular remote, home-based, and project work, as well as mechanisms for resolving collective labor disputes.
According to the analysis, the draft contains several provisions that may benefit civil society organizations (CSOs). In particular, it more clearly outlines the signs of labor relations, potentially reducing the risk of unjustified reclassification of contracts with volunteers and experts. The introduction of electronic labor documents and the legalization of flexible employment formats can simplify administration and reduce the bureaucratic burden on public organizations.
At the same time, the analysis revealed significant risks to CSOs' activities. The draft proceeds from the presumption of the universality of labor relations and does not take into account the specifics of the non-profit sector, which operates mainly under conditions of grant and project funding. In the absence of clear boundaries between labor, grant, and volunteer relations, the risk of selective interpretation of norms and additional pressure on public organizations during inspections increases.
A separate concern is raised by the transitional provisions, which do not fully take into account the specifics of CSOs, in particular the variety of funding models (grants, donor funds, charitable contributions), the combination of staff and volunteer resources, as well as flexible forms of involving experts already used by organizations for cooperation with partners, donor, or state structures. The transitional provisions do not provide a realistic mechanism for gradual adaptation that would allow organizations to bring internal processes into compliance with new requirements without disrupting their operational activities.
In view of the above, it appears that the provisions of the draft act No. 14386 in terms of their application to CSOs require significant refinement, in particular, to provide for separate provisions or exceptions for non-profit organizations, to consolidate the possibility of flexible project employment, to take into account the specifics of donor funding, and to ensure realistic deadlines for adaptation. It is also advisable to conduct a broad public discussion of the document, involving representatives of civil society.
Detailed analysis at the link.
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