In response to requests from local authorities to clarify the issue of imposing sanctions for violating labour and employment legislation, the experts of the Financial Monitoring Group of the Central Reform Office under MinRegion (with the support of the U-LEAD with Europe Programme) prepared the relevant materials.

Since 2017, local self-government bodies have received additional powers in the area of ​​control over the economic entities’ compliance with labour legislation. Liability for violation of labour legislation, in particular, fining business entities and employers for violation of the labour and employment legislation, is one of the aspects of control powers.

Sanctions for breach of labour and employment law are defined in Article 265 of the Labour Code and Article 53 of the Law of Ukraine "On Employment of the Population". Sums of fines for violating the labour and employment legislation (depending on the types of violations) are paid to the budget of the Fund of Compulsory State Social Insurance of Ukraine in case of unemployment, or to the state budget.

It should also be noted that the institution of labour inspectors within the local self-government bodies has not been working very well so far. (Detailed information on the mechanisms for local self-government’s monitoring of labour and employment legislation observance is available HERE).

The materials were prepared by Yanina Kazyuk, fiscal decentralisation coordinator, and Viktor Ventsel, expert of the Financial Monitoring Group of the Central Reform Office under MinRegion (with the support of the U-LEAD with Europe Programme).

The full version is available in Ukrainian – please click HERE