Signs by which business will be forced to conclude labor contracts, determined in the Cabinet of Ministers

It seems that the directors of companies will soon have to revise contracts with counterparties for signs of labor relations. These signs are planned to be fixed in the Labor Code.

The Ministry of Economy prepared, and the Cabinet of Ministers at an extraordinary meeting approved the draft Law "On Amendments to the Code of Labor Laws of Ukraine regarding the definition of the concept of labor relations and signs of their existence."

Officials hope in this way to reduce undeclared work in Ukraine, legalize wages and strengthen workers' protection.

At the legislative level, it is proposed to introduce the principle of the presumption of labor relations. For this, 7 signs of their presence will be determined:

1) performance by a person of work for a specific qualification, profession, position on behalf of and under the control of the person in whose interests the work is performed;

2) implementation of regulation of the labor process, which is permanent and does not provide for the establishment of a specific result for a person for a certain period;

3) performance of work on a specific or consistent with the person for whose benefit the work and the workplace in compliance with established their internal labor regulations;

4) the organization of working conditions, in particular, the provision of equipment, tools, materials, workplace, by the person in whose interests the work is performed;

5) systematic payment of remuneration to the person performing the work;

6) the establishment by the person in whose interests the work is performed, the duration of the working time and the time of rest;

7) reimbursement of travel and other financial costs associated with the performance of work by the person in whose interests the work is performed.

The essence of the principle of the presumption of the existence of an employment relationship is as follows: if at least three of the seven above-mentioned signs are present, the work will be considered such that it is performed within the framework of an employment relationship. Accordingly, the parties will be required to conclude an employment contract. In this case, the employee must be provided with the necessary social package (vacations, sick leave, guarantees and compensation for maintaining a job, etc.).