One of the unpleasant aspects of business is the dismissal of employees. Nevertheless, there is probably no viable company where management has not had to part with employees.

Of course, constant control of the staffing and changes in it are the key to efficiency and, ultimately, the profitability of the business. At the same time, each personnel decision creates a risk zone.

Such challenges are familiar to entrepreneurs in many countries. However, in Ukraine, where, on the one hand, the basic labor laws have not changed since Soviet times, and on the other hand, new by-laws come into force almost every month, the problem is particularly acute.

The real reason for this state of affairs is that it is important for the state to cut the budget and minimize its own efforts in adaptation of the citizen to market situation. Accordingly, it creates conditions when as much responsibility as possible, in particular, financial liability, is transferred to the employer.

Based on this premise, the labor code protects the employee as much as possible, appealing to the right to work.

Here are just a few risks that an employer in Ukraine faces:

  1. It is prohibited to dismiss pregnant women, women with children under three years of age and persons with disabilities. The exception is the complete liquidation of the company, but even in this case the employer must re-employ an employee (which is virtually impossible). This means, for example, that you can close the vacancy – and in a week you may issue a leave.
  2. Incomplete pay off or an employer’s failure to hand out an employee’s record book (if available) on the last day of work gives the employee the right to sue the employer in a tribunal. At the same time, the former employee may claim from the former employer funds equal to the average salary for the entire period of “forced unemployment”. The chances of an employee to win the case are very high, and the courts in Ukraine are very slow.
  3. If the employee did not use his/her annual leave, the employer must financially compensate him/her for the right to rest. Some employees, such as parents of frequently ill children or combatants, are entitled to additional leave, but may decide not to use it for years. Such an employee has the right to demand payment for unused leave for an indefinite period after dismissal, but the worst thing is that the employer may be fined, which could significantly exceed the amount of compensation.
  4. An employee may claim that he or she was pressured, threatened, and so on during his/her dismissal. Of course, such allegations still need to be proven, but in most cases, it is easier and cheaper for the employer just to satisfy the employee’s claims, for example, to pay a compensation than to spend time, money and effort on litigation. That is why the whole process of communication with the employee about the dismissal should be in writing or in public (with witnesses).
  5. Even a conscientious employer has every chance to talk to the authorities contacted by a dissatisfied former employee. Therefore, the management is often forced to comply with the demands of the person it dismisses fairly, for example, for truancy.

What we can do

Leasing Service has been operating in the Ukrainian market since 2003 and during this time has been helping employers to resolve various issues of dismissal in a risk-free manner. Our experts know the nuances of the practice of the relevant authorities and keep their eyes on the everlasting legislative changes.

Our experience shows that no matter what the real and formal reason for dismissal may be legally sound documents and the proper arrangements of the dismissal process allow the employer to avoid claims, unjustified costs, prosecution and fines, and we advise clients about these issues. At the same time, we can anticipate the reactions and actions of the dismissed employee respectively, so we have a set of solutions that can save the company effort and money, even when the problem has already arisen. We also know the psychological challenges faced by a manager who has to announce a dismissal, so we are also happy to relieve the employer from this hassle.

The solutions offered by Leasing Service take into account the latest legislative changes, and our consultants can foresee what legal consequences they would face in each particular case.

How we work with clients

By helping companies make changes in the staff, we operate according to the following algorithm:

  • an interview, where the client’s goals, terms of contracts and the essence of the problem are discussed;
  • providing a set of possible solutions with an estimate of the implementation of each of them;
  • concluding an agreement on the scope, timing and other important aspects of the work;
  • completion of works in accordance with the contract;
  • providing a report on work and recommendations for the future.

Our experience and awareness allow us to provide real help to companies that are forced to part with their staff, regardless of whether it is a mass dismissal or just a person.

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