What is the simplified labour relations regime and what are its advantages?

The simplified labor relations regime in Ukraine allows employers and employees to establish individual working conditions directly in the employment contract, simplifying administrative procedures and documentation. This regime applies to small and medium-sized enterprises with up to 250 employees or employees with a salary exceeding eight minimum wages.

Advantages of the simplified taxation regime:

• Flexibility in setting working conditions: The employer and employee can independently determine the working conditions, including working hours, remuneration, and other aspects, without having to comply with standardized norms.
• Simplification of HR documentation: The amount of required HR documentation is reduced, which simplifies administrative processes for the employer.
• Additional grounds for dismissal: The possibility of establishing additional grounds for termination of employment in the employment agreement that are not provided for by the Labor Code of Ukraine.
• Simplified dismissal procedure: The employer may terminate the employment contract by sending an official notice to the employee by registered mail, without the need to obtain the consent of the trade union.
• Flexibility in granting vacations: The possibility of granting annual leave in full or dividing it into parts of any duration as agreed by the parties.