Draft Law On Changes To Grounds For Termination Of Employment Agreement At Initiative Of Employer

On 13 May 2025, the Verkhovna Rada registered Draft Law No. 13279 amending the Labor Code of Ukraine regarding the termination of an employment contract at the initiative of the employer.

The Draft Law proposes to specify the grounds for dismissal of an employee under clause 3 of part one of article 40 of the Labor Code of Ukraine — in connection with systematic failure to perform work duties without valid reasons.

According to the initiative, dismissal will be possible only if there is a disciplinary or public penalty previously imposed on the employee that has not been canceled or expired. The violation must relate specifically to employment duties, be committed intentionally or negligently, without good reason, and be systematic. In this case, the dismissal must be made no later than one month after the violation was discovered.

In the explanatory note, the authors of the draft law refer to the legal positions of the Supreme Court, formulated in case No. 296/2149/19. Thus, it is emphasized that a number of conditions must be met for the lawful dismissal on this ground, including in particular repeated violations and the existence of effective disciplinary or public penalties.

The adoption of the draft law is intended to ensure legal certainty and unified application of the provisions of labor law in the event of dismissal of employees at the initiative of the employer.

We will closely monitor further developments in the status of this Draft Law and report on them in future Legal News.