Oleksii Sobolev: One of our key objectives for the year is to make the labor market more flexible and modern for people and businesses

The adoption of the new Labor Code will kick-start labor market reform. One of the key tasks of the Government in 2026 is to make this market modern and more flexible, while ensuring that the rules are transparent, understandable, and equal for all. This was announced by Oleksii Sobolev, Minister of Economy, Environment, and Agriculture of Ukraine, during the Yedyni Novyny telethon.

The Minister emphasized, the current Labor Code had been adopted back in Soviet times, in 1971, and is morally and functionally outdated. The document has been amended several times, but it does not keep up with today's realities, the amendments contradict each other, and this leads to different interpretations.

"The Ministry of Economy, Environment, and Agriculture team has been working on the draft new Labor Code for more than two years in partnership with business, trade unions, scientists, and international partners. Its adoption should kick-start labor market reform. The main thing in the new Code, which we have approved and will submit to the Verkhovna Rada, is to make the rules the same for everyone who works with them: for employees, employers, trade unions, labor inspectors, and judicial authorities," said Oleksii Sobolev.

According to the Minister of Economy, Environment, and Agriculture of Ukraine, the adoption of the Code shall lead to the de-shadowing of the labor market, with an estimated effect of about UAH 43 billion per year.

In particular, systematizing and expanding the types of employment contracts will ensure the necessary flexibility in employer-employee relations and help bring these relations out of the shadows and the gray zone.

“We are also significantly updating our approach to control. The Labor Inspection will operate according to a risk-based model, and this will also contribute to the de-shadowing of the sector. The work of the Labor Inspection should be focused on a preventive approach, rather than on punishment or fines, which has caused businesses to go into the shadows," said Oleksii Sobolev.

According to the Minister, the draft Labor Code contains many other innovations. For the first time, the Code strengthens the norms of protection of dignity at work: counteracting discrimination, harassment, mobbing, and bullying. The employer's obligation is to ensure a safe working environment.

The annual basic paid leave provided for by law will be 28 calendar days. This is 4 days more than now, which is a European norm. The rules for childcare leave, study leave, and combining work with military service are also clearly defined.

As Oleksii Sobolev emphasized, the draft is adapted to European Union standards and is consistent with more than 30 EU directives.

“The adoption of the Labor Code is a big step towards the European Union. In terms of labor relations, we will be fully compliant with European standards,” said Oleksii Sobolev.