Modernizing Ukraine's labor legislation to meet modern realities is a long-awaited and extremely timely step. Therefore, Diia.City Union welcomes the Government's approval and submission of the draft Labor Code of Ukraine to the Parliament.
Diia.City Union positively assesses the approach of the Ministry of Economy of Ukraine to the preparation of the draft of the new Labor Code. In the process, a high-quality and constructive dialog with business associations was ensured and a number of suggestions and comments from the technology sector were taken into account. Such a format of interaction is a prerequisite for the formation of balanced and effective regulation and a good example of the preparation and implementation of legislative changes.
For the tech sector, it is crucial that labor law reform is carried out with due regard for the specifics of the special legal regime of Diia.City. This regime has already proven to be an effective tool for developing the IT industry, attracting investment, and retaining highly qualified specialists in Ukraine, including in the context of a full-scale war. Therefore, it is important that the draft LC balances the interests of the parties to labor relations to the highest possible extent, providing not only a regulatory but also a stimulating factor, as such a fundamental legal act will lay the foundation for years to come.
The Diia.City Union, as the largest association of companies residing in the Diia.City legal regime, is grateful to the Ministry of Economy for taking into account industry proposals.
- First and foremost, it is about preserving the flexibility and freedom of civil law relations, which are represented by Gig contracts. They are a convenient and recognized format of cooperation, especially relevant for technology businesses, and should remain so, especially given the plans to change approaches to other forms of entrepreneurship existing in the country.
- Secondly, a clear distinction between labor and civil law relations should be based solely on clear and unambiguous criteria that make it impossible to arbitrarily interpret and unlawfully reclassify legal models of cooperation.
- Third, the modernization of labor legislation should be in line with modern European approaches that combine the protection of employees' rights with flexibility, which is especially important for innovative and high-tech sectors of the economy.
We would also like to emphasize the importance of preserving these key points for the IT industry during the consideration of the draft Labor Code in the Verkhovna Rada of Ukraine. We hope that during the parliamentary process, the document will not include provisions that may create legal, tax, or investment risks for businesses, including Diia.City residents. We are ready to continue engaging in professional dialog with the government authorities and providing expert support for the development of Diia.City, innovative business and the digital economy of Ukraine.
