This week, two new laws have entered into force providing for harsher punishment for violations of employment law.

Law № 4714-VI dated 17 May 2012 amended Article 41 of the Code of Administrative Offences of Ukraine so as to expressly provide for responsibility of employer's officers who conduct workplace conditions assessment contrary to the established procedure or fail to do so in the required time. Violations will be punished by a fine in an amount ranging from 30 to 100 times the non-taxable minimum personal income amount (currently - from $63 to $210).

The same penalty will now be imposed for a failure to provide employees, including former employees, with employment documents required for pensions and for providing such documents that contain false information.

Law № 4837-VI dated 24 May 2012 increased the size of the current fine for violation of labor protection legislation. Workers who commit such violations will face a penalty in an amount ranging from 4 to 10 times the untaxed minimum personal income amount (from $8 to $21), and officers - at a rate of 20 to 40 times the non-taxable minimum personal income amount (from $42 to $84).

In addition, the law introduces liability for a breach in procedure for reporting workplace accidents. Breaches in procedure (including time limits) or failure to perform any such notification will now be punishable by a fine on the responsible officers in an amount ranging from 20 to 50 times the non-taxable minimum personal income amount (from $42 to $105).

In the light of the above, it is recommended that all employers (1) evaluate the need for workplace conditions assessment of each available workplace and have it performed where required, (2) ensure that the human resources documentation is managed, archived and retained in accordance with applicable law, (3) strictly follow the procedure for notification of occupational accidents (e.g. a car accident, even if the employee was only a passenger, or an employee falling on a slippery floor, etc.).

Additional notes

This LEGAL ALERT is issued to inform Baker & McKenzie clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The comments above do not constitute legal or other advice and should not be regarded as a substitute for specific advice in individual cases.