Store Employees During Martial Law: Hiring, Pay, Leave, and Termination

To hire a salesperson, cashier, or stock clerk at a store in Ukraine, an employer must agree on the terms of the employment contract, formalize the hire by order, and notify the State Tax Service of Ukraine before work begins. These requirements also apply to individual entrepreneurs (FOPs). Ukrainian labor law during martial law allows the parties to agree on the form of the contract and apply certain special rules, but the employer must pay for work, ensure safety, and keep accurate records of work performed.

Before the first shift, define the employee’s duties, schedule, pay, contract term, and, if needed, probation. For an ordinary store, normal working hours are up to 40 hours a week; the special option to increase them to 60 hours applies to employees at critical infrastructure facilities. Document hours worked, absences, notices, and personnel decisions. Before termination, identify the legal grounds, offer other work where required by law, observe the applicable notice period, and pay all amounts due: ordinary redundancy and termination because working conditions have been destroyed follow different procedures.

When a salesperson needs an employment contract

Under Article 21 of the Labor Code of Ukraine (Labor Code), an employee performs agreed work, while the employer pays wages and provides the necessary working conditions. If someone regularly works shifts, serves customers, operates the till, or receives goods under the store owner’s direction, formalize the relationship as employment. The rules below concern work in Ukraine, including work under an employment contract with an individual entrepreneur.

A civil law contract should not be used to formalize a salesperson’s permanent job simply to reduce paperwork. A practical guide is the substance of the arrangement and how the work is actually organized: are you engaging the person to perform an employment function under set conditions? The document’s title alone does not change that.

Illustrative example of work arrangements. A candidate is expected to open the store every Tuesday and Thursday, sell goods, and hand over the till to the next shift. This calls for formal employment. Arrange even the first work shift used to assess skills only after formalizing the hire: probation takes place within an employment relationship and is governed by labor law.

How to hire an employee before their first shift

1. Agree on the terms and form of the contract

Part one of Article 2 of the Law of Ukraine “On the Organization of Labor Relations Under Martial Law” No. 2136-IX allows the parties to determine the form of an employment contract by agreement. This special rule also applies when an individual entrepreneur hires an employee. Under Article 1 of this Law, its special rules apply to the relationships it regulates; other matters are governed by general labor law.

The steps set out below describe the general employment regime with martial law provisions. If the parties voluntarily choose the simplified regime under Chapter III-B of the Labor Code, the employer must separately apply its requirements to contract terms, personnel documents, leave, and termination of employment. The store’s size or number of employees does not automatically put it under that regime.

Practical recommendation. Put the agreed terms in writing: identify the employer and employee, position and duties, place of work, start date, working hours, pay, leave entitlement, contract term, probation clause, and agreed contact methods. This gives the owner and employee a shared understanding of the terms and lets them confirm what was agreed if a dispute arises.

2. Obtain the necessary documents

Article 24 of the Labor Code requires a passport or other identity document, together with an employment record book, if available, or employment history information from the register of insured persons in the State Register of Compulsory State Social Insurance. Documents concerning education, qualifications, and health, the applicable military registration document, and other documents are required where provided by law.

Determine the required documents based on the specific job and the candidate’s status. Under Article 22 of the Labor Code, a refusal to hire must be based on lawful reasons related to qualifications, professional qualities, or requirements set by law; at the candidate’s request, give the reason in writing. Article 184 prohibits refusing to hire someone because of pregnancy or having a child under three, and prohibits refusing a single mother because she has a child under 14 or a child with a disability.

For these categories, a written explanation of the refusal is mandatory. If a medical opinion certifies that the proposed work is contraindicated for a person, entering into that employment contract is prohibited. The absence of a paper employment record book alone is not grounds to refuse all candidates: the law expressly allows them to provide employment history information from the register. Under Article 25 of the Labor Code, an employer may not demand documents that the law does not require.

If a person is entering employment for the first time and asks for an employment record book, Article 48 of the Labor Code requires the employer to issue it no later than five days after hiring. At the employee’s request, the employer also enters employment records in the book kept by the employee.

If you hire a minor, take Articles 188–191 of the Labor Code into account. The general minimum hiring age is 16; from age 15, the consent of one parent or a person acting in place of a parent is required. From age 14, Article 188 allows the students specified there to perform only light work in their free time from school, with the same consent and without harm to their health or education. Before hiring, a person under 18 must undergo a preliminary medical examination and, until age 21, annual examinations. The employer keeps a special register of minors with their dates of birth and does not assign them prohibited heavy or hazardous work.

3. Issue an order and notify the tax authority

The agreed form of contract does not waive Article 24 of the Labor Code: before the employee is allowed to work, the employment contract must be formalized by an order or directive of the employer, and the tax authority must be notified of the hire.

Under Resolution of the Cabinet of Ministers of Ukraine No. 413 dated 17 June 2015, the notice in the form set out in Appendix 1 is submitted to the territorial tax authority where the employer is registered as a payer of the single contribution for compulsory state social insurance. The usual method is electronic submission with the responsible person’s electronic signature based on a qualified certificate. If electronic submission is technically unavailable, submit the notice on paper together with an electronic copy.

The Resolution also provides for the relevant information to be transmitted automatically when employment is formalized electronically through the Unified Information and Analytical System “Obrii.” In the usual employer-submitted process, the notice must be sent before work begins.

Practical sequence: agree on the start date, issue the order, submit the notice, confirm that it has been accepted, and only then allow the person to start their shift. Keep the order, submitted notice, and electronic receipts together: they confirm different steps in the hiring process.

4. Explain the job and conduct safety briefings

Before work begins, Article 29 of the Labor Code requires the employer to inform the employee about the place of work, job function, start date, workplace, rights and duties, work and rest schedule, pay, leave, and the procedure for ending the contract. The employee must also receive instruction on occupational safety, workplace sanitation, occupational hygiene, and fire safety.

For a store, it is advisable to explain separately how to receive goods, use equipment, open and close a shift, and act in a dangerous situation. Information about unaddressed dangerous and harmful workplace factors, their possible consequences, and applicable benefits and compensation must be provided against the employee’s signature. Article 153 of the Labor Code makes the employer responsible for safe working conditions and prohibits requiring work that clearly endangers an employee’s life.

Under Article 169 of the Labor Code, at its own expense, the employer arranges preliminary and periodic medical examinations for employees performing legally specified heavy, harmful, or hazardous work or work requiring occupational suitability screening, as well as annual mandatory examinations for all employees under 21. Thus, an annual examination is also required for an employee first hired after turning 18. Under Article 123, the employee’s average earnings are preserved during a mandatory examination.

If a medical opinion says that a pregnant employee needs lower work quotas or lighter work without adverse workplace factors, the employer must provide this while preserving average earnings from the previous job under Article 178 of the Labor Code. Until such work is provided, the employee is relieved from work while retaining average earnings at the employer’s expense. A woman with a child under three who cannot perform her previous work must be transferred to another job while retaining her previous average earnings until the child turns three. If earnings in the new job are higher, the actual higher earnings are paid.

Under Article 183 of the Labor Code, a woman with a child under one and a half is entitled to additional nursing breaks at least every three hours, for at least 30 minutes each; if she has two or more infants, each break must be at least one hour. The employer includes these breaks in working time and pays for them at the average earnings rate.

Open-ended contracts, fixed-term contracts, and probation

When you can set a contract term

Article 23 of the Labor Code provides for open-ended contracts, contracts for an agreed term, and contracts for the duration of a specific task. A fixed term must be based on the nature of the work, the conditions under which it is performed, the employee’s interests, or another legal ground.

In addition, Article 2 of Law No. 2136-IX allows fixed-term contracts with new employees to bring in staff quickly and address labor shortages during martial law, including to replace temporarily absent employees. Reasons for an employee’s absence may include evacuation, leave, downtime, temporary incapacity for work, or a temporarily unknown location.

Practical recommendation. Record the reason for the fixed term and a clear end condition in the contract and order. If you hire a cashier to replace an employee on childcare leave, link the term to that employee’s absence. If you hire a salesperson because of a wartime labor shortage, describe the relevant circumstances and agreed term. Martial law does not automatically convert existing open-ended contracts into fixed-term contracts.

Employers must inform employees on fixed-term contracts about relevant vacancies that offer open-ended work and match their qualifications, and provide equal opportunities to enter into such contracts.

How to set and complete probation

As a general rule, Article 26 of the Labor Code excludes certain categories of employees from probation. These include minors, pregnant women, internally displaced persons, and people hired on fixed-term contracts of up to 12 months. However, during martial law, part two of Article 2 of Law No. 2136-IX allows the parties to agree on probation for any category of employee. Probation is optional, not a mandatory hiring step.

The employee must agree to the probation condition, and it must be included in the hiring order. For an ordinary store, the periods in Article 27 of the Labor Code apply: generally up to three months, and up to one month for employees classified as workers (робітники). Probation of up to six months is possible only in certain cases, with the agreement of the relevant elected body of the primary trade union organization. Days when the employee is actually absent do not count toward the probation period.

The special period of up to 45 calendar days under part three of Article 2 of Law No. 2136-IX applies to the critical enterprises specified there in the defense-industrial complex and to employees liable for military service. It cannot be applied to an ordinary store without meeting those conditions.

Before probation begins, it is advisable to define specific tasks, such as correctly processing sales, receiving goods, and following work procedures. If the employer finds that the employee is not suited to the job, Article 28 of the Labor Code allows dismissal during probation with three days’ written notice. The dismissal order must cite paragraph 11 of part one of Article 40 of the Labor Code. The decision requires evidence of unsuitability and compliance with special protections against dismissal, including those for pregnant employees and minors. Permission to impose probation on them does not remove these protections. If the probation period expires and the person continues working, they are considered to have passed probation.

How to hire internally displaced people and people who already have a job

An internally displaced person (IDP) follows the usual hiring process and has the relevant labor rights. In practice, the employer should obtain current contact details, the documents required under Article 24 of the Labor Code, and agree on a workable schedule. IDP status does not replace the hiring order or notice to the tax authority.

Article 21 of the Labor Code allows a person to work for multiple employers at the same time unless the law, a collective agreement, or an agreement between the parties provides otherwise. Therefore, having another job does not by itself prevent hiring someone at a store. Find out how the employee will manage both jobs and agree on the appropriate paperwork and schedule.

Under Article 102-1 of the Labor Code, work under a separate employment contract during free time from the main job is secondary employment; it is paid according to the work actually performed. Part-time work defines the length of the working schedule, so the two concepts should not be treated as the same. In practice, ask the candidate to describe their available hours and agree on shifts they can actually work.

Under Article 56 of the Labor Code, the parties can agree on a shorter workday or workweek at hiring or later; pay is calculated in proportion to hours worked or according to output. At the request of a pregnant woman, a woman with a child under 14 or a child with a disability, or a woman caring for a sick family member based on a medical opinion, the employer must set such a schedule. Article 186-1 extends the relevant protections to the parents and people raising children specified there, and Article 172 provides for part-time hours at the request of a person with a disability in the cases set by law. Part-time hours do not reduce annual leave entitlement.

What to consider regarding military registration documents and mobilization

Distinguish the duties of legal entities from those of individual entrepreneurs

Article 24 of the Labor Code requires the applicable military registration document in cases provided by law. Include a check of this document in the hiring process only for candidates to whom the requirement applies. The special permission under part three of Article 2 of Law No. 2136-IX to hire certain people liable for military service despite missing or improperly completed documents during probation is not a general permission for retail employers.

If a legal entity hires employees, its head organizes personal military registration for Ukrainian citizens who are conscripts, persons liable for military service, or reservists under the Procedure approved by Resolution of the Cabinet of Ministers of Ukraine No. 1487 dated 30 December 2022. Points 1, 8, and 16 place these duties on enterprises, institutions, organizations, and their heads. Individual entrepreneurs are not included in this list, so this Procedure does not require an individual entrepreneur to maintain employees’ personal military registration or send its notices of hiring and dismissal. However, the Article 24 Labor Code requirement concerning documents when entering into an employment contract also applies to individual entrepreneurs.

The head of a legal entity assigns military registration to a personnel officer or, if there is no such staff position, to the person who maintains employee records. If fewer than 500 conscripts, people liable for military service, and reservists are registered, point 10 of Procedure No. 1487 provides that these duties are assigned to a personnel officer with an additional payment of up to 50 percent of the position’s salary.

Therefore, if you assign this work, arrange the required additional payment as well. Under point 13, the appointment, dismissal, or release from duties of the head and other people responsible for organizing and maintaining military registration must be reported to the relevant district or city territorial recruitment and social support center (TRSSC) within seven days of the order, using Appendix 1.

What a legal entity must do when hiring and dismissing employees

Under point 34 of Procedure No. 1487, when hiring a candidate to whom the requirements apply, check whether they have a military registration document in paper or electronic form and whether its information matches the Unified State Register of Conscripts, Persons Liable for Military Service, and Reservists. For this check, use an electronic military registration document generated through the State Web Portal of Electronic Public Services in the field of national security and defense or the Diia Portal no earlier than 72 hours before the hire date.

If technically possible, the check may be carried out through the electronic personal registration cabinet for conscripts, persons liable for military service, and reservists. An exception applies to people liable for military service and reservists of the Security Service of Ukraine (SBU) and intelligence agencies: their paper document details are not checked against the register.

An ordinary enterprise may hire a conscript, a person liable for military service, or a reservist, and place them on its personal military register, only after they have registered with the relevant TRSSC, SBU body, or intelligence agency unit. At hiring, the responsible person explains the military registration rules to the employee and obtains their personal signature. Under point 19, the rules must also be displayed in a visible place in a common area.

Separate deadlines apply to hiring, dismissal, and later updates:

• Within five days after hiring or dismissal, enter the relevant information in the personal military registration lists and operational registration statement under points 41–42.
• Within seven days of the date of the hiring or dismissal order, submit a notice of changed registration data to the relevant TRSSC, SBU body, or intelligence agency unit using Appendix 4. If technically possible, point 34 allows electronic submission through the Diia Portal under Appendix 28-1 or through the personal registration cabinet; no duplicate paper submission is needed. The rules in Appendix 28-1 do not apply to people liable for military service or reservists of the SBU and intelligence agencies, so do not submit notices about them through the Diia Portal under this procedure. If employment is formalized electronically through the “Obrii” system, point 34 provides for the notices to be generated and transmitted automatically.
• Within five days of receiving supporting documents, enter the changes specified in point 34 in the lists, including changes to name, passport details, address, place of work, and position. Send notices of these changes monthly by the 5th through the personal registration cabinet, or on paper if that is technically unavailable.

At least once a year, a legal entity compares its lists with employees’ military registration documents and separately with the registration information held by the relevant authorities under points 34 and 45–46. For a TRSSC in another administrative and territorial unit, reconciliation takes place on an agreed date, but no later than 1 December. Enter any changes identified within five days of reconciliation, and, if there are changes, send notices of them monthly by the 5th.

Each year by 25 January, the lists and statement as of 1 January must be signed by the head and responsible person and registered with the records office under point 40. Point 72 also provides for an annual order by 1 February on the state of military registration in the preceding year and tasks for the next year.

Under point 37 of Procedure No. 1487, a legal entity keeps the personal military registration lists together with copies of paper or electronic military registration documents, including printed copies. After an employee’s dismissal or release from work because of conscription or entry into military service, the relevant information remains in the lists until the end of the current year and is included in the operational registration statement under point 44.

An employee whose employment contract has been suspended remains on the personal military registration lists. If a legal entity receives an instruction to notify an employee about a summons, the head follows point 47: issue an order and notify the employee against their personal signature; for the cases specified there involving remote work, illness, leave, or business travel, notification is sent by registered mail with an inventory of contents and delivery confirmation.

Send a copy of the order and proof of notification to the relevant authority within three days; if a summons is available, deliver it to the employee and monitor the notification and attendance.

How to document an employee’s release from work for military service

If an employee already hired is assigned, conscripted, or admitted to military service under circumstances covered by part three of Article 119 of the Labor Code, their job and position are preserved, including when the employer is an individual entrepreneur. This provision provides for military pay to be funded from the state budget and does not impose a general obligation on the employer to preserve average wages during that service. After receiving supporting documents, formally release the employee from work; a properly justified fixed-term contract may be used to replace them.

Under part three of Article 119 of the Labor Code, the job and position are preserved until the end of the special period or the employee’s actual discharge from service. If the employee is injured or otherwise suffers damage to their health during service and is undergoing treatment in a medical institution, is captured, or is declared missing, part five of Article 119 continues to preserve their job and position.

After discharge from service and the end of treatment, return from captivity, or the employee’s reappearance, the protections apply until the day after the employee is placed on military registration. For treatment, this provision sets no maximum duration. If a court declares the employee dead, the protections apply until the date of that declaration. The protections in parts two and three do not apply to people whose conviction for a military criminal offense committed during the special period has become final.

Also consider the right of an employee conscripted or admitted to military service to receive compensation for unused annual leave and the applicable additional leave for employees with children without being dismissed. Under Article 83 of the Labor Code, the employee must submit the relevant request no later than the last day of the month in which they are released from work.

How to schedule store working hours

Under Article 50 of the Labor Code, normal working hours are no more than 40 hours a week. Article 6 of Law No. 2136-IX allows an increase to 60 hours only for employees working at critical infrastructure facilities. The fact that a store sells everyday goods does not automatically entitle its owner to apply this rule.

For employees at critical infrastructure facilities whose hours are legally reduced, the special limit is 40 hours. If hours are lawfully increased under parts one or two of Article 6, pay is increased proportionally. An increase in working hours under these parts and a reduction of weekly rest to 24 hours do not apply to minors.

For employees aged 16 to 18, Article 51 of the Labor Code sets a 36-hour workweek; for those aged 15 to 16, and students aged 14 to 15 during school holidays, it sets a 24-hour workweek. Students working during the school year in their free time from school may work no more than half the applicable age-based limit. Under Article 194, a minor’s reduced working hours are generally paid at the rate of a full-time employee in the relevant category; students in general secondary or vocational education who work in their free time from school are paid in proportion to their hours or according to output.

Illustrative scheduling example. The store is open longer than one salesperson can work within their working time limit. The owner should divide the hours among employees, arrange cover during breaks, and keep records of each shift. The store’s opening hours and each individual’s working hours should be planned separately.

During martial law, the employer determines whether the workweek has five or six days and sets the start and end times of shifts. For a standard six-day workweek, Article 52 of the Labor Code limits daily work to seven hours for a 40-hour weekly norm, six hours for a 36-hour norm, and four hours for a 24-hour norm. Weekly continuous rest may be reduced to 24 hours.

This reduction does not apply to minors: under Article 70 of the Labor Code, they must receive at least 42 hours of continuous rest each week. Certain ordinary rules on shorter days before holidays and the public holidays and non-working days listed in part six of Article 6 of Law No. 2136-IX do not apply. Record actual working days and days off in the schedule.

When preparing a shift schedule, comply with Articles 59 and 66 of the Labor Code. The interval between shifts must be at least twice the length of the previous shift, including the meal break; employees may not work two shifts in a row. A meal break of up to two hours is usually provided four hours after work begins and is not included in working time. If working conditions make such a break impossible, the employer must provide an opportunity to eat during working hours in accordance with Article 66.

If working conditions prevent compliance with daily or weekly working hour limits, Article 61 of the Labor Code allows summarized recording of working time with the agreement of the trade union body. The employer sets the accounting period and schedules work within the employee’s applicable hourly norm for that period.

Overtime must be recorded and paid under Article 106 of the Labor Code. Under an hourly pay system, overtime is paid at double the hourly rate; under summarized recording, overtime hours are those worked above the set duration for the accounting period. Article 106 does not allow overtime pay to be replaced with time off in lieu. The wartime non-application of the maximum overtime limits in part one of Article 65 does not remove the other conditions for overtime.

An employer may assign overtime only on the exceptional grounds in Article 62 and in compliance with the prohibitions in Article 63. If a primary trade union organization has been established, Article 62 requires the employer to inform its elected body or union representative in advance. For the work specified in items 1 and 2 of part three of Article 62, notice may be given during the following workday.

Article 64 separately requires permission from the trade union body for overtime.

Under Article 63 of the Labor Code, pregnant women, women with children under three, and minors may not be assigned overtime. Employees who are studying and fall within the categories specified in that Article may not be assigned overtime on days when they have classes. Women with children aged three to 14 or a child with a disability may be assigned overtime only with their consent. A person with a disability must consent, and the work must not conflict with medical recommendations. Apply the relevant family protections also with regard to Article 186-1.

For night shifts, take Article 8 of Law No. 2136-IX into account: without consent, pregnant women, women with a child under one, and people with disabilities for whom such work is contraindicated by medical recommendations may not be assigned to night work. At the same time, a person’s consent does not override medical contraindications: Articles 55 and 172 of the Labor Code require medical recommendations to be taken into account. Under Article 192, minors may not be assigned night work, overtime, or work on days off.

Nighttime is from 10:00 p.m. to 6:00 a.m. Under Article 108 of the Labor Code, the employer pays an additional amount of at least 20 percent of the hourly tariff rate or salary calculated per hour for every night hour. If an applicable agreement or collective agreement sets a higher rate, apply it. If an employee works on a scheduled day off, Article 72 provides, by agreement between the parties, for either another day of rest or double pay under Article 107.

The wartime non-application of Article 71 does not remove this compensation. At the same time, Article 176 of the Labor Code prohibits assigning pregnant women and women with children under three to work on their days off or sending them on business trips. The employee’s consent does not override these prohibitions. The relevant protections also extend to people specified in Article 186-1.

How to change an employee’s schedule, pay, or job

Under Article 32 of the Labor Code, changes to essential working conditions while work continues in the same position are allowed in connection with changes in the organization of production and labor. Such conditions include, among other things, the pay system and amount, work schedule, part-time arrangements, and combining professions.

During martial law, Article 3 of Law No. 2136-IX requires the employer to notify the employee of changes to essential working conditions and pay terms no later than before they take effect. The ordinary two-month notice period under part three of Article 32 and Article 103 of the Labor Code does not apply. The employer should document the organizational reasons, new terms, effective date, and evidence of notice. This provision does not allow the employer to change pay retroactively for work already performed.

If the previous essential working conditions cannot be maintained and the employee refuses to work under the new conditions, part four of Article 32 of the Labor Code provides for termination under paragraph 6 of part one of Article 36. Record the organizational changes, proposed terms, notice to the employee, and their refusal. Under Article 44, pay severance of at least the average monthly wage. The two-month notice period for redundancy under Article 49-2 does not apply to this ground.

As a general rule, transfer to another job requires the employee’s consent. The wartime exception allows a transfer without consent only to prevent or address the consequences of hostilities or other circumstances that threaten people’s lives or normal living conditions. The work must not be contraindicated by the employee’s health, and pay must not be lower than the average wage in the previous job. This exception does not cover transfers to another locality in an area of active hostilities.

Therefore, the need to fill an ordinary stock clerk vacancy does not by itself allow the employer to force a salesperson to transfer under this wartime rule. Agree on the change in work with the employee and formalize it according to the agreement. If the agreed permanent transfer involves lower pay, Article 114 of the Labor Code requires the employer to preserve the previous average wage for two weeks from the date of transfer. If the salesperson also performs the duties of an absent colleague, Article 105 of the Labor Code provides for additional pay for that work.

How to pay wages and document arrears

Article 115 of the Labor Code requires wages to be paid at least twice a month, with no more than 16 calendar days between payments and no later than seven days after the end of the period for which they are paid. If a payday falls on a day off, public holiday, or non-working day, payment is made on the preceding day. The amount paid for the first half of the month must be at least the pay for time actually worked, calculated using the rate or salary.

Articles 94–95 of the Labor Code maintain requirements for wages and the minimum wage as a state guarantee, and provide for wage indexation under the procedure established by law. The employer must apply the relevant indexation rules when calculating wages. If a salesperson’s earnings consist of a base rate and sales bonuses, the employer must ensure the statutory minimum pay for the monthly or hourly working norm completed, regardless of the remuneration system used.

For part-time work, pay is calculated in proportion to hours worked or according to output under Article 56 of the Labor Code. An internal bonus formula does not remove this obligation. Under Article 110, at each payment, inform the employee of the total amount, broken down by type of payment, the amounts and grounds for deductions, and the net amount payable.

Under Article 97 of the Labor Code, an enterprise sets its pay system, rates, supplements, and bonus terms in a collective agreement in compliance with statutory guarantees and applicable agreements. If there is no collective agreement, the employer agrees on these matters with the trade union body representing the majority of employees or, if there is none, with another authorized employee representative body. Article 115 also requires the payday schedule and the amount payable for the first half of the month to be properly set in the collective agreement or an agreed employer act.

If a collective agreement is in force, martial law does not allow the employer to suspend its provisions unilaterally. Under Article 11 of Law No. 2136-IX, suspending provisions that regulate relationships covered by this Law requires the mutual consent of the parties to the collective agreement and compliance with its prescribed procedure.

Under Article 10 of Law No. 2136-IX, the employer must take all possible steps to pay wages on time. The employer may be released from liability for a delay if it proves that hostilities or other force majeure circumstances caused the breach. The wage debt remains due. If timely payment is impossible specifically because of hostilities, the law allows payment to be deferred until the enterprise resumes operations.

Practical recommendation. Keep documents showing the specific obstacle, how long it lasted, and the steps taken to pay. Separately track amounts accrued and paid for each employee. A general reference to martial law is not enough to explain the cause of a particular delay.

How to record work, absences, and employee contact

Article 7 of Law No. 2136-IX allows employers in areas of active or possible hostilities to determine their own personnel recordkeeping and document retention procedures, provided they keep accurate records of work performed and labor costs. This option depends on the location; accurate records remain necessary.

The parties may agree on alternative ways to create, send, and store personnel documents and on an available method of electronic communication. For a store, it is advisable to record in writing the specific email addresses, phone numbers, agreed messaging app, and method for confirming receipt of documents. Keep messages together with attachments and delivery information.

Both parties must maintain the ability to communicate, including while a contract is suspended, and notify each other of changes to contact details promptly, but no later than within 10 calendar days. For an employer that is an individual entrepreneur or a legal entity, the law provides for changes to information in the Unified State Register of Legal Entities, Individual Entrepreneurs, and Public Organizations. The employee sends information to the employer’s registered address or email; if mail or electronic means are unavailable, they send a text message to the employer’s official phone number.

If a party does not update its contact details, a notice sent to its last known address, email, or phone number is considered proper performance by the other party. If there is no postal service and/or electronic communication available through the last known contact details, part four of Article 7 provides that the legal requirement to notify that party of the start or end of employment rights and duties, including contract termination, does not apply. Keep evidence that the relevant communication methods were actually unavailable to support reliance on this exception. A lack of response through an available channel alone does not prove that communication methods were unavailable.

If an employee does not show up for a shift, proceed in order:

1. Record the actual absence and when the employee was expected to work.
2. Try to contact them through the agreed channels and keep a record of the results.
3. Ask for the reason and supporting documents when contact becomes possible.
4. Determine the legal status of the absence based on the established circumstances, then prepare the relevant documents and calculate pay.

Article 5 of Law No. 2136-IX prohibits dismissal for absenteeism when the employee’s workplace is in an area of active hostilities and they are absent from work. This time is unpaid and is not counted toward service for annual basic leave. Check this special protection before making any dismissal decision based on absence.

How to grant paid and unpaid leave

Check the duration of annual basic leave

Under Article 6 of the Law of Ukraine “On Leave” No. 504/96-VR, the general minimum duration of annual basic leave is 24 calendar days for each completed working year, counted from the date the employment contract was concluded. Higher minimum entitlements apply to certain employees.

Part one of Article 12 of Law No. 2136-IX allows an employer to limit annual basic leave to 24 calendar days for the current working year. If an employee is entitled to more days, the unused balance is carried over until after martial law ends or is lifted; during martial law, the employer may decide to grant this balance without pay. However, for minors and people with disabilities, the employer must provide the increased minimum paid leave established by law, taking into account the Constitutional Court of Ukraine’s ruling described below.

By its decision of 19 May 2026 No. 3-r/2026, the Constitutional Court of Ukraine held unconstitutional the provision that failed to ensure these employees paid annual basic leave of more than 24 days. The provision, to the extent held unconstitutional, ceased to have effect on the date of the decision. Therefore, for the relevant working year, a minor must receive 31 paid calendar days, an employee with a Group I or II disability 30, and an employee with a Group III disability 26. This protected portion of leave cannot be converted into unpaid leave.

The same decision invalidated the provision extending certain restrictions on unpaid leave beyond the end or lifting of martial law until the transferred days had actually been used. Therefore, an employer may not rely on it to make those days unpaid after martial law ends.

Check entitlement to additional and study leave

In addition to basic leave, an employee may be entitled to annual additional leave. Articles 7–8 of the Law “On Leave” provide for it for relevant harmful and difficult conditions or a special nature of work; for an irregular working day, up to seven calendar days are available for positions, work, and professions listed in a collective agreement or another applicable agreement. Identify the legal ground, applicable duration, and actual time spent working in the relevant conditions. Setting an irregular working day does not allow the employer to schedule work beyond the norm on a regular basis.

If an employee is combining work and study, check their entitlement to additional leave under Articles 211, 213, and 216 of the Labor Code. Its duration depends on the type of education, study format and stage, and purpose of the leave. In particular, Article 213 provides employees pursuing vocational or professional pre-higher education with 35 calendar days during the academic year for preparation, examinations, and assessment of their learning outcomes. Under Article 217, average wages are preserved for study leave at the employee’s primary place of work. To arrange it, obtain an application and a document from the educational institution confirming the grounds and leave period.

Article 16-2 of the Law “On Leave” and Article 77-2 of the Labor Code provide separate additional paid leave of 14 calendar days a year, including for combat veterans and people with disabilities resulting from war. Check the document confirming the employee’s status and membership in a category defined by law. Apply the special rules of Article 12 of Law No. 2136-IX described below when granting and paying for this additional leave.

Arrange social leave based on the applicable grounds

Under Articles 17 and 20 of the Law “On Leave,” maternity leave is granted based on a medical opinion: 126 calendar days in total, or 140 in the case of multiple births or complicated childbirth. At the woman’s request and if there are no medical contraindications, the unused prenatal portion can be taken after childbirth within the total duration. Benefits for this period are funded from state social insurance.

The employer formalizes childcare leave until a child turns three by order, based on an application by the mother or father; the relatives and other people who actually care for the child specified in Article 18 may also use it. For grandparents and other relatives who actually care for the child, Article 20 requires a certificate from the workplace, school, or service of one parent confirming that they returned to work before this leave ended.

This certificate requirement does not apply to people who adopted or took custody of a child, foster parents, or foster caregivers. This leave is not granted if the child is in state care, except in the cases established by law for foster families and family-type children’s homes. Under Article 179 of the Labor Code, an employee must notify the employer at least 10 calendar days before ending this leave early.

Under Article 18-1 of the Law “On Leave,” a person who adopts a child who is an orphan or deprived of parental care is entitled to one-time paid leave of 56 calendar days, or 70 days for adopting two or more children. During martial law, days that would ordinarily be public holidays or non-working days under Article 73 of the Labor Code count toward this duration because Article 6 of Law No. 2136-IX temporarily suspends Article 73. The application must be submitted no later than three months after the court decision becomes final. If the adoptive parents are a married couple, the leave is granted to one of them, as they choose.

Article 19 provides for additional paid leave of 10 calendar days each year, or up to 17 days total if there are multiple grounds. Entitlement includes, among others, one parent of two or more children under 15, a child with a disability, or an adopted child; a single mother; and other people expressly specified in the Article. Obtain documents establishing the relevant ground and determine whether this particular employee is entitled to the leave. During martial law, public holidays and non-working days count toward its duration. Apply the rules in Article 12 of Law No. 2136-IX described below to its payment and carryover.

Under Article 19-1, one of the employees specified there is entitled to one-time leave of up to 14 calendar days upon the birth of a child, to be granted no later than three months after the birth. During martial law, days that would ordinarily be public holidays or non-working days under Article 73 of the Labor Code count toward this duration because Article 73 is temporarily suspended.

The entitlement includes, under the conditions set by law, the mother’s husband or a father who is not married to her but lives with her and has family relations with her. A family member specified by law who cares for the child of a single mother or single father needs an application from that parent. The employee submits a written application; a copy of the birth document must be submitted within 30 calendar days of the leave start date.

Apply the relevant wartime payment rules.

Prepare the schedule, order, and payment

Article 10 of the Law “On Leave” provides for approving a leave schedule in agreement with the trade union or another authorized employee representative body, notifying employees of the schedule, agreeing on the specific period, and giving written notice of the leave start date at least two weeks before the scheduled date. The employer also keeps records of leave granted. In practice, prepare an order stating the type of leave, dates, duration, and working year for which it is granted.

When drawing up the schedule, take into account the right of employees specified in Article 10 to take annual leave at a convenient time. These include minors, people with disabilities, women before or after maternity leave, women with two or more children under 15 or a child with a disability, single fathers and mothers raising a child without the other parent, and spouses of military service members. Check the other grounds in this Article as well: the usual process for agreeing on dates does not remove these protections.

As a general rule, the right to full annual leave in the first year of work arises after six months of continuous employment; before that, leave duration is calculated in proportion to time worked. Part seven of Article 10 provides for full leave earlier at the request of minors, people with disabilities, women before or after maternity leave, women with two or more children under 15 or a child with a disability, men whose wives are on maternity leave, and secondary employees taking leave at the same time as at their primary job.

This entitlement also applies to former military service members and people after alternative service specified in this provision who are hired within three months of leaving service, excluding relocation time; employees studying successfully and attaching leave to events provided for in their curriculum; employees with a voucher for relevant treatment; and foster caregivers in family-type children’s homes. Check for other grounds established by law or contract as well.

Under Article 20, at a woman’s request, the employer must attach annual leave to maternity leave regardless of how long she has worked in the current working year.

For a small store, it is advisable to arrange shift coverage in advance. If an employee asks to split annual leave, one continuous portion must be at least 14 calendar days. During martial law, public holidays and non-working days count toward annual leave because the rule excluding them is temporarily suspended. Vacation pay is paid before leave starts unless the law, employment contract, or collective agreement provides otherwise.

Article 12 of Law No. 2136-IX allows an employer to refuse unused annual leave days. At the same time, as the Constitutional Court of Ukraine explained in subparagraph 6.3 of decision No. 3-r/2026, employees are guaranteed paid annual basic leave of the minimum duration for the current working year; the increased minimum entitlements described above apply to minors and people with disabilities.

For other types of leave, paragraph three of part one of Article 12 allows leave without pay or carryover of unused days. Under subparagraph 6.4 of the Court’s decision, this rule applies if the employee has already used 24 calendar days of annual basic leave. It does not apply to maternity leave, childcare leave until a child turns three, or adoption leave, and it does not allow minors or employees with disabilities to be deprived of their minimum paid annual basic leave.

The right to refuse almost all types of leave under part two of Article 12 is linked to the employee being assigned to work at critical infrastructure facilities, in the production of defense products, or in carrying out a mobilization assignment. Even in these cases, maternity leave and childcare leave until a child turns three are exceptions. An ordinary shortage of sales staff is not, by itself, grounds to apply this special rule.

What to do if an employee becomes ill during leave

Under Article 78 of the Labor Code, days of the employee’s properly documented temporary incapacity for work are not counted as annual leave. Article 80 of the Labor Code and Article 11 of the Law “On Leave” require the employer to extend the leave or carry over its unused portion. Obtain confirmation of incapacity, determine how many days overlapped, and formalize the extension or agreed new dates by order.

Under Article 80 of the Labor Code and Article 11 of the Law “On Leave,” annual leave is also carried over or extended if, during the leave, the employee performs state or public duties that release them from work with pay, begins maternity leave, or has study leave that overlaps with annual leave. Another ground is a finding, established under the procedure set by law, that the employee was deprived of personal liberty as a result of armed aggression against Ukraine.

Article 20 of the Law “On Leave” also provides for the corresponding carryover or extension of additional leave for employees with children.

These rules do not provide for extending unpaid leave because of illness. Therefore, incapacity alone does not change the agreed end date. If an employee requests a different period of unpaid leave, arrange it under the relevant legal ground.

Annual leave must also be carried over at the employee’s request if the employer gave notice of its start too late or failed to pay vacation pay within the required period. At the employer’s initiative, Article 11 of the Law “On Leave” allows carryover only as an exception when leave during the agreed period could disrupt normal business operations. The employee’s written consent and agreement with the trade union or another authorized employee representative body are required; the employee must take at least 24 calendar days during the current working year.

For minors and employees with disabilities, also provide the increased minimum entitlements that apply to them. Under Article 12 of that Law, an employee may be recalled from annual leave only with their consent and on statutory grounds, including to prevent an accident, injury, downtime, or property damage.

Distinguish between grounds for unpaid leave

• For family circumstances and other reasons: Article 26 of the Law “On Leave” allows the parties to agree on up to 30 calendar days per year.
• Under the special wartime rule: part three of Article 12 of Law No. 2136-IX allows the employer, at the employee’s request, to grant unpaid leave without the 30-calendar-day annual limit mentioned above. The employee and employer agree on whether to grant it.
• In circumstances specified in part three of Article 26 of the Law “On Leave”: for example, a threat of armed aggression or an emergency, the employer may agree to unpaid leave at the employee’s request without the general annual limit; the parties agree on its duration.
• For an employee who has left Ukraine or acquired IDP status: part four of Article 12 of Law No. 2136-IX requires the employer to grant leave upon the employee’s request for a period they specify, but no more than 90 calendar days.

• For special status or circumstances: Article 25 of the Law “On Leave” provides for mandatory unpaid leave at the employee’s request. For example, employees receiving an old-age pension and employees with a Group III disability are entitled to up to 30 calendar days a year, those with a Group I or II disability to up to 60, and employees getting married to up to 10.

  Under the same Article, the employer must grant, among other cases, up to 14 calendar days a year to a mother, or to a father raising children without their mother, if the employee has two or more children under 15 or a child with a disability; up to 14 days to a man whose wife is on postnatal leave; up to 7 days in the event of the death of specified close relatives or up to 3 days for other relatives specified by law, excluding travel time to and from the burial place.

  Leave to care for a sick relative who needs constant outside care is granted for the period specified in the medical opinion, but no more than 30 calendar days. For home care of a child, the medical opinion sets the period until the child turns six, or, for the illnesses and conditions expressly listed in item 3, until age 16 or 18. A secondary employee is entitled to unpaid leave until their leave at their primary job ends.

  An employee who resumes work after being discharged from military service specifically because the special period ended or demobilization was announced is entitled to up to 60 calendar days. Article 25 also requires the employer to grant an employee admitted to entrance examinations at a higher education institution 15 calendar days, excluding travel time to and from the institution. To accompany a child under 18 entering an educational institution in another locality, the employee is entitled to 12 calendar days, excluding travel; this leave is granted separately for each child.

  An employee who received compensation for unused annual leave at their previous job is entitled to up to 24 calendar days of unpaid leave during the first year of their new job before completing six months of continuous work. For each application, identify the specific item of Article 25, supporting documents, and applicable wartime restrictions.

For the 90-day leave, obtain an application stating the dates and grounds and confirmation of the relevant circumstances, issue an order, and keep records of the days used. The law does not define these 90 days as an annual limit. Time on this leave, as well as unpaid leave under part three of Article 12 during martial law, is not counted toward service for annual basic leave. Article 26 of the Law “On Leave” likewise excludes leave under parts one and three from this service.

When calculating annual basic leave, separately identify the periods included in leave service under Article 9 of the Law “On Leave” and Article 82 of the Labor Code. This includes actual work, including part-time work, as well as legally specified periods of preserved wages or social insurance benefits. Childcare leave until a child turns three and unpaid home care for a child under the applicable legal grounds do not count toward this service.

Neither does military service for which the law provides only preservation of the job and position, or a period when the contract is suspended without work or wages. For most mandatory unpaid leaves under Article 25, service is preserved, but home care of a child is subject to the exceptions expressly set out in Article 9.

The fact that an employee has left Ukraine or acquired IDP status does not allow a store owner to send them unilaterally on 90 days of unpaid leave. Leave granted at the employee’s request or by agreement requires the employee’s consent; the employer may not demand an application to shift the costs of a lack of work to the employee.

When to formalize downtime and when an employment contract can be suspended

If the store temporarily stops operating because organizational or technical conditions are unavailable, assess whether the grounds for downtime under Article 34 of the Labor Code are met. Under Article 113, downtime not caused by the employee is paid at no less than two-thirds of their applicable tariff rate or salary. If a dangerous workplace situation arises under the conditions specified in that Article and the employee is not at fault, their average earnings are preserved. In practice, record the reason, start and duration of downtime, employees affected, whether they must remain at the workplace, and pay arrangements.

Under Article 13 of Law No. 2136-IX, suspension is possible when circumstances arising from armed aggression against Ukraine make it impossible for both parties to perform their obligations under the contract: the employer cannot provide work, and the employee cannot perform it. Lower sales or a desire to temporarily reduce costs do not, by themselves, establish this condition.

For example, if a store is damaged, the employer must establish and document not only that it cannot provide the agreed work but also that the employee cannot perform it under the specific circumstances. Suspension cannot be used as a disguised punishment and does not end the employment relationship.

1. Gather evidence. Document the circumstances preventing each party from performing their obligations and how they relate to the statutory ground.
2. Set the duration. At the initiative of one party, suspension is allowed for a total of no more than 90 calendar days during martial law, including its extensions. A period longer than 90 days requires the parties’ consent and may not continue beyond the end or lifting of martial law. Amending an order or issuing a new one does not restart this cumulative period.
3. Issue an order. State the reasons and why both parties cannot perform their obligations, how information will be exchanged, the period, number and categories of employees, their surnames, first names, and patronymics if available, and tax identification numbers. For people who have lawfully refused such a number and have the corresponding passport notation, state the passport series and number. Specify the conditions for resuming the contract.
4. Notify the employee. Use the agreed communication channels and keep evidence of notice. The obligation to maintain current contact details remains in effect.
5. Monitor the end of suspension. After the lawful period expires, the contract resumes in full. If the obligations still cannot be performed, a separate decision on a statutory ground is required.

An order that sets a period exceeding the one-sided statutory limit ceases to have effect on the day after that limit expires unless the parties agree to extend it. If the employer ends the suspension early, before martial law ends or the order’s term expires, the employee must be notified of the need to return to work 14 calendar days before work resumes.

During and for the period of suspension, the employer is not required to pay wages or the guarantees and compensation specified in Article 13, except amounts due to the employee on the date of suspension. This provision also covers the payments and actions regarding leave and temporary incapacity specified there. Therefore, before issuing the order, identify and separately record any accrued arrears.

The employee, or a trade union acting on their behalf, may challenge the order with the State Labor Service of Ukraine or its territorial body. The authority reviews the order and the grounds for issuing it and, with the agreement of the military administration, may issue an order to cancel it or otherwise remedy the violation. The employer must comply within 14 calendar days of receipt and may challenge the order in court within 10 calendar days.

How to end an employment relationship lawfully

Martial law is not, by itself, a general ground for dismissal. Identify the specific legal provision: mutual agreement, expiry of a fixed-term contract, dismissal at the employee’s initiative, or a valid ground at the employer’s initiative. Support the reason with documents and cite the relevant paragraph, part, and article of the Labor Code in the order.

Mutual agreement, expiry of a fixed term, and employee resignation

Under paragraph 1 of part one of Article 36 of the Labor Code, the parties may agree to end the contract on a specific date. In practice, record their mutual agreement in writing. An employee’s resignation letter and a mutual termination agreement have different legal grounds, so the order must match what the parties actually agreed.

For termination of a fixed-term contract, consider paragraph 2 of part one of Article 36 and Article 39-1 of the Labor Code: if the employment relationship actually continues after the term expires and neither party requires termination, the contract continues indefinitely. Formalize termination on the basis of a properly defined expiry and take into account the guarantees requiring employment of protected employees.

For an open-ended contract, as a general rule the employee gives two weeks’ written notice of resignation. Article 38 of the Labor Code requires the employer to dismiss the employee on the date they request if they cannot continue working for a valid reason, including relocation, study, pregnancy, childcare, or retirement. The employee may also set the termination date if the employer violates labor laws or the collective or employment contract. For early termination of a fixed-term contract at the employee’s request, apply Article 39: it covers illness or disability that prevents the employee from working, violations by the employer, and the cases in part one of Article 38.

If the employee continues working after the two-week notice period and does not insist on leaving, the employer may not dismiss them based on the earlier notice, except where an employee whom the law prohibits refusing a contract has already been invited to take their place. In addition, Article 4 of Law No. 2136-IX allows an employee to set the termination date in their notice if hostilities are taking place in the area where the enterprise is located and there is a threat to their life and health. This special provision has exceptions for compulsory involvement in socially useful work and work at critical infrastructure facilities.

How to carry out ordinary headcount or staff reductions

If the employer reduces the number of employees or eliminates positions because of organizational changes, the ground is paragraph 1 of part one of Article 40 of the Labor Code. For this type of redundancy, Articles 40, 42, and 49-2 of the Labor Code provide for the following sequence:

1. Document the actual changes. Identify which positions or how many jobs are being cut, the reasons, and the date the headcount or staffing changes take effect. In practice, keep the employer’s decision and documents on work organization before and after the reduction.
2. Determine whom you can dismiss. Check dismissal prohibitions and priority rights to remain employed. If you are retaining some of several comparable employees, first compare qualifications and productivity and, if they are equal, apply statutory preferences.
3. Give individual notice at least two months in advance. Keep proof that the employee received notice or that a lawful exception for communication applies. The wartime reduction of notice periods for changes to essential working conditions does not shorten this dismissal notice period.
4. At the same time, offer other work with the same employer. List available vacancies and their terms so the employee can decide. Until the dismissal date, check whether another suitable job becomes available, offer it to the employee, and document the offers and responses. It must still be impossible to transfer the employee with their consent on the dismissal date. Under part two of Article 40, dismissal is allowed if transfer with the employee’s consent is not possible.
5. Meet applicable duties relating to the trade union and mass layoffs. Prior union consent, mass layoff notices, and consultations are subject to separate conditions described below.
6. After the notice period, formalize dismissal and settle accounts. Pay wages, compensation for unused leave, and severance of at least the average monthly wage under Article 44 of the Labor Code.

Under Article 42 of the Labor Code, employees with higher qualifications and productivity have priority. If these factors are equal, the law gives priority, among others, to employees with families and two or more dependants; those whose families have no other members earning an independent income; those with long continuous service with the employer; those studying while working at the institutions specified in the Article; combat veterans and other categories expressly named in item 5; creators of inventions and other specified intellectual property; employees with an occupational injury or disease acquired with this employer; people deported from Ukraine within five years of their return; former military service members specified in the Article within two years after leaving service; employees with less than three years remaining before the relevant retirement age; and members of voluntary fire and rescue units with at least one year of service.

Other statutory preferences must also be considered.

Practical recommendation. Document the comparison between employees in writing and attach records of qualifications, performance, and verified preferences. This helps explain why the employer retained a particular employee. A social preference that applies when the factors are equal should not be replaced with the employer’s own list of criteria.

Part four of Article 49-2 provides a separate exception to the requirements of its parts one to three for changes related to mobilization measures during a special period. To use this exception, the employer must establish that the changes are specifically connected to those measures. Martial law or lower revenue alone does not establish that connection.

How to dismiss an employee because hostilities destroyed working conditions

Paragraph 6 of part one of Article 41 of the Labor Code applies when the employer cannot provide the agreed work because hostilities have destroyed or eliminated the production, organizational, and technical conditions, means of production, or property. The employer must substantiate these circumstances and how they make it impossible to provide work to the specific employee. A general decline in sales does not establish this ground.

For this type of dismissal, Article 49-2 of the Labor Code sets out a separate procedure:

1. Substantiate the ground. In practice, keep reports of damage or destruction, information on the state of the premises and equipment, and documents explaining why the employer cannot provide the work under the contract.
2. Check whether a transfer is possible. Part four of Article 41 allows dismissal only if the employee cannot be transferred to other work with their consent. Offer any available suitable work and record the response; if there is none, document that fact.
3. Give the employee individual notice at least 10 calendar days in advance. The general two-month period in part one of Article 49-2 does not apply to this ground.
4. Inform existing primary trade union organizations no later than 10 calendar days before the layoff. Provide the reasons, number and categories of employees, and dismissal dates.
5. If the layoff is a mass layoff, notify the state employment service 10 calendar days before dismissal and consult with the trade unions within five calendar days. Discuss ways to prevent dismissals, reduce their number, or mitigate the consequences.
6. Issue the order and make the payments. Under Article 44, severance is at least the average monthly wage. Calculate wages and compensation for unused leave separately.

Dismissal on this ground does not remove prohibitions that protect certain employees. The exception to the ordinary procedure in parts one to three of Article 49-2 also does not remove the express requirement in Article 41 that transfer must be impossible.

Under Article 42-1 of the Labor Code, an employee dismissed under paragraph 1 of part one of Article 40, except in the case of full liquidation, or under paragraph 6 of part one of Article 41, has a priority right to be rehired for one year if the employer hires people with similar qualifications again. Priority among such candidates is determined under Article 42 and the collective agreement.

When notices and consultations are required for a mass layoff

The obligation to notify the state employment service under Article 49-2 of the Labor Code is linked to a mass layoff as defined in Article 48 of the Law of Ukraine “On Employment of the Population” No. 5067-VI. Part one of that Article sets the following criteria for dismissals at the employer’s initiative within one month:

For an employer with fewer than 20 employees, part one of Article 48 sets no separate numerical criterion. The criteria refer to the number of employees at the employer, so a chain of stores must assess planned dismissals across the relevant employer. Under part five of Article 48, its provisions do not apply to dismissals that take place in accordance with the agreed term or fulfillment of the conditions of contracts entered into for a specific term or purpose. This exception does not apply if the employer dismisses those employees before the contract term expires or its conditions are fulfilled.

If the employer plans a mass layoff because of organizational changes, it must notify the territorial state employment service at least two months before the layoff under paragraph 4 of part three of Article 50 of Law No. 5067-VI. The notice must include the reasons, average number and categories of employees, number and categories affected by the decision, dismissal dates, and information about consultations with the trade union body. Article 49-2 of the Labor Code also requires notice to the relevant trade union body. This duty should not automatically be extended to every single salesperson’s dismissal.

For an ordinary mass layoff, paragraph 2 of part three of Article 50 of Law No. 5067-VI separately requires the employer, during consultations but no later than three months before the possible dismissal date, to provide the trade union body with written notice stating the reasons, average number and categories of employees, number and categories who may be dismissed, and dismissal dates. Therefore, plan this process around the three-month period, even though employees’ individual notices and notice to the employment service have a two-month period.

Under Article 49-4 of the Labor Code, before relevant measures are taken, the employer provides the trade union body with written information on the planned mass layoff and, within no more than three months of the decision, holds consultations on preventing dismissals, reducing their number, and mitigating their consequences. If there are several primary trade unions, notices and consultations go to their joint representative body or, if there is none, to the body of the union representing the majority of employees. The collective agreement, or an agreement between the parties if there is none, determines the consultation procedure and how recommendations are implemented.

For dismissal because hostilities destroyed working conditions under paragraph 6 of part one of Article 41 of the Labor Code, the special deadlines in Article 49-2 and paragraphs 2 and 4 of part three of Article 50 of Law No. 5067-VI apply: provide information to primary trade union organizations no later than 10 calendar days in advance, notify the employment service of a mass layoff 10 calendar days before dismissal, and consult with the trade unions within five calendar days.

How to handle prolonged absence or misconduct

Dismissal under paragraph 8-3 of part one of Article 36 of the Labor Code requires both absence from work and no information about the reason for more than four consecutive months. If the employee has given a reason, prolonged absence alone does not establish both conditions. Before deciding, gather the full contact history and check applicable protections.

If you are considering dismissal for absenteeism under paragraph 4 of part one of Article 40 of the Labor Code, establish an absence without a valid reason, including absence for more than three hours during the workday, and first check the prohibition in part three of Article 5 of Law No. 2136-IX for workplaces in areas of active hostilities. Under Articles 147–149 of the Labor Code, the employer must request a written explanation, assess the circumstances, seriousness of the violation, and the employee’s previous work. Only one disciplinary sanction may be imposed for each violation; it must be formalized by order and communicated to the employee.

A disciplinary sanction must be imposed no later than one month after the misconduct is discovered, excluding time on sick leave or leave, and no later than six months after it was committed. The absence of a documented reason does not by itself establish absenteeism without a valid reason.

To dismiss an employee for repeated failure to perform duties under paragraph 3 of part one of Article 40 of the Labor Code, the employer must prove a new violation without a valid reason and an earlier disciplinary sanction that is still in force. Under Article 151, the employee is considered to have no sanction if no new one has been imposed within a year after the earlier sanction; a sanction may also be lifted early. Apply the procedure and deadlines in Articles 147–149 before making the new decision.

If a salesperson, cashier, or stock clerk directly handles money or goods, paragraph 2 of part one of Article 41 of the Labor Code allows dismissal for culpable actions that justify a loss of trust. The employer must establish the relevant duties, specific actions, and the employee’s fault; the position title or an unsubstantiated suspicion is not enough. Separately check dismissal protections. For dismissal specifically for theft of property under paragraph 8 of part one of Article 40, a court judgment that has become final or a decision by a competent authority imposing an administrative penalty is required. An inventory shortage report alone is not a substitute for such a decision.

Check employee protections before issuing an order

Article 5 of Law No. 2136-IX allows employer-initiated dismissal during temporary incapacity for work or leave, with dismissal effective on the first workday after it ends. Exceptions are maternity leave and childcare leave until a child turns three. This rule does not itself create a ground for dismissal.

Part two of Article 5 of Law No. 2136-IX temporarily suspends the application of Article 43 of the Labor Code, which concerns prior consent from the trade union body, but retains it for employees elected to trade union bodies. If Article 43 requires approval, the employer submits a reasoned written request; the trade union body considers it within 15 days and gives its decision in writing within three days of making it. Dismissal after consent is obtained must take place no later than one month after receipt.

In addition, Article 252 of the Labor Code protects members of elected trade union bodies, their leaders, and union representatives: their dismissal requires the prior consent of the relevant and higher elected trade union bodies specified in that Article. It also provides protection for one year after elected duties end, subject to express exceptions. Before dismissal, check whether the employee has a current or recently completed trade union mandate.

Under Article 184 of the Labor Code, the employer may not dismiss on its own initiative a pregnant woman, a woman with a child under three or, in the home-care circumstances specified in that Article, with a child under six, or a single mother with a child under 14 or a child with a disability. The exception is full liquidation of the enterprise, with mandatory employment elsewhere. Mandatory placement in another job also applies to these employees after a fixed-term contract ends; average earnings are preserved during the job search, but no longer than three months from the contract’s end.

Under Article 186-1 of the Labor Code, the protections in Article 184 also extend to fathers raising children without their mother, including because she is receiving long-term treatment in a medical institution; guardians; trustees; one of the foster parents; and one foster caregiver in a family-type children’s home. Closing an individual store should not automatically be treated as full liquidation of the employer.

Under Article 198 of the Labor Code, dismissal of an employee under 18 at the employer’s initiative requires the consent of the district or city child services authority. Dismissal under paragraphs 1, 2, and 6 of Article 40 is allowed only in exceptional cases and with mandatory employment elsewhere. Also take into account preservation of the job and position under Article 119 for employees in military service and Article 119-1 for employees who have been legally confirmed as deprived of personal liberty as a result of armed aggression: for the entire relevant period and, for the recovery measures specified there, for six months after release.

Determine severance based on the ground for dismissal

Article 44 of the Labor Code sets different minimum severance amounts. Severance is calculated separately from wages and compensation for unused leave.

The two-minimum-wage rule does not allow the dismissal of a mobilized employee whose job and position are preserved under Article 119. For an ordinary mutual agreement, expiry of a fixed-term contract, or resignation without a relevant special ground, Article 44 does not set general mandatory severance. Check for any additional payments required by the applicable contract.

What to do if an individual entrepreneur employer is mobilized

Paragraph 10 of part one of Article 40 of the Labor Code provides a separate ground for dismissing an employee if an employer who is a natural person is conscripted or mobilized during a special period. This applies specifically to an employer who is a natural person; mobilization of a director of a legal entity does not, by itself, establish this ground. Confirm the conscription or mobilization, issue an order citing the relevant paragraph, and check the protections applicable to the employee. Article 44 does not set mandatory separate severance for paragraph 10 of Article 40.

Article 47 of the Labor Code gives an employer who is a natural person and is conscripted during mobilization for a special period or called up from the reservists during a special period a special deadline to perform the duties imposed by that Article: within one month after discharge from that service, without sanctions or fines. This exception is linked to the expressly specified types of conscription and does not cancel amounts due to the employee or required documents.

Issue documents and complete the final settlement

On the dismissal date, under the general rules in Articles 47 and 116 of the Labor Code, the employer must:

• provide a copy of the dismissal order;
• provide written notice of amounts accrued and paid, separately identifying each type of payment;
• pay all amounts due, including wages, applicable severance, and compensation for all unused annual leave and applicable additional leave for employees with children;
• at the employee’s request, make an entry in the employment record book kept by the employee.

Under Article 3 of the Law “On Leave,” an employee who is not dismissed for a breach of labor discipline may request unused leave followed by dismissal; the dismissal date is then the last day of leave. For an expiring fixed-term contract, this leave may extend beyond the contract term, and the contract continues until the leave ends. During martial law, apply this entitlement subject to the special restrictions in Article 12 of Law No. 2136-IX.

If the leave is not taken, the employee remains entitled to compensation for it upon dismissal. While the employment relationship continues, the employer may not replace all annual leave with cash: under Article 24 of the Law “On Leave,” a portion of leave may be paid out at the employee’s request if the employee has actually received at least 24 calendar days of annual and additional leave.

While employed, minors may not have leave replaced by cash. Upon dismissal, a minor must also receive compensation for unused days. The separate right to compensation without dismissal for employees conscripted or admitted to military service is described above.

If the employee took leave in advance, deductions for unworked days are allowed only under lawful conditions. Article 22 of the Law “On Leave” and Article 127 of the Labor Code contain exceptions; for example, deductions are not made in ordinary redundancy or termination because the employee refused new essential working conditions. Do not withhold the entire final settlement because goods or equipment have not been returned or because there is a dispute about a shortage: deductions and recovery of damages have their own legal grounds and procedures.

If the employee did not work on the dismissal date, Article 116 provides for settlement no later than the day after the employee submits a demand. If there is a dispute, pay the undisputed amount on time. Under Article 117, a culpable delay in the circumstances it specifies requires payment of average earnings for the period of delay until settlement, but no more than six months; if there is a dispute, apply the rules in part two of that Article.

For termination in a situation governed by Article 13 of Law No. 2136-IX concerning suspension, a special procedure applies: settlement and delivery of the employment record book, if it is held by the employer, must take place no later than the next workday after the dismissed employee’s written request. If the book is unavailable or lost, the employer must issue a duplicate within the procedure and deadlines established by law.

Inspections and fines: which documents to keep ready

Article 16 of Law No. 2136-IX allows unscheduled inspections on the grounds and issues it specifies, including at an employee’s or trade union’s request concerning compliance with this Law, undeclared employment, and the lawfulness of contract termination. It also provides for inspections concerning mobbing, meaning systematic bullying of an employee; these are not conducted at the same time as unscheduled inspections on other issues.

Practical recommendation. Keep an organized set of documents: contracts and orders, proof of notice to the tax authority, schedules and time records, payroll calculations and payments, leave records, absence records, and employee notices. For redundancy, also keep evidence of organizational changes, employee comparisons, notices, vacancy offers, and responses; for dismissal because working conditions were destroyed, keep evidence of that ground as well.

Article 265 of the Labor Code provides for financial penalties, whose amounts in the cases below are based on the minimum wage set by law at the time the violation is discovered:

During martial law, a special condition applies: if the employer fully and on time complies with corrective orders for violations found during an unscheduled inspection, fines under Article 265 of the Labor Code are not imposed. This rule is tied to a specific inspection, order, and compliance with that order. If a fine is imposed, Article 265 sets another condition for satisfying the decision: a legal entity or individual entrepreneur using hired labor may pay 50 percent of the fine within 10 banking days of receiving the decision; it is then considered fulfilled. This does not remove the obligation to formalize the employee, pay arrears, and remedy the violation.

Recording working time and salesperson pay in Torgsoft

In Torgsoft’s additional feature “Payroll and Motivation” (the Ukrainian interface label is “Зарплата та мотивація”), you can configure retail locations, shifts, employee positions, and calculation methods: a fixed rate, hourly pay, pay per shift, an individual percentage, or a team bonus. For a store, this lets you reflect the agreed pay system and compare calculations with salespeople’s work. Setup details are described in the official Torgsoft help documentation.

To calculate hours worked, you can choose shift duration, the employee work log, or the team work log. One important condition: with the “By shift duration” method (the Ukrainian interface label is “За тривалістю зміни”), duration is filled in only for scheduled shifts. Therefore, the responsible person should check actual attendance and absences before calculating pay. For team work that accounts for individual sales, the help documentation specifies scanning the salesperson’s badge for each sale and allows you to generate a ranking of salespeople in the team.

When setting up bonuses, check the source used to calculate sales. The “By paid goods” option (the Ukrainian interface label is “За оплаченими товарами”) requires “Partial item breakdown” mode (the Ukrainian interface label is “Часткова розшифровка по товару”) in the settings for working with regular customers, marked in the program as VIP customers. The documentation warns against using it with “Trade with invoice” mode (the Ukrainian interface label is “Торгівля з випискою рахунка”), because such sales will not be included in the plan or related pay calculations. Configure working time and remuneration in the program in line with personnel records and statutory pay guarantees.

Official sources

• Law of Ukraine “On the Organization of Labor Relations Under Martial Law” dated 15 March 2022 No. 2136-IX — Articles 1–13 and 16; paragraph 3 of the “Final Provisions”: scope, hiring, transfers, dismissal, working hours, documents, pay, leave, suspension, and inspections.
• Labor Code of Ukraine, approved by Law No. 322-VIII dated 10 December 1971 — Chapter III-B (Articles 49-5–49-8), Articles 3, 21–22, 23–29, 32, 34, 36, 38–44, 47–48, 49-2, 49-4, 50–56, 59, 61–66, 70–73, 75–76, 77-2, 78–80, 82–84, 94–95, 97, 102-1, 103, 105–108, 110, 113–119, 119-1, 123, 127–130, 136, 147–149, 151, 153, 169, 172, 176–184, 186-1, 188–192, 194–195, 198, 211, 213, 216–217, 252, 265; paragraph 2 of Chapter XIX: formal employment, working hours, pay, leave, grounds and procedures for dismissal, priority rights, severance, and employee protections.
• Law of Ukraine “On Leave” dated 15 November 1996 No. 504/96-VR — Articles 2–3, 5–15, 16-2, 17–19-1, 20–26: leave rights and duration, service, social leave and supporting documents, arrangement, carryover, extension, payment, compensation, and deductions.
• Decision of the Constitutional Court of Ukraine dated 19 May 2026 No. 3-r/2026 in the case concerning the constitutional submission of the Ukrainian Parliament Commissioner for Human Rights on the constitutionality of the second sentence of paragraph two and paragraph three of part one of Article 12, and paragraph two of item 3 of the “Final Provisions” of the Law of Ukraine “On the Organization of Labor Relations Under Martial Law” (concerning the right to leave) — subparagraphs 6.3–6.5 of the reasoning and paragraphs 1–3 of the operative part: minimum paid leave, protections for minors and people with disabilities, and invalidation of unconstitutional provisions.
• Resolution of the Cabinet of Ministers of Ukraine No. 413 dated 17 June 2015 “On the procedure for notifying the State Tax Service and its territorial bodies about hiring an employee (domestic worker), entering into a gig contract, or terminating an employment contract with a domestic worker” — operative provisions and Appendix 1: notice before work starts, submission methods, and electronic transmission of information.
• Law of Ukraine “On Employment of the Population” dated 5 July 2012 No. 5067-VI — parts one, two, and five of Article 48 and paragraphs 2 and 4 of part three of Article 50: criteria for a mass layoff within one month, the exception for fixed-term contracts, notices to trade unions and the employment service, consultations, and special deadlines for dismissal because working conditions were destroyed.
• Resolution of the Cabinet of Ministers of Ukraine No. 1487 dated 30 December 2022 “On approval of the Procedure for Organizing and Maintaining Military Registration of Conscripts, Persons Liable for Military Service, and Reservists” — points 1, 8, 10, 13, 16, 19, 21, 33–34, 37, 39–47, and 72 of the Procedure; Appendices 1, 2, 4, 5, 9, 12, and 28-1: employers covered, document checks, personal military registration, notices, deadlines for changes, reconciliation, and notification.
• Official Torgsoft help documentation “Additional Features — Payroll and Motivation — Setup” (the Ukrainian interface labels are “Додаткові функції — Зарплата та мотивація — Налаштування”) — retail locations, shifts, timekeeping methods, calculations, and limitations on calculation based on paid goods.