How to dismiss employees: a management approach that works within the law

Dismissal in Ukrainian law is not an emotional reaction of a manager or a “capital punishment” within a company, but a legally significant termination of employment relations. For a business, this is a managerial decision, but for the state and the court, it is a procedure that must be based on a clear legal ground, proper documents, correct deadlines, appropriate communication, and full financial settlement with the employee. In Ukraine, there is no model where an employee can be simply dismissed “at the employer’s will” without a reason defined by law. As of April 11, 2026, these rules apply taking into account the special regulations of martial law. (Legislation of Ukraine)

The managerial logic of “first give a chance, then make a final decision” aligns well with Ukrainian legislation if it is transformed into an evidence base. It is important for a company not only to conclude that cooperation no longer has positive prospects but also to prove that the reason for dismissal complies with the law, and the employer acted consistently, in good faith, and without humiliating the employee. Otherwise, even a decision entirely justified from a management perspective can be overturned by a court. (Legislation of Ukraine)

1. How lawful dismissal begins

Proper dismissal starts not with a conversation, but with determining the grounds. The grounds for terminating an employment contract are established by the Labor Code of Ukraine (KZpP). The most common options for businesses are:

This means that "low efficiency," "did not meet expectations," "cultural mismatch," or "the company lost trust in them" are not universal formulas for a dismissal order in themselves. They need to be translated into the language of the law: mismatch for the position held, systematic failure to perform duties, unsatisfactory probation results, staff reduction, a single gross violation for certain positions, loss of trust for financially responsible persons, etc. (Legislation of Ukraine)

2. What grounds an employer can realistically use

Agreement of the parties

The safest way for a business to end cooperation is the termination of the employment contract by agreement of the parties. This works when the company and the employee have agreed on the termination date, handover of affairs, payments, and communication format. Such an option does not require proving the employee's guilt or unsuitability. For business, this is the least conflictual path, especially when you need to part quickly and without a dispute over the reasons. The basis is paragraph 1 of Article 36 of the KZpP. (Legislation of Ukraine)

Dismissal at the employee's initiative

If the employee submits a resignation themselves, the rules of Article 38 of the KZpP apply. In the general case, the employee notifies the employer in writing two weeks in advance. If the dismissal is related to the employer's violation of labor legislation, the terms of a collective or employment contract, or mobbing, the employee can demand the termination of the contract within the period specified by them, and the employer is also obliged to pay severance pay in the amount of at least three average monthly earnings, unless another, larger amount is provided for by the collective agreement. (Legislation of Ukraine)

Dismissal at the employer's initiative

The employer can dismiss an employee only within the limits of Articles 40 and 41 of the KZpP.

The most important grounds for entrepreneurs from Article 40:

Article 41 of the KZpP adds separate grounds regarding special categories of employees, in particular managers, chief accountants, officials, employees handling monetary or commodity values, as well as specific wartime situations. Among them:

Separately, another special basis from paragraph 8-3 of Article 36 of the KZpP should be taken into account: the employment contract may be terminated in case of the employee's absence from work and lack of information about the reasons for such absence for more than four consecutive months. For business, this is important in cases where the employee has actually disappeared and is not keeping in touch. But this rule is not a simplified replacement for the dismissal procedure for truancy — it is a separate independent basis with its own factual conditions. (Legislation of Ukraine)

3. How to combine the managerial "two or three chances" rule with the law

The idea of giving a person 2-3 chances to improve is useful for management, but in itself does not create a legal basis for dismissal. In Ukrainian realities, it must be formalized as the employer's consistent work with evidence.

For this, the company should:

The law allows only two types of disciplinary sanctions to be applied: reprimand or dismissal. The sanction must be imposed no later than one month from the day the misconduct was discovered, not counting the time the employee was sick or on vacation, and no later than six months from the day it was committed. Before applying the sanction, the employer must request written explanations. Only one disciplinary sanction can be imposed for one violation. After a year without new sanctions, the employee is considered not to have had a disciplinary sanction. (Legislation of Ukraine)

That is why the phrase "we have already warned them verbally three times" means almost nothing to the court. What matters are documents, deadlines, signatures, and facts.

The practice of the Supreme Court is indicative: in cases of dismissal for systematic failure to perform labor duties, the court checks the legality of all previous disciplinary sanctions, even if the employee did not appeal them separately. For business, this means that a poorly documented first reprimand can "break" the subsequent dismissal as well. (Supreme Court of Ukraine)

4. Personal meeting or remote processing

From a management perspective, a personal conversation is often the best way to keep the situation manageable, but Ukrainian legislation does not make a face-to-face meeting a universally mandatory condition for the legality of a dismissal. What matters is not the location of the conversation, but whether there is a legal ground, an order, proper notification, full financial settlement, and evidence of the delivery of documents. (Legislation of Ukraine)

Electronic documents in normal mode

The KZpP allows familiarizing the employee with orders, notices, and other employer documents through electronic communication means defined in the employment contract, provided an advanced or qualified electronic signature is applied to the document. The employment contract may also define alternative methods of familiarization. This means that a safe contactless procedure is possible if the communication channel and signing method are agreed upon in advance. (Legislation of Ukraine)

Electronic documents during martial law

During martial law, the law further expands the possibilities for remote document management. The parties may agree on alternative ways of creating, sending, and storing orders, notices, and other labor documents, as well as on any other available method of electronic communication. Each party must maintain the possibility of such connection and update their contact details within ten calendar days after they change. If the contacts are not updated, sending documents to the last known address, email, or phone number is considered proper. If there is absolutely no possibility of postal or electronic communication using the last known contacts, the law exempts the party from the obligation of such notification. (Legislation of Ukraine)

When a simple email is not enough

The Law on Electronic Documents stipulates that an electronic document is a fully valid document, and an electronic signature can be used to identify the author. At the same time, an electronic document is considered received only from the moment the author receives confirmation from the addressee, unless otherwise provided by law or prior agreement of the parties. If there is no confirmation, the document is considered not received. For business, this means that dismissal via a “simple email” without an agreed channel, electronic signature, and proof of delivery is a weak evidentiary model. (Legislation of Ukraine)

5. Preparation for dismissal: what a manager should do before the conversation

Proper managerial preparation in Ukraine consists not only of the decision to part ways but also of the legal architecture of the process.

Before talking to the employee, you should:

For managerial positions, another level is added to this: if it is a director or a member of the executive body of a company, it is necessary to consider not only labor law but also a corporate decision. The Civil Code allows terminating the powers of an executive body member at any time by a decision of the company's competent body. But for complete legal termination of relations, both a corporate decision and proper formalization of the employment contract termination are usually required. (Legislation of Ukraine)

6. When you can dismiss immediately, and when you have to wait

Unsatisfactory probation result

If an employee does not pass the probation, the employer can dismiss them under paragraph 11 of Article 40 of the KZpP. This is one of the most convenient models for business, but only on the condition that the probation is set legally, the period has not expired, and the employer has factual evidence that the employee is not suitable for the job. (Legislation of Ukraine)

Systematic failure to perform duties

You cannot dismiss "immediately" here. First, there must be a previous disciplinary sanction, and then a new violation without valid reasons. That is why this basis depends most on the quality of HR documentation. (Legislation of Ukraine)

A single gross violation

For certain categories, primarily managers, their deputies, chief accountants, and some other positions, the law allows dismissal for a single gross violation of labor duties. Here you don't need to wait until "chances run out," but you need to have a very strong factual and documentary basis. (Legislation of Ukraine)

Staff or headcount reduction

This is not a disciplinary dismissal and not an assessment of the employee's personal qualities. If the company changes its structure, closes a division, optimizes costs, or reorganizes, dismissal is possible under paragraph 1 of Article 40 of the KZpP. But other rules are mandatory here: personal warning no later than two months in advance, an offer of another job with the same employer, consideration of the pre-emptive right to remain at work, and payment of severance pay of not less than the average monthly wage. (Legislation of Ukraine)

Inability to provide the employee with work due to the consequences of hostilities

This is a separate military basis under Article 41 of the KZpP. If conditions, means of production, or property are destroyed or absent due to hostilities, and the employer objectively cannot provide work, the employment contract may be terminated. In this case, the law requires warning the employee at least 10 calendar days in advance and paying severance pay of not less than the average monthly wage. (Legislation of Ukraine)

7. Redundancy and mass layoffs: what not to miss

If the dismissal occurs due to changes in the organization of production and labor, the employee must be personally warned no later than two months in advance. At the same time, the employer is obliged to offer another job at the same enterprise, if any. Doing this, the rules on the pre-emptive right to remain at work must be considered. (Legislation of Ukraine)

If the dismissal falls under the criteria of mass layoff, additional obligations to the employment service are triggered. The Law on Employment of Population establishes mass layoff thresholds depending on the number of staff, in particular:

In such cases, the employer must submit information to the territorial body of the employment service. For dismissals due to changes in the organization of production and labor, such information is submitted two months before the planned release. For the special military basis under paragraph 6 of part one of Article 41 of the KZpP — no later than 10 calendar days before the release. (Legislation of Ukraine)

8. Day of dismissal: what the employer is obliged to do

On the day of dismissal, the employer must fulfill several obligations at once.

First, issue a copy of the dismissal order to the employee.
Second, notify in writing about the accrued and paid amounts.
Third, make a full settlement within the timeframes provided for in Article 116 of the KZpP.
Fourth, at the employee's request, make an entry about the dismissal in the paper work book, if it is kept by the employee. (Legislation of Ukraine)

All amounts due to the employee must be paid on the day of dismissal. If the employee did not work on that day, payment is made no later than the next day after the demand for settlement is presented. Separately, on the day of payment, a written calculation with a breakdown of amounts must be provided. (Legislation of Ukraine)

On the day of dismissal, the employee is also paid compensation for all unused days of annual leave, as well as for additional social leave for children, if any. If the law provides for severance pay for a specific ground, it must also be paid. For example, in the event of redundancy, job mismatch, reinstatement of a previous employee, or a special military basis under paragraph 6 of part one of Article 41 of the KZpP — not less than the average monthly wage. For the termination of the powers of officials — not less than six average monthly wages. (Legislation of Ukraine)

9. Is it possible to dismiss an employee during sickness or vacation

In normal mode, the KZpP prohibits dismissing an employee at the employer's initiative during the period of their temporary incapacity or vacation, except for certain exceptions, in particular, the complete liquidation of the enterprise. (Legislation of Ukraine)

During martial law, the rule is different. The employer can dismiss an employee on its own initiative during illness or vacation, except for maternity leave and parental leave until the child reaches three years of age. In this case, the date of dismissal must be the first working day following the end of the temporary incapacity or vacation. (Legislation of Ukraine)

10. Who is especially risky to dismiss

The law establishes categories of employees for whom the employer has heightened restrictions.

Dismissal at the employer's initiative is not allowed for pregnant women, women with a child under three years old, and in some cases up to six years old, single mothers with a child under fourteen or a child with a disability. Exception — complete liquidation of the enterprise with obligatory employment. The same guarantees also apply to fathers raising children without a mother, guardians, trustees, one of the adoptive parents, one of the foster parents. (Legislation of Ukraine)

For employees under 18 years of age, the consent of the district or city service for children is required, and dismissal on certain grounds is allowed only in exceptional cases and not without employment. (Legislation of Ukraine)

The issue of trade union consent also depends on the regime. In general order, in a number of cases, it is necessary to obtain the prior consent of the elected body of the trade union. During martial law, the operation of Article 43 of the KZpP in most cases does not apply, except for employees elected to trade union bodies. (Legislation of Ukraine)

11. “Contactless” dismissal when the employee is out of touch

For business, this is one of the most difficult practical situations. Here it is important not to substitute one ground for another.

If an employee simply does not come to work, but their workplace is located in the territory of active hostilities, during martial law the employer has no right to dismiss them for truancy. The absence of such an employee is not paid and is not credited to the length of service for annual leave, but it is exactly not considered truancy. (Legislation of Ukraine)

If the employee is absent for more than four consecutive months and at the same time there is no information about the reasons for such absence, the termination of the employment contract under paragraph 8-3 of Article 36 of the KZpP can be considered. In such a situation, it is especially important for the employer to keep the entire chain of evidence: connection attempts, returned postal items, lack of responses, absence acts, recording of the last known contacts. (Legislation of Ukraine)

12. Special regimes where the contract gives the employer more room to maneuver

Simplified regime regulating labor relations

For certain employers and employment contracts, the KZpP provides a simplified regime. In such a contract, the parties may more broadly regulate the issues of the emergence and termination of labor relations, forms of information exchange, notice periods, and compensation upon dismissal at the employer's initiative. The law directly allows providing in the employment contract grounds for termination that are not in the general articles of the KZpP, but subject to the payment of compensation not lower than the minimums established by Article 49-8 of the KZpP. For business, this is one of the few cases where a contract can really provide a broader dismissal toolkit than the general KZpP model. But this works only when the simplified regime is drawn up properly and applied legally. (Legislation of Ukraine)

Employment contract with non-fixed working hours

In such a contract, the law also allows establishing additional grounds for its termination related to the employee's abilities or behavior, as well as economic, technological, or structural circumstances. This is a separate special structure, and it can only be applied within the rules of Article 21-1 of the KZpP. (Legislation of Ukraine)

13. How to conduct the conversation so as not to create new legal risks

A manager has the right to be firm, but must not humiliate the employee. The law defines mobbing as systematic, prolonged intentional actions or inaction of the employer or colleagues aimed at humiliating the honor and dignity of the employee, their professional reputation, including through electronic communications. At the same time, the law explicitly states that the employer's demands regarding proper work performance, change of workplace or position, change of working conditions in the manner prescribed by law is not mobbing. For business, this means that discipline and exactingness are permissible, but pressure, public humiliation, psychological “pushing” of a person out of the company, or prolonged blackmailing with dismissal are dangerous. (Legislation of Ukraine)

Therefore, during the conversation, you should:

14. How to notify the team after the dismissal

Ukrainian legislation does not require a separate procedure for internally announcing the dismissal of an employee to the collective. But the employer must remember about the protection of personal data. Dissemination of information about an individual without their consent is allowed only in cases determined by law, and to the extent necessary. Therefore, it is safer for the team to communicate only what is really needed to organize work: who transfers affairs, who temporarily takes over functions, who to contact regarding operational issues. Publicly laying out disciplinary details, personal conflicts, medical circumstances, or other unnecessary details is not recommended. (Legislation of Ukraine)

15. What are the consequences for the employer if the dismissal is formalized incorrectly

An employee has the right to appeal to court in cases of dismissal within one month from the day the copy of the dismissal order is served. If the court establishes the illegality of the dismissal, the employee will be reinstated at work, and the employer will be obliged to pay the average earnings for the time of forced truancy. As a rule, such payment is made for no more than one year, but if the case lasted longer not through the employee's fault, the payment can be for the entire period. The decision on reinstatement at work is executed immediately. If the employer delayed issuing the copy of the dismissal order through their own fault, the employee is also paid the average earnings for the entire time of forced truancy. (Legislation of Ukraine)

A separate risk is a delay in settlement. If the amounts due to the employee are not paid on time through the employer's fault and there is no dispute about their amount, the employer must pay the employee their average earnings for the entire delay time, but not for more than six months. (Legislation of Ukraine)

Besides judicial risks, financial sanctions under Article 265 of the KZpP also apply. Depending on the violation, these can be fines tied to the minimum wage: for actual admission to work without formalizing an employment contract — 10 minimum wages for each employee; for delaying the payment of salary or other payments for more than one month or paying not in full — 3 minimum wages; for other violations of labor legislation — 1 minimum wage for each violation, and if repeated within a year — 2 minimum wages. During martial law, there is a special mitigation: if the employer fully and timely fulfills the order to eliminate violations discovered during an unscheduled inspection, fines under Article 265 are not applied in the relevant cases. (Legislation of Ukraine)

16. Practical algorithm for an entrepreneur

The safest model of dismissal in a Ukrainian company looks like this:

Official sources

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