Suspension of employment contracts

The Law No. 2136-IX of 15.03.2022 introduced a new concept in labor relations, such as the suspension of the employment contract. What it is and how it works, we will consider further.

What is the suspension of the employment contract?

The term of suspension of the employment contract appeared recently. It is prescribed in Article 13 of the Law «On organization of labor relations under martial law». Consequently, the suspension of the employment contract is a temporary cessation by the employer of providing the employee with work. And vice versa, temporary termination by the employee of work under the employment contract. Suspension of the employment contract does not mean termination of the employment relationship.
The possibility to terminate the employment contract is provided only for the period of martial law.
In order to terminate the employment contract, it is necessary to notify the other party to the contract in any convenient way. That is, the initiator can be either the employer or the employee.
Legislation provides for compensation of wages for the period of suspension of the employment contract by the funds of the aggressor country. But it is not clear how it will be implemented.

What does suspension mean for the employee and the employer?

When the employment contract is suspended, the employee and the employer continue to be in an employment relationship. In other words, there is no dismissal, no residual payment is made, and no entry is made in the work record book.
However, the employee with whom the employment contract is terminated can get a new job on a full-time basis.

Maternity benefits for suspended employment must be paid under the same conditions as before.
As for the Single Social Security Contribution (SSC) and the insurance period, no income means no SSC. Not paid SSC means no length of service.
As we wrote above, the law provides for compensation of wages for the period of suspension of the employment contract, which in turn entails reimbursement of SSC for this period. But it is not clear how this will work.

What should the employer do while the employment contract is suspended?

The Ministry of Economy believes that the employer should calculate and record the amounts of wages and compensation payments that the employee would have received if the employment contract had not been paused, as well as calculate the amount of SSC that could be paid. It is not said where and how to record this data. You can do it in a notebook or in an Excel spreadsheet.
There is no need to accrue wages in the accounting registers. The timesheet does not provide any marks for such employees, so you can enter your own, such as «SE» (suspension of employment).

How do I show the suspension of an employment contract in consolidated statements?

The suspension does not mean termination of employment. Therefore, in Appendix 1 of the consolidated statements for an employee with whom the employment contract was terminated, you must fill in line 14 «Number of days in employment» and do not fill in line 13 «Number of calendar days without pay». In the column income and SSC put zero.
Don't fill out Attachment 5 and 4DF for such employees.

How to terminate the employment contract?

You can suspend the employment contract from March 24, 2022, until the end of martial law. Both the employee and the employer may initiate the suspension. To do this, the other party must be notified by any available way.
If the employee is the initiator of the suspension, he or she can write a request to that and send it to the employer. The employer issues an order to suspend the employment contract.
If the employer initiated the suspension, he can make a corresponding order and acquaint the employee with it against his signature. This can be done through electronic means of communication.