Unlawful Dismissal in a Retail Store: What Employers and Employees Should Do

To dismiss a retail store employee lawfully, the employer needs a specific ground under the Labour Code of Ukraine, evidence and compliance with the procedure. Before issuing an order, check the employee’s resignation notice or the circumstances of dismissal, any special employment protections, deadlines and whether another job must be offered. On the dismissal date, provide a copy of the order and written information about payments, and make the final settlement under Article 116 of the Labour Code.

An employee who disputes the lawfulness of a dismissal should preserve documents and evidence and apply to court within one month of receiving a copy of the order. Contacting the employer or the State Labour Service does not replace a court claim. If the court reinstates the employee, the employer must immediately comply with the reinstatement part of the decision and enable the employee to return to their previous job. Awarded amounts are paid in accordance with the decision and enforcement rules: Article 430 of the Civil Procedure Code provides for immediate enforcement of an award of wages up to one month’s payment; the court may allow immediate recovery of the full amount.

Where to start when reviewing a dismissal

The store owner or person responsible for HR records should compare three things: the actual reason for dismissal, the legal provision cited in the order and the documents supporting that reason. Citing an article of the Labour Code alone is not enough.

Collect the following in a separate file:

• the employment contract, hiring order, job description and internal work rules;
• the employee’s resignation notice, an agreement to terminate the contract, or documents supporting an employer-initiated dismissal;
• shift schedules, working-time records, notices, explanations and other evidence of the relevant circumstances;
• documents on notices, vacancies offered and the employee’s responses, if required by the procedure;
• information about the employee’s special employment protections;
• the dismissal order, proof that a copy was delivered, the payment calculation and payment documents.

State the specific ground in the order: the article, part and clause, if applicable, the dismissal date and the documents on which the decision is based. Phrases such as “for misconduct”, “due to loss of trust” or “by the owner’s decision” do not make a dismissal lawful without a proper legal ground.

Resignation and mutual agreement: check that the choice was voluntary

Resignation at the employee’s initiative

Under Article 38 of the Labour Code, an employee on an open-ended employment contract gives the employer two weeks’ written notice. This is the notice period. If a valid reason specified in that article makes it impossible to continue working, the employer must dismiss the employee on the date requested.

Such reasons include, among others, moving, enrolling in an educational institution, pregnancy, caring for a child under 14 or a child with a disability, caring for an ill family member based on a medical opinion, and retirement. A separate ground for dismissal on the date chosen by the employee is the employer’s breach of labour law or the terms of a collective or employment agreement. For workplace mobbing and failure to take steps to stop it, Article 38 requires confirmation by a court decision that has entered into force. On dismissal under these grounds pursuant to Articles 38 or 39, Article 44 of the Labour Code provides for severance pay in the amount set by the collective agreement, but not less than three months’ average earnings.

The employee may withdraw a resignation notice before the two-week notice period expires. Submit the withdrawal in writing and keep proof that the employer received it. If the employee continues working after the notice period and does not require termination of the contract, they also cannot be dismissed under the earlier notice. The exception is where a worker whom the law protects from refusal of employment has been invited to take the employee’s place.

Article 39 of the Labour Code applies to early termination of a fixed-term contract. It covers, among other things, illness or disability that prevents the employee from working, the employer’s breach of labour law or the contract, and the cases listed in Article 38(1).

Dismissal by mutual agreement

Clause 1 of Article 36(1) of the Labour Code provides for termination by mutual agreement. The employee and employer must agree to end the contract and set the date. To confirm the agreement, record the ground, date and consent of both parties in writing. An agreement already reached can be cancelled by mutual consent; the employee’s unilateral withdrawal of their notice does not cancel it by itself. If the employee disputes that the agreement was voluntary, the circumstances in which it was made must be reviewed separately.

Do not demand a resignation “at the employee’s own request” or consent to dismissal instead of following redundancy or disciplinary procedures. If an employee reports pressure, preserve notices and correspondence, establish the circumstances and do not backdate documents.

An employee disputing the voluntary nature of a resignation or agreement should describe the circumstances of the pressure in writing, preserve messages and identify witnesses. If the order has already been issued, the claim should explain why the notice or agreement did not reflect the employee’s free decision.

Disciplinary dismissal: grounds, evidence and deadlines

Article 147 of the Labour Code provides for a reprimand or dismissal as disciplinary sanctions. Dismissal is allowed only where a corresponding legal ground applies. The store owner’s dissatisfaction with a sales assistant’s work is not, by itself, such a ground.

Before imposing a disciplinary sanction, the employer must request a written explanation. Record delivery of the request. If the employee refuses to provide an explanation, record the refusal and assess the available evidence and any possible valid reasons.

Under Article 148 of the Labour Code, a sanction must be imposed no later than one month after the misconduct is discovered. Time off due to temporary incapacity and leave is excluded from this month. In any event, a sanction cannot be imposed later than six months after the misconduct.

One disciplinary sanction may be imposed for one breach. If a reprimand has already been issued for a specific act, dismissal as a second sanction for the same act contravenes Article 149. When choosing a sanction, take into account the seriousness of the breach, the harm, the circumstances and the employee’s prior work. Notify the employee of the sanction order against signature.

Loss of trust in a cashier or sales assistant

Dismissal for loss of trust under Article 41(1)(2) of the Labour Code follows a separate procedure. Under paragraph 28 of Resolution No. 9 of the Plenum of the Supreme Court of Ukraine dated 6 November 1992, the time limits and disciplinary procedure in Articles 148–149 do not apply to this ground. The employer must establish the employee’s culpable actions and comply with other applicable dismissal protections. The absence of disciplinary deadlines does not mean that the time elapsed since the breach is irrelevant: under paragraph 28 of that resolution, the court considers the time since the culpable actions, the employee’s subsequent conduct and other circumstances of the case. Assess and document these circumstances before dismissal.

Article 41(1)(2) of the Labour Code applies to an employee who directly handles money, goods or cultural valuables. There must be culpable conduct giving the employer grounds to lose trust. Check the employee’s actual duties and evidence of their own actions.

A store shortage requires the circumstances to be established. It does not automatically prove the guilt of every sales assistant who had access to the goods. Nor may the ground for a manager’s one-off gross breach under Article 41(1)(1) be applied to an ordinary sales assistant: this provision covers a separate set of positions.

Staff reduction: a step-by-step guide for store owners

Dismissal under Article 40(1)(1) of the Labour Code requires genuine changes to work organisation. The documents should show which positions or how many employees are being made redundant and when. Replacing one sales assistant with another in the same position requires a different lawful ground.

1. Formalise the decision to make changes and the documents supporting the reduction.
2. Check employees’ special protections and determine who may be included in the procedure.
3. If some of the same or comparable positions are being cut, assess qualifications and work performance using documented criteria.
4. Give the employee individual notice at least two months in advance, unless a specific lawful exception applies.
5. At the same time, offer other work with the same employer. Record vacancies, offers and responses. Check for other suitable vacancies up to the dismissal date.
6. Check trade union requirements and, in a mass layoff, requirements for notices and consultations.
7. Formalise the dismissal, provide the documents and pay all amounts due, including severance pay.

Who has priority to remain employed

Under Article 42 of the Labour Code, higher qualifications and work performance are considered first. Where these are equal, the following categories have priority:

• employees with families and two or more dependants;
• people whose families have no other employed members with independent earnings;
• employees with long, uninterrupted service with this employer;
• employees studying at the relevant educational institutions while continuing to work;
• the categories specified in Article 42 of combatants, participants injured in the Revolution of Dignity, persons with war-related disabilities, family members of deceased veterans and Defenders of Ukraine, and rehabilitated persons;
• authors of inventions, utility models, industrial designs and rationalisation proposals;
• employees who suffered an occupational injury or disease while working for this employer;
• people deported from Ukraine, for five years after returning to live permanently in Ukraine;
• the former service members and people who completed alternative service specified in Article 42, for two years after completing their service;
• employees with less than three years remaining until the retirement age that entitles them to pension payments;
• employees who have been members of volunteer fire and rescue units for at least one year.

Other priority rights may be established by law. Keep documents comparing employees and supporting the application of any priority rights.

Severance pay and mass layoffs

For a staff reduction, Article 44 of the Labour Code provides for severance pay of at least one month’s average earnings. Also check the collective and employment agreements for any other payments due to the employee.

Determine whether a layoff is a mass layoff under Article 48 of the Law of Ukraine “On Employment of the Population”, taking into account the employer’s headcount and the number of planned dismissals during one month. For a chain of stores, use the figures for the relevant employer.

For an ordinary mass layoff, consult the trade union on ways to prevent dismissals, reduce their number and mitigate their consequences. During the consultations, but no later than three months before possible dismissals, give the relevant trade union body written notice of the reasons, the average number and categories of employees, the number and categories of employees planned for dismissal, and the dismissal dates. This is required by Article 50(3)(2) of the Law of Ukraine “On Employment of the Population”. Notify the State Employment Service no later than two months before the layoff under Article 50(3)(4) of that Law. For a layoff under Article 41(1)(6) of the Labour Code, a separate deadline applies: no later than 10 calendar days in advance. Under Article 49-2 of the Labour Code, the notice must include information required by law, including details of trade union consultations, and must be submitted to the relevant trade union body. Check the criteria and deadlines under Articles 48 and 50 of the Law of Ukraine “On Employment of the Population”.

Protected employees and trade union protections

Article 184 of the Labour Code prohibits employer-initiated dismissal of pregnant women, women with children under three, and, in the cases specified in Article 179(6), under six. The prohibition also covers single mothers with a child under 14 or a child with a disability.

The exception is the complete liquidation of an enterprise, institution or organisation, with mandatory placement in another job. Mandatory placement also applies when a fixed-term contract with the women listed above expires. Average earnings are preserved while they are being placed in another job, but for no more than three months after the fixed-term contract ends.

Under Article 186-1 of the Labour Code, the protections in Article 184 also apply to fathers raising children without a mother, including because she is in a medical facility for a long period, guardians and trustees, one foster parent, and one parent-educator in a family-type children’s home.

Under Article 198, employer-initiated dismissal of an employee under 18 requires the consent of the district or city children’s services. Dismissal under Articles 40(1)(1), (2) or (6) is allowed only in exceptional cases and requires placement in another job.

Before dismissal, separately check any applicable protections related to military service or trade union duties. Keep documents confirming the employee’s status and compliance with the relevant requirements.

As a general rule, Article 43 of the Labour Code requires prior consent from the elected body of the primary trade union of which the employee is a member for the grounds specified in that article. This includes staff reduction, except in the case of liquidation, and loss of trust. If this procedure applies, the submission must be written and reasoned. Article 43 sets deadlines for review, notice of the decision and dismissal after consent is obtained.

What changes under martial law

Law No. 2136-IX establishes specific features of employment relations. It does not give employers a general right to dismiss any employee without a ground or procedure.

• Under Article 5, an employer may formalise an employer-initiated dismissal during temporary incapacity or leave, setting the dismissal date as the first working day after the incapacity or leave ends. This permission does not cover maternity leave or childcare leave until the child turns three.
• Article 43 of the Labour Code does not apply, except to dismissal of employees of enterprises, institutions or organisations who have been elected to trade union bodies.
• An employee whose workplace is in an area of active hostilities cannot be dismissed for unauthorised absence under Article 40(1)(4). The law separately specifies the consequences of such absence for pay and service counted towards annual basic leave.
• If hostilities take place where the employer is located and the employee’s life and health are at risk, the employee may resign on the date stated in their notice under Article 4. Exceptions apply to compulsory involvement in socially useful work and work at critical infrastructure facilities.

The shorter notice period for a change in essential working conditions under Article 3 of Law No. 2136-IX does not automatically cancel the two-month notice for an ordinary staff reduction. The exceptions under Article 49-2(1)–(3) of the Labour Code are tied to the circumstances specified there, including changes related to mobilisation measures and the destruction of working conditions as a result of hostilities.

If hostilities make it impossible to provide work

Article 41(1)(6) of the Labour Code establishes a separate ground: it is impossible to provide work under the contract because hostilities have caused the destruction or absence of production, organisational and technical conditions, means of production or property. These circumstances and the causal link must be documented. A normal drop in sales alone does not establish this ground.

For this dismissal, check whether it is impossible to transfer the employee, with their consent, to another job. Article 49-2 requires individual notice no later than 10 calendar days in advance, information to the trade union, and additional notices and consultations in the case of a mass layoff. Severance pay under Article 44 must be at least one month’s average earnings.

Suspending an employment contract under Article 13 of Law No. 2136-IX does not end the employment relationship. It requires the circumstances specified by law that prevent both parties from performing their duties, and it cannot be used as a disguised punishment.

Documents and final settlement on dismissal

As a general rule under Article 47 of the Labour Code, on the dismissal date the employer provides the employee with a copy of the order and written notice of the amounts accrued and paid, and makes the settlement within the time limits in Article 116. At the employee’s request, the employer makes the required entry in the employment record book, which is kept by the employee. If the employer is an individual who is called up for military service during mobilisation or is a reservist called up during a special period, Article 47 provides that these obligations must be met within one month after the employer is discharged from military service, without penalties or fines.

In the written notice, show base and additional wages, incentive and compensation payments, and other amounts due separately. Check compensation for unused leave and severance pay, if the ground for dismissal provides for it. Article 12 of Law No. 2136-IX expressly provides for compensation on dismissal under Article 24 of the Law of Ukraine “On Leave”.

As a general rule under Article 116 of the Labour Code, all amounts due are paid on the dismissal date. If the employee did not work that day, payment is due no later than the day after the employee requests the settlement. Written notice of the amounts accrued and paid is given on the payment date. If there is a dispute about the amount due, pay on time the amount that the employer does not dispute.

For termination of an employment contract whose operation was suspended, Article 13(1) of Law No. 2136-IX sets a special settlement deadline: no later than the next working day after the dismissed employee submits a written request.

If the settlement is delayed through the employer’s fault, Article 117 provides for average earnings up to the date of actual settlement, but for no more than six months. If the amount due is disputed, the application and amount of compensation depend on the outcome of the dispute.

Law No. 2136-IX allows exemption from liability for late payment of wages if the employer proves the breach was connected to hostilities or other force majeure circumstances. The obligation to pay wages remains. Merely citing martial law is not enough.

How to deliver documents remotely

Article 7 of Law No. 2136-IX allows the parties to agree on alternative ways to create, send and store HR documents and on an available method of electronic communication. Record the agreement and keep proof that the documents were sent and received.

The parties must maintain the ability to contact each other and report any change in contact details within 10 calendar days. The law separately governs notices sent to the last known contact details and cases where postal and technical communications are unavailable. These exceptions must be applied only when their factual conditions are met.

How an employee can challenge a dismissal

1. Get a copy of the order and record the date it was delivered. Request written payment information and a certificate of employment and wages.
2. Prepare a timeline of events: notices, messages, changes, explanations, warnings, the order and the settlement.
3. Preserve evidence of the breach: correspondence, schedules, documents explaining valid reasons for absence, vacancies offered or circumstances of pressure.
4. Set out the claims to bring to court: challenge the order, reinstatement in the previous job, average earnings for forced absence and other justified payments.
5. File the claim within the prescribed time limit. If the employer holds documents you need, identify them and apply to the court to order their production.

A labour dispute involving a store employee is heard by a local general court under civil procedure. A claim may be filed at the defendant individual’s registered place of residence or stay, or at the location of the defendant legal entity as recorded in the Unified State Register. The employee may also file at their own registered place of residence or stay under Articles 27–28 of the Civil Procedure Code.

The claim should identify the parties, circumstances, specific requests, evidence and a reasoned calculation of the monetary amounts. Attach the documents available to you and the information required by Articles 175–177 of the Civil Procedure Code, including the basis for exemption from court fees. If the employer has not provided requested documents, describe this and include proof of your request.

Time limits for applying to court

Constitutional Court Decision No. 1-r/2025 declared Article 233(1) unconstitutional insofar as it sets a three-month time limit for claims to recover wages and other amounts due. This does not justify disregarding the separate time limits in part two for dismissal disputes and settlement on dismissal.

If you miss a deadline for a valid reason, apply to have it restored and provide evidence of that reason. Under Article 234, the court may restore a time limit if no more than one year has passed since receipt of a copy of the order or written notice of payments. Restoration is at the court’s discretion.

Do not delay filing a claim because of negotiations or a complaint to the State Labour Service: a timely procedural step is required to preserve the court deadline.

Court fees

Clause 1 of Article 5(1) of Law No. 3674-VI exempts claimants from court fees in all court instances for claims to recover wages and for reinstatement. The exemption does not automatically cover every additional claim in an employment dispute. For other claims, check separately whether an exemption applies or a fee must be paid.

Reinstatement and payments under a court decision

Under Article 235 of the Labour Code, dismissal without lawful grounds is a basis for reinstatement in the previous job. The court assesses the grounds, procedure and evidence in the specific case. Filing a claim does not by itself automatically reinstate the employee.

The court also decides on average earnings for the period of forced absence or the difference in earnings for lower-paid work. The general limit is one year. If a reinstatement case takes more than a year through no fault of the employee, Article 235 provides for payment for the entire period of forced absence.

If an incorrect statement of the reason for dismissal does not result in reinstatement, the court must change it to comply with the law. If that wording prevented the employee from finding work, Article 235 also provides for the court to decide on average earnings. The same article separately provides for payment for forced absence caused by a delay in issuing a copy of the order through the employer’s fault.

Illustrative average earnings calculation

Suppose the average daily earnings calculated under Procedure No. 100 are UAH 1,200 and 20 working days are payable. The amount is: UAH 1,200 × 20 days = UAH 24,000 before statutory deductions.

For an actual calculation, the accountant determines the calculation period, which payments are included or excluded, and the number of payable days or hours. For forced absence, Procedure No. 100 provides calculation rules based on the last two calendar months and special cases where there was no work or earnings. This illustrative example does not replace that calculation.

A reinstatement order must be enforced immediately

Immediate enforcement is provided for by Article 235 of the Labour Code and Article 430(1)(4) of the Civil Procedure Code. The employer must formalise reinstatement and enable the employee to actually return to their previous job. Issuing an order without making it possible to work is not enough to enforce the decision in practice.

Agree the practical details of the employee’s return, provide the schedule and workplace, restore necessary access and give them the order to review. Keep proof that the employee was notified and allowed to return. If the employer does not comply with a reinstatement decision, the employee should obtain a writ of execution from the court and submit it, together with an application for compulsory enforcement, to the state enforcement service. There is no need to wait for the decision to enter into force for the part that has been allowed for immediate enforcement. If enforcement is delayed, the employee may apply to the court that heard the labour dispute for average earnings or the difference in earnings for the period of delay under Article 236 of the Labour Code.

How an employer can correct a dismissal without waiting for court

If the owner discovers a breach, they should determine how to correct it based on the ground for dismissal, the employee’s position and whether a court dispute is pending. Do not replace reinstatement with a new hire without resolving the previous dismissal and the payments due.

1. Notify the employee in writing of the proposed cancellation of the order and return to their previous job. Record the employee’s position and any agreement on their return.
2. Issue a new order specifying cancellation of the previous decision, reinstatement, relevant dates and instructions to the HR employee and accountant.
3. Enable the employee to actually return: set the schedule, provide a workplace, equipment and access to the necessary record systems.
4. Determine and document the payments due and how disputed amounts will be resolved.
5. Correct HR records, working-time records and employment information. The accountant should check whether payroll accruals, deductions and submitted reports need to be adjusted under the rules for the relevant period.

If the case is already in court, notify the court of the actions taken and submit supporting documents. Returning the employee to work does not automatically settle all monetary claims. If a decision has already been issued, comply with its specific requirements.

Complaints to the State Labour Service and employer liability

Under Article 16 of Law No. 2136-IX, during martial law the State Labour Service and its territorial bodies may conduct unscheduled inspections in response to an employee’s or trade union’s application, including inspections concerning the lawfulness of termination of employment contracts. The law sets out the grounds and procedure for such inspections.

In the application, identify the employer, the circumstances of dismissal and specific breaches, and attach documents. An inspection by the State Labour Service does not replace court proceedings on reinstatement and awards of payments.

Article 265 of the Labour Code provides for financial penalties depending on the type of breach. For other labour law breaches not specifically listed in that article, the penalty is one minimum wage per breach, or two for a repeat breach within a year. A delay in payments of more than one month or payment of less than the full amount has a separate penalty of three minimum wages. The minimum wage in force when the breach is identified applies.

During martial law, however, Article 16 of Law No. 2136-IX establishes a special condition: if the employer fully complies within the prescribed period with an order to remedy breaches identified during an unscheduled inspection, the fines under Article 265 do not apply.

This condition does not cancel the obligation to pay amounts due or comply with a court decision. Under Article 237 of the Labour Code, the court also requires a culpable official to compensate the enterprise for losses connected with payment for forced absence or lower-paid work in the cases specified by that article.

What to check before closing the procedure

For the employer, the outcome must be supported by documents and actual steps: a lawful ground, compliance with deadlines, delivery of documents and payments. After reinstatement, also check that the employee can do their previous job and that HR and payroll records match the formal decision.

For the employee, keep copies of orders, the date they were received, written payment calculations and proof of payment. If rights remain infringed, the court claims should address the specific breach and be filed within the applicable time limit.

Official sources

• Labour Code of Ukraine No. 322-VIII: Articles 36, 38–44, 47, 49, 49-2, 116–117, 147–149, 184, 233–237, 265.
• Law of Ukraine “On the Organisation of Employment Relations under Martial Law” No. 2136-IX: Articles 1, 3–5, 7, 10, 12–13, 16.
• Civil Procedure Code of Ukraine No. 1618-IV: Articles 19, 27–28, 175–177, 430.
• Law of Ukraine “On Court Fees” No. 3674-VI: Article 5(1)(1).
• Resolution of the Cabinet of Ministers of Ukraine No. 100 of 8 February 1995 “On Approval of the Procedure for Calculating Average Earnings”: paragraphs 1–5, 7–8 of the Procedure.