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The selection rules for dismissals for economic reasons in Ukraine

Written by
Vasil Kisil & Partners, a leading multidisciplinary Ukrainian law firm.
Authors
Oksana Voynarovska
Partner - Ukraine
Vasil Kisil & Partners
Oleksandr Melnyk
Associate - Ukraine
Vasil Kisil & Partners
Ukraine
16.04.21
1
Employers considering individual or collective dismissal for economic reasons in Ukraine have legal obligations in selecting the employees concerned.

In respect of individual or collective dismissal for economic reasons the employer cannot randomly select employees (although a different approach is taken if the position in question is unique). The employer must apply a qualifications and productivity test, and, if the qualifications and productivity of the affected employees are equal, a special conditions test.

The qualifications and productivity test involves assessing the employee’s educational records, professional appraisals, etc. In relation to a given position, employees that have higher qualifications and productivity will remain employed, while those with lower qualifications and productivity will be dismissed.

If application of the qualifications and productivity test does not result in a sufficient number of employees being identified for dismissal, the special conditions test is applied. In this test, the employer weighs the number of special conditions to which each employee is subject. Those who have more will remain employed.

The special conditions are as follows:

  • two or more children;
  • sole breadwinner;
  • longer employment record with the employer;
  • full-time study during employment;
  • disability;
  • veteran status;
  • author of inventions, designs, etc;
  • close to pensionable age (i.e. three years or less before eligibility for a state-funded pension).