Law of Ukraine ON EMPLOYMENT of March 1, 1991, No. 803-XII (published in "Visnyk Verkhovnoyi Rady" (VVR), 1991, No.14, p.170) as amended and supplemented pursuant to Laws of Ukraine of December 18, 1991, No. 1993-XII (VVR, 1992, No. 12, p.169), of November 17, 1992, No. 2787-XII (VVR, 1993, No. 2, p. 3), of October 14, 1994, No. 206/94-VR (VVR, 1994, No. 45, p.408), of December 22, 1995, No. 498/95-VR (VVR, 1996, No. 3, p. 11), of February 14, 1996, No. 47/96-VR (VVR, 1996, No. 9, p. 42), and of December 17, 1996, No. 608/96-VR (published in "Holos Ukrayiny" of December 28, 1996). In the text of the Law references to "Ukrainian S.S.R." have been changed to "Ukraine", "Council of Ministers of the Ukrainian S.S.R." and "Council of Ministers of the Uk.S.S.R." - to "Cabinet of Ministers of Ukraine", "republic" - to "state", "local councils of people's deputies" - to "local state administrations, executive committees of the respective councils of people's deputies", "executive committees of local councils of people's deputies" - to "local bodies of state executive power; (in the text of the Law the words "local state administrations, executive committees of the respective councils of people's deputies" and "local bodies of state executive power" in all cases have, pursuant to the Law of Ukraine of October 14, 1994, No. 206/94-VR), been changed, respectively, to "local councils of people's deputies" and "executive committees of the local councils of people's deputies"). Under the conditions of market economy and equal status of different forms of ownership this Law shall determine the legal, economic and organizational grounds for employment of the population of Ukraine and of protection thereof from unemployment, as well as social assurances of the state as to implementation of the right of citizens to work. Chapter I GENERAL PROVISIONS Article 1. Employment of the Population 1. Employment shall designate activities of citizens related to satisfaction of individual and social needs thereof and generally accounting for income of the said citizens in monetary or other form in terms of salary, allowance, supplementary financial assistance or in-kind payments. (P.1, part 1 of Article 1 is amended pursuant to Law No. 2787-XII of November 17, 1992) Employment of population residing in the territory of Ukraine shall be ensured by the state through implementation of dynamic social and economic policies aimed at satisfaction of needs of the said population in voluntary choice of occupation as well as through encouragement of the creation of new jobs and the development of enterprise. 2. Citizens of Ukraine shall freely choose occupations in no controversy with the effective legislation, including occupations unrelated to paid labor, as well as professions and jobs in accordance with own skills. Forced labor in any form shall be prohibited, with the exception of instances envisaged in the legislation of Ukraine. Voluntary unemployment of citizens shall not be deemed grounds for administrative or criminal proceedings in respect thereto. 3. The employed population of Ukraine shall include the following categories of citizens lawfully residing in the territory thereof: a) individuals hired to work on full or part time (daily or weekly) basis for enterprises, institutions and organizations irrespective of form of ownership thereof, as well as for international and foreign entities in and beyond Ukraine; b) self-employed citizens, including entrepreneurs, persons pursuing individual or creative work activities, members of cooperatives, farmers and family members thereof taking part in production; c) persons elected, appointed or approved to maintain paid positions in bodies of state power or administration and in public associations; d) persons in active service in the Armed Forces of Ukraine, the National Guard of Ukraine, the Security Service of Ukraine, the Border Troops of Ukraine, the interior and convoy guarding troops, the Civil Defence of Ukraine, the bodies of the Ministry of Internal Affairs of Ukraine, other military formations established in compliance with the legislation of Ukraine, and in alternative (non-military) service; e) Subparagraph is excluded; f) persons pursuing professional training, re-training or advanced training on full-time basis, or studying at full-time schools of general education, or higher education establishments; g) Subparagraph excluded; h) employed foreign nationals temporarily residing in Ukraine and performing functions unrelated to the statutory activities of embassies or missions. (Article 1, p. 3 is amended pursuant to Law No. 2787-XII of November 17, 1992) 4. The legislation of Ukraine may provide for other categories of employed population. Article 2. The Unemployed Able citizens of working age without earnings (or other income envisaged in the effective legislation) for reasons beyond control thereof and on account of unavailability of appropriate employment, registered with the State Service of Employment, in actual search of employment and capable of beginning working activities shall be deemed unemployed. Should appropriate employment be unavailable an unemployed may be offered professional training or advanced training. The following categories of citizens shall not be deemed unemployed: a) persons under age of 16, with the exception of such persons having been previously employed and discharged for reasons of changes in organization of production or labor, or reorganization, transformation or liquidation of the respective enterprise, institution or organization, or personnel (workforce) reduction therein; b) persons with no profession (specialty) in search of the first ever job, including graduates of schools of general education, should such persons refuse to pursue occupational training or to accept paid assignments, including duties of temporary nature; c) persons having rejected two offers of appropriate employment as of the moment of registration with the State Service of Employment as persons in search of employment; the said persons shall lose the right to be deemed and re-registered as unemployed for the period of three months; d) persons entitled to pensions in compliance with the effective legislation of Ukraine. The procedure of registering citizens as unemployed shall be determined by the Cabinet of Ministers of Ukraine. (Article 2 is amended pursuant to Law No. 2787-XII of November 17, 1992) Article 3. General Principles of the State Employment Policy The state employment policy of Ukraine shall be based on the principles as follows: - to secure equal opportunities to all citizens, irrespective of origin, social or property status, race, ethnicity, gender, age, political affiliation and religious attitudes thereof, to the implementation of right thereof to free choice of occupation according to the respective abilities and professional training and with due account of individual interests and social needs; - to encourage constructive employment, to prevent unemployment, to create new jobs and conditions for the development of enterprise; - to coordinate activities in the domain of employment with other economic and social policies on the basis of the state and regional employment programs; - to promote cooperation of trade unions, associations or unions of entrepreneurs, owners of enterprises and of institutions, organizations or specifically authorized bodies thereof in conjunction with the state bodies of government for the purpose of elaborating, implementing and overseeing pursuance of measures aimed at assuring employment of the population; - to seek international cooperation for the purpose of resolving issues related to employment of the population, including employment of citizens of Ukraine abroad and employment of foreign nationals in Ukraine. Article 4. State Assurances of the Right to Choice of Occupation 1. Able population of working age shall be assured by the state of Ukraine of the following: a) voluntary labor and free choice of occupation; b) protection from ungrounded refusal to employ and from unlawful discharge, as well as assistance in retention of job; c) free assistance in provision of appropriate occupation and in employment in accordance with vocation, abilities, professional training and education of citizens, with due account of social needs, and by all available means, including occupational placement and re-training; d) compensation of expenditures related to provision of employment requiring relocation; e) provision of discharge allowance and payment of average earnings to citizens having lost permanent jobs with enterprises, institutions and organizations in instances and on conditions envisaged in the effective legislation; f) free occupational training of the unemployed, re-training thereof in educational establishments or within the framework of the State Service of Employment with payment of allowance; g) welfare payments to the unemployed in pursuance of the established procedure, material assistance to family members dependent thereupon, and other kinds of assistance; h) inclusion of the re-training or occupational training period, of the paid public works participation period and of the period of time on welfare into the aggregate service length period; i) provision of employment for "young specialists" - graduates of state higher education establishments - previously requested for assignment by enterprises, institutions or organizations, for the period of at least three years and in accordance with the professions of such graduates. 2. The state bodies shall guarantee publication of statistical data and information materials on workforce demand and supply and on opportunities for employment, professional training and re-training, occupational placement and social labor rehabilitation. Article 5. Supplementary Assurances of Employment for Specific Categories of the Population The state shall provide supplementary assurances of employment to able citizens of working age in need of social protection and with no capability for proper competition in the labor market, including women with children under the age of six; single mothers with children under the age of fourteen or with handicapped children; graduates of schools of general education or vocational training schools having not been officially placed to jobs, as well as other persons under the age of twenty one; people of pre-retirement age (males - upon the age of fifty eight, females - upon the age of fifty three); citizens unemployed for sound reasons and for the period of at least one year; citizens released upon sentence in penitentiary institutions or having been placed, pursuant to judicial ruling, into the labor and compulsory treatment facilities; and persons upon the age of fifteen to be, on consent of parents or trustees thereof and in exceptional cases, employed by means of creation of additional jobs, or establishment of specific enterprises, or conduct of special training programs, etc. (Article 5, part 1 is amended pursuant to Law No. 1993-XII of December 18, 1991, and Law No. 2787-XII of November 17, 1992) For the above purposes the local councils of people's deputies shall reserve at enterprises, institutions and organizations up to 5 % of the total number of job positions, including such with flexible mode of employment. Should citizens belonging to the above indicated categories be refused jobs within the limits of the established quota the respective enterprises, institutions and organizations shall be fined for each instance of such refusal in the amount of an average annual salary. Fines thus paid shall be transacted to the State Fund for promotion of employment and used to cover expenses of enterprises creating jobs for the said categories of population in excess of the established quota. (amended pursuant to Law No. 206/94-VR of October 14, 1994) Should enterprises, institutions or organizations reduce personnel or workforce by over 5 % of the total number of job positions the local councils of people's deputies shall decrease or totally abstain from establishing the above indicated quotas for such enterprises, institutions or organizations. (This part of the Article is supplemented pursuant to law No. 206/94-VR of October 10, 1994) Article 6. Legislation on Employment 1. Employment in Ukraine and matters thereof shall be regulated by this Law and by other legislation of Ukraine enacted in compliance with this Law. Should an international treaty or agreement executed by Ukraine stipulate rules other than indicated in the legislation on employment in Ukraine rules stipulated in such treaty or agreement shall be applied. 2. The legislation on employment shall extend to foreign nationals permanently residing in Ukraine and to persons without citizenship, unless otherwise indicated in the effective legislation of Ukraine. Article 7. Appropriate Employment 1. Employment in accordance with education, profession (specialty), and qualifications of any person having lost job and earnings (work income) and provided in the area of residence thereof shall be deemed appropriate employment for such person. Salary or wages shall be in compliance with the amount thereof at the previous job of such person and computed in account of average pay indicators in the respective sector over the last three months. In the event of appropriate employment be offered to a citizen the length of relevant service, previous activities, age, experience, status in the labor market and duration of unemployment period of such citizen shall be duly considered. Work requiring prior professional training shall be deemed appropriate employment for citizens without profession (specialty) and in search of the first ever job. Work requiring prior re-training or advanced training shall be deemed appropriate employment for citizens willing to renew working activities upon interval in excess of one year; should such employment be unavailable other paid assignments (including duties of temporary nature) shall be deemed appropriate employment. (Article 7, paragraph 1 is amended pursuant to Law No. 2787-XII of November 17, 1992) 2. Should upon expiration of welfare period employment in accordance with profession (specialty) of a citizen be unavailable thereto work requiring change of profession (specialty), with due consideration of skills of such citizen, previous experience thereof and training means available thereto, shall be deemed appropriate employment. 3. For the purpose of improving social protection of population accessibility by transportation means and other criteria of appropriate employment may be established pursuant to the respective decisions of the local councils of people's deputies. (amended pursuant to Law No. 206/94-VR of October 14, 1994) Chapter II RIGHT OF CITIZENS TO EMPLOYMENT Article 8. Right of Citizens to Provision of Employment Citizens shall have the right to provision of employment and choice of job, the said right to be exercised by means of applying to enterprises, institutions and organizations, or to private agricultural entities (farms), or to any other employer, or with free assistance of the State Service of Employment. The procedure and terms of execution of labor agreements, contracts or other binding documents shall be regulated by the legislation of Ukraine on labor. Article 9. Right of Citizens to Occupational Consulting Services, Training, Re-Training and Access to Information in the Sphere of Employment Citizens having applied to the State Service of Employment as persons in search of employment shall have the right to free occupational placement, consultations, training, re-training, access to information relevant to choice of occupation, profession, site of work, and labor mode. Article 10. Right of Citizens to Professional Activities Abroad Citizens shall have the right to pursue occupational activities when temporarily staying abroad should such activities be in no controversy with the effective legislation of Ukraine and of the country of stay thereof. (Article 10, part 1 is amended pursuant to Law No. 2787-XII of November 17, 1992) Interests of citizens of Ukraine temporarily employed abroad shall be protected by agreements concluded between Ukraine and other states. Article 11. Right of Citizens to Social Protection in the Sphere of Employment Citizens shall have the right to social protection in the sphere of employment in compliance with the legislation of Ukraine on employment. Persons registered as unemployed pursuant to the established procedure shall have the right to welfare. Article 12. Right To Appeal Actions of Personnel of the Service of Employment Citizens shall have the right to appeal actions of personnel of the State Service of Employment by lodging claims with higher bodies of the said Service or with Court of Justice pursuant to the legally established procedure. (Article 12 is amended pursuant to Law No.2787-XII of November 17, 1992) Chapter III ADMINISTRATION AND MANAGEMENT OF EMPLOYMENT POLICIES Article 13. Administration of Employment 1. For the purpose of promoting full and productive employment of free choice the state shall - pursue investment and taxation policies aimed at feasible allocation of productive forces, enhanced mobility of the working people, introduction of new technologies, encouragement of enterprise, establishment of small businesses, use of flexible working modes and of in-residence occupations as well as other measures conducive to protection and quantitative expansion of jobs; - to safeguard rights and interests of the employed, to create favorable environment at work, and to improve legislation on employment and labor; - to conduct analytical studies and research of the structure of economy and to forecast expected changes in the quantitative and qualitative distribution of workforce; - to regulate foreign economic activities in order to attract and avail of foreign workforce in Ukraine on the basis of quotas and licensing; - to encourage, if deemed necessary, creation of new jobs at enterprises, institutions and organizations irrespective of form of ownership thereof and to improve labor conditions in public production. 2. The state shall maintain statistics and furnish statistical reports to reflect the status of the labor market and the system of employment in Ukraine. Article 14. State and Territorial Employment Programs 1. For the purpose of promoting employment of population and satisfying occupational needs of citizens the Cabinet of Ministers of Ukraine and the local councils of people's deputies shall devise annual and long-term state and territorial employment programs. (amended pursuant to Law No. 206/94-VR of October 10, 1994) 2. The state and territorial employment programs shall be a) to promote structural changes in and development of economy, to create conditions for priority assignment of released workforce to profitable enterprises and economic sectors of major importance; b) to prevent unemployment growth and to reduce unemployment rate by motivating enterprises, institutions and organizations to create new jobs, predominantly with flexible hours, for enhanced economic benefit of the said entities; c) to improve the system of labor force reproduction in conjunction with development of jobs, occupational placement, training, re-training and advanced training of population, and efficient use of labor resources; d) to protect the unemployed and families thereof from negative consequences of unemployment and to secure employment of citizens in need of social protection and with no capability for proper competition in the labor market; e) to establish the material, personnel, informational, statistical, financial, research and methodological basis for the State Service of Employment; and f) to take measures in promotion of employment of rural residents. Article 15. Voluntary Resettlement of Citizens and Families For the purpose of ensuring employment of population and development of specific regions of Ukraine the state shall take measures to facilitate voluntary resettlement of citizens of Ukraine and families thereof to the said regions and to allocate the respectively required financial means and resources. The procedure of elaboration and conduct of the said measures as well as benefits due to such citizens shall be determined in compliance with the legislation of Ukraine on resettlement of families and on organized hiring campaigns. Article 16. Areas of Priority Development The Cabinet of Ministers of Ukraine shall define areas in need of employment promotion by the state. The said areas (mainly such with labor surplus, with high rate of unemployment and in the rural or mountainous regions) shall provisionally acquire the status of areas of priority development. Enterprises, institutions and organizations establishing production facilities, affiliates and new jobs in the above indicated areas shall be entitled to benefits as determined in the legislation of Ukraine or by resolutions of the local councils of people's deputies. (amended pursuant to Law No. 206/94-VR of October 14, 1994) Article 17. Coordination Committees for Employment Promotion Coordination committees for employment promotion shall be established to prepare coordinated decisions on implementation of employment policies. Such committees shall be composed of equal numbers of representatives of trade unions, government bodies, owners of enterprises or duly authorized bodies thereof, and entrepreneurs. Procedure of the coordination committee activities and organization of work thereof shall be determined by parties represented on the said committee. Article 18. The State Service of Employment 1. The State Service of Employment shall be established for the purpose of implementation of the state employment policies and of the respective assurances to the population. The State Service of Employment shall pursue activities thereof under the guidance of the Ministry of Labor of Ukraine and of the executive committees of the councils of people's deputies. (amended pursuant to Law No. 206/94-VR of October 14, 1994) 2. Services related to promotion and provision of employment shall be provided by the State Service of Employment free of charge. 3. Activities of the State Service of Employment shall be financed by the respectively established State Fund for promotion of employment. 4. Within the framework of the State Service of Employment an Inspecting body shall be established, the said body to pursue oversight of the implementation of legislation on employment by governmental and public entities, by enterprises, institutions and organizations irrespective of form of ownership or mode of economic activities thereof, by farmers and by any other employers. 5. The State Service of Employment shall be exempt from taxes as well as from duties or other deductions into the state budget. (Paragraph 5 of Article 18 has been in no legal force as of January 1, 1996 in respect to exemption from import, customs and excise duties and VAT on excisable imported goods.) (pursuant to Law No. 498/95-VR of December 22, 1995) (Paragraph 5 of Article 18 has been in no legal force in respect to exemption from import, customs and excise duties and VAT on goods shipped (dispatched) into the customs area of Ukraine.) (pursuant to Law No. 608/96-VR of December 17, 1996) 6. For the purpose of providing services related to occupational placement, advanced training, and professional training of citizens, and of promoting employment of citizens temporarily staying abroad special commercial bureaus, agencies or other entities may be established, the said entities to pursue activities thereof on the basis of the respective licenses issued compliant to the established procedure and to possess a certificate issued by the State Service of Employment. (Article 18, p. 6 is amended pursuant to Law No. 2787-XII of November 17, 1992) Article 19. Rights and Obligations of the State Service of Employment 1. The State Service of Employment shall - analyze and forecast labor force demand and supply and advise the population and the bodies of government on the status of the labor market; - consult citizens, or owners of enterprises, institutions and organizations, or duly authorized bodies thereof applying to the State Service of Employment on job opportunities, workforce supply, job descriptions and professional requirements as well as on other issues conducive to growth of employment; - maintain records of available jobs and of citizens applying for employment; - assist citizens in provision of appropriate employment and help owners of enterprises, institutions and organizations or duly authorized representatives thereof in the selection of proper personnel; - organize, if necessary, professional training or re-training of citizens within the framework of the State Service of Employment or assign such citizens to other establishments offering training and re-training of workforce, and assist enterprises in the development of training and re-training courses and structure thereof; - render employment and occupational placement services to the discharged and unemployed; - register the unemployed and render, within own competence, assistance, including financial, thereto; - participate in elaboration of current and prospective state and territorial employment programs and of measures aimed at social protection of various categories of population from unemployment. 2. The State Service of Employment shall have the rights as follows: - to apply to enterprises, institutions and organizations irrespective of form of ownership thereof for statistical data on vacancies and on conditions and mode of labor thereat, indicators of the total number of all hired and discharged personnel and of workforce awaiting suspension, and information on scheduled changes in the organization of production or labor and on any other measures potentially conducive to release of personnel thereof; - to elaborate proposals on introduction of quotas for employment of persons in need of social protection and with no capability for proper competition in the labor market at enterprises, institutions and organizations irrespective of form of ownership thereof, to submit the above indicated proposals to the respective councils of people's deputies, and to refer the said persons to such enterprises, institutions and organizations for employment; (amended pursuant to Law No.206/94-VR of October 14, 1994) - to refer citizens addressing the State Service of Employment to enterprises, institutions and organizations of any form of ownership for employment in accordance with the level of education and professional training of the said citizens, should vacancies (vacant positions) be available at the above indicated entities; - to assign unemployed citizens, on consent thereof, to paid community works; - to conclude, on authorization of enterprises, institutions and organizations of any form of ownership, contracts with citizens on employment thereof upon, if deemed feasible, prior occupational training thereof, and allocation of per diem and transportation payments; and to render assistance to the said citizens in resettlement to new location of employment and residence thereof at the expense of the above enterprises, institutions and organizations; - to administer financial resources of the State Fund for promotion of employment in compliance with the legally established procedure; - to defray cost of occupational training for persons in need of a new profession (specialty) for employment and provision thereof with allowances for the period of training, such allowances to be in compliance with the respective amounts stipulated in the legislation of Ukraine on employment; - to administer, discontinue or rescind welfare payments to citizens in compliance with the legally established procedure, and - to submit proposals to the local councils of people's deputies on deferral (for the period of up to six months) of decisions of enterprises on personnel discharge should subsequent employment of released workforce be difficult, and to partially or fully defray costs incurred to the said enterprises by such deferral. (amended pursuant to Law No. 206/94-VR of October 14, 1994) Amounts of costs and tax benefits to be defrayed or provided to enterprises, institutions and organizations in instances envisaged hereinabove shall, in compliance with the legislation of Ukraine, be determined by executive committees of the local councils of people's deputies on submittal of coordination committees for employment promotion. (amended pursuant to Law No. 206/94-VR of October 14, 1994) Article 20. Participation of Enterprises, Institutions and Organizations in the Implementation of the State Employment Policies 1. Enterprises, institutions and organizations irrespective of form of ownership thereof and executives of the said entities shall support and promote the state employment policies as follows: - implement legislation on labor and observe contracts and agreements executed in compliance therewith; - arrange for occupational training, re-training and advanced training of the employed and for professional re-training of persons subject to discharge; - employ persons in need of social protection and with no capability for proper competition in the labor market in quantities determined by the respective councils of people's deputies. (amended pursuant to Law No. 206/94-VR of October 14, 1994) 2. Enterprises, institutions and organizations actively promoting solution of employment issues in the respective region (by creating new jobs, or arranging for paid community works, or providing employment to persons in need of social protection and with no capability for proper competition in the labor market in quantities exceeding the respectively established quotas) shall, in compliance with the legislation of Ukraine, be entitled to benefits in respect to taxes and other mandatory deductions to the state budget, such benefits to defray, in part or in full, costs related to employment of additional personnel. 3. Enterprises, institutions and organizations of any form sectoral affiliation and located in the territory of the respective region shall provide the State Service of Employment with ample information on availability of job vacancies (vacant positions) on the monthly basis and shall inform the said Service of all hired workforce within ten days as of the moment of such workforce being employed. 4. In the event of workforce being discharged for reasons of changes in the organization of production or labor, including liquidation, reorganization or transformation of any enterprises, institutions and organizations, or as a result of reduction of personnel or workforce thereat, such enterprises, institutions and organizations irrespective of form of ownership thereof shall inform the State Service of Employment of the above in writing within two months as of the moment of such discharge, the said information to specify grounds and terms of discharge, list of professions, specialties and qualifications of the discharged and the amounts of labor remuneration thereof. Should enterprises, institutions and organizations fail to or untimely submit the above information such entities shall be fined, the amount of fine being equal the annual salary for each person discharged. Amounts thus paid shall be transacted to the State Fund for promotion of employment and used to finance measures aimed at promotion of employment and social protection of discharged workforce. 5. The procedure of exaction and amounts of fines to be paid by enterprises, institutions and organizations for failure to observe the provisions of this Article shall be determined in the legislation of Ukraine. (Paragraph 2 of Article 20 is excluded pursuant to Law No. 1993-XII of December 18, 1991; in this conjunction pp. 3, 4, 5, and 6 shall be respectively deemed pp. 2, 3, 4, and 5; pp. 2, 3 and 4 of Article 20 are amended pursuant to Law No. 2787-XII of November 17, 1992) Article 21. Participation of Trade Unions in Measures To Promote Employment 1. Trade unions shall participate in the elaboration of the state employment policies, of the respective laws of Ukraine and of resolutions of executive committees of the local councils of people's deputies. (amended pursuant to Law No. 206/94-VR of October 10, 1994) 2. The rights and authority of trade unions as to protection of citizens from unemployment and consequences thereof shall be determined in collective agreements (arrangements), and in agreements concluded by trade unions with the bodies of state power of the national and territorial level and with associations of enterprises (employers) in compliance with the effective legislation. Trade unions, bodies of state power and owners of enterprises, institutions and organizations shall conduct joint consultations on issues of employment. Article 22. The State Fund for Promotion of Employment 1. The State Fund for promotion of employment shall be established to finance the following measures envisaged in the employment promotion programs: - occupational placement of citizens, professional training of released workforce and of the unemployed, assistance thereto in provision of employment and administration of welfare payments; - issuance of non-interest loans to the unemployed for commencement of entrepreneurial activities; - establishment and development of equipped training facilities, information and computer centers, occupational placement, training and re-training centers, ancillary facilities and own enterprises of the State Service of Employment; - creation of new jobs in different sectors of the national economy; - costs of maintaining personnel of the State Service of Employment and other expenses related to social protection of the right of citizens of Ukraine to work. 2. The State Fund for promotion of employment shall constitute an independent financial entity and shall be established at the state and local levels at the expense of the following: - allocations from the state and local budgets, the amount of such allocations to be determined by the Verkhovna Rada of Ukraine; - mandatory deductions of enterprises, institutions and organizations of any form of ownership (with the exception of agricultural enterprises) and pursuing manufacturing, commercial or any other economic activities, and voluntary contributions from public associations, individual citizens, and foreign companies, as well as other returns; (Article 22, p. 2, para. 3 is amended pursuant to Law No. 47/96-VR of February 14, 1996) - resources of the State Service of Employment originating from paid services rendered to enterprises, institutions and organizations, and partial income of enterprises, institutions and organizations established by the State Service of Employment. (p. 2 of Article 22 is amended pursuant to Law No. 2787-XII of November 17, 1992) 3. Administration of resources of the State Fund for promotion of employment shall be pursued by the State Service of Employment. 4. Provisions on the State Fund for promotion of employment shall be approved by the Cabinet of Ministers of Ukraine. Article 23. Arrangement of Paid Community Works 1. Local councils of people's deputies in coordination with the State Service of Employment shall arrange for paid community works at enterprises, institutions and organizations in communal ownership as well as, on contractual basis, at other enterprises, institutions and organizations, the said works to provide temporary employment to the population and, in priority order, to persons registered as unemployed. (amended pursuant to Law No. 206/94-VR of October 14, 1994) 2. Persons willing to participate in paid community works shall enter into agreements envisaging specific duration of the said works, such agreements being eligible to extension on consent of the parties thereto until the moment of the above persons being provided with appropriate employment. Citizens registered as unemployed shall have the priority right to enter into the said agreements. 3. Should the established welfare period expire the respective citizen shall have the priority right to acquire a different profession (specialty) and to participate in paid community works until the moment of being provided with appropriate employment. 4. Labor of persons participating in paid community works shall be remunerated on the basis of work actually performed and, should work quality standards be properly observed, shall not be under the minimal amount of salary determined in the legislation of Ukraine. Social assurances, including the right to pension and to financial assistance in case of temporary disability, shall extend onto persons participating in paid community works. Unemployed citizens when participating in paid community works shall maintain rights thereof to welfare payments in amounts and terms established in pursuance of this Law. 5. Paid community works shall be financed at the expense of the respective local budgets with attraction of resources of the State Fund for promotion of employment (should the said works be arranged for the unemployed) and of enterprises, institutions and organizations having contracted such works. 6. Provisions on paid community works shall be approved by the Cabinet of Ministers of Ukraine. (Article 23 is amended pursuant to Law No. 2787-XII of November 17, 1992) Article 24. Professional Training and Re-Training of Unemployed Citizens 1. Professional training, re-training and advanced training of persons registered with the State Service of Employment as citizens in search of employment may be conducted in the following instances: - should a citizen remain without appropriate employment for lack of professional qualifications required; - should qualifications changes be necessitated by unavailability of employment in accordance with professional qualifications of a citizen; and - should a citizen lose ability to perform work in accordance with prior profession thereof. 2. Professional training, advanced training and re-training of citizens shall be arranged by the State Service of Employment through assignment of the said citizens to educational establishments, enterprises, institutions and organizations (irrespective of sectoral affiliation thereof) pursuant to contracts specifically concluded, or to specialized training centers at the expense of resources of the State Fund for promotion of employment. Chapter IV COMPENSATIONS AND ASSURANCES FOR THE UNEMPLOYED (the title of Chapter IV is amended pursuant to Law No. 2787-XII of November 17, 1992) Article 25. Compensations The state shall assist unemployed citizens in renewal of labor or service activities thereof and shall provide such citizens with compensations as follows: a) special assurances to personnel discharged by enterprises, institutions and organizations; b) allowances during the period of professional training or re-training, such period to be included into general length of uninterrupted service; c) welfare (to be paid pursuant to the established procedure); and d) supplementary financial assistance to the unemployed and family members thereof in the event of elderly persons and minors being dependent thereupon. Article 26. Special Assurances to Workforce Unemployed for Reasons of Changes in Organization of Production or Labor 1. Should a labor agreement with a person be discontinued by employer or duly authorized body thereof for the reasons of changes in organization of production or labor, including liquidation, reorganization or transformation of the respective enterprise, institution or organization, or of workforce or personnel reduction thereat, or should a person in military service be, for the reason of quantitative reduction of manpower therein, discharged from such service, and in the event of such persons being registered with the State Service of Employment as citizens in search of employment at least ten days prior to the expiration of the three month term envisaged, the said persons shall be entitled to assurances as follows: a) in the event of ten day period having expired and of appropriate employment having not been provided such persons shall acquire the status of unemployed; b) the right to welfare in the amount of 75 % of average monthly salary at the latest previous job, to be paid for the period of three subsequent months, and in the amount of 50 % of the above indicated salary - for the period of next six months, the said amount not to exceed the average salary in the respective sector of the national economy and to be no lower than the amount of minimal salary established in the effective legislation; c) the right to salary amounting to average salary at the latest previous job throughout the period of full time training at new job; d) the right to retire eighteen months prior to the due time, in the event of length of service (including title to retirement age benefits) of persons of pre-retirement age being in compliance with the respective provisions in the legislation. Discharged workforce shall be entitled to other benefits and compensations in compliance with the effective legislation. (Article 26, p.1 is amended pursuant to Law No. 2787-XII of November 17, 1992) 2. Should a person discharged for no sound reason fail to timely register with the State Service of Employment as citizen in search of employment or reject two offers of appropriate employment the said person shall have no title to benefits stipulated in this Article, welfare to such person to be paid pursuant to Article 29 and subparagraph "a)" of Article 30, p. 3 herein. (Article 26, p. 2 is amended pursuant to Law No. 2787-XII of November 17, 1992) 3. In the event of enterprises, institutions and organizations providing re-training to workforce discharged for the reasons of changes in organization of production or labor the procedure of profit taxation of the said entities shall be pursued with the respective amount of gross profit of any such entity being reduced by the amount of costs of the said training. In the event of a person employed having been provided with no opportunity to improve qualifications through training or to acquire any related profession at work within the period of two years prior to discharge thereof, and should further employment of such person require advanced training or professional re-training, costs of the above indicated training shall be covered by the enterprise, institution or organizations having discharged the said person. The State Service of Employment may, if deemed necessary, defray up to 50% of costs of enterprises, institutions and organizations incurred through training citizens employed by the said entities upon discharge thereof from other enterprises, institutions and organizations on grounds envisaged in this Article. 4. Assurances indicated in p. 1 of this Article shall also extend onto persons having become unemployed as a result of accident at work or of occupational hazard and consequently in need of professional training, re-training or advanced training. Article 27. Amounts of Allowances During the Period of Professional Training or Re-Training 1. Citizens having lost employment and earnings (labor income) and registered with the State Service of Employment as persons in search of employment shall be entitled, throughout the period of professional training or re-training thereof, to monthly allowances amounting to 75 % of average salary thereof at the latest previous job, and such persons with no minors or other persons dependent thereupon - amounting to 50 % of the said salary, such allowances not to exceed the amount of average salary in the respective sector of the national economy and to be no lower than the minimal amount of salary determined in the effective legislation. (Article 27, p. 1 is supplemented pursuant to Law No. 2787-XII of November 17, 1992) 2. Citizens in search of employment for the first ever time, persons discharged for violations of labor discipline and individuals having not been employed for a lengthy period of time and in need of professional training, re-training or advanced training shall be entitled to allowances no lower than the amount of welfare envisaged for such categories of population. Article 28. Terms of Welfare 1. Citizens registered as unemployed pursuant to the established procedure and having no income in excess of the amount of minimal salary and envisaged in the effective legislation shall have the right to welfare. 2. Welfare shall be paid as of the eleventh day upon registration of the respective citizen with the State Service of Employment until the moment of employment of such citizen, though for no longer than 12 months throughout the three subsequent years, persons of pre-retirement age (two years before the due age of full pension retirement) being entitled to 18 months of welfare. In the course of the first year welfare shall be paid for no longer than 6 months, in the course of the second year - for no longer than 3 months, the remaining due amounts to be paid in the course of the third year. 3. Citizens willing to resume working activities upon lengthy (over one year) intervals shall be entitled to welfare on terms specified in p. 2 of this Article. Citizens in search of employment for the first ever time shall be entitled to welfare for the period of six months. 4. Throughout the welfare period any unemployed shall seek employment pursuant to recommendations acknowledged by the State Service of Employment. Article 29. Amounts of Welfare 1. Amounts of welfare to be paid to citizens entitled thereunto shall be as follows: a) at least 50 % of the amount of salary at the latest previous job though no lower than the amount of minimal salary established in the effective legislation in the event of a citizen discharged from an enterprise, institution or organization having been permanently employed thereat for at least 12 weeks prior to the moment of unemployment; the maximal amount of welfare shall not exceed the amount of average salary in the respective sector of the national economy; b) at least 75 % of the minimal amount of salary established in the effective legislation - in any other instances, including welfare to be paid to citizens in search of employment for the first ever time or upon lengthy (over one year) interval. (Article 29. p. 1 is supplemented pursuant to Law No. 2787-XII of November 17, 1992) 2. Citizens having applied to the State Service of Employment for provision of employment within one month as of the moment of graduation from full time vocational schools or higher education establishments and citizens having similarly applied to the said Service within three months as of the moment of discharge from active service in the Armed Forces of Ukraine, the National Guard of Ukraine, the Border Troops of Ukraine, the Security Service of Ukraine, troops of interior and convoy guarding or of the Civil Defense of Ukraine, bodies of the Ministry of Internal Affairs of Ukraine or in any other military formations established in compliance with the legislation of Ukraine, or from alternative (non-military) shall be entitled to welfare in the amount no lower than the amount of minimal salary. (Article 29, p. 2 is amended pursuant to Law No. 2787-XII of November 17, 1992) 3. The amount of welfare shall be indexed in compliance with the legally established procedure. 4. The period on welfare shall be included into the length of uninterrupted service of the respective citizen. 5. Procedure of welfare administration shall be established by the Cabinet of Ministers of Ukraine. Article 30. Discontinuation and Deferral of Welfare Payments 1. Welfare payments shall be discontinued in the instances as follows; a) employment of person previously unemployed; b) training, re-training or advanced training of such person on assignment of the State Service of Employment; c) expiration of welfare period; d) misappropriation of welfare; e) person on welfare being sentenced or assigned by court to a labor and compulsory treatment facility; and f) provision of pension in compliance with the legislation of Ukraine. 2. Welfare payments may be deferred for a period up to three months in the instances as follows: a) should a citizen in compliance with the established procedure be provided with discharge allowance or other payments upon discharge from an enterprise, institution or organization, such compensations defraying lost earnings in part or in full, with the exception of family support assistance and financial assistance at the expense of public funds; b) discharge on grounds specified in pp. 3, 4, 7 and 8 of Article 40 and in Article 41 of the Labor Code of Ukraine; c) failure to observe terms specified in Article 28, p. 4 herein; and d) citizens having been discharged from previously held job on own request thereof on no sound grounds. 3. Welfare payments may be suspended for a period up to three months in the instances as follows: a) citizens having rejected two offers of appropriate employment; b) failure of citizens to inform the State Service of Employment of the facts as to temporary employment thereof during the welfare period; c) should a person unemployed be unavailable at place of residence thereof, such absence being in no agreement with the State Service of Employment; d) refusal of citizens to accept employment pursuant to specialty acquired through re-training on assignment of the State Service of Employment; and e) discontinuation of training at advanced training or personnel re-training establishments on no sound grounds. The period of welfare payments to an individual being discontinued shall be included into the respective welfare period. (Article 30 is amended pursuant to Law No. 2787-XII of November 17, 1992) Article 31. Financial Assistance 1. Family members fully dependent upon a person unemployed and citizens having lost right thereof to welfare upon expiration of the established welfare period shall be entitled to financial and other assistance (including residential rent, communal services and public transportation subsidies) equal to 50 % of the amount of minimal salary per dependent person at the expense of the State Fund for promotion of employment, and should such fund be unavailable - at the expense of budget resources of the local councils of people's deputies or pursuant to collective agreements (arrangements). (amended pursuant to Law No. 206/94-VR of October 14, 1994) In the event of death of a person unemployed family members thereof or any other individual having taken care of the funeral shall be entitled to single time financial assistance in the amount of two monthly welfare payments though no lower than fivefold amount of the established minimal salary. (Article 31, p. 1 is amended pursuant to Law No. 2787-XII of November 17, 1992) 2. Terms of administration of financial and other assistance shall be established by the Cabinet of Ministers of Ukraine. Article 32. Voluntary Social Insurance of Employment 1. Citizens may enter into insurance agreements for loss of employment, such agreements to be concluded with the state insurance bodies. The procedure, frequency and terms of such insurance shall be determined in the legislation of Ukraine. 2. Citizens having concluded the said agreements shall not lose title to welfare or to allowance throughout the period of professional training or re-training. Article 33. Supplementary Assurances to Citizens of Ukraine Legislation of Ukraine may envisage, at the expense of the state budget, supplementary assurances to citizens discharged from enterprises subject to liquidation in conjunction with measures to improve protection of environment or as a result of a natural disaster. Chapter V OVERSIGHT. LIABILITIES FOR VIOLATIONS OF LEGISLATION ON EMPLOYMENT Article 34. Bodies of Oversight Oversight of the implementation of the legislation of Ukraine on employment shall be pursued by the local councils of people's deputies, by the respective state agencies, by inspecting bodies of the State Service of Employment and by trade union associations. (Article 34 is amended pursuant to Law No. 2787-XII of November 17, 1992) Article 35. Liabilities for Violations of Legislation on Employment Officials culpable of violations of the legislation of Ukraine on employment shall be subject to liability proceedings pursuant to the established procedure. L. KRAVCHUK Chairman, Verkhovna Rada of Ukraine City of Kyiv March 1, 1991 No. 803-XII ??