Compensation for temporary unemployment in Ukraine

In a regulation from the 7th of February 2009, N45 the Labor and Social Policy Ministry of Ukraine has confirmed a scheme for partial and temporary redundancy of work force and it’s compensation

 For the compensation following situation should be given. It is compulsory, that temporary normal work time is reduced or salaries are temporary decreased or salaries are temporary not paid. Reason should the current stop of production without termination of labor force caused by economical, technical, or structural reasons.

 Compensation is provided by the State Social Unemployment Fund for social insured employees in the case of partial redundancy for certain manufacturers of especially production oriented businesses with a closed production cycle.

 Compensation are provided for companies of any legal form which caries out registered business activity not less than 24 calendar month before partial redundancy of labor force started.

 To receive compensation it is necessary for the company to notify the State Social Unemployment Fund about the start of short-hours which results in partial redundancy of work force.

 Preconditions to receive State compensation are:
o Short time is scheduled from min. 1 month to max. 6 month
o The short time does not depend on the individual employee and employer but is connected to the overall economical situation of the industry
o The short time hours cover not less than 30 % the overall companies employees or 30% of the employees in the production of company
o The short time hours exceed more than 20% of the regular work time

 Compensation is calculated based on the short time hours of the employee and it is taking to account 2/3 of the normal salary to be compensated. Anyhow individual calculations will be made by the State Social Unemployment Fund

For more information please contact us in the case of interest.

Attorney of Law

Irina Semenyuk