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In brief

On 26 and 27 February 2021, Law No. 1214-IX of Ukraine, which provides an exhaustive list of the types of monetary income for which compensation is paid for delays in payment (“Law No. 1214“), and Law No. 1213-IX of Ukraine, which provides for the detailed application of distance and home work (“Law No. 1213“), came into effect.

Key takeaways

Distance and home work

Law No. 1213 introduces more detailed regulation of distance work and work from home. Among other things, it provides for the following:

  • distinguishing the concepts of distance work and home work.
  • possibility to conduct briefings and acquaint employees with certain internal documents through electronic means.
  • possibility to combine distance work with work at a stationary workplace.
  • introduction of the concept of a “shutdown period” (i.e., time when the employee working remotely is entitled to not be available for communications).
  • settlement of issues connected with the procedure and terms of equipment provision, payment of compensation for the use of equipment, reimbursement of expenses, etc. for distance work.
  • possibility to conclude an agreement on full liability with distant and home employees.
  • settlement of issues related to labor safety of distant and home employees.

Violation of the term of payments due to employees

Law No. 1214 provides that salary, amounts of income indexation and the amount of certain compensations constitute “income of citizens,” and employees should be paid compensation for loss of income for the violation of their terms of payment (“Compensation“).

Recommended actions

  • Bring internal policies on alternative working arrangements and the employment agreements of relevant employees into compliance with law.
  • Carry out indexation of salary and pay salary, including the indexation amount and the applicable compensations due, to employees within the time limits provided by law; in the event of a delay in payments for one or more calendar months, pay the Compensation in compliance with the new requirements.

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Lina Nemchenko is partner in Baker McKenzie's Real Estate Practice Group in Kyiv. She also advises clients on natural resources and M&A law. Ms. Nemchenko has been recommended by PLC Which Lawyer? 2009 for her prominent advises in the field of real estate and construction, and has been acknowledged as one of the top advisers for land law by Ukrainian Law Firms: A Handbook for Foreign Clients. She has likewise been cited by Chambers Europe in its 2008-2009 editions for her “deep experience in handling the peculiarities of Ukranian law.” Chambers Global has also ranked Ms. Nemchenko as a leading individual in the her area of practice for three consecutive years.


Mariana Marchuk is a counsel in Baker McKenzie's Kyiv office. She has over 17 years of practical experience in the areas of corporate law, M&A, reorganizations, labor and employment, as well as compliance and anti-corruption. Prior to joining the Kyiv office of Baker McKenzie in 1997 as an associate, Ms. Marchuk worked as a legal adviser for one of the Big Six consulting firms. From 1999 up to 2004, she worked in Moscow as an associate for a major Wall Street law firm and subsequently for Baker McKenzie. In 2004, she returned to the Kyiv office of the Firm and in 2010 she was made a counsel.