Ukraine continues to operate a simplified labour relations regime that allows employers and employees to determine some of the working conditions independently. In 2026, this mechanism remains relevant for businesses under martial law, but has a number of important features and limitations.
The simplified labour relations regime continues to operate in Ukraine
Under martial law, Ukraine continues to operate a simplified labour relations regime that allows employers and employees to organise cooperation in a more flexible manner. In 2026, this mechanism will remain one of the key tools for businesses, especially small and medium-sized ones. This is reported by the relevant human resources and the State Labour Service.
The simplified regime was introduced The Law of Ukraine No. 2136-IX «On the Organisation of Labour Relations under Martial Law» and certain provisions of the Labour Code of Ukraine. It allows the parties to employment contract to independently determine a number of working conditions without the mandatory application of some of the standard HR procedures.
Who can apply the simplified regime
According to Article 49-5 of the Labour Code of Ukraine, The simplified regime is applied:
- for employers with up to 250 employees;
- or in cases where the employee's salary exceeds eight minimum wages.
In 2026, this threshold will be over UAH 69 thousand per month.
At the same time, the regime does not apply to labour relations with employers that are legal entities under public law.
What has changed for employers
One of the main features of the simplified regime is a significant reduction in HR bureaucracy. Employers can:
- not to keep part of the personnel records;
- not approve local regulations on working hours, holidays or internal labour regulations;
- enter into contracts in electronic form;
- independently determine certain working conditions together with the employee.
In this case, the main document is the employment contract. The parties can specify in it:
- work schedule;
- payment terms;
- bonuses and compensation;
- rules of dismissal;
- responsibility of the parties;
- the procedure for organising remote or mixed work.
What guarantees remain for employees
Despite the flexible terms, the employer is obliged to pay all major taxes and contributions:
- 18% PERSONAL INCOME TAX;
- 5% military tax;
- 22% OF THE SINGLE SOCIAL CONTRIBUTION.
Employees retain their rights:
- for official employment;
- social insurance;
- pensionable service;
- paid sick leave;
- basic labour guarantees.
At the same time, certain conditions previously regulated by collective bargaining agreements may now be specified individually in an agreement between the employer and the employee.
New rules in 2026
In 2026, certain changes to the suspension of employment contracts during martial law also came into force. In particular, restrictions were introduced on the duration of the «freezing» of the employment relationship between the employee and the employer.
In addition, the SLS emphasises that the simplified regime is applied exclusively on a voluntary basis. An employer cannot force an employee to switch to such conditions without the consent of the parties.
Why it matters
Simplified labour relations regime has become one of the mechanisms for Ukrainian businesses to adapt to the war. For employers, it is an opportunity to organise work faster and reduce bureaucratic burden. For employees, it is a chance to maintain official employment and social guarantees even in the face of instability.
However, lawyers and HR experts emphasise that due to the expansion of contractual terms, employees should carefully read employment agreements before signing them, as they now define most of the key rules of cooperation.
