NEWSWATCH Kyiv Post: Soviet social guarantees for employees scare away investors, often backfire

Maidan Square in Kiev, Ukraine

The Kyiv Post and Olena Gordiienko comment on Ukrainian labor law and its impact on real world labor practices, business and investment.

Ukrainian labor legislation is paternalistic and focuses excessively on employee rights, many lawyers and employers say … it also leads to unintended consequences.

 

Ukrainians earn less than any other nation in Europe, $180 per month on average. Unemployment rose from 7.3 to 9.3 percent in 2014. More than half of the country’s salaries are paid unofficially.

 

… the country’s rigid labor code … aims to protect employee rights, but actually pushes employers to seek flexibility outside of the law. … employees who need the work often consent, according to Yuriy Kuzovoy, head of social policy department of the Ukrainian Employers’ Federation, founded and led by industrial oligarch Dmytro Firtash.

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