---
title: "The End of the KZOT Era: How the New Labor Code Will Change the Rules of the Game for Workers and Business in Ukraine"
description: "The Verkhovna Rada is preparing to consider a new Labor Code, which will replace the outdated Soviet KZOT. 📜 The document introduces mandatory written contracts, fights shadow employment through civil law contracts, and legalizes remote work. Entry into force is planned for 6 months after the cancellation of martial law. 🇺🇦🏗️"
date: 2026-06-30T03:44:00.000Z
lang: en
url: https://xab.info/en/posts/end-of-kzot-era-new-labor-code-ukraine-2026
tags: []
publisher: "XAB.info"
---

# The End of the KZOT Era: How the New Labor Code Will Change the Rules of the Game for Workers and Business in Ukraine

![Signing a labor contract: symbolizing the transition to the new Labor Code in Ukraine](https://xab.info/media/2026/06/30/novyy-trudovoy-koдекс-ukrainy-izmeneniya-2026/novyy-trudovoy-koдекс-ukrainy-izmeneniya-2026-1.webp)

The Verkhovna Rada of Ukraine is preparing to adopt one of the most significant legislative changes in recent decades. On Tuesday, June 30, parliament may consider the draft of the new Labor Code (Bill No. 14386) in the first reading. The document, registered at the beginning of 2026, is intended to replace the outdated Code of Labor Laws (KZOT), which was adopted back in 1971.

### Why the reform has become inevitable

Despite dozens of amendments made to the Soviet legacy in recent years, the current KZOT continues to be based on the approaches of a planned economy. Experts and lawmakers agree: norms created half a century ago do not correspond to the realities of the modern labor market. The new code must not only consolidate disparate norms, currently scattered across various laws, but also harmonize Ukrainian legislation with the norms of the European Union.

It is important to note that the entry into force of the new document is tied to the geopolitical situation: it will come into effect six months after the termination or cancellation of martial law.

### Digitalization and new employment formats

One of the main goals of the reform is to adapt legislation to modern realities. The draft takes into account forms of employment that simply did not exist in the era of the KZOT's creation. In particular, this refers to:

    - Remote and home-based work;

    - Flexible schedules and contracts with non-fixed working hours;

    - Full-fledged electronic document management.

Lawmakers are emphasizing the reduction of red tape and the digitalization of HR procedures. This should make recruitment and personnel management processes more transparent and efficient.

### Fighting "shadow" employment

One of the most acute problems of the Ukrainian labor market is the practice of formalizing actual labor relations as civil-law relations (civil law contracts) or through the status of individual entrepreneurs (FOP). The new code offers a strict response to this practice.

For the first time, the document clearly defines the signs of labor relations. If at least five out of eight established criteria are identified in the worker's activity, the relations will be recognized as labor relations, even if the parties signed a civil-law contract. Such criteria include:

    - Personal performance of work;

    - Subordination to internal rules of conduct;

    - Work according to an established schedule;

    - Regular payment of remuneration;

    - Provision of the worker with a workplace and tools.

### Mandatory written contract

A new approach to formalizing relations will become a key innovation. While in some cases access to work without a written contract is currently allowed, the new Code makes a written agreement mandatory for everyone. It must clearly state the position, place of work, start date, salary amount, work schedule, and vacation duration. This is intended to minimize disputes between the parties.

Furthermore, the employer will be obliged to inform the employee about possible professional risks, guarantees, and conduct occupational safety briefings before work begins.

### Systematization of contract types

The draft systematizes all types of labor contracts, which are currently regulated by different laws. The main form remains the indefinite contract, however, lawmakers propose strengthening the regulation of fixed-term contracts to prevent their use for permanent work without legal grounds.

Special rules will be established for seasonal work, apprenticeship contracts, part-time work, and work with non-fixed hours. The latter format implies that the worker performs tasks as needed, but at the same time retains all social guarantees.

The parties will have more freedom in determining the terms of cooperation — from the payment system to the order of interaction. However, lawmakers set a clear limitation: no condition of the contract may worsen the position of the worker compared to the guarantees established by law.