Ukraine mulls penalties against employers for delaying wage payments

The Directorate of Decent Work Regulations and Standards at the Ukrainian Social Policy Ministry has developed a bill providing for employers to pay a penalty in the amount of the key rate of the National Bank of Ukraine for each day of delay in payment of wages if the delay exceeds 15 days.

That's according to the draft law "On amendments to certain legislative acts of Ukraine regarding the strengthening of the protection of workers' rights to a timely and full payment of wages in the event of their employer's insolvency," the ministry's press service said on October 29.

The draft law also allows employees to suspend their work if payment delays exceed 15 days.

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In addition, an employee is offered compensation in the amount of three average monthly wages (for the last 12 months) in case a bankruptcy case is launched against an employer or their employment contract is terminated if an employee is dismissed before the case is opened.

"Now the draft law is forwarded for approval by interested executive authorities and parties to the social dialogue. Its adoption will help ensure constitutional guarantees of the workers' right to receive remuneration. It will also comply with parts of the Convention of the International Labor Organization No. 173 "concerning the protection of workers' claims in the event of the insolvency of their employer,'" it said.

As UNIAN reported earlier, in July 2014, the Verkhovna Rada, Ukraine's parliament, voted down in the second reading the draft law "On amendments to certain legislative acts of Ukraine regarding the establishment of penalties in the event of non-payment or delay of payment of wages, scholarships, pensions or other statutory payments."