Date of publication: 8 August 2024
Valeriia Gudiy, Attorney at Law, Partner
Source: Yurydychna Gazeta
Ukraine has firmly established its European foreign policy trajectory, as outlined in Article 11 of the Law of Ukraine “On the Fundamentals of Domestic and Foreign Policy”. To achieve EU membership, Ukraine must integrate into the EU’s political, economic, and legal frameworks.
In 2014, the Association Agreement between Ukraine and the European Union, alongside the European Atomic Energy Community and its member states, set the stage for enhanced cooperation in employment, promoting decent work conditions, social dialogue, social protection, gender equality, and non-discrimination.
Ukraine is committed to aligning its laws with EU standards in employment, social policy, and equal opportunities as detailed in Annex XL to the Agreement.
With the war, Ukraine’s European integration accelerated. On 23 June 2022, Ukraine was granted EU candidate status, and on 14 December 2023, accession negotiations began. Ukrainian lawmakers now face the urgent task of reforming national legislation to comply with EU standards, while legal professionals must familiarize themselves with EU law.
EU Law Fundamentals
EU law is multifaceted, promoting shared values such as human dignity, freedom, equality, and solidarity. EU member states operate under democratic principles and the rule of law to ensure the smooth functioning of the internal market, which necessitates coordinated labour regulation.
EU law forms a distinct legal order within international law, with member states ceding some sovereignty in designated areas. EU law is divided into primary and secondary sources of law.
The Treaty on the Functioning of the EU, the Treaty on the EU (Maastricht Treaty) are the principal (primary) sources of EU law, enshrining the key principles of the Union, defining the EU bodies, establishing their powers and clarifying the areas of the EU in respect of which secondary legislation is adopted.
Legislative Framework of EU Law
To achieve its goals, the EU’s institutions – Parliament, Council, and Commission – issue various legislative instruments, including regulations, directives, decisions, recommendations, and opinions.
Regulations are binding in their entirety and directly applicable to all member states. This distinction is one of the key differences between EU regulations and directives. EU regulations are binding in nature and apply directly to factual circumstances, creating legal consequences for broadly defined categories of individuals or entities. However, regulations sometimes target a narrower group of subjects.
Directives are binding regarding the outcomes they mandate for each member state they address; however, local authorities have the discretion to decide on the form and methods of implementation. This means that directives issued by the European Parliament and the Council do not directly constitute national legislation for EU member states, nor do they act as legislative measures for citizens or legal entities within those states. Instead, EU directives are adopted by countries that align and harmonize their national laws with EU standards and regulations.
EU decisions are fully binding and may be directed at specific member states, individuals, or legal entities, with their obligations limited to those addressed. In essence, they function similarly to individual administrative acts, often used in competition rulings.
On the other hand, EU recommendations and opinions are non-binding but still hold legal significance, as they can influence the interpretation and application of binding EU legislation.
Employment Policy Guidelines of the EU Member States
To maintain the internal market and uphold fundamental rights under the European Social Charter of 1961 and the Community Charter of Fundamental Rights of Workers of 1989, the EU aims to:
- promote employment,
- enhance living and working conditions,
- support social protection and professional development,
- foster dialogue between employers and employees.
To realize these goals, the EU issues directives setting minimum standards, to be progressively implemented by member states in areas like:
- working environment (health and safety),
- working conditions,
- social protection,
- post-employment worker protection,
- collective defence of workers’ interests,
- gender equality in the labour market.
The existing acts are general and coordinating. However, the acts (directives) establishing labor conditions on the domestic market should be transposed into Ukrainian legislation to obtain full EU membership and fulfil the obligations under the Association Agreement.
Adaptation of Ukrainian Labor Legislation
Despite the Association Agreement taking full effect on 01 September 2017, Ukrainian legislative progress in aligning with EU standards has been limited.
According to the European Commission’s November 2023 assessment, Ukraine remains in the early stages of preparation, with modest progress.
The 2023 EU Commission report highlights the need to revise Ukraine’s Labor Code to meet EU standards, addressing high levels of undeclared work, limited State Labour Inspectorate powers, and insufficient influence of the Ombudsman of Ukraine. Harmonizing Ukraine’s employment policy with EU principles and enhancing social partners’ productivity are also critical areas for improvement.
Building a unified internal market with the EU requires more robust employment regulation coordination. Key challenges include a shortage of qualified legislative adaptation experts, financial constraints, the time needed to translate EU laws into Ukrainian, and the ongoing impact of Russian aggression.
These challenges can be addressed by involving a broad range of experts in legislative adaptation, increasing employer and trade union engagement in government bill discussions. Upholding the rule of law, democracy, dignity, freedom, equality, and solidarity are values that align Ukrainians with their European counterparts, equipping Ukrainian professionals to adeptly navigate and interpret EU legislation.
