How Work is Organized During Wartime

Valeriia Gudiy, Attorney at Law, Partner

Dr. Tomas Bagdanskis, Managing Partner at Widen (Lithuania), Attorney at Law, Head of Employment Practice

The large-scale military aggression of the Russian Federation against Ukraine has profoundly affected all aspects of life in the country, and labor relations are no exception.

During the first months of the war, the operations of many companies were severely disrupted. A large portion of the working-age population was called up for military service, while others relocated to safer regions. This situation required appropriate legal measures to stabilize labor relations under wartime conditions.

Employees’ and employers’ interests change under wartime conditions. How can a balance be found between legal regulation and practical application?

Inability to come to work, inability to provide work, fulfillment of civic duties, remote work, the right to safe and healthy working conditions, the right to leave, etc. Ultimately, employees’ psychological state and the performance of work duties under such conditions appear differently in emergencies.

Legal adjustments were necessary

In wartime, there is a need for special rules.

Article 3, Clause 21 of the Labor Code of the Republic of Lithuania states that “mobilization, martial law, crisis management, and civil protection may be regulated in laws that establish different norms for labor relations than those provided by this Code.”

Analyzing the Ukrainian case, after martial law was declared, two important laws were adopted: “On the Organization of Labor Relations During Martial Law” and “On Amendments to Certain Ukrainian Legal Acts to Optimize Labor Relations.” The amendments stipulate that labor law norms in the part of relations regulated by the special laws do not apply, and certain constitutional rights of citizens may be restricted during martial law.

Over the past years, the legislator has refined these laws, and today several features can be highlighted as important for stabilizing labor relations during wartime, in particular:

• the possibility to suspend an employment contract;
• alternative methods for preparing, sending, and storing employer orders, notifications, and other work-related documents;
• the employer’s right to organize personnel documentation at their discretion in territories where hostilities occur or may occur;
• measures ensuring uninterrupted communication between parties;
• special rules for changing working conditions and transferring employees to other jobs;
• exemption from liability for delayed wage payments if such delay is related to hostilities or other force majeure circumstances;
• a prohibition on dismissing an employee for absenteeism if their workplace is in an area where active hostilities are taking place.

The armed aggression against Ukraine has meant that many employees are unable to perform their work functions. At the beginning of the war, the only legal way to avoid disputes between employers and employees was granting leave, but this solution could not be long-term. The adoption of the Martial Law Labor Act introduced an effective innovation – the possibility to suspend an employment contract.

Suspension does not mean termination of employment: the employee temporarily does not perform their work functions, and the employer is not required to pay wages, provide guarantees or compensations (except amounts accrued up to the day of suspension), or ensure working conditions stipulated by labor laws, collective agreements, or employment contracts. This mechanism helped avoid mass layoffs and allowed businesses to preserve human resources. The legislator also required both parties to notify each other of any changes in contact details within ten days to ensure uninterrupted communication, even in cases of evacuation or relocation. This is implemented as follows:

• employer – by updating information in the Unified State Register of Legal Entities, Individual Entrepreneurs, and Public Organizations;
• employer, who is an individual (not an entrepreneur) – by sending information to the employee’s declared address, email, and/or phone number;
• employee – by sending information to the employer’s registered address or email indicated in the register. If the employee cannot send information by mail or electronically, the employer may be notified via a short message to the official phone number.

Flexibility is also reflected in the rules for changing working conditions. Employers are granted the right to temporarily transfer an employee to another job without their consent if circumstances require it, except for transfers to territories with active hostilities. When changing working conditions or wages, employees must be informed no later than the moment these changes take effect. This has become an important tool to maintain business continuity under exceptional circumstances. According to the general Labor Code rule, before the war, employees had to be informed of such changes two months in advance.

It is also worth noting that the law releases employers from liability for delayed wage payments if payments cannot be made due to hostilities or other force majeure circumstances. At the same time, employees cannot be dismissed for absenteeism if their workplace is in a combat zone – it is clear that in this case, not showing up for work is considered justified.

How to exchange information?

Equally important was the legalization of alternative communication methods between employees and employers and the exchange of work-related documents. Previously, all applications, orders, and notifications had to be submitted in writing and signed personally. This requirement formally remains, but now, if both parties agree, document exchange via messages, email, posting on the employer’s official website, or sending via alternative contacts is allowed.

Under wartime conditions, it is difficult to deny the importance of non-standard, remote forms of work or working from home. These are based on the principle of flexible working hours, allowing a different schedule than provided in internal work regulations, but in accordance with the Ukrainian law “On the Organization of Labor Relations under Martial Law” – setting daily, weekly, or other accounting period working hours. The principle of self-regulation of working hours allows employees to independently determine start and end times and the length of the working day – this is especially important under wartime conditions and affects individual safety and protection levels.

If there is a threat to an employee’s life or health, and the employer cannot ensure the employee’s safety, and the assigned work cannot be performed remotely, there are grounds to suspend the employment contract, even if the employee wishes to continue working at their own risk (court decision of 18 August 2022, case No. 279/1611/22).

To quickly attract new employees and address personnel and labor shortages, especially when employees were evacuated to other locations, are on leave, temporarily inactive, temporarily unemployed, or their location is temporarily unknown, the employer may conclude fixed-term employment contracts with new employees for the duration of martial law or until the temporarily inactive employee is replaced (according to the Ukrainian law “On the Organization of Labor Relations under Martial Law,” 2022).

The same law’s Article 3 regulates the transfer of work functions and the peculiarities of changing essential working conditions during wartime. In particular, during martial law, the employer has the right to transfer an employee to another job not specified in the employment contract without their consent (except transfer to territories where active hostilities occur), if such work does not contradict the employee’s health, and only to prevent or mitigate the consequences of hostilities, as well as other circumstances that pose or may pose a threat to human life or normal living conditions.

An employment contract may be suspended due to military aggression against Ukraine when it is impossible to provide or perform work. Suspension of an employment contract does not mean termination of employment. If possible, the employer and employee must inform each other of the suspension by any available means. Wage, guarantees, and compensation payments to employees during the suspension period are fully the responsibility of the state (law “On the Organization of Labor Relations under Martial Law,” 2022).

What Ukrainian experience can be adopted?

In Lithuania, citizens performing military service obligations according to labor contracts or civil service are released from work while being guaranteed their workplace and duties. Considering these guarantees, mandatory military service cannot be a reason to terminate employment – the employment relationship with these individuals formally continues during military service. According to the Lithuanian Labor Code, military service time is not counted as working time, and the employer does not pay wages for this period. The state pays the conscript.

The question arises: how effectively would Lithuanian legislation achieve the objectives of legal regulation in the event of a military conflict? Ukrainian experience shows that pre-war regulations were not adequate.

The analysis of the current Ukrainian legal framework regulating labor relations allows us to conclude that its optimization during the war in Ukraine significantly improved the interaction between employees and employers, reduced the likelihood of labor disputes, and ensured adequate flexibility in labor relations. At the same time, the legislative approach, adopting new laws, amendments, and supplements to existing legislation, should regulate labor relations considering not only public interests but also the interests of individual citizens.

These wartime measures helped avoid forced mass layoffs and preserve the workforce despite challenges such as emigration abroad, internal relocation to safer regions, or mobilization. To balance the labor market, Ukraine also implements programs to promote employment and business activity—retraining employees, creating jobs, and promoting employment of war veterans, internally displaced persons, and persons with disabilities. The growing role of women in the labor market is also notable, as they increasingly take on greater responsibilities.

There is no universal approach to regulating labor relations during armed conflicts. Such conflicts are always unique – they differ in scale, intensity, duration, technical capacities of parties, weapons used, and so on.

Considering the diversity of armed conflicts worldwide, it is impossible to create universal labor standards applicable, for example, at the international level. This highlights the priority of national law in adapting labor regulations under wartime conditions.

From this perspective, based on Ukrainian experience, it is reasonable to consider the following aspects:

1. An armed conflict is inherently dynamic, so there may be different stages of development, which may also affect the labor market, and labor laws may need systematic revision to reflect new realities;
2. Since the country’s territory may be unevenly affected by the consequences of armed conflict, it may be advisable in some cases to provide different legal regulations of labor relations for different regions;
3. An armed conflict should never be considered a “justified reason” for unreasonable and long-term restrictions of employee rights, as this is a period when they are more vulnerable and therefore require additional legal protection.

Based on personal experience, at the beginning of the war, both employers and employees focused primarily on survival. Today, businesses have adapted, and questions increasingly arise regarding development –exploring new areas of activity, hiring new employees, and adapting to flexible work. This demonstrates the will to move forward despite all difficulties.

Ukrainian experience has shown that even under the most difficult conditions, it is possible to find a balance between employee rights protection and business needs. This experience may be valuable for colleagues in the Baltic States, as issues of flexibility, resilience, and legal adaptation are universal for all labor law professionals.

From the Lithuanian perspective, it is clear that we are not prepared – if a war breaks out, new rules would need to be adopted urgently.