Dismissing an employee at the employer’s initiative is a complex process that requires compliance with specific labour legislation and internal company policies. This article outlines the key stages and requirements related to termination initiated by the employer.
- Grounds for dismissalAccording to the Labour Code of Ukraine, an employee may be dismissed for various reasons, including:
- Absenteeism without valid reasons;
- Systematic failure to perform duties assigned by the employment contract or internal labour regulations without valid reasons, especially if previous disciplinary action was taken;
- Decreased work performance;
- Failing a professional assessment;
- Providing false information during the hiring process;
- Incompetence or health issues that make the employee unfit for the position or job responsibilities;
- Organizational changes, such as liquidation, reorganization, bankruptcy, or downsizing;
- Appearing at work under the influence of alcohol or drugs.
- Article 40 – violation of labour discipline;
- Article 41 – additional grounds such as repeated failure to fulfil job duties, unexcused absences, etc.
- Preparing for dismissal
- Inspection reports;
- Timesheets or work attendance logs;
- Documentation of disciplinary violations.
- Conducting meetings
- Formalizing the dismissal
- Dismissal order (stating employee details, reason for dismissal, date, and manager’s signature);
- Payroll statement (detailing all amounts owed to the employee).
- Payment of compensation
- Final salary (including all wages accrued up to the dismissal date);
- Compensation for unused vacation (monetary compensation is provided if any vacation days remain);
- Additional payments (if stipulated in the employment contract or internal company documents).
- During temporary disability;
- While on vacation (excluding maternity leave or childcare leave until the child turns three).
Key articles that justify dismissal include:
Dismissal at the employer’s initiative must be based on legally valid grounds under Articles 40 and 41 of the Labour Code of Ukraine.
Proper documentation of the circumstances is essential to legally justify the termination. This includes:
In certain cases (e.g. staff downsizing), the employer must hold consultations with the trade union or employee representatives to discuss the dismissal and possible alternatives.
In cases of redundancy, the employee must be notified no later than two months prior to the dismissal date.
The dismissal must be documented with the following:
The HR officer is required to inform the employee of the dismissal order on the day of dismissal. The employee’s signature and the date confirm receipt.
On the same day, the employee must be given a copy of the dismissal order and a written breakdown of all calculated and paid amounts, with each type of payment itemized separately.
Upon dismissal initiated by the employer, the employee is entitled to:
Before martial law was introduced in Ukraine, the Labour Code prohibited dismissal at the employer’s initiative during an employee’s temporary disability or vacation. Under martial law, this guarantee has been temporarily lifted.
According to Article 5 of the Law of Ukraine dated 15.03.2022 “On the Organization of Labour Relations During Martial Law”, the employer may dismiss an employee:
Dismissal at the employer’s initiative requires strict adherence to labour laws. Following each step properly and maintaining all necessary documentation helps prevent legal disputes and conflicts in the future.
For individual legal advice on the dismissal process at the employer’s initiative, contact the lawyers in Kyiv of “First Legal” Ukraine Law Firm. We also provide HR outsourcing services in Kyiv. You can reach us via the contact form on our website or by calling: +38 (044) 35-35-164, +38 (067) 306-89-89, +38 (063) 45-85-448, +38 (099) 367-89-89.