How do you terminate an employee in Ukraine in 2026?
Ukraine's Labour Code owes dismissed employees at least one month's average pay as severance from their very first day of service, with no qualifying period. Employers must also give 8 weeks advance notice for redundancy, notify the State Employment Centre 60 days before the first dismissal in any collective event, and settle all outstanding pay on the day of departure.
· Ukraine guide
Illustration · Kyiv, Ukraine
Ukraine only allows you to dismiss an employee for reasons listed in the law. The Labour Code of Ukraine Art. 40 sets out the closed list: redundancy, persistent failure to perform duties, single gross misconduct, illness beyond four months, and reinstatement of a previous employee. Dismissal for any other reason is illegal, regardless of how long the employee has worked.
For redundancy, give 8 weeks personal written notice. Severance is owed from day one of employment. Every dismissed employee receives at least 1 month month's average pay, no matter how recently they joined.
Pay all final wages, unused leave, and severance on the employee's last day of work. There is no grace period. Where a trade union exists, you must get union consent before completing most employer-initiated dismissals. Missing this step delays the termination and is a common trap.
What are the valid grounds for dismissal in Ukraine?
Ukraine does not allow at-will employment. The Labour Code of Ukraine Art. 40 lists the only allowed reasons to dismiss an employee: genuine staff reduction or reorganisation, sustained failure to meet job requirements, a single act of gross misconduct, continuous illness beyond four months, or a court order reinstating a previous employee in the same role.
Dismissal for any other reason is illegal. Ukrainian courts regularly reinstate dismissed employees and award full back-pay. There is no cap on back-pay liability.
Closed grounds under Art. 40 (employer-initiated)
- Staff reduction or liquidation: genuine reorganisation with 8 weeks advance personal notice
- Incapacity: sustained inability to perform duties, confirmed by documented assessment or medical certification
- Gross misconduct: a single serious violation, including absence without cause for more than three hours in a shift, theft, deliberate damage to property, or appearing at work under the influence
- Extended sick leave: continuous incapacity exceeding four months (excluding occupational illness or injury)
- Reinstatement: where a court reinstates a previously dismissed employee who held the same position
Protected categories
The Labour Code imposes an absolute bar on dismissal of pregnant employees, employees on maternity or parental leave, and employees with children under three (extended where a child has a disability). Employees who are the sole earner in a household with a child under fourteen cannot be made redundant in a staff-reduction round without extraordinary justification. These protections are categorical and cannot be contracted out. Trade union officials and elected employee representatives also carry reinforced protection during and for a period after their term.
Trade union consent (Art. 43)
Before proceeding with most employer-initiated dismissals, employers must obtain written consent from the recognised trade union committee where one exists. Sources confirm this consent step is mandatory, though the precise statutory decision window is drawn from practitioner guidance rather than a text the research run directly confirmed; employers should treat it as potentially binding and allow adequate time in their process planning.
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Confirm a lawful ground
Anchor the dismissal to one of the Art. 40 closed grounds: staff reduction, incapacity, gross misconduct, extended illness, or reinstatement of a prior holder. Proceeding outside these grounds makes the dismissal unlawful regardless of contractual terms.
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Seek trade union consent
Where a recognised trade union exists, submit the dismissal request for union committee consent before signing the dismissal order. Allow adequate time in your planning; the consent step is a hard procedural prerequisite for most employer-initiated dismissals under Art. 43.
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Issue written personal notice
Deliver written advance notice to the employee personally. For staff reduction and reorganisation, the full statutory notice period under Art. 49-2 must run before the last day of employment.
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Notify the State Employment Centre
For events meeting the collective redundancy threshold, file the advance notification to the State Employment Centre the required number of days before the first dismissal, with occupational and headcount details.
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Sign the dismissal order and record book
Issue the formal dismissal order (nakaz), referencing the statutory ground, and make the corresponding entry in the employee's work record book (trudova knyzhka), which the employee must receive on the last day.
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Settle all pay on departure day
Pay severance under Art. 44, accrued unused leave, and all outstanding wages on the employee's final working day under Art. 116. Late payment triggers daily penalties under Art. 117 with no grace period.
How much notice must you give a Ukrainian employee?
For redundancy or reorganisation, give the affected employee 8 weeks personal written notice. Deliver notice directly to the individual. Posting it or communicating it informally does not count.
During probation, either side can end the contract with 3 days written notice. An employee resigning voluntarily must give 14 days notice, though both sides can agree a shorter period in writing.
| Situation | Notice required |
|---|---|
| Employer: redundancy or reorganisation (Art. 49-2) | 8 weeks |
| Either party: during probation (Art. 28) | 3 days |
| Employee: voluntary resignation (Art. 38) | 14 days |
Ukrainian notice law does not use a tenure-based scaling formula. The 8 weeks period applies uniformly for staff-reduction dismissals regardless of how long the employee has served. For gross misconduct dismissals the dismissal can proceed more quickly once the cause is established and documented, but the procedural steps (written explanation sought, act drawn up, order signed) still take time in practice.
Probation rules
Probation may be set at up to 3 months for most employees under Art. 26, or up to 6 months with trade union consent for specialist and managerial roles. During probation the bar for dismissal is lower, and only 3 days notice is required. Certain categories, including employees under eighteen, pregnant employees, and those with children under three, cannot be placed on probation at all.
How is severance pay calculated in Ukraine?
Severance applies from day one. There is no qualifying period. An employee dismissed for staff reduction is owed at least 1 month month's average pay, no matter how recently they joined (Art. 44 of the Labour Code).
The rate is 1 month of average pay per year of service. The minimum floor means even an employee who has worked one month receives the equivalent of one month's average pay.
Average pay for severance calculation purposes is determined using the employee's earnings over the twelve calendar months immediately before dismissal (or the full period of employment if shorter). The calculation uses the average daily or average hourly rate multiplied by the working days or hours in the reference month, per the procedure prescribed by Cabinet of Ministers Resolution No. 100.
What severance covers
The Art. 44 payment is separate from, and paid in addition to, any accrued but unused annual leave (which must be paid out in full on the last day), salary for days worked in the final period, and any contractual bonus or commission that has accrued.
Final pay settlement
Art. 116 requires all final payments, including severance, accrued leave, and outstanding salary, to be settled on the employee's last working day. There is no grace period. Where the employer fails to pay on departure day, Art. 117 imposes a continuing liability equal to the employee's average daily pay for every calendar day of delay, which can accumulate significantly.
Severance under Art. 44 is owed to every employee dismissed for staff reduction, calculated at 1 month of average pay per year of service, minimum 1 month month regardless of tenure. All final payments fall due on the last day of employment under Art. 116; late payment triggers daily average-pay penalties under Art. 117.
Source: Labour Code of Ukraine (consolidated, English), Verkhovna Rada
Collective redundancy: notification rules and State Employment Centre
When 10 or more employees are dismissed within 30 days at one employer, the collective redundancy rules apply. You must notify the State Employment Centre before the first dismissal goes through.
Notify the State Employment Centre at least 60 days before the first dismissal. Ukraine uses the same period regardless of how many people are being made redundant.
Unlike some European systems, Ukrainian collective redundancy law does not distinguish a shorter and longer consultation band based on headcount. The same 60 days advance notice applies whether the event covers the minimum threshold or a much larger group. The notification must be submitted to the State Employment Centre and must specify the number of affected workers, their occupations, qualifications, and expected last working dates.
What the notification requires
- Written notice to the State Employment Centre at least 60 days before first dismissals
- Notice to each affected employee personally at least 8 weeks before their last day
- Trade union consultation where a union is recognised, with consent sought before orders are signed
- Preferential retention assessment: employees with higher qualifications or productivity, those supporting dependants, and certain protected categories receive statutory preference to be retained over others in the same role category
Failure to notify the State Employment Centre on time does not automatically invalidate individual dismissals, but it exposes the employer to administrative penalties and can complicate any subsequent court challenge to the redundancy process.
Mutual termination: the clean exit route
Both sides can end the employment at any time by mutual agreement. You set the date and terms in writing. This avoids the closed-grounds requirement, the trade union consent step, and the mandatory notice periods.
Because the employee agrees to leave, the Art. 44 severance does not apply automatically. A negotiated payment is common, and it can be structured within Ukrainian tax rules.
Mutual termination is the most commercially practical route for agreed exits. The employer and employee sign a separation agreement (ugoda pro rozirvannya trudovoho dogovoru) recording the agreed termination date, any payment, and confirmation that neither party has outstanding claims. Critically, once signed, an employee cannot unilaterally withdraw from a mutual agreement; in contrast, a resignation under Art. 38 can be withdrawn before the notice period expires if the employer has not yet filled the role.
What to include in the agreement
- Effective termination date (can be the same day)
- Severance or ex gratia payment, amount and payment date
- Confirmation of accrued leave paid out in full
- Handover arrangements and return of company property
- Non-disparagement clause where appropriate
- Express waiver of further claims, where permissible under Ukrainian law
For employers exiting Ukraine entirely or restructuring a team, mutual termination agreements negotiated in advance are faster and lower-risk than running each dismissal through the full Art. 40 grounds process. The trade-off is cost: negotiated exits typically carry a payment above the statutory Art. 44 minimum.
How Teamed runs Ukraine terminations
Teamed becomes your legal employer of record in Ukraine for from $599 per employee per month, with zero FX mark-up in any currency. Every Ukrainian contract runs through Teamed's vetted partner entity as the employer of record.
We handle the grounds assessment, notice paperwork, State Employment Centre notification, trade union coordination, Art. 44 severance calculation, final-pay reconciliation, and same-day settlement on one platform. You decide which employees to dismiss, on what commercial terms, and for what business reason.
Real HR and legal experts handle your Ukrainian hires from the first offer letter through every payroll run and annual reporting obligation. An actual person takes your query, not a pooled ticketing queue. There is no setup fee and no exit fee, and employer cost passes through at cost, itemised on every invoice.
The split of responsibilities under EOR for Ukraine terminations:
| What Teamed handles | What the client decides |
|---|---|
| Grounds review against the Art. 40 closed list | Whether to dismiss and on what business grounds |
| 8 weeks personal written notice drafting and delivery | Communication with the wider team |
| State Employment Centre notification for collective events | Which roles are genuinely redundant |
| Trade union consent coordination where applicable | Whether to offer enhanced terms above statutory |
| Art. 44 severance calculation and same-day payment under Art. 116 | Commercial terms for mutual termination agreements |
| Accrued leave payout and final payroll reconciliation | Post-exit reference policy |
EOR payroll, contractor onboarding, and entity setup all live on one platform. A Ukrainian contractor who converts to payroll keeps their record intact, and that same employee can graduate from EOR to your own Ukrainian entity without switching systems. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Ukraine hire, until it isn't. Start from the Ukraine hiring overview; each guide here takes one layer of Ukrainian employment law.
Key source: Labour Code of Ukraine (consolidated, English), Verkhovna Rada.
Frequently asked questions
Does Ukraine require a minimum service period before severance is owed?
No. Under Art. 44 of the Labour Code, statutory severance applies from the employee's first day of service. An employee dismissed for staff reduction is entitled to at least 1 month month's average pay regardless of how short their tenure was.
How much advance notice is required for redundancy in Ukraine?
Employers must give each affected employee 8 weeks personal written notice before redundancy takes effect under Art. 49-2. This flat notice period applies regardless of tenure. During probation, either party may terminate with just 3 days written notice under Art. 28.
When must final pay be settled after a Ukrainian dismissal?
Art. 116 requires all outstanding wages, unused leave compensation, and severance to be paid on the employee's last working day. There is no grace period. Delay triggers a continuing daily penalty equal to the employee's average daily pay under Art. 117.
When do collective redundancy notification rules apply in Ukraine?
When 10 or more employees are dismissed within 30 days at one employer, the employer must notify the State Employment Centre at least 60 days before the first dismissal under Art. 49-2. Ukraine applies a single uniform notification period rather than tiered bands by headcount.
Can an employer dismiss a Ukrainian employee at will?
No. Ukraine operates a closed-grounds system under Art. 40: employers may only dismiss for staff reduction, incapacity, gross misconduct, extended sick leave, or reinstatement of a prior holder. Dismissal outside these grounds is treated as unlawful and typically results in reinstatement plus full back-pay from the date of dismissal, with no statutory compensation cap.
The combination of same-day final-pay settlement, no qualifying period for severance, and a closed list of dismissal grounds means a poorly planned Ukrainian termination punishes the employer three ways at once. Most mistakes happen because someone assumes notice and a payment later will be enough. In Ukraine, it won't be.
Ukraine owes every dismissed employee at least a month's average pay from day one, no qualifying period, no exceptions for short service.
Add a same-day final-pay rule and a closed list of lawful grounds, and you have one of the tighter dismissal regimes in the region.
Get the sequence wrong and the liability runs daily.
