Procedures for carrying out on-site inspections and inspection visits by the State Labor Organization were found to be illegal and ineffective

by Feb 4, 2020

On May 14, 2019, the resolution of the Cabinet of Ministers of Ukraine No. 295 was declared invalid. Consequently, from this date, the procedures for conducting inspection visits of employers and on-site inspections of the State Labor Inspectorate on the supervision of the work of local council inspectors were canceled.

On May 14, the Sixth Administrative Court of Appeal ruled in a court case № 826/8917/17, which satisfied the suit of entrepreneurs, in particular, with the Chairman of the Public Council under the State Regulatory Service of Ukraine Serhiy Dorotych, and the ruling of the Cabinet of Ministers of Ukraine dated April 26, 2017 No. 295 ” On some issues concerning the implementation of Article 259 of the Labor Code of Ukraine and Article 34 of the Law of Ukraine “On Local Self-Government in Ukraine”.

Decree No. 295 was approved by:

1) The procedure for exercising state control over the observance of labor legislation;
2) The procedure for the implementation of state supervision over the observance of labor legislation.

Guided by the decision No. 295, the state labor inspectors carried out inspection visits of business entities foreseen by the Procedure in order to identify employees with whom the employment relationship was not executed.

In accordance with Article 325 of the Code of Administrative Justice of Ukraine, the decision of the Sixth Administrative Court of Appeal of May 14, 2019 in the case number 826/8917/17 came into force on May 14, 2019.

Consequently, the inspectors no longer have the right to conduct inspection visits, which were appointed in accordance with the resolution No. 295. The State Labor Organization may conduct scheduled inspections in accordance with the requirements of inclusion of an entity in the plan of inspections or unscheduled, exclusively and in accordance with the procedure provided by the Law of Ukraine of 05.04.2007 No. 877-V “On the Basic Principles of State Supervision (Control) in the Field of Economic Activity”.

Previously, experts from the State Regulatory Service of Ukraine analyzed the draft resolution of the Cabinet of Ministers and identified shortcomings that did not allow him to agree in the proposed State Labor Administration’s editorial staff.

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