News (#4 April 2020)

Draft

Draft of new Labor Code to be finalized to comply with EU legislation

The Verkhovna Rada Committee on European Integration recommended the finalizing of Labor Code Drafts Nos. 2410, 2410-1 and two Draft Laws On Labor Nos. 2708-1, No. 2708-2, so that they fully take into account the provisions of EU legislation.

The Committee recognized them as not contradicting the obligations of Ukraine under the Association Agreement signed with the EU and EU legislation. Comments are given to articles on restricting the rights of employees depending on requirements inherent to a particular type of work and related to age, level of education, state of health, gender, and the like.

 

Draft law on new land lease terms

The Draft Law On Progressive Land Relations has been registered with the Ukrainian Parliament.

The document proposes to amend the Civil Code of Ukraine, the Land Code of Ukraine, and the Law of Ukraine On Land Lease.

According to the explanatory note, the changes will facilitate landowners to maintain their lease relations and provide an opportunity to set rent payment for land use on a competitive basis.

In particular, it determines new terms, whose introduction is necessary for legislative regulation of effective land relations and support for independent land management by its owners.

Moreover, the terms of land lease agreements are set, and lease holders no longer have the ability to manipulate the extension of the land lease for their own benefit, and litigations related to lease terms are virtually eliminated.

It includes a proposal to charge rent in non-cash form only.

The Draft Law proposes to provide landowners with the right of early termination of land use agreements.

 

Improvements to some regulatory mechanisms connected to banking activities

On 30 March Draft Law No. 2571-d on improvement of some regulatory mechanisms related to banking activities, submitted by Danylo Getmantsev, head of the Parliament Committee on Finance, Taxation and Customs Policy, has passed its first reading. The adoption of this law is one of the requirements made by the International Monetary Fund for the allocation of funds to the State of Ukraine.

At the current stage, this Draft Law is most important for the state-owned bank PrivatBank in terms of the confrontation waged by its former owner, Igor Kolomoisky.

The Draft establishes that invalidation of the decision on the bank’s withdraw from the market cannot be the basis for its cancellation.

The explanatory note to the Draft  states that the document contains three blocks of amendments to be introduced to legislative instruments.

1. Improvement of regulatory mechanisms related to banking activities through the provision of necessary control tools by the National Bank of Ukraine.

The document says this “will increase the ability of the regulator to properly respond in cases of violation of law during the process of acquisition or increase in the qualifying holding in a bank” and “will ensure that unscrupulous or financially insolvent persons are not allowed to manage banks”.

2. Determination of the characteristics of court proceedings related to appeals against decisions of the National Bank of Ukraine on classifying a bank as insolvent, on revoking a banking license and liquidating a bank, decisions of the state-run Deposit Guarantee Fund on introducing provisional administration in a bank, on starting a bank liquidation procedure, on approving a scheme of arrangement and more

3. Improvements to the regulation of the bank liquidation procedure, indemnification (recovery of losses) mechanism from bank affiliated parties and other persons that caused losses to a bank and its creditors, expansion and improvement of mechanisms for state participation in a bank’s withdrawal from the market.

 

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