What fines will employers face under the new law?
In our previous article, we have already discussed the main changes that the new law will bring to the field of occupational safety and health. Here is the final and, in our opinion, no less exciting part of this document.
In our previous article, we have already discussed the main changes that the new law will bring to the field of occupational safety and health. Here is the final and, in our opinion, no less exciting part of this document. The bitter conclusion of this suspenseful detective story called the Draft Law of Ukraine “On Safety and Health of Employees at Work” is penalties.
Without any preludes, the legislator offers all businesses that contribute to the state budget, all those who create jobs in these incredibly difficult times for the country, to do the following:
I. To untie the inspector’s hands.
Article 32 of the law allows state labor inspectors to suspend or restrict work, use of equipment, work areas, premises or hazardous substances if they endanger the life or health of employees. Inspectors also have the authority to impose fines.
II. Burying the body.
The provisions of Article 35 prove that fines can have significant financial consequences:
| Violation | Penalties* |
| the occurrence of an accident if there are guilty officials on the part of the enterprise | reimbursement of all expenses to the Pension Fund |
| unregistered equipment of increased safety, failure to conduct mandatory technical inspections | 1 minimum wage for each unit of such equipmentUAH 8000 / 1 piece of equipment |
| failure to inform employees about safety and health issues at work, failure to consult with employees and/or employee representatives | 1 minimum wage8000 UAH |
| failure to conduct mandatory certification of workplaces in terms of working conditions | 1 minimum wage for each workplace in respect of which the violation was committedUAH 8000 / 1 workplace |
| failure to conduct a mandatory audit | 5 minimum wages40,000 UAH |
| allowing an employee to perform hazardous work without obtaining a permit or without providing additional insurance for the employee, respectively | an amount equal to the one-time benefit paid to the family of the victim in the event of his death as a result of an accident, for each such employeeUAH 320,000 |
| failure to conduct mandatory medical examinations or failure to implement recommendations based on the results of medical examinations | 1 minimum wage for each employee for whom a medical examination was not conducted or its recommendations were not implemented8000 UAH/ 1 employee |
| failure to conduct mandatory training for employees | minimum wage for each employee who has not been trainedUAH 8000/ 1 employee |
| failure to provide first aid and/or evacuate employees who were in danger as a result of the accident | 3 minimum wages for each such employeeUAH 24,000 / 1 employee |
| failure to identify (appoint) an authorized representative for employee safety and health | 5 minimum wages40,000 UAH |
| failure to conduct an occupational risk assessment | 2 minimum wages for each workplace that was not createdUAH 16,000/1 workplace |
| failure to investigate an accident or occupational disease | 10 minimum wages for each employee who is not under investigation80,000 UAH/ 1 employee |
| failure to notify the central executive body that implements the state policy in the field of safety and health of employees of an accident that resulted in serious injury or death of the victim | 20 minimum wages for each employee in respect of whom such an incident occurredUAH 160,000/ 1 employee |
| Use in production of harmful substances that have not passed hygienic regulation and state registration | 10 minimum wages for each employee who was involved in the application, use of such substance80,000 UAH/ 1 employee |
| failure to comply with the legal requirements of the state labor inspector to eliminate the identified violation | 5 minimum wages for each violationUAH 40,000 / 1 violation |
| violation of other provisions of this Law | half of the minimum wage for each employee4 000 UAH / 1 employee |
* As of January 1, 2025, 1 minimum wage = UAH 8000.
In case of repeated detection of a similar violation within a year from the date of detection of the previous violation, the amount of the fine is doubled.
The final provisions of the previous version stipulated that from the date of entry into force of the new Law, the regulations adopted pursuant to the Law of Ukraine “On Labor Protection” shall not apply. In other words, it was planned that the burdensome and outdated 477 NPARs would lose their validity and new ones would be introduced. Accordingly, such implementation of the new Law would even make sense and would actually bring more benefits to the protection of employees than the current legislation.
However, this paragraph was removed and all existing NALWs remain in force at the moment, and this new Law, given the system of fines, will definitely be a “lid” for the “preservation” and “development” of businesses in the country, and 477 NALWs will be the nails.
Obviously, with the introduction of the new rules, fines will become a serious challenge for business. Entrepreneurs should already think about how to adapt their business processes to avoid unpleasant consequences and ensure compliance with legal requirements. We suggest not putting off until tomorrow what can be done today. Together with our team, you will be able to prepare for any health and safety challenges, reduce risks and keep your business safe.
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