L&M Finance Group

Changes in legislation for May 2024

On May 21, the Verkhovna Rada of Ukraine adopted a draft law on mandatory civil liability insurance for land transport owners.

In general, this Law is aimed at ensuring a fairer and more efficient system of mandatory civil liability insurance (CLI) for car owners. In addition, it is aimed at bringing the CLI system closer to European standards.

The main provisions of the Law include the following:

- increase of insurance sums to the level that meets European standards, in particular, the maximum amount of payment for damage to life and health should be increased to UAH 32 million, and for property damage to UAH 16 million;

- introduction of direct settlement of all road accident cases where only the vehicle is damaged, while allowing the insured to apply for insurance payment directly to his insurer;

- making guarantee payments to injured persons for bankrupt insurers before the Law comes into force (it is proposed to reduce the period to 60 days, which will significantly shorten the procedure for payments caused by bankrupt insurers);

- functional expansion of the application of the "Europrotocol" - it is possible to file an application for insurance compensation in the event of a road accident without the involvement of the police;

- an increase in the amount for the damage caused to the victim to 1 million hryvnias for one such victim, and 20 million hryvnias for an insured event regardless of the number of such victims, as well as damage to the victim's property increased to 2 million hryvnias for one such insured event regardless of the number of victims.

In addition, the Law brings the norms of Ukrainian legislation into line with the current provisions of Directive 2009/103/EC, in particular, the stipulated increase of the amount for damage caused to the life and health of the injured persons, as well as for damage caused to the property of the injured persons.

On May 22, the Verkhovna Rada adopted the Law on the Protection of the Interests of Owners of Land Shares and the Application of Administrative Procedures in the Field of Land Relations.

The law provides

· extension of the term of registration of unused land plots (until 2028),

· continuation of the distribution of land between owners of shares and their heirs (until 2028),

· restoration of advanced training of land surveying engineers (prior to the adoption of the law, this norm was suspended for the period of martial law),

· continuation of the implementation of the pilot project on entering information into the State Land Cadastre by qualified land surveyor engineers (until 2026),

· use of funds to compensate losses of forestry production for the development of working projects of land management and land protection.

The law also provides for specifics of the procedure for applying the administrative procedure in land relations, in particular regarding the prohibition of executive and local self-government bodies to withdraw their decisions on the transfer of land plots into ownership and use. By this act, all decisions of such bodies will be declared invalid and illegal, and the right to revoke the decision on the transfer of land plots is possible only on the basis of a court decision.

On May 9, the President of Ukraine signed two draft laws on the approval of the Decrees of the President of Ukraine "On extending the term of martial law in Ukraine" and "On extending the term of general mobilization". These decrees determined that the period of martial law and the period of general mobilization were extended from May 14, 2024 for a period of 90 days.

On May 9, the Verkhovna Rada supported with passed in first reading the creation of the Unified Register of Qualifications (Profession Classifier).

According to the draft law, changes were proposed to the Labor Code, the Economic Code, the Law "On Employment of the Population" and the Law "On Education" with the aim of:

- creation of the Unified Register of Qualifications (Profession Classifier) by combining the National Classifier of Professions, the Directory of Qualification Characteristics of Employees' Professions and the Register of Qualifications by digitizing and synchronizing them with other sources;

- giving authority to maintain the Unified Register of Qualifications (Profession Classifier) to the permanent collegial body - the National Agency of Qualifications, and establishing a transition period for it in the process of maintaining the Directory of Qualification Characteristics of Employees' Professions;

- implementation of digitization of the data exchange process with the aim of quick, transparent and up-to-date access to information about professional qualifications and positions on the labor market.

The submitted changes are aimed at introducing an actual demand for workers with appropriate qualifications from employers and the state, which will contribute to reducing unemployment and effective use of funds for state orders.

The authors of the draft law believe that the implementation of its provisions will contribute to the development and improvement of the qualifications system, the development of professional standards, the organization of information on qualifications, the elimination of outdated and bureaucratic procedures in the labor market and will improve the availability of objective information about the labor market, contributing to its development.

From May 15, the Law on Legal Succession in Labor Relations enters into force .

This law is aimed at bringing national labor legislation into compliance with the provisions of Council Directive No. 2001/23/EC dated 12.03.2001 on the approximation of the laws of the member states, relating to the protection of the rights of employees in the event of the transfer of enterprises, business structures or parts of enterprises or business structures , regarding the establishment of the employer's obligation to notify employees of a change in the owner of the enterprise.

According to this law, the national labor legislation has been brought into line with the provisions of the EU Council Directive on the protection of the rights of employees in the event of the transfer of enterprises. From now on, the employer is obliged to notify the employees about the change of the owner of the enterprise. It is understood that within 10 days (but not later) the employer must notify his employees (representatives of employees), the trade union about changes in the company's management.

Also, the status and functions of the electoral body of the trade union organization will be preserved. The electoral body of the trade union organization or the representatives of the employees must be informed of the date of the transfer of the business, the reasons for this, as well as the consequences for the employees. They also have the right to initiate consultations with the owner regarding these changes.

Within 5 days from the day of receiving such a notice from the employer, the trade union or employee representatives will be able to initiate consultations with the expropriator-employer of the enterprise. Based on the results of such a consultation, the parties must agree on the resolution of all procedures for the transfer of the enterprise while preserving all previous conditions for employees.

The law also provides for the preservation of rights and obligations under employment contracts when the business is transferred to another owner.

The law provides for the definition and procedure of legal succession in labor relations.

Therefore, legal succession in labor relations is considered the continuation of labor relations with employees in the event of a change in the owner of the enterprise, institution, organization, reorganization of the enterprise, institution, organization (merger, division, transformation, spin-off).

Legal succession in labor relations between employees and an individual who uses hired labor is considered the continuation of labor relations with employees in the event of a change in the ownership of property or part of it.

The law also provides that:

- in the case of transfer of the business entity, the employment relationship of employees continues with the acquirer. Existing rights and obligations under labor contracts between employees and the transferor are transferred to the acquirer;

- in the event of the transfer of the economic entity, the status and functions of the elected body of the primary trade union organization are preserved on the same terms and are subject to the same conditions that existed before the transfer of rights and obligations from the alienator to the acquirer;

- the alienator and the acquirer are obliged not later than 10 working days before the transfer of the business entity to inform the elected body of the primary trade union organization in writing or using technical means of electronic communication about:

- the date or estimated date of transfer of the business entity;

- the reasons for the transfer of the business entity;

- legal, economic and social consequences of the transfer of the business entity for employees;

- any measures provided for employees;

- about changes in essential working conditions caused by the transfer of the business entity, the employee must be notified no later than 2 months in advance.

On May 16, the Law on the Cancellation of the Moratorium on Customs Inspections enters into force.

The law regulates the customs clearance procedure for the export of biomethane from Ukraine in order to support the development of the production of this type of fuel and the expansion of Ukraine's export opportunities.

Also, in accordance with the provisions of the Law, as of May 1, 2024, the moratorium on:

- scheduled documentary checks;

- unscheduled documentary checks (on-site and off-site);

- counter checks;

- completion of started and unfinished inspections by February 24, 2022.

In addition, the Law resolved the issue of raising the value threshold of goods that are sent by natural persons-entrepreneurs and enterprises outside of Ukraine in international postal or express shipments, without written declaration:

- previously there was an obligation to submit a written customs declaration for goods worth more than 150 euros;

- the new norm increases this threshold to 1,000 euros.

This will reduce business costs and speed up logistics.

On May 28, Law of Ukraine No. 3563-IX on simplifying the procedure for changing the purpose of land plots to attract investments for the rapid reconstruction of Ukraine enters into force.

The law provides for amendments to the Land Code of Ukraine, the Law of Ukraine "On State Control over the Use and Protection of Lands", the Law of Ukraine "On Regulation of Town Planning Activities", the Law of Ukraine "On the State Land Cadastre".

In particular, the law supplemented Article 118 of the Code with a new part ten, according to which requests for permission to develop land management documentation, land management documentation are registered on the day of receipt to the relevant executive authority or local self-government body, which transfers land plots of state or communal property to property in accordance with the powers specified in Article 122 of this Code, and are considered in the order of priority of their receipt.

Also, the Law provides for the creation of a register of territories contaminated/allegedly contaminated by explosive objects as a state-owned geo-information system.

without development of land management documentation.

According to the Law, sub-item 11 of sub-item 24 of Chapter X "Transitional Provisions" of the Code was added, according to which a register of territories contaminated/presumably contaminated by explosive objects is created as a geo-information system that is in state ownership.

Also, the Law added subsection 11 of clause 27 of Chapter X "Transitional Provisions" of the Code with a new subsection 25, according to which for the period of martial law and within five years from the date of termination or cancellation of martial law in Ukraine or the relevant area, land plots in respect of which village, settlement, city councils or military or military-civilian administrations have made a decision to grant tax benefits from the payment of local taxes and/or fees in connection with the recognition of such land plots as unfit for use due to the potential threat of their contamination by explosive objects, are examined for the purpose detection of the facts of their use (non-use) for their intended purpose.

Survey of land plots, provided for in this subsection, is carried out by state inspectors for control over the use and protection of land of territorial bodies of the central executive authority, which implements state policy in the field of land relations, or by state inspectors for control over the use and protection of land of executive bodies of rural, settlement, of city councils that have acquired statutory powers to exercise state control over the use and protection of land, in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

Establishing and changing the purpose of land plots can be carried out in the following cases:

- without taking into account the requirements for determining the category of land and the type of intended purpose of the land plot within the functional purpose of the territory provided for by the comprehensive spatial development plan of the territory of the territorial community or the general plan of the settlement;

- without taking into account the classifier of types of purpose of land plots, types of functional purpose of territories and the relationship between them;

- on the basis of the reasoned conclusion of the authorized body of urban planning and architecture regarding the possibility of placing the corresponding object on the land plot in accordance with the requirements of regulatory and legal acts;

- by the decision of the owner of the land plot by submitting an application to the State Land Cadastre;

- without development of land management documentation.

You can read more about this law in our previous article for the month of February at the link: http://surl.li/ufzzs .