Doubtful inspections of the State Labour Service can be renewed

Two weeks ago Legal Alliance Company reported on abolishment of Resolution of the Cabinet of Ministers of Ukraine No. 295 as of April 26^th, 2017 in court, upon which executive authorities of local councils were deprived of the right to exercise state control over observance of labour legislation, and the State Labour Service authorities were deprived of the legal right to carry inspection visits and non-visiting business in sections. Upon the resolution abolishment inspectors of the State Labour Service must carry only scheduled inspections and observe legislation on inclusion of subjects to the plan, extraordinary inspections should be carried only in the manner prescribed by law.

However, in a few days draft resolution of the CMU “Some Issues of State Monitoring and Control over Observance of Labour Legislation” was published. This draft prescribed approval of new procedures for state monitoring and control over observance of labour legislation.

Since the very state control is related to business inspections, we have decided to focus on this procedure.

The draft procedure restores the following:

• The right of executive authorities of councils to exercise control over observance of labour legislation;
• The right to carry inspection visits and non-visiting inspections;
• The right to carry extraordinary inspections if there are no due grounds for that (for example based on free sources of information).

The control procedure was supplemented with:

• New grounds for inspection visits – upon instructions of the Prime-Minister of Ukraine, application of the Human Rights Commissioner of the Parliament, deputy request, in case requirements of the prescriptions are not fulfilled;
• Obligation to stop inspections during consideration of complaints about inspector’s actions.

In the other part the draft procedure almost completely is in line with the one previously abolished by court.

Therefore, if the CMU approves the published procedure for state control exercise over observance of labour legislation, it will allow a number of large-scale inspection visits by labour inspectors and imposition of considerable fines, upon which business will have to lose time and money to appeal that.

We will track and inform you of further status of this draft resolution.