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The revolutionary Law of Ukraine No. 4196, which provides for the cancellation of the Commercial Code, comes into force on August 28, 2025. It is the day that the Code will cease to be effective. In this article, we explore how these legislation novelties will affect businesses in Ukraine in terms of HR administration, as well as important nuances to keep in mind.
According to Law No. 4196, staffing table and organisational structure will no longer be mandatory for businesses. After August 28, 2025, businesses will have the freedom in deciding whether they need these documents.*
*Note: As of today, there are no official clarifications from the Ministry of Economy on the application of the staffing table and the organisational structure of the enterprise. The staffing table is not prohibited, and employers can continue using it in their activities. They can also develop another document, alternative to the existing staffing table, which will help them conduct their business. However, there is a possibility that in the future, related changes could be made to other laws and regulations.
Since the formation of staffing table and organisational structure will no longer be mandatory, the bureaucratic burden on HR departments will be significantly lower. These legislative changes give businesses more freedom in organising internal processes and flexibility in creating new positions.
There are a few nuances to keep in mind:
Transition period
The changes introduced by Law No. 4196 are quite significant, so businesses will have a 3-year-long transition period during which they can adapt to the new rules.
Budgetary institutions as an exception
For budgetary institutions, the obligation to develop and approve staffing tables remains unchanged.
The ‘old’ rules will remain in force until August 28, 2025
In preparing for the changes, businesses should remember that until this date, the staffing table remains a mandatory document for all enterprises without exception.
While these legislative changes’ intention is to simplify many processes, preparing for and adapting to them can be challenging. Businesses will have to review and update their organisational structure and implement more flexible HR administration solutions.
Outsourcing can help you adapt to the new rules faster and more efficiently, while relieving the burden on your internal departments, both HR and finance.
An outsourcing partner will help ensure that all the important details are considered without stress and chaos.
Outsourcing can help with:
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