Legal Digest: Key Legislative Changes in May 2026

The second half of May 2026 was marked by a high volume of regulatory updates. The legislator continued reforms in the financial sector, international arbitration, labor relations, and digital services. At the same time, the Supreme Court and the Constitutional Court of Ukraine issued a number of important legal positions concerning labor disputes, alimony, state liability, and the protection of citizens’ rights under martial law.

Factoring Enters New Rules

One of the key changes was the completion of the reform of factoring relations. By Law No. 4863-IX of April 29, 2026, Article 1077 of the Civil Code of Ukraine was amended in a new version. The legislator effectively confirmed that the primary regulation of factoring relations will now be governed by the special Law of Ukraine “On Factoring”. At the same time, Articles 1078–1086 are removed from the Civil Code, eliminating duplication of norms and potential conflicts between the special law and the Code. The new rules will finally enter into force on July 30, 2026, when the Law “On Factoring”, adopted in 2025, becomes effective.

Simplifying Property Registration for Children

As of May 25, amendments entered into force that significantly simplify the registration of property for minors. From now on, no approval from the guardianship authority is required when a child acquires property free of charge, including real estate, unfinished construction objects, vehicles, or other valuable assets. Previously, even in cases where the child’s rights were clearly not violated, the procedure required additional approval from guardianship authorities, often causing delays.

Expansion of International Arbitration Opportunities

On May 21, Law No. 4856-IX on expanding the competence of international arbitration entered into force. The law significantly modernizes approaches to resolving disputes with a foreign element and expands the list of cases that may be referred to international commercial arbitration.

Special attention is given to investment disputes. The legislator effectively encourages the use of arbitration mechanisms as an alternative to state courts in international economic disputes. Procedures for the appointment and challenge of arbitrators have also been updated, granting arbitration institutions greater procedural autonomy.

International Compensation Commission for Ukraine

On May 15, Ukraine ratified the Convention on the Establishment of the International Compensation Commission for Ukraine. The new body is expected to operate within the Council of Europe system and consider claims from the state, businesses, and individuals regarding damages caused by Russian aggression. This effectively forms the second element of the international compensation mechanism. While the Register of Damage already ensures the documentation of losses, the Commission will in the future assess claims and determine compensation amounts.

Lifting Restrictions on Women’s Travel Abroad

As of May 20, restrictions on crossing the state border for women were fully lifted. The new rules also apply to female civil servants, judges, prosecutors, and other officials. A valid international passport is now sufficient for travel, and no additional proof of purpose is required.

New Opportunities for Medical Sole Proprietors

Significant changes also occurred in the healthcare sector. Cabinet of Ministers Resolution No. 618 allows individual entrepreneurs engaged in medical or veterinary practice to obtain permits for activities involving narcotic drugs, psychotropic substances, and precursors. Previously, such permits were primarily available to legal entities such as healthcare institutions and clinics.

Tax ID Fully Moves to Digital Format

The Ministry of Finance has fully закрепed the use of the electronic taxpayer registration number (RNOKPP). The electronic taxpayer card with a QR code now has the same legal force as the paper document. In addition, Ukrainian citizens abroad can now obtain relevant documents through the “e-Consul” system.

Enforcement Proceedings: Deadlines Remain Suspended

The Ministry of Justice has once again confirmed its position regarding deadlines in enforcement proceedings during martial law. Deadlines for submitting enforcement documents are effectively suspended for the entire duration of martial law and begin to run anew after its termination or cancellation. This approach has already been supported by the Supreme Court and is important for both creditors and debtors.

Constitutional Court Protects Right to Vacation

One of the most significant Constitutional Court decisions in May concerned vacation rights under martial law. The Court declared unconstitutional provisions allowing employers not to pay part of the annual leave of minors and persons with disabilities. According to the Court, extended leave for these categories is part of constitutional protection and cannot depend on the employer’s discretion.

Supreme Court Case Law: Key Findings

In May, the Supreme Court issued several important legal positions. The Court clarified that a lower bonus or allowance alone does not constitute mobbing. To establish harassment, a systematic pattern of persecution or discrimination must be proven. Another important case concerned dismissal for absenteeism. The Supreme Court emphasized that absence from the office alone does not automatically constitute absenteeism. The employer must prove failure to perform work duties. This approach is particularly relevant for remote work and company executives who often work outside the office.

A separate case addressed the liability of a notary for fraudulent actions by third parties. The Court noted that liability cannot be established solely on the basis of forged documents being used. It is necessary to prove fault, unlawful conduct, and a causal link between the notary’s actions and the damage caused.

The Supreme Court also confirmed that disputes between parents regarding a child’s place of residence do not prevent the recovery of child support. The priority remains ensuring proper maintenance of the child.

Draft Laws to Watch

Among legislative initiatives, special attention should be given to proposals on reforming prosecutorial powers, changing private prosecution rules, introducing a national defense model based on total reserve principles, and introducing electronic tractor-driver licenses. Although these bills have not yet become laws, they indicate the direction of further development of Ukrainian legislation.

May 2026 demonstrated several key trends in the development of law in Ukraine: digitalization of public services, simplification of administrative procedures, strengthening of international legal protection mechanisms, and gradual adaptation of legislation to the challenges of wartime.

For businesses, the most significant changes were in factoring, international arbitration, small-scale privatization, and administrative procedures. For citizens, key developments included new rules for property registration for children, digitization of tax documents, protection of labor rights, and further development of international compensation mechanisms for war-related damages.