Тhe legal task of the specialists at DE-JURE is to create an effective, functioning model of communication between the business and the workforce.
to the lead lawyer
Most agreements in labor and civil law are fulfilled not because liability is imposed for violations, but because compliance is beneficial to both parties. Therefore, the purpose of internal labor regulations (ILR) and other local regulatory acts is to structure labor relations in such a way that both employees and management understand that their rights are protected and working conditions are fair.
Internal Labor Regulations (ILR) are the core rules that govern relations between the workforce and the employer (administration). Current legislation allows employers and employees to regulate certain issues at the local level, including hiring and dismissal procedures, occupational health and safety (including wartime conditions), working time and rest schedules, wages, allowances, and bonuses. Thus, ILR help ensure more transparent coordination between management and employees.
ILR are developed at each enterprise and must be approved in coordination with the workforce. At most mid-sized companies, collective agreements are not concluded, which makes ILR the key document through which differing interests of employees and administration are balanced under mutually acceptable conditions. For example, if an employee seeks benefits or allowances, they can be established in the ILR, approved, and implemented—while still taking into account the employer’s interests so that such payments are tied to actual work performed or specific working conditions. The task of DE-JURE when drafting local regulatory acts of the employer is to propose the most effective wording, tailored to the specific characteristics of each enterprise.
Internal Labor Regulations (ILR) should be approved simultaneously with the establishment of a company. In practice, small and medium-sized businesses often do not develop ILR until they hire several dozen employees and a formal workforce emerges as a separate entity whose rights must be protected. However, even with a minimal number of employees, it is advisable to adopt job descriptions in order to clearly define the responsibilities of individual workers.
The DE-JURE team can also assist in developing general occupational health and safety rules and instructions. More detailed provisions related to electrical safety, fire safety, and risk minimization in construction projects typically fall within the competence of workplace health and safety engineers at the enterprise level.
The coordination and approval of other local acts depend on the concerns of the employer and the workforce. As a rule, employers seek to protect confidential information and safeguard against unfair competitive actions by employees who may simultaneously work for competitors. Accordingly, employers need to regulate ownership rights over works created in the course of employment—intellectual property objects produced by employees during their professional activities. Employees, in turn, aim to ensure the protection of their personal data and to further specify procedures for salary payments, monthly bonuses, and similar matters.
Updating local regulatory acts is advisable whenever relevant changes occur in legislation. In particular, DE-JURE provides a service for updating internal regulations, with access to a legal database system that ensures continuous monitoring and alerts regarding changes across all areas of law. If a regulatory act requires amendments, the client receives these updates and makes decisions based on economic impact. A minor audit of local regulatory acts should be conducted every six months.
General local regulatory acts include documents that regulate the internal policies of a company. First and foremost, these are Internal Labor Regulations (ILR), job descriptions, and collective agreements (if concluded). The larger the company, the more internal regulatory documents it typically has, including:
General local regulatory acts also include other provisions regulating specific aspects of employment that the employer must address and protect based on the nature of its business.
Local regulatory acts are developed in accordance with labor legislation, which includes not only the Labor Code, but also laws and subordinate regulations on vacations, wages, collective agreements and bargaining agreements, as well as the Civil Code, which governs the concept of personal data and related matters. These acts must also take into account rulings of the Supreme Court. Since Ukraine aims at gradual alignment of its legislation with EU standards, it is also necessary to consider European laws and regulations, particularly in the area of personal data protection.
First of all, during a legal consultation it is essential to identify the client’s most pressing issues and understand why they are addressing this request at this particular moment. For example, the employer may be concerned about violations of labor discipline, such as constant lateness. In such cases, it is necessary to clearly define working hours, workplace locations, and related rules.
In other situations, the issue may involve client complaints due to employees communicating in Russian, disclosure of confidential information, or other internal problems. Sometimes the employer aims to adjust the wage system so that employees receive a lower base salary while the majority of compensation is paid as bonuses for proper performance of duties, and therefore requests the development of such a compensation structure, including calculation of allowances and additional payments.
DE-JURE has access to previously developed standard templates of internal regulations, which in many cases can be adapted to the needs of a specific business. However, to effectively solve the issue, it is often advisable to meet not only with management but also with the workforce, since in cases of labor conflict, regulation should be approached from the ground up. It is necessary to determine whether the situation can truly be improved simply by adopting formal rules. At times, it is also necessary to explain to management that the goals they wish to achieve may not always be realistic. It is important to consider that attempts to over-regulate every aspect of workplace behavior may become excessive and even demotivate employees. A well-prepared set of documents alone is not sufficient — it is equally important to influence the team environment and encourage employees to follow these rules in practice.
If the client has already developed local regulatory acts, Internal Labor Regulations (ILR), or job descriptions and attempted to implement them, it is advisable to bring these documents to the consultation so that the lawyer can analyze them and identify potential mistakes. In addition, a staffing schedule (organizational structure) is required to understand the composition of the workforce: how many employees there are, what positions exist, which departments operate, who reports to whom, how the wage fund is distributed, and similar details.
Legal support for the development and implementation of local regulatory acts includes information gathering and auditing existing documents to identify gaps and errors. If the client requests adjustments to documents that no longer meet their needs, it is necessary to analyze the most problematic areas and provide legal solutions. Once all decisions are agreed upon, the lawyer prepares specific local regulatory acts designed to achieve the desired outcomes. If a client’s position in a court case is based on HR records, DE-JURE lawyers can conduct an audit of personnel documentation and provide recommendations after preliminary consultation with HR specialists.
Local regulatory acts are intended to foster productive relations between the employer and the workforce. The employer has control over the wage fund and must distribute resources fairly to ensure employee motivation. In turn, employees contribute knowledge and skills that they have “sold” to the employer. Well-developed local regulatory acts regulate key workplace issues, improve overall business efficiency, and help avoid psychological, emotional, and consequently legal conflicts within the team as well as between management and employees.
| Cost of legal consultation on drafting internal labor regulations. | from 2000 UAH |
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