The State Labor Service will monitor the appointment and payment of insurance funds in the Pension Fund

The Cabinet of Ministers of Ukraine approved Resolution No. 658, which introduces changes to the Regulation on the State Labor Service of Ukraine. The changes are aimed at the digitalization of social services and strengthening the inclusiveness of workplaces.

The resolution completes the process of transferring social insurance functions to the Pension Fund and updates the regulatory framework for the State Labor Service.

The document provides for the replacement in the provisions on state supervision. Instead of the Social Insurance Fund of Ukraine, the Pension Fund of Ukraine is now officially mentioned as the body that assists the State Labor Service in developing programs to improve safety, labor hygiene, and the working environment, monitors their implementation, and participates in the development and execution of other state and sectoral programs. This also reflects the completion of the reorganization of the social insurance system.

The resolution also expands the scope of the State Labor Service's control activities. From now on, the agency conducts inspections of the territorial bodies of the Pension Fund regarding:

• the appointment of social payments;
• the calculation and payment of benefits and compensations;
• the execution of insurance payments;
• the provision of social services.

This strengthens state supervision over how the Pension Fund performs its new functions as the sole administrator of social insurance.

Inclusion and employment of persons with disabilities

The State Labor Service receives new control tools in the field of labor integration of persons with disabilities.

From now on, the State Labor Service not only formally checks compliance with the quota for workplaces for persons with disabilities but also exercises state control over compliance with employment legislation in this area.

Additionally, a new tool for assessing reasonable accommodation measures in workplaces has been introduced. The State Labor Service is authorized to provide conclusions regarding compensation of employers' expenses, support the implementation of inclusive working conditions, and evaluate the justification of subsidies for workplace adaptation.

The service will assess the compliance of enterprises with the criteria for labor integration of persons with disabilities and protected employment enterprises to receive benefits.

Inclusion in the labor sphere is gradually moving away from regulation at a declarative level and begins to be regulated in the format of active state control and financial incentives for employers who ensure the real integration of persons with disabilities in the labor market.

Chemical safety

Moreover, the State Labor Service now becomes a key body in ensuring chemical safety at production sites. The service will supervise compliance with hygiene standards and risk minimization in the management of chemical products.

The powers include implementing measures provided for in chemical safety management plans. This indicates the approximation of Ukrainian occupational safety standards to EU requirements.

Combating mobbing and psychosocial support

The update of subparagraph 43 of paragraph 4 of the Regulation on the activities of the State Labor Service expands the possibilities for protecting workers' rights and creating a safe working environment.

Previously, the regulator's focus was mainly limited to preventing discrimination against HIV-infected persons. The new wording broadens this framework to include the prevention of discrimination in general and combating mobbing in the workplace.

It also establishes a supervisory function regarding the implementation of psychosocial support for employees. That is, monitoring the availability of psychological support mechanisms, assessing the implementation of policies for stress and burnout prevention, and forming "soft" occupational safety standards as part of state supervision.

Mining supervision and subsoil protection

The State Labor Service now develops norms and rules for subsoil protection and surveying support for mining operations. In particular, the procedure for approving the liquidation and conservation of objects has been clarified — now it is carried out according to the procedure established by the Ministry of Economy.

Supervision of compliance with safety requirements during geological exploration of deposits and construction of underground structures has been strengthened. The State Labor Service also licenses economic activities related to the production of industrial explosives and controls licensing conditions.

New functions – new risks

Overall, these changes aim to create a safe, inclusive, and transparent labor market that meets modern European standards. However, the significant expansion of powers also increases the risk zone.

For example, the State Labor Service's right to provide conclusions on compensating expenses for reasonable accommodation measures for persons with disabilities. The legislation does not clearly define reasonableness. This gives the inspector the discretion to decide whether an enterprise is entitled to a subsidy or compensation.

The assessment of compliance with criteria for receiving benefits by enterprises fully depends on the service's conclusion, which creates new corruption risks.

The State Labor Service is empowered to conduct inspections of the territorial bodies of the Pension Fund regarding the appointment and payment of benefits and insurance payments. This creates a situation where a controller inspects another controller. This may lead to bureaucratic problems in inter-agency interaction and, in fact, will affect insured persons or employers.

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