The Cabinet of Ministers reduced the functions of the State Labor Service: which powers the service will lose

As previously reported by the "Judicial and Legal Newspaper", the Prime Minister of Ukraine Yuliia Svyrydenko stated that the Government has begun the process of updating the State Labor Service. The service will receive new powers and lose some functions.

The Ministry of Economy, Environment and Agriculture reported that the government adopted a resolution which is the first practical step in the reform of the State Labor Service of Ukraine. The document updates the Regulations on the State Labor Service, clarifies the service’s powers, eliminates duplication of functions with other authorities, and creates a basis for further regulatory and digital changes.

The resolution defines which functions should remain under the responsibility of the State Labor Service as a body ensuring state supervision and control in the field of labor and occupational safety, and which should be removed from the service’s mandate due to duplication, obsolescence, or inconsistency with its main tasks.

The decision has three key directions.

Streamlining powers

Functions of the State Labor Service that duplicate the competence of other central executive authorities or do not correspond to the updated role of the service are being removed. In particular, these include certain issues related to high-risk facilities, the functioning of the natural gas market, control over advertising of employment services, and registration of technological vehicles.

Optimization of administrative procedures

The resolution removes or revises functions related to organizing certain examinations and technical procedures that should not remain within the updated model of the State Labor Service. This includes, in particular, examinations in the field of handling explosive materials, mining safety, state examination of working conditions, technical inspection and diagnostics of high-risk equipment, examination of project documentation, technologies, and means of production.

Strengthening socially important functions

The State Labor Service receives new powers related to monitoring compliance with employment standards and quotas for persons with disabilities, evaluating enterprises for obtaining benefits and state support, as well as participating in procedures for compensating employers’ expenses for creating accessible and safe working conditions.

"The comprehensive reform of the State Labor Service, which we are starting with this step, aims to ensure transparency, efficiency, and a human-centered approach in the work of this inspection – both for employers and employees. With this first step, we remove duplication and inappropriate functions, but at the same time strengthen those areas where the state must ensure quality supervision, expertise, and protection of labor rights," said the Deputy Minister of Economy, Environment and Agriculture of Ukraine Dariia Marchak.

After the adoption of the resolution, the Ministry of Economy will prepare changes to its own regulatory legal acts necessary for the practical implementation of the updated powers of the State Labor Service. This will allow harmonizing subordinate regulation with the new Regulations on the service and ensure consistent application of the adopted decisions.

"A separate direction of the reform will be the digitalization of the State Labor Service’s services. This involves the gradual transfer of key procedures to a digital format, simplifying interaction with employers and employees, increasing transparency of processes and data quality, as well as creating more convenient access to services in the field of labor and occupational safety.

The overall goal of the reform is for the State Labor Service to become an institution with a clear mandate, risk-oriented approach, quality expertise, modern digital services, and predictable work practices that meet the standards of labor inspections in EU countries. Such a model should reduce regulatory uncertainty for business, strengthen the protection of labor rights, and increase trust in state supervision in the field of labor," the Ministry of Economy added.

We also wrote that the State Labor Service will control the appointment and payment of insurance funds in the Pension Fund.

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