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4 LIABILITY FOR VIOLATION OF LABOR PROTECTION

                                                    LEGISLATION


                      4.1 Liability for Violations of Labor Protection Legislation


                      For  violation  of   laws  and other   normative-legal   acts  on labor  protection,
               creating obstacles in the activity of officials of state oversight of labor protection, as
               well as representatives of trade unions, their organizations and associations, guilty
               persons are brought to (Article 44 of the Law of Ukraine "On Labour Protection"):
                       disciplinary;
                       administrative;
                       material;
                       criminal liability according to with the law.


                      1) Disciplinary liability is the liability of officials and employees for violations
               of labor safety rules and regulations that have not led to grave consequences. It
               consists of imposing disciplinary penalties by the administration of the enterprise (ie,
               the authority that hired the employee).
                      Disciplinary liability is determined by the Labor Code (Article 147 of the
               Labor Code) and includes the following punishments:
                      -    reprimand;
                      -    dismissal.



                      Legislation, statutes and disciplinary provisions may provide other disciplinary
               penalties for certain categories of employees.
                      For employees holding elected office, this type of disciplinary penalties, such
               as dismissal, can only be applied by the decision of the body that elected them, and
               only on the grounds provided for by law.


                      2) Administrative liability is imposed on officials (managers of enterprises and
               their  deputies,  chief   engineers  and   other  officials)   and  very  rarely  on  ordinary
               employees, and occurs for:
                      - violations of the laws and regulations on labor protection, which are binding;
                      - creating obstacles in the activities and failure to comply with the orders of
               state officials supervision and public control.
                      Administrative   liability   is   imposed   in   the   form   of   a   fine.   Administrative
               punishment is imposed by officials of state supervision bodies on the basis of
               protocols drawn up by them on administrative offense.


                      The maximum amount of the fine (for legal and natural persons who employ hired labor,
               officials and employees) may not exceed five percent of the average monthly wage bill for the
               previous year of the legal or natural person who uses the hired labor under the legislation.


                      The decision to recover the fine may be challenged within one month by a court order.







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