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October 25, 2012

Professional Association of Employment Companies was established in Ukraine

Professional Association of Employment Companies was established in Ukraine

Photo: Left to right: Alexey Zvolinsky, Dariusz Ptak, Andrey Krivokorytov

On the 23rd of October in Kiev the heads of leading private employment companies Adecco, Brain Source Corporation and GP Group, - Dariusz Ptak, Andrey Krivokorytov and Alexey Zvolinsky respectively, signed the agreement on the establishment of Professional association of employment companies (PAEC)

The Association has set itself the following objectives: development of the industry of temporary employment in Ukraine, informing on news in employment legislation. Strategic task is to influence the improvement of quality and transparency of employer-employee relationship under temporary employment. Current goal of PAEC is influencing the legislation with the purpose to approach international standards. 

Let us recall that on August 15, 2012 the President of Ukraine signed the new Law of Ukraine "On Employment" from 05.07.2012, № 5067-VI. This is the most progressive change in labor law in recent years. Distinguished by increased loyalty, both to employers and to employees, it is aimed at stimulating the economy and creating new jobs. This is a major step towards improving the situation on the labor market of Ukraine. But it still does not solve one of the major problems of the labor market in Ukraine - its high level of illegal employment. Some of the novelties of this law are directed to solving of this problem. For the first time in 20 years, temporary employment agencies are reflected in legislation. For the first time, such words as "outstaffing" and "recruiting" got included in the legislation. However, due to the lack of understanding of market specifics, some items on the new legislation are limiting the development of the industry. For example, instead of a transparent licensing mechanism, the law lists a vague system of permits for temporary employment agencies, which risks becoming yet another corruption mechanism.

Members of the Association are preparing proposals for expanding and changing the provisions of the law in order to bring Ukrainian legislation to generally accepted standards used in developed economies. Here are just some of the changes proposed by the Association:

- Standardize the definition of private employment agencies that provide temporary staff (employment for other enterprises);

- Create a transparent licensing mechanism for temporary employment agencies;

- Increase the flexibility of temporary employment contracts, in comparison to the standard contracts of employment.

Temporary staff is a tool that can add flexibility to the labor market and to be active tool for creating new jobs.

«During the 13 years of its existence, the market of temporary employment in Ukraine is constantly evolving. Long-awaited improvements in the legislation will help bring it closer to international standards. By creating PAEC, we want to contribute to the rapid development of the business and to achieve maximum transparency in all its aspects», – said Alexey Zvolinsky, senior partner at GP Group.

"Worldwide, companies on temporary staff are kind of Noah's Ark for large enterprises during the times of change. These changes may be related to the economic crisis, seasonal ups and downs in consumer demand, outsourcing processes in the company, etc. Our Association was established to work on the creation of favorable conditions for all participants of the market: employers, the company provides temporary staffing and direct temporary workers ", - said Andrey Kryvokorytov.

"Business can and should be focused on the development of the industry of temporary employment. Currently we are inviting new companies to join the Association. Membership in the Association is open to all interested companies that provide temporary staff. After all, only by working together we can continue to develop this industry in Ukraine ", - encourages Dariusz Ptak.

 

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