Feb. 14, 2019

How to fire a manager in Ukraine

When a foreign owner opens business in Ukraine, he or she might face a range of problems which deal with financial, legal or cultural aspects. Today we are going to talk about people. And especially what to do if you want to fire them in Ukraine.

Well, the situation is obvious. As an owner, when you open your business in Ukraine, you usually search for Ukrainian professionals to work and lead this business according to your strategy. But you should be aware, that sometimes (as in any country) you can face a problem or a toxic manager.

These are 5 the most frequent situation, which might occur:

  1. Decrease of financial business indicators of your business or no forecasted increase in them as it was planned.

  2. Mismatch between your vision and your manager’s vision on the business strategy or operational goals.

  3. Theft and malpractice in office (very unpleasant)

  4. Your manager disappears. He or she is always on medical leave, vacation or does not show up for work.

  5. The manager leaves your business and goes to another company.

So here comes the question “What to do?”. How to fire such manager according to the law. And what is very important, not to have a negative impact to the owner’s and business reputation on the market and among the team. And also how to fire this person properly and not to have labour dispute in the court.

So the first thing you should care about - are the facts.

Each situation I mentioned must be proved:

  1. You should document low financial results with the help of final reports, non fulfillment of manager’s contract agreements, low KPI results.

  2. You can gather team’s feedback or assess you manager according internal rules, like 360 degree evaluation.

  3. You can also provide audit with external consultant and document the violation

So each fact of non-fulfillment of employment duties should be documented. Whether it is absence from work, detected shortages in production or evidences of relatives in case if the manager disappeared.

Then you should determine the legal basis for dismissal according to Ukrainian legislation:

1. Dismissal on the grounds stipulated in the contract

2. Termination of an official’s authority

3. Violation of work discipline

4. Dismissal on mutual agreement of the parties

You can download for free the checklist with detailed instruction which evidences you can gather in each problematic situation and concrete legal basis for each of them: https://ilf.space/reasons.fordismissal

After facts and legal basis determination you should follow the dissmisal procedure procedure:

  1. Establish and record the facts required for dismissal

  2. Determine the legal basis for dismissal

  3. Run the dismissal by the trade union committee (if applicable)

  4. Issue the dismissal order and serve it to the employee

  5. Make a dismissal entry in the work record and give it to the employee

  6. Pay severance (if applicable)

  7. Make full settlement with the dismissed employee

  8. Provide a copy of the dismissal order in case of dismissal at the employer’s initiative

  9. Issue a certificate indicating the employee’s position, qualifications, time with the company and wage at  the employee’s request

  10. Inform the employee of the need to get the work record and settlement if the employee is absent from work on the day of dismissal

Important

Suspend employer-initiated dismissal if the employee is on sick leave or vacation.

Cancel employer-initiated dismissal if you find out that the employee is pregnant.

Decision to fire a manager is a serious business decision, which can have significant effect on the company and the team. You should always consider the possibility of labor dispute. To minimize this possibility one should think about a contract with a manager, which will document all details of your cooperation, starting with the manager’s activities at work up to his o her social package. Such contract can significantly reduce controversial issues, which might occur in case of the manager’s dismiss.

ILF starts a series of videos on how to start and run your business in Ukraine. Subscribe to our youtube channel and get our new videos first: https://www.youtube.com/channel/UCVe-xqdU8RiROeAW0IBiOuQ