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Dismissal under the terms of a contract is not a disciplinary sanction

Published 9 March 2017. Some rules have changed since; ask us for the current position.

Article 149 of the Labour Code of Ukraine (Кодекс законів про працю України, KZpP) does not apply to this dispute.

A contract is a special form of employment agreement. The parties may agree on its term, their rights, duties and liability (including financial liability), the employee's pay and working arrangements, and the grounds for terminating the agreement, including early termination.

Grounds set out in the contract are a separate ground for terminating the employment agreement. Where the contract is terminated on such grounds and they involve no disciplinary breach, the termination is not a disciplinary sanction, so Article 149 of the Labour Code does not apply to the dispute.

The Supreme Court of Ukraine (Верховний Суд України) set out this legal position in its ruling of 2 February 2017 in case No. 6-86цс17. The claim was brought by the dismissed director of the Elektrotyazhmash plant (Електроважмаш) against the Ministry of Economic Development, seeking to have the dismissal order declared unlawful and to be reinstated.

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