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The Ministry of Economy plans to reform the State Labor Service

UA NEWS 27 April 2026 18:07
The Ministry of Economy plans to reform the State Labor Service

The Ministry of Economy, Environment, and Agriculture has drafted a resolution on reforming the State Labor Service.

The proposed changes call for a transition to a new operating model, under which the state will reduce its influence on access to the occupational safety services market. Instead, the State Labor Service will focus on its core functions—monitoring workplace safety and ensuring compliance with labor laws.

This was reported with reference to the agency’s press service.

As noted, the proposed changes include: the separation of oversight functions, the transfer of certain procedures to independent accredited bodies, the elimination of approvals and participation in procedures that do not constitute state oversight, as well as the digitization of documents and decisions.

The changes will mark the first stage of reforming the State Labor Service. They are intended to help create a transparent market for occupational safety services, reduce the administrative burden on businesses, minimize the risk of undue pressure, and redirect the State Labor Service’s resources toward monitoring actual risks to the lives and health of workers. The next stage is expected to be the digitization of the occupational safety sector within the “Obriy” system.

According to the press service, the BRDO Office of Effective Regulation participated in the development of the first stage of the reform. The findings of a report by the Tony Blair Institute were also taken into account; this report was prepared based on roundtables with businesses, interviews with representatives of the State Labor Service’s regional offices—including office heads and local inspectors—and an analysis of data provided by the State Labor Service.

“According to preliminary estimates, the minimum benefit from streamlining some procedures could amount to 4.473 billion UAH per year for businesses. At the same time, the administrative resources freed up by the State Labor Service, according to the ministry’s estimates, could reach 27.205 million UAH per year and be directed toward risk-based oversight and inspections where there is a real danger to workers,” the statement reads.

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