The Ministry of Economy initiates the reform of the State Labor Service: a course towards deregulation and digitalization

The Ministry of Economy, Environment and Agriculture of Ukraine has published a draft government resolution that provides for a comprehensive reform of the State Labor Service of Ukraine and deregulation in the field of labor protection. This was reported by the press service of the department.

The proposed changes are aimed at transforming the current model, in which the state combines control functions with influence on access to the market for relevant services. Instead, a transition to a European approach is envisaged, where the State Labor Service focuses exclusively on key tasks – supervision of labor safety and control over compliance with labor legislation.

In particular, the draft provides for:

a clear separation of control and service functions;
the transfer of part of the procedures to independent accredited bodies;
the abolition of approvals and state participation in processes that are not subject to state supervision;
active digitalization of documents, permits and decisions.

The ministry emphasizes that this is only the first stage of a large-scale reform. Its implementation should contribute to the formation of a transparent market for labor protection services, reduce administrative pressure on business, and minimize corruption risks.

The next step will be the digital transformation of the industry within the Obriy state system, which will allow automating a significant part of procedures and increasing their transparency.

According to preliminary estimates, the economic effect of reducing redundant procedures can reach UAH 4.47 billion annually for business. At the same time, the release of administrative resources of the State Labor Service — about UAH 27.2 million per year — will allow for strengthening risk-based supervision, focusing on areas with increased danger for employees.

The Ministry of Economy of Ukraine calls on employers, specialized associations, experts, and employee representatives to join the public discussion of the initiative. Based on the results of the consultations, the document will be finalized taking into account the proposals received.