Employee dismissal in 2025: how to legally process it online

Employee dismissal is one of the most responsible HR procedures. Any mistakes made by the HR inspector can result in fines from the State Labor Service, legal disputes, and reputational risks for the company. In 2025, employers can process dismissals quickly and correctly using digital tools, but they will still be required to comply with the requirements of the Labor Code of Ukraine (LCU).

In this article, we will look at how to properly process dismissals, what documents are required for this, and how to automate the dismissal process using the Vchasno.Kadry service.

Grounds for dismissal of an employee

Ukrainian legislation provides for several grounds for dismissal.

🙋‍♂️ Resignation at the initiative of the employee

According to Articles 38–39 of the Labor Code, an employee has the right to terminate an employment contract at their own request by giving the employer two weeks` written notice. If the application specifies valid reasons (retirement, enrollment in an educational institution, relocation, illness, etc.), the employer is obliged to dismiss the employee on the date specified in the application.

🤝 Resignation by mutual agreement

This is the most flexible option. The parties may agree to terminate the employment contract on any terms. Resignation by mutual agreement (clause 1, part 1, Article 36 of the Labor Code) is permissible even during vacation or sick leave.

🧑‍💼 Dismissal at the employer’s initiative

The employer has the right to terminate the employment contract on the grounds specified in Articles 40-41 of the Labor Code:

1. Organizational reasons and misconduct of the employee (Article 40 of the Labor Code):
   • changes in the organization of production and labor (clause 1);
   • inadequacy of the employee for the position held (clause 2);
   • systematic failure to perform duties without valid reasons (clause 3);
   • absenteeism (clause 4);
   • absence for more than four consecutive months without information about the reason (clause 5) — even during martial law (clause 8-3 of Article 36);
   • appearing at work in a state of intoxication (clause 7) and other grounds.
2. Gross misconduct, primarily in relation to managers and employees who handle material assets
   (Article 41 of the Labor Code).

📝 Termination of an employment contract on other grounds

These include:

• expiration of a fixed-term contract (clause 2 of Article 36 of the Labor Code);
• death of an employee (clause 8-2 of Article 36 of the Labor Code);
• absence from work and lack of information about the reasons for more than four months (clause 8-3 of Article 36 of the Labor Code) — a new ground introduced during martial law;
• the employee’s entry into military service (clause 3 of Article 36 of the Labor Code).

What documents are required for dismissal?

Regardless of the reason for dismissal, the employer must prepare and issue the following documents to the employee.

1️⃣ Resignation letter

If the dismissal is initiated by the employee or by mutual agreement, the employer receives a resignation letter with the date and signature. The application can be submitted in paper form or sent by email, messenger, or electronic document management system.

2️⃣ Order of dismissal

The order (decree) of dismissal is the main document certifying the date of termination of employment. It can be drawn up:

• using the standard form No. P-4, approved by order of the State Statistics Committee dated 05.12.2008 No. 489 (this form is recommended but not mandatory);
• in any form, subject to the requirements of DSTU 4163-2020 regarding the details of the document.

Mandatory details of the order:

• name of the enterprise and its registration number (EDRPOU);
• date of compilation and registration index (it is recommended to use the index “k/tr” for long-term storage of personnel documents);
• surname, first name, patronymic, and position of the dismissed employee;
• name of the structural unit;
• the reason for dismissal with reference to a specific article of the Labor Code;
• the date of dismissal;
• the amount of severance pay (if applicable);
• a reference to the primary document (application or memorandum with details);
• the signature of the manager (owner).

Sample dismissal order:

3️⃣ Copy of the dismissal order

The employer is obliged to issue the employee with a copy of the dismissal order on the day of dismissal. The copy must be certified in accordance with the requirements of office work (the words «In accordance with the original», the signature and seal of the authorised person, the date of certification).

4️⃣ Settlement documents

The employer issues:

• a written notice of the amounts accrued and paid, broken down by type of payment (basic salary, compensation for unused vacation, severance pay, etc.);
• pay slips detailing the amounts and deductions.

5️⃣ Circulation letter

A circulation letter is an internal company document certifying that the employee has no outstanding debts to structural units. Labor legislation does not require the mandatory issuance of a circulation letter. However, if it is provided for by the company’s internal documents, it is drawn up on the basis of internal procedures.

In the Vchasno.Kadry service, you can use a template for a clearance letter or customize this document for an employee.

6️⃣ Act on the transfer of material assets

If the employee used company property (computer, mobile phone, special clothing, etc.), the employer and the employee draw up an act of transfer and acceptance, which records all material assets returned by the employee.

Step-by-step procedure for dismissal in 2025

Let’s consider a typical algorithm of actions when dismissing an employee at their own request.

🔹Step 1. Receive the employee’s application

The employee submits a written application for dismissal, indicating the date on which they wish to leave. The application is registered in the registration log (with an internal number and date of receipt).

When dismissal is initiated by the employer, there is no incoming document from the employee — it is replaced by a memorandum from the manager or a decision by the management.

🔹Step 2. Agree on the date of dismissal and the amount of compensation

The employer enters the date of dismissal in the register and calculates the amounts owed to the employee:

• salary for the days actually worked in the month of dismissal (including the day of dismissal);
• compensation for unused annual leave — the number of days is multiplied by the average daily earnings;
• severance pay (if provided for by the grounds for dismissal);
• other payments (bonuses, allowances, if provided for by the employment contract).

To calculate severance pay, the average daily earnings for the two months preceding the month of dismissal are used.

🔹Step 3. Prepare the dismissal order

The HR inspector draws up a dismissal order using form P-4 or in any form with all the required details. A copy of the application or a reference to the order that served as the basis for dismissal is attached to the order.

🔹Step 4. Sign the order and familiarize the employee with it

The manager (owner of the enterprise) signs the order with their personal signature. The employee must be familiarized with the order and sign in the familiarization column.

🔹Step 5. Calculate the amounts

On the day of dismissal (or the following day, if the employee did not work on the day of dismissal and requests a written calculation), the employer:

• calculates the amounts of compensation, salary, and severance pay;
• withholds taxes and social security contributions (if they are due on the date of dismissal);
• issues a written notification of the amounts.

According to Article 116 of the Labor Code, all amounts must be paid on the day of dismissal. In case of delay in payment, the employer is obliged to pay the employee the average earnings for the entire period of delay (Article 117 of the Labor Code).

🔹Step 6. Make an entry in the employment record book

If the dismissal order requires an entry to be made in the paper employment record book (at the employee’s request), the officially responsible person shall make entries about the dismissal with the following content:

• date of dismissal;
• wording of the reason for dismissal with reference to the article of the law;
• date and number of the dismissal order.

After switching to an electronic employment record book (EERB), entries are automatically transferred there from quarterly reports, and the employer does not need to manually enter dismissal data.

🔹Step 7. Issue the employee with an employment record book and a copy of the order

The employer issues the employee with:

• a certified copy of the dismissal order — on the day of dismissal;
• a paper employment record book (if it was kept by the employer) — on the day of dismissal;
• a written notification of the amounts accrued upon dismissal.

🔹Step 8. Transfer the employee’s personal file to the archive

After all calculations have been completed and documents have been issued, the employee’s personal file is closed, and the originals of orders and documents are placed in the archive for storage in accordance with the terms established by the legislation on archives.

Dismissal of employees during martial law: what has changed?

Since February 24, 2022, special rules established by Law No. 2136 have been in effect:

1. Simplified notice procedure. Instead of two months’ notice (for dismissal at the employer’s initiative), the employer must give the employee only 10 days’ notice. Trade union consent is not required, even for the dismissal of trade union members.
2. Dismissal during temporary incapacity for work and leave. During martial law, an employer may dismiss an employee during their sick leave or annual leave. In this case, the date of dismissal falls on the first working day after the end of sick leave or vacation.
3. Expanded list of grounds for dismissal. An employer may dismiss an employee if they cannot provide them with work due to the destruction of production conditions as a result of hostilities (clause 6 of Article 41 of the Labor Code). In addition, an employee may resign at their own request without two weeks’ notice if the enterprise is located in a combat zone and there is a threat to life and health.
4. Restrictions on dismissal. An employer does not have the right to dismiss an employee involved in socially useful work under martial law or an employee of a critical infrastructure facility.

How to process a resignation online using the Vchasno.Kadry service

The digitization of HR processes allows employers and HR teams to abandon paper documents and manual signing. HR document management services automate the resignation process — from submitting an application to archiving documents.

Let’s take a look at how this process works in the Vchasno.Kadry service — a Ukrainian platform that specializes in the full digital cycle of labor relations.

1. Initiating dismissal. The HR inspector creates a dismissal task in the service and fills out a form. In it, they indicate:
   • the type of dismissal — at the employee’s request, at the employer’s initiative, by mutual agreement, etc.;
   • the date of dismissal — the system automatically validates the date in accordance with the law;
   • the employee’s full name — selected from the database;
   • the reason for dismissal — selected from a drop-down list of references to the Labor Code.

   

2. Document creation. The service automatically generates all the necessary documents:
   • dismissal order;
   • dismissal statement;
   • personal card;
   • circulation letter.

The HR inspector can manually upload the settlement notice and other necessary documents.

All documents are generated using templates that comply with current HR record-keeping standards. The user can edit any document — change phrases or numbers in the form or upload the modified document.

3. 3. Setting up the signing route. The HR inspector sets up signing routes — determines who should sign each document and in what order.
   4. Signing documents with a qualified electronic signature. The system generates a link for each person who needs to sign the document and sends a notification via email or SMS. The user also receives a push notification in the Vchasno service, where they can sign all documents with a single click.
      If necessary, you can set up sequential signing (in a clear sequence) or parallel signing. If one of the parties has not signed the document within the specified time, the system sends an automatic reminder.
   5. Archiving of documents. After signing the documents, the employee receives the status «Released» in the service. They no longer have access to the system.
      Documents are stored in a secure cloud archive, where they are protected from destruction and damage. If necessary, the HR inspector can quickly find the necessary documents in the archive — for example, in the event of an inspection by the State Labor Service, a lawsuit, etc.

For more information on processing dismissal documents in the service, see the Vchasno.Kadry help section.

Employee dismissal is a legally significant act that requires strict compliance with the law. In 2025, employers will have ample opportunities to legally use digital services in this process.

The transition to electronic HR document management with the Vchasno.Kadry service is not just a trend, but a direct path to minimizing risks. By automating HR processes, HR employees save time and avoid mistakes in dates and wording.

With the Vchasno.Kadry service, you can be sure that all HR processes are fully compliant with the law.