COMPENSATION PAYMENTS: CONCEPT AND TYPES
DOI:
https://doi.org/10.32782/galician_studies/law-2026-13-3Keywords:
employee, employer, compensation payments, reimbursement of expenses, labor dutiesAbstract
In the context of the development of a market economy and the transformation of labor relations, in particular due to the war in Ukraine, the issue of ensuring employees’ proper labor guarantees and compensation, as well as effective legal regulation of reimbursement of expenses related to the performance of labor duties, is becoming increasingly relevant. Of particular importance is the legislator’s timely response to the need to improve the regulatory framework in the field of compensation payments, taking into account the dynamics of modern labor relations. In this context, it is important to form a clear and coherent approach to defining the legal nature of compensation payments, their place within the system of labor law, as well as establishing an exhaustive list of their types and grounds for provision. Insufficient clarity of certain aspects of the legal regulation of compensation payments may lead to their inconsistent application in practice and to violations of employees’ rights. The article analyzes the concept of compensation payments in labor law and determines their role in ensuring social and labor guarantees and protecting employees’ property interests. Based on the analysis of scholarly works and the current legislation of Ukraine, the main features of compensation payments are outlined. The significance of compensation payments is substantiated as an important element of the mechanism for implementing labor guarantees aimed at preventing the deterioration of employees’ material situation in connection with the performance of labor duties. Particular emphasis is placed on compensation payments made in connection with business trips, including those abroad. It is emphasized that such payments do not constitute income but are intended to cover the minimum necessary expenses, while at the same time ensuring the ability to perform official duties. The specific features of compensation payments in cases of employee relocation to work in another locality are revealed; allowances for employees whose work has a traveling or field-based nature; compensation for reimbursement of expenses related to the use of employees’ own property; as well as compensation payments to employees sent for advanced training, professional training, or retraining without separation from work are also examined.
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