ANNUAL REPORTOF UKRAINIAN PARLIAMENT COMMISSIONER FOR HUMAN RIGHTS CHAPTER 1 42 on the Arrears Payment (in 2018, only three meetings of the Temporary Commission were held, and in the 7 months of 2019, only one meeting). No measures were taken with regard to the heads of the enterprises that violated of the requirements of the legislation on timely payment of remuneration and do not ensure repayment of wage arrears. The measures taken by the Commissioner were not unsuccessful. In August 2019, the Government allocated an unused balance of budget allocations in the amount of UAH 100.0 million and allocated additional UAH 150.0 million from the reserve fund of the State Budget for repayment of wage arrears to employees of coal-mining enterprises. The Verkhovna Rada of Ukraine adopted the Law of Ukraine # 265-IX of 31 October 2019 “On Amendments to the Law of Ukraine “On the State Budget of Ukraine for 2019” that stipulates allocation of UAH 1 billion to balance the financial situation of state-owned coal-mining enterprises and provide financial sources for payment the wages to miners, as well as preventing the mines from being disconnected from the electricity supply. According to the Ministry of Finance, the Treasury allocated the budget funds were allocated to stateowned coal mining companies as distributed by the Ministry of Energy and Coal. As a result, as of 1 December 2019, wage arrears to employees of coal mining enterprises decreased by 44.2% compared to 1 November 2019 and amounted to UAH 265 million. At the same time, as of 1 January 2020, wage arrears increased by 23.7% compared to 1 December 2019, amounting to UAH 327.9 million. It is worth noting that the Government failed to comply with the decision of the National Security and Defence Council of Ukraine enforced by the Decree of the President of Ukraine #874/2019 of 2 December 2019 “On the Decision of the National Security and Defence Council of Ukraine of 2 December 2019 “On urgent measures to secure energy security” that mandates the Cabinet of Ministers of Ukraine to ensure that comprehensive measures are taken by 1 January 2020 to repay the arrears and pay wages to employees of state-owned coal-mining enterprises and prevent wage arrears in future. Observance of the right of employees of insolvent enterprises and economically inactive enterprises to remuneration Critical violation of the right to receive wages of employees of insolvent and liquidated enterprises remains unresolved at the legislative level. As Ukraine ratified Part II of ILO Convention 173 on the Protection of Workers’ Claims (Employer’s Insolvency), the State guaranteed protection to workers through a privilege. However, practical experience proves the imperfection of this mechanism, because if the liquidation assets are not sufficient, employees do not receive repayment of wage arrears. The wage arrears of insolvent and economically inactive enterprises amount to UAH 1.2 billion, or 39% of the total wage arrears in Ukraine. Ratification of Part III of ILO Convention No. 173 on the Protection of Workers’ Claims (Employer’s Insolvency) and the adoption of a law on satisfying the claims of employees in the event of employer insolvency should be an effective mechanism to address this issue.