In the conditions of the democratization of the Ukrainian state, the reform of labor legislation is an objective necessity, about which there are many discussions. The current labor legislation was developed during the existence of strict legal regulation of labor relations, when state property was their economic basis. The relevance of the chosen research topic lies in the fact that the current legislation regulating labor relations is outdated and unbalanced, has problems, shortcomings, conflicts and gaps, and is simply not suitable for regulating this area in a market economy. The present study used a set of general and special methods of scientific knowledge. The purpose of this study is to establish the nature of problems, shortcomings and gaps in the legal regulation of labor relations in Ukraine, identify some of them and find ways to solve them, and formulate proposals to improve existing labor legislation in our country.