The research is devoted to the prospects of the development of labour legislation in the part of contractual regulation of labour relations. The relevance of the study is conditioned upon the necessity to update the regulatory framework governing labour relations, first of all, the relations on the conclusion, amendment, termination of labour contracts, and relations in the field of collective contractual regulation. The purpose of the study is to identify the risks and highlight the shortcomings of draft laws concerning the individual contractual regulation of labour relations, to analyse the prospects for the development of labour legislation on labour and collective agreements, and to develop the authors’ proposals to improve the state of legal regulation in this area. To achieve this purpose, the following scientific methods were used: dialectical, Aristotelian, analytical, formal-legal and comparative-legal. As a result of the study, the following priority measures to improve the contractual regulation of labour relations were identified. Ensuring that stakeholders are better informed about collective bargaining as a guarantee of employees’ rights (through the development of an information and advisory space, in particular, a virtual one). Intensification of the process of concluding collective agreements for maximum coverage of the employed population and employers, including individual entrepreneurs. Preventing the adoption of the proposed draft law No. 5371 as such, which by its scope may put employees of small and medium-sized enterprises in a worse position in terms of labour relations than employees who will not be subject to the contractual regime of regulation of labour relations. Further work in the area of labour law reform (both on the theoretical and practical levels) should concentrate on exploring options for regulating labour relations that would combine centralised, unified minimum guarantees for all participants in labour relations with special, possibly simplified, rules for particular categories (e.g. micro-enterprises). The generalisations can be used to develop draft regulations for labour law and can also be used to prepare research on the legal regulation of individual and collective labour relations.