Social and labour relations in higher education institutions are in a state of transformation on institutional, legislative, rulemaking levels. To improve the quality of national personnel policy in respect of higher education institutions it is necessary to enhance the process of its realization on institutional level by expanding the spectrum of educational services with account of their quality, adapting new institutional form of social and labour relations -the effective contract in higher education institutions, developing social safety policy and providing fair salary for higher-education teaching personnel with due consideration of key performance indicators.