Employer of Record in Ukraine

Ukrainian labour rules are notoriously strict and complicated, which may be quite confusing for international companies. Consider employing an Employer of Record in Ukraine while evaluating Ukraine as a potential location for future expansion.

 Your demands for growth are catered to by Ukraine EOR solutions. We handle all administrative, payroll, hiring, onboarding, and other employment processes so that you can get started with your company goals as intended and accomplish them quickly.

Overview of Ukraine

• Estimated Population: 44.39 million (2019)
• Currency: Ukrainian Hryvnia (UAH)
• Capital: Kyiv
• Languages used: Ukrainian and Russian
• GDP: 153.8 billion USD (2019)

Employment In Ukraine

In Ukraine, it is a legal requirement for every employee, regardless of nationality, to possess a labour book, which serves as a concise record of their employment history. The initial labour book is issued by the first employer, and subsequent employers are obligated to update it accordingly. The labour book includes information such as the start and termination of employment, professional development, changes in the workplace, and other relevant details.

Ukrainian labour laws apply to all workers in the country, irrespective of their nationality. In the case of any employment-related disputes, Ukrainian jurisdiction is applicable. However, there are exceptions to this general rule:

• If there are international treaties in place that specify a different applicable law.
• In situations where foreign employers have assigned their employees to work in Ukraine, there may be specific regulations that apply.
• Employees working at foreign diplomatic missions or embassies may be subject to separate rules and regulations.

It is crucial for both local and foreign employers operating in Ukraine to familiarise themselves with the labour laws and ensure compliance. Seeking legal counsel or expert advice can help navigate the intricacies of Ukrainian labour regulations and ensure a smooth employment experience for all workers.

Entitlements	Explanation
Statutory Work Hours	40 hours per week; 5 days a week
Statutory Employment Rights of workers	Employment contracts are not time-limited. Only a few background checks may be performed due to data protection and privacy laws, and such verifications may only be made with the subject’s agreement. Only with the applicant’s permission can background checks be conducted by third parties.
Categories of Worker	The law in Ukraine does not distinguish between workers. According to an employment agreement, all workers are permitted to work. Civil laws apply to self-employed individuals and contractual workers, whereas employment rules apply to employees.
Employment contract Ukraine & Employment agreement Ukraine	Employment agreements and contracts differ. The former is more flexible, whereas the latter is used to formalise work connections. Terms of service, rights, obligations, and grounds for termination all need to be included in an employment contract. All contracts for employment and other agreements must be written in Ukrainian. Collective bargaining agreements made with trade unions are legally enforceable against all employees and employers.
Changing of employment terms and conditions	Changes to essential terms, such as work hours and pay, can be made by employers, but they must be communicated to affected workers in writing at least two months in advance. The employee’s permission is not necessary.
National Minimum Wages	Every month, the minimum salary in Ukraine is UAH 60,000.
Bonus	In Ukraine, there are no regulations governing bonuses. There are particular caps on salaries for those working in the public sector, nevertheless.
Working Hours	Students between the ages of 14 and 15 can work for 24 hours per week during the summer, while employees between the ages of 16 and 18 can work for 36 hours per week.
Overtime	The use of overtime is only permitted under extraordinary circumstances, according to the legislation, and it should not exceed 120 hours per year for each employee. The hourly salary is doubled for overtime.
Shift workers	For shift employees, the maximum daily work period is 12 hours. Workers cannot work consecutive shifts.
Leave	Annual Leave: Regular employees on payroll are entitled to a minimum of 24 calendar days of annual leave. However, workers under the age of 18 enjoy an extended minimum annual leave of 31 calendar days. Additional Paid Holidays: Certain categories of workers are eligible for additional paid holidays. This includes workers who perform their duties under challenging conditions, employees engaged in special types of production, and mothers with two or more children under the age of 14. Sick Leave: Compensation for sick leave is provided through the Ukrainian State Social Security Fund. Employees who are unable to work due to illness or injury can avail themselves of sick leave benefits. Maternity Leave: Expectant mothers are entitled to 70 paid days of maternity leave before giving birth and an additional 56 paid days after the birth of their child. Furthermore, women employees have the option to take additional unpaid leave until their child reaches the age of three. Paternity Leave: In Ukraine, fathers can also take 14 days of unpaid paternity leave if their wives are on maternity leave. This allows fathers to support their partners and bond with their newborn children.
Paid Holidays	There are 11 public holidays every year. All of these holidays are paid for. These are: 1 January – New Year’s Day 7 January – Christmas (Julian Calendar) 8 March – International Women’s Day 1 May – 2 May – International Workers Day 9 May – Victory Day 28 June – Ukraine Constitution Day 24 August – Ukraine Independence Day Moveable dates – Easter Monday Moveable dates – Pentecost Monday 14 October – Defender of Ukraine Day 25 December – Christmas (Gregorian Calendar)
Employee health benefits in Ukraine	In Ukraine, the state-run social security system offers free benefits to all employees. These benefits, which may be long-term or short-term, cover unemployment, death, pension payments, and disabilities brought on by work illnesses or accidents. Additional employee benefits include retirement, health and life insurance, and personal accident protection. Although Ukraine offers free healthcare, most people do not have enough insurance to fulfil all of their requirements. Since private medical treatment is quite expensive, employees’ medical expenses are covered by optional medical insurance. The insurance premium is paid by the employer.

Contractors vs. Full-time Employees

There are two official types of work in Ukraine:

• Employees are people who are employed by a corporation pursuant to a written employment contract or agreement. These workers have particular privileges and rights, and their employers are in charge of handling their taxes, accounting, and social security payments. Work laws in Ukraine control the conditions of these people’s work. Employers must properly categorise employees in order to avoid sanctions and fines under Ukrainian legislation governing employment contracts.
• Self-employed contractors are independent people, sometimes known as solo or private business owners, who set their own hours and are in charge of their own taxes and bookkeeping. They function in accordance with a civil contract. Although they have greater freedom in terms of working conditions, contractors are not entitled to the same perks and protections as employees.

It might be difficult to navigate Ukraine’s complicated employment and contractual landscape. However, by using our flexible Employer of Record (EOR) services, you may streamline the procedure and concentrate on your company operations in Ukraine. Our EOR services offer thorough assistance in handling employment duties, assuring adherence to regional rules and regulations, and supporting a seamless entry into the Ukrainian market.

Recruitment in Ukraine

Establishing a Ukrainian subsidiary or representative office allows foreign businesses looking to hire both local and foreign workers in Ukraine. It’s important to note that Ukrainian labour rules apply equally to both domestic and international workers, guaranteeing that all groups of workers enjoy the same benefits and protections.

To assist you in hiring local workers in Ukraine, there are a number of services accessible, including well-known employment sites like work.ua, glassdoor.com, jooble.com.ua, jobs.ua, rabota.ria.ua, Career Jet, and Learn 4 Good. These sites can help you identify qualified applicants for your available positions.

You should start by writing thorough job descriptions before starting the hiring process. Making a selection of eligible individuals can be substantially aided by utilising the experience of top recruiting businesses in Ukraine. Following the creation of the shortlist, you may email the applicants and do virtual interviews. The onboarding step, which starts after the selection process, entails making the offer of an employment contract or agreement and discussing the conditions of employment with the selected applicant.

You can guarantee that every step of the hiring and onboarding process is handled effectively by working with an Employer of Record (EOR) in Ukraine. Our all-inclusive EOR solution smoothly supports your expansion objectives, from recruiting top personnel to creating labour contracts and employee benefit plans that adhere to Ukrainian laws. Contact us right now to find out more about our features and value-added services.

Probation & Termination

Specifications	Details
Probation	In Ukraine, the usual probationary term for newly employed staff is three months long.The probationary term in Ukraine is limited to three consecutive months under the labour regulations of the country. When the Primary Trade Union Organization agrees, the probationary period in some situations might last for six months.
Termination of employment in Ukraine	Under the following circumstances, termination is allowed in Ukraine: • In a fixed-term agreement, the end of the period is specified in the contract. Voluntary termination requires a two-week notice. Termination may be due to a staff reduction  Termination may result from a violation of the labour agreement, the law, or the company’s internal procedures Liquidation In the final two situations, employee reduction and liquidation, the employer must provide two months’ notice. Employees who voluntarily leave their jobs must provide their employers with two weeks’ notice.

EoR Solution

Our Employer of Record (EOR) solution in Ukraine is intended to make things as simple and straightforward as possible for your company. In addition to keeping your firm’s costs low and giving you a distinct competitive edge, our company, a major participant in the EOR market, provides a cost-effective solution.

We are experts in acting as your company’s Employer of Record in Ukraine, helping you find the best local personnel, handling HR administrative work in the background, facilitating easy employee onboarding, and ensuring compliance with Ukrainian labour regulations. We handle month-to-month duties such as employee payroll, salaries, taxes, and benefits with the help of our unified system.

We are aware that every customer has different needs and aspirations for growth. Because of this, our effective EOR services are tailored to your unique demands and provide specialised solutions that are consistent with your corporate goals.

Our self-service platform provides top-notch services, including data compliance, round-the-clock assistance, industry-leading hire-through-retirement services, and more, and serves as a stepping stone to your success. We welcome you to contact us right away if you’re interested in finding out more about how our services might help your company.

Types Of Visas In Ukraine

Employing Foreigners	Hiring foreign individuals to work for your company in Ukraine involves the process of obtaining a work visa. However, certain categories of foreign workers are exempted from the requirement of a work visa in Ukraine. These include: Refugees Foreigners holding immigration permits Foreigners with a permanent residence permit Representatives of foreign maritime fleets and airlines in Ukraine Foreigners in need of temporary protection in Ukraine Sportspeople and artists Foreign media employees Clergy members in Ukraine Teachers and individuals from the scientific community teaching at higher education institutes Employees working at foreign representative offices in Ukraine. For these specific categories of foreign workers, a work visa is not necessary to legally work in Ukraine.
Ukraine Work Visa Requirements	Employers are required to apply for work permits on behalf of their workers. The documents needed are a copy of a passport, a copy of an employment contract, a passport-size photo, and evidence that the employer. Copies of academic documents A submission
Types of Work Visas	Transit (B Type) – given to foreigners whose transit through Ukraine lasts no more than five days. Short-term (C Type) – given to foreigners who want to stay in Ukraine for 90 to 180 days. Long-Term (D Type) – given to foreign nationals who apply for a temporary residence visa and intend to stay in Ukraine for a period of time longer than 90 days.

Work Permits

It’s crucial to comprehend that the Employer must apply for a work permit in addition to being aware of the many forms of work permits available in Ukraine. The lack of an online application process for Ukrainian work permits for foreigners presents another difficulty; as a result, a corporate representative must physically visit the State Employment Service of Ukraine to submit the work permit application and supporting documentation.

The work permit can be renewed many times and is issued for the duration specified in the job contract. The processing of the application typically takes seven days. Once your application has been accepted, you will get bank information to pay the work permit charge. When visiting Ukraine, your employee must have a verified copy of the work permit with them. Keep in mind that you need to have a job offer in order to apply for a work visa in Ukraine.

Payroll & Taxes in Ukraine

Employer Taxation

Tax	Explanation
Corporate Tax	18%
VAT	20%

Employee Taxation

Tax	Explanation
Income Tax	18%
Military Tax	1.5%

Bonuses

Bonuses, both contractual and discretionary, are common in Ukraine.

Due to red tape and ongoing changes to labour rules, establishing a business in Ukraine can be challenging. In order to ensure a seamless workflow in Ukraine, it is important to make use of the knowledge of local experts who are familiar with the laws and resources.

The expanding economy of Ukraine presents several chances for corporate growth. Creating a holding company domestically is one sensible strategy. The limited liability corporation (TOV) model is the one most frequently used for business establishment in Ukraine.

Businesses can profit from restricted liability while building a strong presence in the Ukrainian market by choosing a TOV structure. This model is a well-liked option for both domestic and foreign businesses since it offers a versatile and widely acknowledged structure that is in line with regional business norms.