According to the requirements of an article of the Labour Code of Ukraine (the "Labour Code"), commencing from 1 January 2015 an employee cannot be permitted to a work place without having entered into an employment arrangement in the form of a hiring order or decision. Further, an employer is obliged to file a notice on newly hired employees to the governmental authorities administrating the singly social tax; the procedure for filing such a notice is to be approved by the Cabinet of Ministers of Ukraine.
On 27 June 2015 the newspaper "Uriyadovyi Kurier" published Resolution no. 413 of the Cabinet of Ministers of Ukraine "On the Procedure for Filing a Notice to the State Fiscal Service and its Territorial Bodies on Hiring an Employee" dated 17 June 2015 (the "Resolution"). Thus, commencing from 27 June 2015, an employer is required to notify a local body of the State Fiscal Service on hired employee(s), according to the form stipulated by the Resolution.
A notice on hiring an employee should be filed by an employer to the territorial body of the State Fiscal Service where the employer is registered as a single social tax payer prior to commencement of work by an employee, in one of the following methods:
- By electronic means with the use of digital signature of a responsible person as stipulated by the electronic circulation and electronic signature legislation.
- In paper form together with an electronic copy.
- In paper form if employment arrangements were made with not more than five individuals.
We note that according to Article 265 of the Labour Code, a legal entity and a private entrepreneur utilizing hired labor shall bear responsibility in the form of penalty for violation of "other requirements of the Ukrainian labor law." In our view, there is a practically untested risk that violation by an employee of the procedure for filing a notification on hiring new employees may be treated by a body of the State Fiscal Service as a violation of "other requirements of the Ukrainian labor law."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.