Employer of Record in Ukraine: Hire, Manage, and Pay Talent Seamlessly

Agreements in Ukraine

• The Ukrainian Labor Laws distinguish between an employment agreement and an employment contract. While employment agreements are widely used, employment contracts are used in particular cases.
• Employment contracts are more flexible and can have additional provisions. It must be well-written with all the necessary employment information. Conditions like termination, duty, employment length, and rights should be mentioned.
• Ukraine has two types of contracts: definite or fixed and indefinite or open-ended.
• Indefinite or open-ended contract - A contract with no fixed end date is called an indefinite contract. It is mutually agreed upon and can be terminated by both parties. An employee can terminate the contract without stating a specific reason. The employer has to say a valid reason for termination.
• Definite or fixed-term contract - A contract that ends on a fixed date is called a fixed-term contract. It is agreed upon for a certain type of work and a fixed time. There is no minimum or maximum duration for a fixed contract in Ukraine.
• However, there are certain rules for the renewal of a fixed contract. If a fixed contract is renewed more than once, it will be treated as an indefinite contract.

Visa in Ukraine

• Transit Visa - It is issued for a transit period only. It can not exceed five days.
• Short-Term Visa - It is granted for a shorter duration. It is issued for a stay of up to 90 days duration.It gives entry into Ukraine for six months from the date of issue.
• Long-term Visa - It is issued for a duration exceeding 90 days. It grants multiple entries over 90 days.

Minimum Wage in Ukraine

Annual Bonus in Ukraine

Health Benefits in Ukraine

• The employer is responsible for maintaining the health and safety of its employees.
• An employee must declare health issues, if any.

Working hours and overtime in Ukraine

• Work hours: Work hours in Ukraine are of 40 hours a week. It usually expands over 8 hours of work in 5 days. If workdays extend to 6 days a week, the working hours reduce to 7 hours per day.
• Break: An employee is entitled to an unpaid break every day. The break time must not exceed 2 hours. Every company has a different time for a break.
• Overtime: Overtime is not allowed in Ukraine. The employer can not request any employee to work overtime. In some cases, however, an employee may work overtime. In this case, the employee is entitled to get double pay

Leaves in Ukraine

Social Security in Ukraine

• Social Security in Ukraine covers maternity, paternity, sick, and disability leaves.
• An employer has to contribute 22% to the social security fund.

Taxes for Employers in Ukraine

• The employer has to pay a 22% tax for the social security contribution. It is a compulsory tax in Ukraine.
• An additional corporate tax of 18% is levied on the employer.
• An employer may have to pay 20% of Value Added Tax.

Probation in Ukraine

Termination in Ukraine

• Termination of employment in Ukraine is a complex process. The employer has to state a valid reason for termination.
• An employee does not need to state the reason for resigning.

Severance Pay in Ukraine

• An employee is entitled to one month's salary as severance pay in case of termination.
• A corporate officer gets 3 to 6 months' salary on termination.
• The employee does not get any severance pay on resignation.

Employees or Contractors in Ukraine

• A person who works for a company and gets paid is called an employee.
• An organization or company that hires employees is the employer.
• There are two types of recognized employment in Ukraine - employees and self-employed.
• A penalty is imposed if an employer is found guilty of an employee's misclassification.
• The employer has to pay all legal benefits to such a misclassified employee.
• The employer has to pay all taxes and other contributions on behalf of the employee.