Ukraine: Authorities Clarify New Employment-Related Fines

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By Sergei Blagov

Feb. 23—The State Fiscal Service, Ukraine's tax authority, released guidelines Feb. 23 regarding the increased fines businesses face for violations of employment law and regulation under Law No. 77-VIII enacted Jan. 1, 2015.

Paying workers “cash in hand” without withholding and remitting income tax and social levies, for example, or retaining employees without employment contracts can result in fines amounting to 30 minimum monthly salaries (currently 36,540 hryvnia or $1,300) per employee. Similarly, paying salaries more than one month late can result in a fine of up to three minimum monthly salaries (3,654 hryvnia or $130) per employee.

To contact the reporter on this story: Sergei Blagov in Moscow at correspondents@bna.com

To contact the editor responsible for this story: Rick Vollmar at rvollmar@bna.com

The SFS guidelines are available at http://officevp.sfs.gov.ua/media-ark/news-ark/185210.html, full text of Law No. 77-VIII at http://zakon2.rada.gov.ua/laws/show/77-19, both in Ukrainian.

For more information on Ukrainian HR law and regulation, see the Ukraine primer.