Illegal employment will be punished by fines

To promote the legalization of wages and employment, the legislators adopted the Law of Ukraine № 77-VIII "On amendments to certain legislative acts of Ukraine on the reform of compulsory state social insurance and legalization of payroll", which entered into force on January 1, 2015.

Before hiring an illegal worker, every employer should consider that regulatory authorities, in case of detection of payment of wages without accrual and payment of the single contribution for compulsory state social insurance and other taxes, may impose a fine in amount of thirty times the minimum wage established by law at the time of detection of the violation for each employee, ie 36,500 in 2015.

In addition to this fine to be paid by the entity, its manager faces an administrative fine ranging from 500 to 1,000 minimum non-taxable incomes, that is – 8,500 to 17,000 UAH.

Also, the employer should take into account that now the law contains no such notion as "training". This means that every employer is required to officially employ a worker on the first day, that is to conclude an employment contract, to give relevant order and to inform the State Fiscal Service authorities at the place of registration.