Penalties for violation of the labor laws became more strict in 2017

Penalties and their amounts at a closer glance:

 UAH 320,000.00 = EUR 11208.00

The penalty has been envisaged for a refusal to allow a state labor inspector to audit an enterprise with the purpose of:

  • seeking for employees working under no employment agreements;
  • seeking for salaries paid without accrual and payment of taxes (the salaries paid off the books);
  • seeking for employees listed as part-time workers who actually do the full-time equivalent work as established by the enterprise.

UAH 96,000.00 = EUR 3363.00

(for each employee being a subject of violation)

admittance of an employee to work under no employment agreement (contract);

failure to issue an order or an instruction by the employer or its authorized entity on hiring an employee;

payment of salaries (remunerations) without accrual and payment of taxes (payment of salaries off the books);

listing of an employee as a part-time worker who actually does the full-time equivalent work as established by the enterprise (i.e. a person should officially work for 4 hours but he/she actually works for 8 hours);

incomplete payment of salary.

UAH 32,000.00 = EUR 1121.00

(for each employee being a subject of violation)

  • failure by the employer to pay salary and all compensations due upon resignation of an employee within the terms set forth by the labor laws;
  • failure to follow the state-established minimum guarantees related to the payment of the labor of each employee being a subject of violation (e.g., if night shift work, week-end or holiday work, overtime work, etc. have not been paid for).

UAH 9600.00 = EUR 336.00

  • failure to observe the established terms for paying salaries and other disbursements provisioned by the labor laws to employees by more than one month;
  • preventing the state inspector from carrying out an inspection.

UAH 3200.00 = EUR 112.00

  • failure to report or to timely report about hiring an employee;
  • preventing the state inspector from carrying out an inspection;
  • violation of other requirements of the labor laws.

In the event of a failure to pay a fine for the violation of the labor laws by a employer within one month, the ENFORCEMENT SERVICE will recover the penalties.

The enforcement fee of 10% of the amount to be recovered is recovered from the debtor along with filing an enforcement proceeding. Such recovery is a leverage over the debtor, which makes it reflect on whether it should delay voluntary fulfillment and what consequences the delay could entail as its debt grows in this event.

Who can inspect an employer and apply penalties on it

The following entities can check the observance of the labor law standards, and apply financial penalties on employers:

  • labor inspectorates;
  • bodies of local self-government;
  • fiscal service (as relating to payment of taxes).

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