Ukraine: Accounting, Payroll Accounting and HR Subjects in Ukraine, Penalties for Violations

Ukraine, Kyiv

By Resolution No. 55 of 10.02.2016 the Cabinet of Ministers of Ukraine amended the Procedure to penalize for the violations of labor legislation presumed by the Labor Code (Art. 265) and by the Law of Ukraine "On Employment" (Art. 53). The financial penalties could be imposed on the basis of:

- court decision (in the case of actual admission of an employee to work without signing relevant employment agreement (contract) or a part-time employment when in fact the full-time employment exists);
- report of the State Labor Inspection of Ukraine.

Penalties for violation of labor legislation are the following:

30 minimum Salaries (UAH 43.500 from 01.05.2016) for:
- actual admission of an employee to work without signing relevant employment agreement (contract);
- or a part-time employment when in fact the full-time employment exists;
- or payment of salary (remunerations) without calculation and paying of payroll related taxes and withholdings;

3 minimum Salaries (UAH 4.350 from 01.05.2016) for not paying salary for more than one month or not paying in full.

10 minimum Salaries (UAH 14.500 from 01.05.2016) for:
- non-complying with the minimum state guarantees of labor remuneration;
- or non-complying with legal guarantees and privileges for employees, who are involved in the performance of military service;

1 minimum Salary (UAH 1.450 from 01.05.2016) for other violations of labor legislation.

Article 265 of the Labor Code does not set the period of limitation to apply the penalties. Meanwhile, the Tax Code (Art. 102) prescribes the 1095 days limitation period for the penalties. Due to the lack of practice it is difficult to presume regarding the period of limitation would be applied to the penalties.

HWC LLC ( Henninger Winkelmann Consulting) is a Consulting Company in Kyiv, Ukraine, owned and managed by the two german founders Dipl.-Kfm. Sven Henniger and Dr. Thomas Winkelmann. HWC advises international and Ukrainian clients in the areas of Outsourcing Services (Market Entry Consulting, Company Foundation, General Director Function, Interim Management, Legal Address, Business Address, Bookkeeping / Accounting outsourcing, International Reporting (IFRS , US GAAP), Payroll Accounting Outsourcing, Tax Consulting, Recruiting, Office Rental, etc.), Business Services (Strategy Consulting, Restructuring Advisory, Due Diligence, etc.) and Real Estate Services. For further information: www.hwc.com.ua

HWC LLC (Henniger Winkelmann Consulting)
04205 Kyiv, Ukraine
Obolonskyi Ave 26

Phone: +380 44 451-5154
Mail: office@hwc.com.ua
Web: www.hwc.com.ua

This release was published on openPR.