Dear Colleagues!

Please note that starting 1 January 2017, due to the increase of the minimum wage, the existing financial fines for violation of labor law increased as well and, additionally, new fines were introduced. Effective 1 January 2017 failure to comply with the minimum state guarantees for labor remuneration (e.g. wage indexation) may lead to fine of 10 minimum wages (32 000 UAH) per each employee. Other violations of labor law may lead to fines of up to 100 minimum wages (320 000 UAH) to be imposed by the authorities.

Moreover, additional state bodies were empowered to organize and conduct inspections for labor law compliance. We emphasize that the State Labour Service of Ukraine approved the plans for inspections on labor law compliance for 2017 for all regions of Ukraine. As reported by the Ministry of Social Policy of Ukraine, 750 inspections of Ukrainian employers were conducted in January 2017.

If you require our support with preparation for a potential inspection, we would be glad to review and analyze relevant documents, agreements (contracts), internal policies, methods and approaches used by your company:

  •    when admitting an employee to work and concluding an employment agreement (contract)
  •    for payment of salaries / payroll accounting
  •    for wage indexation and compliance with other state guarantees on labor remuneration

In case you are interested in the services of analysis of payroll and HR administration correctness, or you have any other questions regarding the application of labor law, please contact us and we will be glad to assist you. For more information and our contacts please see attachment to this letter.



People Advisory Services, EY Ukraine