On 8 September 2015, ResolutionNo. 696 of the Cabinet of Ministers of Ukraine "On Approval of the Orderon Measures for Promotion of Employment of Internally Displaced Persons andFinancing Such Measures" was adopted (the "Order"). 

Internally displaced persons are citizens of Ukraine permanently residing inUkraine, who have been forced to leave their place of residence to avoid thenegative effects of an armed conflict, temporary occupation, violence, massivehuman rights violations and/or emergencies. 

Measures on promotion ofemployment

Under the Order, compensation is to be provided for the costs to the employerconnected with (1) payment for labor under fixed-term employment agreementswith unemployed persons from among internally displaced persons, and (2)retraining and professional development of such persons. 

Compensation for wages

The employer can receive compensation for wages for no more than six calendarmonths provided that it hired a registered unemployed person from amonginternally displaced persons pursuant to  an assignment from the StateEmployment Center.  The employer must guarantee employment of such personfor twice the duration of the period of compensation.  In other words, toreceive compensation for wages for six calendar months, the employer mustconclude a fixed-term employment agreement with the internally displaced personfor a period of not less than 12 months. 

Under the Order, within two months from the date of employment of theinternally displaced person,  the employer must submit to the relevantEmployment Center: (1) an application for reimbursement of wages and (2) a copyof the employment agreement or an employment order.  If the EmploymentCenter decides to pay compensation to the employer, the employment center andthe relevant employer will conclude an agreement on compensation.

No later than after five business days following the payment of salary to suchan employee it is necessary to submit a statement on accrued and paid salary tothe relevant Employment Center.  Compensation is paid to the employer on monthly basis in the amount of the actual costs related to the wages (includingthe Unified Social Contribution), however it can not exceed the average salaryof an employee in the relevant region for the previous month. 

Compensation of trainingexpenses

Compensation is paid for the cost of  the training, however it is cappedat the amount of ten times the minimum monthly subsistence level for a workingperson applicable as of the date of such payment. 

To obtain such compensation, within five business days after the end of therelevant training (but not later than 12 months from the date of employment ofthe relevant person) the employer must submit an application for compensationto the Employment Center together with  copies of all the documents relatedto such training.


Additional notes

ThisLEGAL ALERT is issued to inform Baker & McKenzie clients and otherinterested parties of legal developments that may affect or otherwise be ofinterest to them. The comments above do not constitute legal or other adviceand should not be regarded as a substitute for specific advice in individualcases.