EU helps to tackle undeclared labour in Ukraine

More than 20% of the employed population of Ukraine (which is more than 3.5 million people) is engaged in a completely or partially undeclared labor relationship. Find out what regions and sectors of economy have the most undeclared employees, and why both employees and employers are losing on that.

What is undeclared employment?

Undeclared employment is lawful paid-for activity, which is not documented, completely or partially, in accordance with requirements of law.

This form of employment is also called informal, unofficial, unregistered, shadow or concealed employment.

Request a consultation from the State Labor Service of Ukraine and find out when you have to make an employment contract and how.

How to differentiate a labor relationship from other relationships?

Employers often propose to sign a civil law-regulated agreement instead of an employment contract.

Remember: An employment contract is made between an employee and an employer. The parties to a civil law-regulated agreement could be any legal or natural persons.

Check whether you have a labor relationship using the checklist below:

If you answered YES more than two times, it is quite possible that you have a labor relationship with your employer. Don’t have an employment contract? Request a consultation from the State Labor Service: (044) 288 10 00.

How widespread is undeclared employment in Ukraine?

In 2018, the number of informally employed persons was 3.54 million! One should add to their ranks the information about persons who are paid their wages in cash, persons with undocumented part-time employment on the side, and persons working under other agreements instead of employment contracts. However, official data about it is unavailable.

For additional information, contact the State Labor Service of Ukraine.

Why is undeclared employment bad?

It’s ok for you to work without an employment contract? Don’t count on decent working conditions and don’t expect verbal promises to the fulfilled, then. You could be unfoundedly penalized, fired without prior notice, or may not be paid sick leave or compensation in the event of a work accident.

You are a business owner hiring employees without an employment contract? Get ready to spend time and money on training, for experienced specialists won’t work for you or will quickly find a better place. You will find it harder to receive bank loans and bring investments. And if you are inspected by the labor inspectorate, you could be charged a hefty fine for violation of labor law.

Finally, because of nonpayment of taxes the government is forced to raise taxes on businesses in order to pay pensions and sick leave, maintain schools and hospitals, repair roads, and so on.

For additional information, contact the State Labor Service of Ukraine.

“Go into Light!” campaign is carried out as part of the project “On the way toward safe, healthy and declared employment in Ukraine” funded by the EU and implemented by the International Labor Organization.

By Maria Datsiuk

Source: NV