The State Labor Service of Ukraine has reminded that from September 1, 2020 it is planned to conduct inspections of employers who have the highest risk of undeclared work.
Entities in which the volume of services provided (work performed) does not correspond to the actual number of employees, in which there was a decrease in the number of employees during quarantine and there is no positive dynamics of employment after the mitigation of quarantine measures, as well as those who conceal labor relations, replacing them with other types of civil or economic relations will be subject to inspections.
The current legislation provides for criminal, administrative and financial liability for violations of labor legislation in terms of registration of labor relations with employees:
- criminal liability: fine of UAH 34 to 85 thousand, deprivation of the right to hold certain positions or engage in certain activities for up to five years, correctional labor for up to two years, arrest for up to six months;
- administrative liability: fine of UAH 8.5 to 34 thousand;
- financial liability: fine of UAH 50 to 150 thousand.
The State Tax Service of Ukraine (hereinafter – STSU) has announced that on August 8, 2020 the Law of Ukraine ‘On Amendments to the Tax Code of Ukraine on the Functioning of the User Account and Simplification of the Work of Sole Proprietors’ came into force and amended item 52, section 10, chapter XX of the Tax Code of Ukraine (hereinafter – Tax Code) in terms of lifting the moratorium:
- to conduct unscheduled documentary inspections on the grounds specified in paragraph 78.1.7, item 78.1 of Art. 78 of the Tax Code, the procedure of reorganization of a legal entity (except for transformation), termination of a legal entity or entrepreneurial activity of , closure of a permanent representative office or a separate subdivision of a legal entity, including a foreign company, organization, bankruptcy proceedings have been initiated or an application for deregistration of a taxpayer has been submitted;
- documentary inspections carried out at the request of the taxpayer (item 78.2 of Art. 78 of the Tax Code).
The current regulations do not establish an obligation to notify the taxpayer in advance of an unscheduled documentary audit on the basis of para. 78.1.7, item 78.1, Art. 78 of the Tax Code.
The taxpayer is obliged to provide officials of the supervisory authorities in full all documents belonging to or related to the subject of the audit. This obligation arises for the taxpayer after the start of the audit.
Tax authorities point out that the problem during the inspections is the failure to identify taxpayers and their officials at the legal address due to the termination of their activities, which in turn makes it impossible to take the necessary measures to deregister such taxpayers.
The STSU urges taxpayers to provide up-to-date information on contact details and the feasibility of conducting unscheduled documentary on-site inspections.
The State Tax Service of Ukraine has reminded that due to the increase from September 1, 2020, the minimum wage has changed the minimum and maximum amount of income, on which a unified social tax is accrued (hereinafter – UST) for individuals – payers of the single tax.
From September 1, 2020, the minimum UST per month is equal to UAH 1,100 (UAH 5,000 × 22%).
The maximum amount of income on which UST is accrued has changed. It is 15 times the minimum wage (UAH 75,000). Thus, the maximum UST per month is UAH 16,500.
As before, entrepreneurs (regardless of the taxation system) who belong to persons with disabilities, receive an old-age pension or have reached the age specified in Art. 26 of Law of Ukraine ‘On Compulsory State Pension Insurance’ No. 1058-IV of July 9, 2003, and receive a pension or social assistance in accordance with the Law do not pay UST.
The same quarterly terms for payment of UST have been introduced for all entrepreneurs: by the 20th day of the month following the quarter. It should be reminded that if the last day of payment of UST falls on a holiday or weekend, the last day of payment is the first working day following the weekend or holiday (paragraph 11 of Article IV of the Procedure approved by Order of the Ministry of Finance No. 449 of April 20, 2015).
The State Border Guard Service of Ukraine has reported on the list of documents confirming the purpose of travel to Ukraine of certain categories of foreigners or stateless persons during temporary restrictions on entry into Ukraine.
It should be reminded that the Cabinet of Ministers of Ukraine at an extraordinary meeting on August 27, 2020 specified the categories of foreigners able to enter Ukraine during the period of restrictions from August 28 to September 28, 2020.
- who are one of the spouses of a citizen of Ukraine must have a marriage certificate;
- who are parents or children of a citizen of Ukraine – birth certificate;
- traveling through the territory of Ukraine in transit – documents confirming departure abroad within two days;
- who come to Ukraine for study purposes – an invitation from the Ministry of Education and Science of Ukraine or a certificate of temporary residence in Ukraine, or a type D visa;
- who perform active duty – documents confirming active duty in the Armed Forces of Ukraine;
- who permanently or temporarily reside on the territory of Ukraine – a certificate of permanent or temporary residence in Ukraine;
- who are recognized as refugees or persons in need of additional protection, – a refugee travel document or a refugee identity card;
- who are employees of diplomatic missions and consular posts of foreign states, representatives of official international missions, organizations accredited in Ukraine, and members of their families – documents confirming such status (relevant certificate, accreditation card);
- who are heads and members of official delegations of foreign states, employees of international organizations, as well as persons accompanying them and entering Ukraine at the invitation of the President of Ukraine, the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, the Office of the President of Ukraine, the Ministry of Foreign Affairs of Ukraine – documents confirming such status/relevant invitation;
- who are drivers and/or crew members of trucks, buses engaged in regular transportation, crew members of aircraft, ships and river vessels, members of train and locomotive crews – documents confirming this status;
- who are instructors of the armed forces of NATO member states and member states of the NATO ‘Partnership for Peace’ program, who take part in the training of units of the Armed Forces or arrive at the invitation of the Ministry of Defense – documents confirming such status/invitation;
- who are cultural figures who arrive at the invitation of a cultural institution together with one person accompanying each of them, – invitation of a cultural institution, documents confirming the status of an accompanying person;
- who come to participate in official sports competitions held on the territory of Ukraine, and their accompanying persons – documents confirming the person's participation in official sports competitions, and invitations from the Ministry of Youth and Sports of Ukraine, documents confirming the status of accompanying person;
- who are technical specialists arriving in Ukraine at the invitation of representatives of Ukrainian enterprises, – invitations from representatives of Ukrainian enterprises;
- who are persons carrying out transportation of hematopoietic stem cells for transplantation, – supporting documents from the Ministry of Health of Ukraine or from the health care institution of Ukraine;
- who come for treatment to health care institutions of Ukraine – supporting documents from the health care institution of Ukraine.
In some cases, the head of the State Border Guard Service of Ukraine may decide on the admission of foreigners and stateless persons if there are humanitarian grounds.
The State Labor Service of Ukraine has informed the employer on their actions in case an employee falls ill with COVID-19.
To prevent the spread of coronavirus among employees, the employer must follow these rules:
- place disinfectants at the entrance to the enterprise, workplaces, etc.;
- ensure the availability of soap, water, disposable towels and hand sanitizers in the bathrooms;
- ensure that there are bins that do not need to be touched with your hands;
- ensure the wiping of frequently touched surfaces, namely: desks, kitchen worktops and door handles;
- ensure the availability of disposable wipes that can be used by employees to wipe the keyboard, desktops, etc.;
- ensure compliance with the mask regime – you need to wear a protective mask while being with other people;
- ensure compliance with hygiene rules when coughing or sneezing. Cover your mouth and nose with a cloth or napkin when coughing or sneezing. Dispose of used products in a separate bin. After that it is necessary to wash hands with soap and/or process hands with disinfectant;
- ensure regular hand washing with soap for at least 40 seconds. If it is not possible to wash your hands, they should be treated with disinfectants.
If a person with COVID-19 is found at the enterprise:
- employees who develop symptoms of acute respiratory illness (ARI) (cough, fever) after arrival at work or during the day should be sent home immediately, remain in isolation and inform the family doctor to decide on further action;
- if an employee or family member is found to have COVID-19, the employee must notify the employer in order to inform other employees and prevent the spread of the disease.
The employer must ensure the flexibility of the leave policy to ensure the self-isolation of employees with symptoms of ARI, as well as to care for sick family members. The Law of Ukraine ‘On Amendments to Certain Legislative Acts of Ukraine Aimed at Preventing the Occurrence and Spread of Coronavirus Disease (COVID-19)’ stipulates that in case the Cabinet of Ministers of Ukraine establishes quarantine in accordance with the Law of Ukraine ‘On Protection of Pipulation from Infectious Diseases’ leave without pay is not included in the general term established by Art. 84 of the Labor Code of Ukraine and Art. 26 of the Law of Ukraine ‘On Leave’.
If possible, it is necessary to transfer employees to perform work remotely. According to the Law of Ukraine ‘On Amendments to Certain Legislative Acts of Ukraine Aimed at Preventing the Occurrence and Spread of Coronavirus Disease (COVID-19)’, an employer may instruct an employee, including a civil servant, a local government employee, to perform work for a certain period, determined by the employment contract at home, as well as to provide the employee, including the civil servant, the employee of a local government, with leave upon their consent. First of all, it is necessary to reduce the likelihood of infection of high-risk individuals, which include the elderly and people with chronic diseases who are at greater risk of developing serious complications caused by COVID-19.
