Law

Employment of foreigners: what Ukrainian employers should know

Ukrainian companies more frequently invite the foreign experts, who are resident in Ukraine, to work for them. However, the employment of foreigners has its peculiarities. In particular, an employer who intents to conclude labor contract with a foreigner must obtain permit to use foreigner’s work. Let’s dwell on that.

Categories of foreigners

Let us remind that a foreigner is a person who is not Ukrainian national but of another state/s (para. 6 p. 1 art. 1 Law of Ukraine “On the Legal Status of Foreigners and Stateless Persons” No. 3773-VI of September 22, 2011).

The foreigners can be conditionally divided into two categories. The first category includes those who have the right to be employed on the terms and in accordance with the procedure laid down for the nationals of Ukraine. This category includes the foreigners and the stateless persons, who:

  • permanently resident in Ukraine;
  • are recognized as refugees in Ukraine;
  • have been granted asylum in Ukraine;
  • are recognized as persons in need of additional protection;
  • have been granted temporary protection;
  • have obtained permission to immigrate to Ukraine.

The second category includes the foreigners and the stateless persons (hereinafter – foreigners) who have arrived in Ukraine for term employment. Such persons are employed on the ground of the permit to use foreigners’ and stateless persons’ labor, granted according to the procedure specified in Law of Ukraine “On Employment of Population” No. 5067-VI of July 5, 2012 (hereinafter Law No. 5067) unless the international treaties of Ukraine otherwise provide, that the Verkhovna Rada of Ukraine (hereinafter – VRU) agrees to be binding (p. 4 art. 3 Law No. 5067).

The labor relations of foreigners who work at Ukrainian companies, entities and organizations are regulated by the legislation of the state where such employment takes place and by the international agreements of Ukraine (art. 8 the Labor Code, hereinafter – LCU).

Conditions to obtain permit to use foreigners’ labor

The permit for employment is obtained by an employer who intends to conclude labor contract with a foreigner (i. 1 art. 42 Law No. 5067). Such permit is also needed (unless the international treaties of Ukraine otherwise provide, that VRU agrees to be binding) for (art. 1, p. 1 art. 42 of Law on Employment):

  • Sending of foreign employees – the foreigners sent by a foreign employer to Ukraine to perform certain volume of works (services) under agreement (contracts) concluded between Ukrainian and foreign business entities;
  • Intracorporate transferee – the foreigners recognized as such in accordance with the schedule of specific commitments in the service sector of the Protocol of Accession of Ukraine to the World Trade Organization;
  • Foreigners and stateless persons in relation to whom the decision was made to prepare documents to address the issue of granting refugee status or status of person in need for additional protection.

The permission is granted for a fixed term and position.

The foreigner may be employed in the varying position at one or more employers provided that the permission is granted for each position. A foreign high-wage professional may to take a part-time position without any permission obtained in case the duration of the labor contract for part-time position does not exceeds the duration of the permit to take main position.

Foreign high-wages professionals are foreigners or stateless persons whose salary is no less than 50 minimum wages (UAH 208 605 in 2019).

A foreign employee may combine performance of work specified in the permit with the work at a position of temporary absent employee given this combination does not exceeds 60 calendar days during calendar year.

The foreigners are also entitled to carry out investment and international economic activity in compliance with legislation.

The foreigners and stateless persons cannot be appointed to a position of take up employment when the in accordance with legislation the appointment to that position or carrying out of the respective activity requires Ukrainian nationality unless the international treaties of Ukraine otherwise provide, that VRU agrees to be binding.

An employer can obtain the permit provided that he/she pays salary no less than:

  • five minimum wages (UAH 20 865 in 2019) to foreign employees working in NGOs, charitable organizations and educational institutions;
  • 10 minimum wages (UAH 41 730 in 2019) for all other categories of employees.

The requirements to the minimum wage do not apply in case the permit is obtained to employ special categories of foreigners.

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