Increased Employer Liability And Other Changes In Ukrainian Labor Law

On 1 January 2015, the Law of Ukraine "On Amendments to Certain Ukrainian Laws regarding Reform of Mandatory State Social Insurance and Legalization of Salaries Fund" of 28 December 2014 No. 77-VIII became effective (the "Law").

The Law, inter alia, has introduced the following amendments to Ukrainian law aiming to increase liability for violations in the employment sphere:

(1) Amendments to the Ukrainian Labor Code institute financial liability of employers in the form of fines for labor law violations (such as failure to duly formalize employment or payment of salaries, delays in payment of salaries or other payments, incompliance with minimum state guarantees as regards labor remuneration, and other violations). Depending on violation, the amounts of such fines vary from one minimum statutory salary (approx. USD 77) per violation to thirty minimum statutory salaries (approx. USD 2,317) payable for each employee, with regard to whom employer commits a violation.