STS and the State Labor Service join efforts to counter the use of undeclared employment

Press service of the State Tax Service of Ukraine, published 29 June 2021 at 17:25 Chapter: News

State Tax Service of Ukraine within a framework of the signed Memorandum of Cooperation and Partnership between the State Tax Service and the State Labor Service agreed on a mechanism of joint work to implement measures aimed at encouraging taxpayers and employees to move from informal to declared employment.

These measures include:

- information campaign on the benefits of formal employment and risks of using undeclared labor;

- actual audits of taxpayers conducted by the STS and the audit campaign of the State Labor Service among employers who have the highest risk of using undeclared labor.

It should be noted that the STS constantly monitors probable risks of using the labor of undocumented employees. Results of such monitoring will be used in the course of control and verification measures of the STS and additionally submitted to the State Labor Service for appropriate response.

Purpose of combining efforts of the STS and the State Labor Service is to counteract the use of undeclared employment.

For reference: According to Article 265 of the Labor Code of Ukraine, a sanction amount for the use of labor of one undocumented employee is 10 minimum wages, which is 60 thousand UAH in 2021. The sanction amount increases depending on a number of detected unregistered employees.

If such violation being repeated within two years, the sanction amount will be increased to 30 minimum wages for each such employee and will amount to 180 thousand UAH.

Taxpayers please note the above mentioned and prevent the use of undeclared labor. Undeclared labor harms society, the state and employee.

Be conscious and comply with labor laws.

Communicate with the State Tax Service remotely using the “InfoTAX” service