Undeclared employment increases expenses for employers

Press service of the State Tax Service of Ukraine, published 21 March 2023 at 10:16 Chapter: News

Informal economy and undeclared employment contribute to the creation and existence of unfair competition in relation to those business entities that fully fulfill their obligations regarding payment of taxes, labor protection and social security of employees.

Use of undeclared employment for employer is:

- additional spending of time and resources on training of employees – experienced specialists will refuse to work under such conditions or will quickly find a better place;

- problems with obtaining bank loans and investments;

- closed access to new markets of the EU countries, Canada and several dozen other countries with which Ukraine has concluded free trade agreements;

- significant fines for violations of labor legislation in case of audit, etc.