Fines for using undeclared employmentChapter: News

Have you not concluded employment contract with employee? Be prepared to pay a big fine that can seriously affect business. Amount of financial sanction can reach 201 thousand UAH for each unregistered employee.

Your undeclared employee can apply to the court for registration of employment relations. In such case, issuing a decision, the court will oblige you to pay salary to employee for the entire period of his/her work. The fact that you previously paid salaries will not affect its payment by the court decision. In addition, you will have to pay taxes and social security contributions.

Court's decision on registration of labor relations the employee is the basis for imposing a fine by the State Labor Service without conducting audit.

This means that you will pay twice for the same work and also receive a fine!