Regarding registration of labor relations

Press service of the State Tax Service of Ukraine, published 08 January 2024 at 10:54 Chapter: News

Employment contract is a document that regulates relationship between employee and employer. It defines rights and obligations of both parties, working conditions, salary, validity term, procedure for change and termination. 

Employment contract can be concluded in writing form and signed by both parties or formalized by issuing order to hire employee. Employment contract can be fixed-term or open-ended, full-time or part-time, depending on the essence of work and wishes of parties.

From the moment of signing employment contract, employee is the employee who has labor rights and social guarantees, namely:

- decent and safe working conditions;

- standard working hours;

- paid and unpaid vacation leaves;

 - regular payment of salary not lower than the minimum;

- opportunity to study and improve qualifications;

- protection against illegal dismissal;

- insurance payments in case of incapacity;

- benefits for minors;

- additional social guarantees for women and employees with children;

- protection of rights, etc.

Registration procedure of labor relations with employees is the same for all employers. It includes three main steps:

concluding employment contract;

compiling order for employment;

notification of the State Tax Service. 

Notification of hiring of employee/conclusion of a gig contract is submitted by the owner of enterprise, institution, organization or authorized body (person) or individual (except for notification of hiring member of the executive body of the business company, head of the enterprise, institution, organization) and/ or the Diia City resident to territorial bodies of the State Tax Service at their registration place as a payer of single contribution to obligatory state social insurance in the form according to annex before the start of employee's work under concluded employment contract and/or before the start of work (provision of services) by gig specialist of the Diia City resident by the electronic communication means using electronic signature of responsible persons, based on the qualified electronic signature certificate, according to legislative requirements in the electronic document flow.

In the absence of technical possibility to submit notification of hiring of employee/conclusion of gig contract by the electronic communication means in the electronic form, such notification is submitted in the form of paper document according to annex together with a copy in the electronic form.

In case of submission of notification by the electronic communication means with use of an electronic digital signature, the employee may be allowed to work immediately after sending such notification.

Timely registration of labor relations is a guarantee of financial stability of the business. In addition, financial risks and consequences of using undeclared labor significantly exceed the costs that arise in case of formalizing labor relations with employees according to the law.