Undeclared employment is a bad thing for everyone

Press service of the State Tax Service of Ukraine, published 04 June 2024 at 09:20 Chapter: News

Undeclared employment increases employers’ expenses. Informal economy and undeclared employment contribute to creation and existence of unfair competition for those business entities that fully ensure fulfillment of 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 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 signed free trade agreements;

in case of audit – significant fines for violations of labor laws, etc.