Undeclared employment is a bad thing for everyone

Press service of the State Tax Service of Ukraine, published 28 June 2024 at 09:20 Chapter: News

Undeclared employment increases expenses for employers. Informal economy and undeclared work contribute to the creation and existence of unfair competition in relation to those business entities that fully ensure fulfillment of obligations regarding payment of taxes, labor protection and social security of employees. Use of undeclared work for the 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 concluded free trade agreements;

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