According to Resolution of the Cabinet of Ministers of Ukraine No. 413 of June 17, 2015 (Resolution No. 413), employers must submit a notice of hiring employees to the Tax Service (hereinafter referred to as the Notification), but its submission raises many questions. The requirement for an employer to notify the tax authority about the employee’s employment is established in Part 3, Article 24 of the Labour Code.

According to its norms, an employee may not be allowed to work without complying with such specific conditions:

— without entering into an employment contract issued by an order (decree) and

— without notifying the tax authority about the employee’s employment.

A Notification must be submitted in the form provided in the Appendix to Resolution No. 413.

All employers must report about hiring employees, both legal entities and individuals using hired labour. The Notification must be submitted to territorial bodies of the State Tax Service by place of registration of the employer as a USC payer. It is necessary to notify about the employment of persons with whom we conclude an employment agreement or contract.

Regardless of whether the employment contract is concluded verbally or in writing, the employer must issue an order to hire an employee.

Notifications must be submitted when applying for a job under an employment contract although:

— an employee has been hired full-time or part-time (both external and internal);

— what type of employment contract is concluded (indefinite/fixed-term, for performing temporary/seasonal work);

— a citizen or foreigner is hired;

— an employee is accepted for transfer from another company, for a referral from the Employment Center, etc.

There is no need to submit a notification about the hiring of:

— director of the company;

— members of the executive body of a business entity, information about which is included in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Formations (hereinafter referred to as the USR). The Tax Service receives information about their employment directly from the USR on the day of registration of changes.

Also, it is not necessary to report persons with whom employment relations are not formed: persons who perform work (provide services) under civil contracts and persons who have internships.

Deadline for submission.

The Notification on the employee’s employment must be submitted before the employee starts working under the concluded employment contract.

Can I submit a Notification on the day the employee is allowed to work? Yes, if the employee starts working later then the Notification is submitted. For example, if an employee starts working at 4 pm and the Notification is provided at 9 am, the instructions of Article 24 of the Labor Code will not be affected.

Submission methods are defined in Resolution No. 413:

1) by means of electronic communication using a Qualified Electronic Signature (QES);

2) on paper together with a copy in electronic form;

3) on paper, if the Notification contains information about the acceptance of no more than 5 persons.

Sending a Notification by mail is not provided in Resolution No. 413.

Features of filling in detail 4 “Person category”:

— “1” — when we hire a full-time employee, including if this is their first place of work and they do not have an employment record book;

— “2” — if we enter into an employment contract with a part-time employee, including a separate employment contract for internal part-time work with an employee already working for the employer.

Failure to submit a Notification provides for paying a fine in the amount of one minimum wage (UAH 6,000 — and from December 01, 2021, it is UAH 6,500, paragraph nine, Part 2, Article 265 of the Labour Code). If the violation is committed repeatedly within a year, the fine is two minimum wages (paragraph ten, Part 2, Article 265 of the Labour Code).