On 23 May 2017, the Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Making Amendments to Certain Laws of Ukraine on Elimination of Barriers to Attraction of Foreign Investments” (the “Law“), which came into force on 27 September 2017. The Law sets forth new rules and procedures for employment of the foreigners by the Ukrainian companies, and in this article, we will make a short overview of some new rules.
The Law essentially increases an amount of remuneration to be paid to the employed foreigners. Particularly, a minimum salary of foreign employees of social and charity organizations and educational institutions shall amount to at least five minimal wages (in total, UAH 16,000 or approximately EUR 500), and for other foreign employees the salary shall amount to at least ten minimal wages (in total, UAH 32,000 or EUR 1,000). In order to compare, under previous laws, a salary for foreign employees might amount to even one minimal wage (UAH 3,200).
The abovementioned requirements do not apply to certain specific categories of foreign employees. For example, foreign highly paid employees shall receive salary in the amount of at least 50 minimal wages (in total, UAH 160,000 or EUR 5,000). Furthermore, employed founders/shareholders/beneficiaries of a Ukrainian company may receive the remuneration in the amount other than established by the Law, while the authorized capital of that Ukrainian company shall amount to at least EUR 100,000 and shall be paid up in full as on the date of receipt of a work permit.
Term of permit
The Law changes the term of a work permit depending on the category of a foreign employee. Particularly, the term of 3 (three) years is set forth for the foreign highly paid employees, foreign founders/shareholders/beneficiaries of a Ukrainian company, foreign IT-professionals, graduates of top 100 world universities and employees in the art industry. The term of a work permit of 3 (three) years is also established for foreigners employed on the secondary conditions.
Other new rules
According to the Law, Ukrainian individual entrepreneurs may hire foreign employees on conditions, established by the Law. Furthermore, the list of required documents for receipt of a work permit does not include a certificate on absence of criminal record and medical certificates, which were required before. In addition, the Law requires an employer to submit a copy of draft of employment agreement to be entered into with a foreign employee for receipt of a work permit.