How To Hire In Ukraine

A well-known investment destination, Ukraine has a well-skilled workforce. Especially the IT and software sector sees enormous demand when it comes to hiring by foreign companies. 

Several foreign investors have shown interest in setting up firms in the country. It is because of the trade openness and investment possibilities that Ukraine offers.

This country offers stability and safety for any business to flourish. The availability of an educated workforce fluent in English, plus the strategic location of Ukraine, benefits international investors. Moreover, the timezone in Ukraine is such that it pans out comfortably with the work timings in Europe and North America. When you hire employees in Ukraine, you must always comply with relevant rules and regulations. Here is guide to recruitment and selection in Ukraine

Things to Know Before Hiring in Ukraine

Before initiating recruitment and selection in Ukraine and understand how to hire employee in Ukraine  by learning about a few non-negotiable facts-  

• Ukrainian employees are highly diligent. However, it is essential to have strict rules around overtime and the hours they spend at work.
• Ensure all job postings are in tune with the legal terms. Mention all benefits and perks clearly for the job.
• The Labor Code in Ukraine dates back to 1971, but newer amendments are on the way to accommodate changes in work structures.
• Hire per the rules that promote non-discrimination of workers based on any grounds.

Employment-related must-knows

When you begin to hire employees in Ukraine, understanding employment practices is essential-

• For the recruitment and selection in Ukraine, employers must be sensitized toward understanding workers with a disability or such factors.
• Employers can request a background check, but Ukraine’s laws for data privacy are stringent. It might lead to limited results to help the process for hire employees in Ukraine.
• The official language in Ukraine is Ukrainian, but around 85% of the workforce is fluent in English.
• The country has legalized the presence and operations of trade unions, which apply while hiring.

Employment contract

In Ukraine, employment contracts apply to employees who are either-

• Temporary workers
• Permanent workers

The Ukraine Labor Law for recruitment and selection in Ukraine mandates using employment contracts in written form or at least a work agreement. The contracts are generally permanent and long-term, but shorter-term contracts are also possible.  The contract to hire employees in Ukraine must mention all employment details as below-

• Registered company name and address
• Contracted parties 
• Commencement of employment 
• Job tenure
• Job role and details
• Salary and perks
• Holidays and leaves
• Notice period and termination clauses
• Bonuses

Probation 

• An employment role when you hire employees in Ukraine can have a maximum probation period of 3 months for regular workers.
• It goes up to a month at the most for workers.
• Higher management positions have a probation period of up to 6 months.
• Some trade union-backed agreements may deem the probation for an employee to go up to 6 months.
• Some exceptional cases, such as a disability in employees, single mothers, hiring of employees for only up to a year, and so on, do not have probation applicable for the job. These specifics are mentioned as per Section 26 of the Labor Code.

Termination and notice period

• You are restricted from terminating employees who take sick leaves, are in their probation period and are pregnant employees. When the employer is looking to terminate an employee based on non-performance, reorganization, dissolution, or bankruptcy grounds, there is a 2-month notice required.
• An employee can quit with a one-month notice period submission. 
• If an employer seeks the dismissal of an employee on disciplinary grounds, the notice period is said to be a limited period for work. 

Working hours and breaks

• The general work hours when you hire staff in Ukraine are 40 hours weekly.

Overtime

• Overtime work can go up to four hours over two back-to-back days.
• Overtime per year is limited to 120 hours.
• The overtime pay is double the usual pay. It is also subject to collective agreements, industry standards, and mutual agreement between the employee and the employer.

Payroll

• Salaries get paid twice a month when you hire staff in Ukraine.
• Salary must be paid within 7 days of the promised date. .

Minimum wage

• The minimum wage rate when you hire staff in Ukraine in Ukraine is UAH 6,700 each month.

Maternity & paternity leaves

• Maternity leave applicable for an employee in Ukraine is allowed at 100% payment of wages for 126 days.
• Mothers are allowed 70 days and 56 days of leave before and after the child’s birth, respectively.
• Paternity leave is allowed for 14 days within 3 months of childbirth/adoption.
• As per the labor law norms,  parents get an additional 10 days added to their annual leave quota in Ukraine if they have two kids above 15 years or a specially-abled child of any age.

Annual leave

Employees are entitled to 24 days of paid annual vacation leave if they have finished an employment tenure with the employer for more than 6 months. 

Other leaves

• Employers pay for sick leaves for the first five days of providing a medical certificate
• Social security contributions for employees, cover sick leave periods up to a span deemed needful for recovery.
• All other leaves, such as bereavement leaves of 3-7 days and marriage leaves (for 10 days), are mandated but unpaid. 

Holidays for employees             

The list of public holidays in Ukraine includes-

Social security

As per  norms for eforced by the labor laws and applicable from recruitment and selection in Ukraine, employers pay 22% as a social security contribution on gross salary to employees.

Taxes

Personal income tax is applied at 18% of all income earned annually.

The Cost of Hiring an Employee in Ukraine

The related recruitment and selection in Ukraine might vary per the recruitment process in a specific domain or industry. The main headers for costs of hiring in Ukraine are-

• Job-related expenses
• Onboarding 
• Training costs
• The legal cost of hiring
• Establishment of team costs
• Taxes and social benefits
• Salary and bonuses
• Bank account-related costs
• Work permit expenses
• Annual book-related expenses 
• Costs for agency hired for recruitment and selection in Ukraine.

What Does a Firm Need to Hire Employees in Ukraine?

As you begin to hire in Ukraine, you must be aware of these requiremets-

• Agency hire costs for recruitment and selection in Ukraine
• Company registration and accounting
• Contract, union agreements, and company seal costs for recruitment and selection in Ukraine
• Translation expenses
• Notarization expenses
• Social security registration

Various Options for Hiring Employees in Ukraine                                                       

When understanding the process for recruitment and selection in Ukraine,  you can team up with any EOR service provider for Employer of Record (EOR) instead of having a full-fledged HR team. Multiplier can be your trusted partner for establishing an entity in Ukraine and hiring.

You may set up a team internally to abide by all norms for hiring. However, this will need the inclusion of more overheads and elaborate structuring.

Hiring a candidate is still traditional, with opening initial shortlisting after introductory interviews. A more formal interview schedule can help the hiring node judge the right person for the advertised job.

The Steps to Hiring in Ukraine

The hiring process in Ukraine might vary per the different metrics of a company. However, we have compiled some steps to ensure compliant hiring. 

Advertise job openings

• Advertise job openings on social portals, websites, and job boards such as oa.ua, obs.ua, Work.ua, Rabota.ua, and Djinni.co.
• Mention job details and experience plus qualification needs for the vacancy.

Interact with applicants

• Employers mostly communicate via Linkedin, email, or Skype in Ukraine to set up an introductory exchange with applicants.
• This step shortlists the pool of candidates who might be the right fit.

Scheduling interviews

• A formal round of interviews is set up as per the employer schedule for judging applicants’ core strengths.
• In such rounds, companies discuss varied aspects of the industry, the overall market, and candidate skills.

Selection and final offer to end the hiring

• The final selection gets communicated to selected candidates over a call or email. The next steps are dispatching an offer letter and further onboarding.
• Employers must provide an employment contract mentioning all terms of the job and related aspects.

Let Multiplier be Your EOR Platform in Ukraine

 For training employees for any job and the overall recruitment and selection in Ukraine, there is a lot of work at multiple levels, from shortlisting candidates to conducting interviews, background checking, etc. You may hire a PEO-EOR platform with a positive reputation, such as Multiplier, to get expert assistance on hiring. Our expert team aids employers in their recruitment and selection in Ukraine using SaaS-based Employer of Record solutions. Multiplier also assists employers in understanding and then complying with local laws to complete recruitment and selection in Ukraine.