Reasons for canceling an employment permit. Impact on previously issued temporary residence permit
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More and more people from abroad started coming to Ukraine to set up their businesses. The basis for staying in our country for more than 90 days is a residence permit (hereinafter referred to as "the Permit"). Since in the vast majority of cases it is issued on the basis of a work permit, foreigners who want to officially earn in Ukraine often have questions about whether cancellation of this permit can be grounds for revocation of a temporary residence permit.
The problem is that the answer is not so obvious, so we have prepared this article for you in order to elaborate on the requirements of the law.
A Work Permit
The easiest way to get a work permit for a foreigner is to start a company. IT specialists can enjoy a simplified, preferential procedure.
Important: A foreigner has 90 days after obtaining a work permit to sign a contract and then 10 days to submit it to the Employment Center.
A work permit for foreigners and stateless persons can be canceled if the employer fails to provide copies of the employment agreement/contract with the foreigner within the prescribed period.
The procedure for obtaining a work permit by founding a LLC is as follows:
Registration of a company in Ukraine → appointment of a nominal director → filing an application for a work permit → change of the nominal director to a foreigner
This is the most common and at the same time the most convenient procedure for non-residents.
Important: each of these stages has its own specifics, enshrined at the legislative level, so we recommend that you carefully study the regulatory framework or entrust these processes to professionals to be sure of their correct implementation.
You may also like: How an Employer Can Obtain a Residence Permit for Foreign Employees in Ukraine
Salary accrual for a foreign director
After taking the position of director, a foreign citizen is obliged to receive a salary, as provided by the Labor Code of Ukraine and the signed employment agreement. However, this does not always happen in the first time after starting a business. This also raises the question: may a failure to comply with the terms of the employment agreement be a reason for the revocation of a work permit?
In this case, the answer is unambiguous - yes. The basis for obtaining an immigration permit is that the foreigner is an employee. After obtaining a work permit, an employment agreement/contract serves as proof of an employment relationship.
Also, according to recent changes in legislation, the failure of the employer to pay taxes from the salary of a foreign employee, including social security contributions, within two months is grounds for revoking the work permit
In addition, the failure to accrue wages is subject to financial penalties: at the company - a fine of 10 times the minimum wage established by law at the time of the violation; an administrative fine of 30 to 100 tax-free minimum incomes (510 to 1,700 USD) is imposed on the officials of the company who allowed such a violation.
You may also like: How to Employ a Foreign IT Specialist in a Company Resident of Diia City in Ukraine?
Reasons for cancellation of temporary residence permit in Ukraine
A temporary residence permit can be revoked in the following cases:
- when a foreigner's actions threaten the national security of the state, the health of third parties, as well as public order;
- when a foreigner is convicted in Ukraine;
- when the National Police or the SBU provides information that a residence permit has been issued based on false data, expired or forged documents;
- when a decision has been made to forcibly return or expel a foreigner from Ukraine,
- in case of failure to pay taxes from the foreigner's salary, including unified social tax, within two months, etc.
The revocation of a work permit is the reason for the State Migration Service to revoke a temporary residence permit.
Extension of a residence permit through a work permit
To extend the validity of a residence permit, a person must submit the documents to the employment center no earlier than 50 days and no later than 20 days before its expiration.
Here is the problem: if this permit was previously canceled - you need to apply for a new one. In this case, you need to leave the territory of Ukraine, obtain a visa type D, insurance, etc. You can avoid all these procedures and corresponding financial expenses if you follow the legal requirements for work permits, which we mentioned above.
Please note! If a work permit has been canceled, a new one, in most cases, can be obtained no sooner than in a year.
Having analyzed the legal framework and practice, we can highlight the following key points which a foreigner must comply with in case of starting up a business in Ukraine, namely:
- The cancellation of the work permit will be the reason for the revocation of the residence permit;
- Failure to sign the employment contract within 90 days of the issuance of the work permit will result in the revocation of the permit;
- After the employment agreement is signed, it must be submitted to the employment center within 10 days;
- Failure to pay wages in accordance with the employment agreement may be a reason for revoking the work permit and will be the basis for penalties.
These simple rules will help you to develop your business legally in Ukraine, but if you have doubts about the compliance of your actions with the legislation, we advise you to seek professional legal assistance.
If you need assistance from our legal team in obtaining work permits for your employees, obtaining residence permits for your employees, and any other legal assistance for your business, don't hesitate to contact us.
The cost of obtaining a Work Permit here.