Legal Assistance for Hiring Foreign Workers: Key Considerations Regarding Work Permits

The number of foreign workers coming to Ukraine for employment in local companies is steadily increasing. For large enterprises that actively recruit a significant number of foreign employees, the process of obtaining and renewing work permits can be quite complex and time-consuming. Some companies, faced with a large number of such workers, even opt to hire a dedicated individual to manage their documentation. However, in reality, this approach can incur unjustified costs. Based on our experience:

• Obtaining a work permit typically takes only 3-4 hours.
• Preparing documents for a D visa requires just 2 hours.
• Obtaining a temporary residence permit can be completed within 4-5 hours.

However, if these procedures are carried out for 2-3 employees simultaneously, the temporary expenses are significantly reduced, as translation, insurance, and document submission occur concurrently for all employees.

It's also important to note that the field of migration is highly specific, so assigning these tasks to a corporate lawyer or HR personnel can lead to serious errors. These mistakes, in turn, can result in missed deadlines, refusal to issue documents, and even fines for violating deadlines for foreigners' stay in Ukraine or the rules of their employment.

In this article, we propose focusing on the key aspects to consider when processing foreign workers and providing guidance on determining the timelines for work permit issuance. Additionally, we will offer your company a solution to optimize the process of obtaining and renewing work permits for foreign employees, even when dealing with simultaneous documentation for a large number of workers from abroad.

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Employing Foreign Workers: Considerations for Employers

Each foreign national employed by a company has their own validity period for their work permit and, consequently, individual deadlines for submitting documents for its renewal. Not to mention the obligations that arise for the company after obtaining these documents for foreigners. It's essential to have an optimized strategy for working with them and managing potential risks. The first thing we recommend during the process of obtaining a work permit for a foreign national is to correctly determine the duration for which you will be applying for their work permit.

What factors influence this decision? If you only need this employee for the short term and aren't sure about continuing the collaboration afterward, or if you want to first assess whether the employee is genuinely necessary, it's best to apply for a permit for a duration of up to 6 months (or a maximum of 1 year). In such cases, it's recommended to base the duration on the time needed by the worker to fulfill their assigned tasks.

However, if you anticipate a long-term partnership with the foreign national, it's advisable to opt for the maximum duration possible, which is typically 2 years for standard employment agreements with foreign employees. For seconded foreign workers and intra-corporate assignees, this period extends to 3 years. Conversely, for individuals coming to Ukraine for educational purposes who also intend to work during their stay, the duration should not exceed 1 year. Essentially, the duration of the work permit hinges on the employer's intended period of employment for the foreign worker and the grounds for their employment.

Secondly, it's important to consider the salary requirements for foreigners. In 2022, the previous salary requirements for foreigners were abolished. Therefore, the same requirements now apply to them as to Ukrainian citizens – a minimum of 8,000 UAH per month as of April 1, 2024. For foreign specialists hired under gig contracts, specific terms of employment apply. In such situations, it's advisable to seek assistance from our legal experts who can help ensure correct salary calculations and proper documentation of gig contracts.

When extending the validity of a work permit, it's crucial not to miss the deadlines set by Ukrainian legislation for document submission. Otherwise, extending the permit will be impossible, and eventually, you'll need to reapply for a new permit. This entails gathering a larger set of documents and paying a higher fee (equivalent to 1 subsistence minimum for able-bodied persons) for the permit renewal.

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Managing Foreign Employee Registration and Permit Renewal: Addressing Potential Risks

When it comes to registering and renewing work permits for foreign employees, it's vital to be mindful of common errors and potential risks. These risks can stem from non-compliance with legal requirements or oversight in executing the necessary procedures. Here are some key considerations:

1.  Foreign workers cannot begin their duties or sign agreements until they have obtained approval from the Employment Center. Failure to adhere to this requirement can result in administrative penalties for both the company and the foreign employee in the form of fines.

2.  Once a foreign worker receives authorization, it's crucial to promptly finalize the employment agreement. Ukrainian law allows a three-month period from the date of permit issuance for this purpose. Additionally, a copy of the signed employment contract must be submitted to the Employment Center within 10 days. Failure to meet these obligations may lead to the revocation of the work permit, rendering previous expenses wasted.

3.   Compliance with Unified Social Contribution payments for employees is mandatory under labor laws. The Employment Center regularly monitors Unified Social Contributioncompliance for foreign workers and shares this information with the Pension Fund. Failure to pay Unified Social Contribution for two consecutive months may result in the cancellation of the work permit. Typically, the Employment Center notifies employers of any identified issues before revoking permits, providing an opportunity to rectify them. It's crucial to respond promptly and provide accurate and comprehensive documentation. Our experienced lawyers are available to provide assistance in this matter.

There are several other reasons why a work permit may be revoked, and our lawyers will explain these during the support process. It's crucial not to overlook these reasons because if a permit is revoked, obtaining a new one will only be possible after a year.

We assist several companies actively employing a large number of foreign workers. Our clients understand the importance of attentiveness and precision in this process, which is why they entrust us with this task. Additionally, based on our experience, after obtaining a work permit, foreigners often require documents for legal residence in Ukraine. In such cases, this would be a residence permit in Ukraine based on employment. Our company also provides comprehensive support throughout this process.

Hence, while obtaining a work permit, you may encounter significant difficulties and delays in further hiring foreign workers. This could disrupt your company's development plans and operations and even lead to financial losses. Therefore, we advise ensuring compliance with all requirements and conditions during the permit application and renewal processes, and seeking professional assistance from our lawyers. This will help avoid unpleasant situations and maintain a seamless process of hiring foreign workers in your company.

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Professional Outsourcing for Your Business: A Full Range of Services for Hiring Foreign Personnel

To simplify the process of hiring your foreign staff, we offer our outsourcing services. With over 15 years of experience specializing in migration processes, our company is ready to provide a comprehensive range of services for your business, including:

• Preparation of various documents, such as drafts of power of attorney, applications, commitments, employment contracts, contracts, gig contracts, and others.
• Arrangement of insurance, translations, and other required documents.
• Obtaining a work permit on a turnkey basis.
• Completion of the electronic visa application form and preparation of documents for obtaining a D visa.
• Assistance in submitting documents for obtaining a residence permit and registering a foreigner's place of residence.
• Monitoring and advance notification of the expiration of foreign workers' employment permits and residence permits, as well as preparation and submission of documents for their extension.
• Consultation on Employment Rules, the necessity of paying Unified Social Contribution, providing correct reporting to the tax authorities, etc.
• Preparation of documents and support for the procedure of canceling a work permit and residence permit, deregistration from the registered place of residence.

All our services are provided with minimal involvement of the foreign worker, except in cases where their personal presence is required for document submission. We handle all necessary actions on behalf of the employer, based on a power of attorney.

To obtain all the necessary information and personal consultation, please contact us at our toll-free hotline number 0 800 210 652, or click the "Order Call" button right now. With our experts, you will definitely receive professional assistance and the best solutions for your business.