Minimized financial expenses for a charitable organization and obtained work permits for foreign workers

A client - a group of individual philanthropists - contacted our firm in the fall of 2018. These were the founders and employees of an international charitable foundation, headquartered in London. The main area of ??activity of the foundation was to help financially disadvantaged elderly people.

Obtaining a work permit was one of the final stages of launching an international charitable network of client in Ukraine.

Our lawyers registered a charitable organization before starting the procedure of obtainment of a work permit. It was headed by a nominee director (one of our lawyers).

The feature is the result of Ukrainian legislation, which does not allow a non-resident to become a head directly.

The restriction did not allow directly to take on projects, since nominee head usually acts only as a signer of documents for obtaining a work permit.

That is why the client wanted:

  • First of all, obtain a permit for the position of a head, who was a director according to charter. This would allow to open bank accounts for the collection of donations and charitable contributions, as well as make a charitable foundation fully functional. Efficiency in the process was the most critical moment for the client.
  • After the beginning of activity, to obtain work permits for other foreigners, who were supposed to hold executive positions and ordinary positions in the organization.

Since foreign workers from different positions and with different nationalities / citizenships had to be involved in the activities of Ukrainian charitable foundation, the following factors had to be properly taken into consideration.

The factor of citizenship influenced an ability to work in Ukraine, as well as reside here for a long time. The matter is that a work permit does not give the right to live in our country, it can only be a ground for obtaining the necessary document (a residence permit).

Therefore, all employees were divided into groups:

  1. workers, who had citizenships of countries for which Ukraine had established a visa-free regime that allowed to stay on the territory of country for up to 90 days without interruption (for example, the United Kingdom) and which, in turn, did not require a longer stay due to the need to constantly travel between charitable organizations in different countries;
  2. workers with citizenship as in group 1, but for whom specificity of positions required a longer stay in the country (more than 90 days);
  3. workers with passports of countries, for which Ukraine has introduced a visa regime.

For the first group a work had to be completed during obtainment of a work permit.

But for groups 2 and 3 legal support at the migration authorities was required in order to obtain a status of a temporary resident (a temporary residence permit).

Delimitation by positions also helped in successful completion of the stage of the project. So, for executive staff, who also were founders of the charitable organization, there was an opportunity to obtain a 3-year permit. While ordinary employees could get only one year permit.

Similar terms were also used for the validity of residence permits (in cases, where they were needed). Of course, the documents could be extended for the same term, but frequent extensions could affect the client's plans.

The requirements of relevant legislation on the minimum wage of a foreigner in Ukraine were one of the important aspects of the procedure. While heads-founders could receive a minimum wage (as for Ukrainian citizens), ordinary foreign workers should have received a fivefold salary companring to the minimum wage for Ukrainians.

Considering the fact that the charitable organization operates based on donations, any additional costs should have been minimized. Therefore, the client had to choose only indispensable foreign staff, and the main activities had to be covered by local employees.

Taking into consideration all the nuances, the lawyers of our firm used the following approach:

  • Obtained work permits in the order, which allowed to start activity first, and then scale it;
  • Obtained residence permits, which provided an opportunity to live in Ukraine (including families) for a number of employees;
  • Considered limited amount of finance when signing employment contracts, setting wages and other administrative costs (focusing on their minimization).

What benefit did the client get by contacting us?

  • Our lawyers provided comprehensive advice on migration, employment and tax legislation. It helped to understand the grounds for obtaining a work permit, as well as to minimize administrative costs (for example, wage payments for certain categories of workers);
  • Provided that it was necessary to obtain a work permit and residence permit at the stage of registration of the charitable foundation and to enter relevant information in the charter.

For example, our lawyers insisted on changing the position proposed by the client "Head of the Foundation" to the "Director", since the former is not in the classifier of professions. It would serve as a reason for a refusal of the Employment Center and would be necessary re-submit documents for work permit, as well as to make changes to the charter of the charitable foundation;

  • Helped to obtain work permits, as well as provided further legal support in order to obtain residence permits through these permits.

If you are the head of a charitable organization and want to extend a work permit for your foreigner worker, our lawyers will provide advice. Call the number

Publication date: 04/01/2019

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