Employer of Record Ukraine

Our Employer of Record in Ukraine service enables clients to hire employees without the need to operate a local legal entity there.

About EOR Ukraine

It makes a big difference to develop a new market with your own personnel on the ground. Particularly for functions related to sales & marketing, business development, distributor management, and service & maintenance, our customers are very satisfied using our Ukraine Employer of Record Service.

Our customers and their local teams can be free of the distractions of administrative tasks and complex local requirements. So you can fully focus on the development of your core business.

If your local business grows large enough, you can easily transfer the employees to your own subsidiary. It also provides a quick exit strategy if necessary. In addition to Ukraine, we offer Employer of Record services in several other countries.

Get in Touch with Us

Alp Atasoy

Sales and Business Development Consultant

Employer of Record Ukraine - FMC Group's Approach

We offer:
Quick, flexible, and easy entry into Ukraine in compliance with local employment laws
Complete control over business development with your own team
Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
Using our comprehensive recruitment experience for international clients, we can form a local team that fits your corporate culture.
Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
Allowing for easy market exit if necessary
Integrating your employees into our team through motivational events and special meetings

EOR Ukraine Management & Reporting Flow

Hiring an Employee

When recruiting in Ukraine, clearly state language requirements in job postings. Ukraine offers a large, well-educated talent pool, especially in IT and engineering. Recruitment typically relies on online job platforms, agencies, and professional networks.

Employment Contract – indefinite vs. fixed term

In Ukraine, the standard practice is to enter into employment contracts of indefinite duration. Fixed-term contracts are permitted only in specific situations where a permanent employment relationship is not feasible, such as for a particular project or task.

The contract should be drafted in the local language and outline key details of the employment arrangement, including salary, job title and responsibilities, benefits, work location, and termination conditions. Additionally, the contract must specify the salary and any compensation in Ukrainian hryvnia, rather than any foreign currency.

Probation Period

The probationary period in Ukraine typically ranges from one to three months. While it is not a legal requirement, it offers protection to employers by exempting them from severance payments if they decide to terminate the employee during this period.

Under the Ukrainian Labor Code, the probation period can last up to three months, though it may extend to six months for certain positions, provided this is clearly outlined in the employment contract. During this time, either party may terminate the employment agreement with a three-day notice.

Work Week, Overtime & Maximum Working Hours

Income Tax

Employers in Ukraine are required to pay a Unified Social Tax (UST) amounting to 22% of the employee’s gross salary. However, the taxable base for the UST is capped at 15 times the average cost of living.

The 22% UST is distributed among several funds, including those for unemployment, workplace accidents, pensions, and temporary disability benefits.

Employees, on the other hand, are subject to:
18% personal income tax (PIT)
1.5% military tax
20% indirect tax

Typical Benefits

In Ukraine, the 13th-month bonus is regarded as a gratuity and is not mandated by law. However, many employers offer performance-based bonuses to employees.

Given the limitations and quality concerns of the public healthcare system, it is common for employers in Ukraine to provide private health insurance coverage.

While there are no mandatory supplemental benefits, employers may offer various allowances, such as meal allowances, car allowances, medical and life insurance coverage, and additional pension contributions to professionals in Ukraine.

Visa for the Employees

Time off Policies

Public Holidays

Employees in Ukraine are entitled to the following paid public holidays
New Year’s Day
Orthodox Christmas Day
International Women’s Day
Orthodox Easter Sunday
Trinity Sunday
Labor Day (two days)
Day of Remembrance and Victory
World War II Victory Day
Orthodox Trinity Sunday
Ukrainian Constitution Day
Ukrainian Statehood Day
Independence Day
Ukraine Defender’s Day
Christmas

Annual Leave

Employees in Ukraine are entitled to a minimum of 24 calendar days of paid annual leave after completing six consecutive months of employment with the employer. Once this six-month period has passed, employees are eligible to take their paid annual leave.

Sick Leave

Sick leave benefits in Ukraine are determined by the duration of employment and range from 50% to 100% of the employee’s pay. The first 5 days of sick leave are compensated by the employer, while any additional days are paid by the Ukrainian State Social Security Fund.

Other Leave Types

Maternity Leave: Female employees in Ukraine are entitled to 70 calendar days of paid prenatal leave and 56 calendar days of paid post-delivery and child care leave. In the case of multiple births or post-delivery complications, the post-delivery leave is extended to 70 days.The State Social Insurance Fund provides maternity leave benefits, paying 100% of the employee’s average monthly salary for up to six months.

Terminating an Employee

Under Ukrainian law, terminating an employee without their consent is generally challenging.

Employees can resign by providing two weeks’ written notice. This notice period may be shortened if the employee is unable to continue working for valid reasons, such as retirement, enrollment in university, or a change in residence.

Employers can terminate an employee during the probationary period if the employee is deemed unsuitable for the role.

Upon termination, the employer must pay all outstanding wages and compensation for any unused annual leave on the employee’s last working day. If the termination is due to organizational changes (e.g., liquidation, reorganization, staff redundancy, or changes in job requirements), the employee is entitled to severance pay, which cannot be less than the employee’s average monthly wage.