Employer of Record Guide in 

Ukraine

Vacation Leave

Ukrainian employees are entitled to annual paid vacation:

• Minimum entitlement: 24 calendar days per year
• Extended vacation: Some categories of workers receive additional days
• Accrual: Vacation accrues monthly throughout the employment year
• Scheduling: Must be taken within the calendar year or carried over with employer consent
• Payout: Unused vacation must be paid out upon termination

Sick Leave

Ukraine provides comprehensive sick leave coverage:

• Duration: Up to 4 months for most illnesses
• Payment:
  • Days 1-3: Employer pays 100% of average wage
  • Days 4+: Social Insurance Fund pays based on insurance record
• Documentation: Medical certificate required from day 1
• Chronic conditions: Extended sick leave available for serious illnesses

Maternity Leave

Ukrainian maternity leave provisions include:

• Prenatal leave: 70 calendar days before expected birth
• Postnatal leave: 56 calendar days after birth (70 for complicated births)
• Total duration: 126-140 calendar days
• Payment: 100% of average wage paid by Social Insurance Fund
• Job protection: Position must be held during leave period

Parental Leave

Additional parental leave options:

• Childcare leave: Until child reaches 3 years of age
• Payment: Partial payment until child reaches 2 years
• Flexibility: Can be taken by either parent
• Part-time option: Employees may work part-time during childcare leave

Other Statutory Leave

Ukrainian law provides additional leave entitlements:

• Marriage leave: 3 calendar days (unpaid unless specified in contract)
• Bereavement leave: Up to 3 days for immediate family members
• Study leave: For employees pursuing education
• Military service: As required by law during wartime conditions

Summary

*Unless specified otherwise in employment contract

Termination Types

Termination by Employer:

• Termination with cause (disciplinary dismissal)
• Termination without cause (economic reasons, redundancy)
• Termination during probationary period

Termination by Employee:

• Voluntary resignation with notice
• Immediate resignation in specific circumstances

Notice Period Requirements

Ukrainian labour law requires specific notice periods:

Severance Pay

Severance requirements depend on termination circumstances:

• Economic redundancy: Minimum 1 month's average wage
• Employer-initiated termination: May require additional compensation
• Voluntary resignation: No severance required
• Disciplinary dismissal: No severance required

Final Pay Requirements

Employers must provide final payment including:

• Outstanding salary through last day worked
• Accrued vacation pay
• Any earned bonuses or allowances
• Timeline: Final pay must be provided on the last day of employment

Legal Protections

Ukrainian employment law provides strong worker protections:

• Anti-discrimination: Protection based on gender, age, religion, nationality
• Pregnancy protection: Pregnant women cannot be dismissed
• Union representation: Right to union membership and representation
• Appeal process: Employees may challenge dismissals through labour courts

National Public Holidays

Ukraine observes the following national holidays:

Holiday Pay Rules

For statutory holidays, employees receive:

• Regular pay: Full daily wage for the holiday
• Work requirement: If required to work, employees receive double pay plus a substitute day off
• Weekend holidays: If a holiday falls on a weekend, the following Monday becomes a non-working day

Regional Variations

Some regions may observe additional local holidays or cultural observances, but these are typically non-statutory and depend on local government decisions and employer policies.

Required Documentation

Employment Contract Requirements:

• Job title and description
• Salary and payment terms
• Working hours and schedule
• Vacation entitlements
• Termination procedures
• Confidentiality clauses

Employee Documentation:

• Ukrainian passport or ID card
• Tax identification number
• Social security registration
• Education certificates (if required)
• Medical certificate (for certain positions)

Legal Compliance

Work Authorization:

• Ukrainian citizens: No additional authorization required
• Foreign nationals: Work permit and residence permit required
• EU citizens: Simplified procedures may apply

Registration Requirements:

• Employee must be registered with tax authorities
• Social insurance registration required
• Employment relationship must be documented in official records

Contractual Elements

Mandatory Contract Provisions:

• Probationary period (if applicable)
• Intellectual property assignment
• Confidentiality and non-disclosure terms
• Termination procedures and notice requirements
• Dispute resolution mechanisms

Data Protection:

• Compliance with Ukrainian data protection laws
• Employee consent for data processing
• Secure storage of personal information

Implementation Process

Onboarding Timeline:

1. Days 1-3: Contract preparation and review
2. Days 4-7: Document collection and verification
3. Days 8-10: Registration with authorities
4. Days 11-14: Payroll and benefits setup
5. Day 15: Employee start date

Worker Classification

Ukrainian law strictly distinguishes between employees and contractors:

Employees:

• Subject to labour code protections
• Entitled to benefits and leave
• Employer withholds taxes and social contributions
• Work under employer direction and control

Independent Contractors:

• Governed by civil contracts
• Responsible for own taxes and social contributions
• Greater autonomy in work performance
• Limited labour law protections

Misclassification Risks:

• Penalties for incorrect classification
• Retroactive tax and social contribution payments
• Employee rights may be enforced regardless of contract type

Industry-Specific Considerations

Regulated Professions:

• Legal, medical, and educational professionals require specific licenses
• Financial services employees need regulatory approval
• IT professionals may benefit from special tax regimes

Wartime Considerations:

• Martial law affects certain employment regulations
• Military service obligations may impact workforce planning
• Remote work policies adapted for security concerns

Cultural & Workplace Norms

Communication Style:

• Direct but respectful communication preferred
• Hierarchy respected but collaboration valued
• Professional relationships important for business success

Work-Life Balance:

• Standard business hours typically 9 AM to 6 PM
• Lunch breaks commonly 1 hour
• Overtime work requires justification and compensation

Remote Work Framework

Legal Requirements:

• Employment contracts must specify remote work arrangements
• Employers responsible for providing necessary equipment
• Health and safety obligations extend to home offices
• Data security requirements apply to remote work

Cross-Border Considerations:

• Ukrainian employees working for foreign companies need proper documentation
• Tax implications for remote work across borders
• Compliance with both Ukrainian and foreign regulations may be required

EOR Service Integration

What Borderless AI Handles:

• Local employment contract preparation
• Payroll processing and tax compliance
• Social insurance registration and contributions
• Ongoing regulatory compliance monitoring
• Local HR support and employee relations
• Termination procedures and documentation