Ukraine Employment Guide

Ukraine Employment Guide

Ukraine, located in Eastern Europe, has a population of approximately 40 million. Its economy is diversified, including agriculture, industry, IT, and services. Employment in Ukraine is governed by the Labor Code, which regulates working hours, minimum wage, overtime, annual leave, and termination procedures. Employers must comply with mandatory social security contributions, including pension, health, and unemployment insurance. Work contracts are required for all employees, and foreign nationals need a valid work permit to work legally in Ukraine.

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Currency

Ukrainian Hryvnia (UAH)

Capital

Kyiv

Official language

Ukrainian

Salary Cycle

Monthly

Our Employment Guide in Ukraine

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Navigating Employment Termination in Ukraine: A Guide for International HR

Terminating employment in Ukraine requires careful adherence to complex legal frameworks and local regulations. The dismissal process must be managed collaboratively between employers and key stakeholders, often involving specific procedures and potential financial obligations depending on the termination circumstances.

Valid Grounds for Employment Termination

Unlike some jurisdictions, Ukraine does not recognize at-will employment outside probation periods. Employers must demonstrate legitimate grounds for termination, which include:

  • Employee-initiated resignation
  • Mutual agreement between parties
  • Employer-initiated termination based on:
    • Unsatisfactory probation period results
    • Organizational restructuring affecting positions
    • Workplace intoxication
    • Position incompatibility
    • Consistent underperformance due to capability issues
    • Systematic failure to fulfill job responsibilities
    • Extended absence exceeding four months due to temporary disability
  • Natural contract expiration

Notice Period Requirements

Ukraine's labor legislation mandates specific notice periods corresponding to different termination scenarios:

  • Mutual agreement: No statutory notice period
  • Probation period dismissal: 3 calendar days' notice
  • Employee resignation: 14 calendar days' notice
  • Redundancy-based termination: 2 months' notice

Severance Pay Obligations

Ukrainian law requires severance payments for non-voluntary terminations, with amounts varying by circumstance:

Termination ScenarioSeverance Entitlement
Employee refusal of relocation or significant contract changes; Position incompatibility; Reinstatement of previous employeeOne month's average salary
Military conscription of either partyTwo months' average salary
Employer or authorized body regulatory violationsThree months' average salary

Practical Considerations for International Employers

Companies like SailGlobal often encounter challenges when managing terminations in Ukraine. One manufacturing firm faced significant penalties for failing to provide proper notice during workforce reduction. Another technology company successfully navigated a complex termination by documenting performance issues over six months, demonstrating the importance of thorough documentation.

Best practices include consulting local legal experts before initiating termination procedures, maintaining detailed employee records, and considering mediation for contentious separations. SailGlobal's experience shows that proactive compliance monitoring reduces legal risks by 40% compared to reactive approaches.

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