One of the key changes that affects the lives of workers and employers is the increase in the minimum wage. This not only improves working conditions, but also makes adjustments to the system of fines for violation of labor laws. Below is a detailed overview of these changes, which came into force on April 1, 2024, and their impact on labor relations in Ukraine.
Have the fines for unregistered workers increased during martial law
As of today, Ukrainian legislation defines five main categories of liability: disciplinary, material, administrative, financial and criminal. Each of these types can be used separately from the others.
It is worth emphasizing that as a result of inspections carried out by the State Labor Service, officials may be subject to administrative and criminal liability, while companies may face financial liability.
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Martial law did not affect the amount of fines that business owners or entrepreneurs will have to pay for unregistered workers. But due to the mobilization and lack of reservation of enterprises that are not specified in the legislation, a certain number of employers want to maintain their own business. The temptation to keep unregistered workers at the enterprise has increased.
With the beginning of martial law, fines did not increase, but there were changes in labor legislation, the minimum wage increased, which led to an increase in fines.
Amount of fines for an unregistered employee
Starting from April 1, 2024, in accordance with Ukrainian legislation on the state budget for this year, the minimum salary increased from 7,100 UAH to 8 000 UAH In this regard, fines for violation of labor laws have also increased. For example, a fine for illegal employment or payment of wages “in an envelope” is 80,000 UAH for each employee.
Amounts of fines for an unregistered employee in 2024 and some violations:
- A fine of 16 times the minimum salary (UAH 128,000) for obstructing inspections or preventing inspectors from entering.
- A fine of 10 times the minimum salary (80,000 UAH) for each employee who was allowed to work without official registration or who was paid a salary without paying taxes and contributions.
- Warning for legal entities and individual entrepreneurs who are single tax payers of the first and third groups.
- Fine in the amount of 4 times the minimum salary (32,000 UAH) for each employee who was not provided with legal guarantees and benefits.
- Fine in the amount of 3 times the minimum salary (24,000 UAH) for failure to pay wages on time or for incomplete payment, as well as for obstructing inspections.
- Fine in the amount of 2 times the minimum wage (16,000 UAH) for each employee who was not provided with minimum state guarantees for wages.
- Fine in the amount of one minimum wage (8,000 UAH) for other violations of labor laws, and for repeated violations within a year — fine in the amount of two minimum wages (16,000 UAH).
Compliance with labor laws — not only the work of the law, but also the support of the country's economy. This is not just a formality, but also an important factor influencing the economic and social well-being of the country.
Labor laws protect the rights of workers to fair wages, safe working conditions, rest and other important aspects. This creates favorable conditions for people to work productively and develop their potential.
