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New labor inspection procedure

Tax & Legal Alert

16 May 2017

On 26 April 2017, the Cabinet of Ministers of Ukraine adopted Resolution No. 295 “Some issues of implementation of Article 259 of the Code of Labor Laws of Ukraine and Article 34 of the Law of Ukraine “On local government in Ukraine” (hereinafter, Resolution No. 295) that approves a new procedure for the state control and supervision of labor laws compliance.

Resolution No. 295 goes into effect once it is published.

Key changes introduced by Resolution No. 295 include:

  • New form of the state control of labor laws compliance. 

Labor inspectors exercise the state control by making inspection visits and performing remote inspections. 

  • Local government labor inspectors are entitled to carry out law compliance inspection visits and remote inspections as regards remuneration of labor, minimum wage assurance and contractual employment arrangements.
  • A broad list of grounds for inspection visits.

Inspections visits may be carried out based on the information received from the State Committee for Statistics of Ukraine, the State Fiscal Service of Ukraine, the Pension Fund of Ukraine, trade union bodies, and on the grounds of relevant decision taken by the head of the competent body of the State Labor Service of Ukraine or local government authority based on the results of analysis of information in mass media. 

  • Cancellation of scheduled inspections depending on the business risk profile.

Once Resolution No. 295 takes effect, the frequency of inspections will depend on the presence of grounds set forth therein. 

  • Changes in the conditions for admission of labor inspectors to make an inspection visit. 

During an inspection visit, a labor inspector should carry only an official ID/service certificate, the details of which should be entered in the register of certificates of the State Labor Service of Ukraine. No special inspection visit authorization letter will be required.

  • List of matters to be inspected during the inspection visit must be made available of the website of the State Labor Service of Ukraine.
  • Cancellation of the term of prior notification of the entity to be visited for the purpose of inspection.

The labor inspector need not notify the authorized persons of the entity to be visited for the purposes of inspection of such inspection visit if any unreported / off-the-books employment is concerned.

  • Expansion of the labor inspectors’ authorities. 

During inspections related to unreported / off-the-books employment matters, the labor inspectors have the right to freely, on their own, at any time, without prior notice, access any premises where the employees are performing their duties.

Should you have any questions related to the aforementioned legislative changes, we will be glad to provide you with our professional advice.

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