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Hiring in Ukraine

Background checks in Ukraine

Hire employees in Ukraine

Widely used languages in Ukraine

Corporate presence requirements and payroll setup in Ukraine

Build your global team right with CXC

Employer of record in Ukraine

While the concept of an Employer of Record in Ukraine (EoR) is not formally defined in Ukrainian law, many international businesses rely on EoR services to compliantly engage talent without needing to establish a local entity. This model allows a third-party provider to act as the legal employer on paper while the client company maintains day-to-day oversight and work direction. It is a flexible and practical approach, particularly useful when exploring the Ukrainian labour market or hiring cross-border talent.

In Ukraine, formal employment is structured around employment agreements. Companies typically hire using either a standard employment agreement or a more tailored employment contract. The latter is commonly used for senior-level roles like directors, where the terms—such as contract duration, grounds for termination, and financial responsibility—may vary from statutory defaults.

Employment history in Ukraine is traditionally recorded in a “labour book.” Since June 2021, the country has been transitioning to electronic labour books, which streamline documentation and enhance data accessibility. An EoR provider ensures that such administrative requirements are met in line with evolving regulations.

Besides traditional employment agreements, companies may also engage individuals under civil law arrangements. Many professionals, especially in tech, work as independent contractors through simplified tax schemes as registered private entrepreneurs. A unique structure known as a “gig-contract” exists under the Diia City regime, allowing companies—particularly those in the IT sector—to hire gig specialists under a flexible yet compliant civil law framework.

For employers exploring options beyond direct hiring, EoR partners like CXC can also support broader workforce management and relocation strategies. This may involve assessing employees’ personal circumstances—including family or relocation preferences—and aligning them with suitable structures such as local contracts, secondments, or delegations. In some cases, cross-border setups via neighbouring country hubs can enable a compliant solution while retaining flexibility.

Although the regulatory framework may appear intricate at first glance, working with an experienced EoR in Ukraine can offer peace of mind. A capable partner not only handles contracts, payroll, and social contributions, but also ensures alignment with Ukrainian labour law—allowing you to focus on growth and performance.

Hiring in Ukraine

Ukraine offers a diverse talent pool and competitive labour costs, making it an increasingly attractive destination for international employers. Whether you are expanding operations or establishing a new presence, hiring in Ukraine requires familiarity with local legal requirements, employment standards, and practical hiring strategies.

How to hire in Ukraine

When hiring people in Ukraine legally, employers must comply with national labour laws governed primarily by the Labour Code of Ukraine. For Ukrainian citizens, employment must be formalised through a written contract in the Ukrainian language. This contract must detail the job responsibilities, working hours, salary, probation terms (if any), and grounds for termination. Informal employment is illegal and may result in penalties.

For foreign nationals, employers must first obtain a work permit through the regional Employment Centre. In most cases, this involves submitting the draft employment contract, corporate documents, and a passport copy. Once the work permit is granted, the foreign worker will also need to apply for a type D long-term visa to legally reside and work in Ukraine.

Employers must also register employees with the tax authorities and make regular contributions to social insurance funds. The statutory minimum wage is currently set at 8,000.00 UAH per month (or 48.00 UAH per hour), and both employers and employees are subject to specific income tax and social contribution rates.

For companies looking to avoid establishing a local legal entity, an Employer of Record (EoR) solution can manage payroll, compliance, and local onboarding.

Best practices when hiring in Ukraine

To streamline how to hire in Ukraine, it is advisable to:

Advertise on local job boards such as Work.ua, Rabota.ua, and Djinni.co
Use clear, direct communication with applicants and staff.
Clearly define whether you are hiring an employee or an independent contractor. Misclassification can lead to fines or back payments.
For contractors, draft formal agreements outlining services, payment terms, and compliance with Ukrainian tax rules.
Keep records of all employment documents and contracts in accordance with Ukrainian legislation.

Working with local legal experts or EoR providers ensures that hiring in Ukraine is compliant and efficient, helping international companies onboard the right talent with confidence.

Background checks in Ukraine

When hiring, conducting thorough pre-employment checks helps employers ensure they select the right candidates while complying with Ukrainian laws. The scope of these checks varies depending on whether the candidate is a Ukrainian citizen or a foreign national, and employers must be aware of specific legal requirements and restrictions around collecting personal data.

Employment history checks in Ukraine

For Ukrainian citizens, it is common to verify employment history through official documentation. Employees should provide valid identification and, if applicable, their labour book or information from the State Register of Compulsory State Social Insurance, which tracks insured employment records. Employers may also request documents that confirm education, qualifications, or professional licences relevant to the job. However, employers cannot require additional documentation beyond what is stipulated by law without the employee’s written consent.

Medical background checks in Ukraine

Certain roles may legally require medical examinations to verify that candidates meet health standards specific to the job. This is particularly relevant in professions involving public safety, healthcare, or roles where physical fitness is essential. Employers must comply with privacy laws when handling medical information and should only request health data directly have related to the position’s requirements.

Criminal background checks in Ukraine

A criminal background check in Ukraine is generally limited and tightly regulated. Employers do not have unrestricted access to candidates’ criminal records. For foreign workers, compliance includes ensuring valid work permits and immigration status. Foreign nationals typically need a work permit to work legally in Ukraine unless they fall under specific exempt categories, such as holders of permanent residency, academic staff, refugees, or employees of registered foreign company representative offices. Instead of a work permit, these foreign employees receive an official card from the Ministry of Economy, confirming their authorised employment.

Other key details of pre-hire checks in Ukraine

Employers cannot require job applicants to provide information beyond what is legally required without explicit consent. Pre-employment checks must respect privacy and data protection laws, which restrict the gathering and use of personal data. For foreign employees, a temporary residency permit is necessary for long-term stays, and while this responsibility lies with the employee, employers may need to provide supporting documentation.

Employers should approach pre-employment screening with caution, ensuring compliance with both labour and data protection legislation to avoid legal issues.

Hire employees in Ukraine

When you hire employees in Ukraine, it is important to understand the different categories of workers recognised under Ukrainian law. Each type carries distinct legal obligations and rights, influencing how you structure contracts, manage taxes, and comply with labour regulations. Whether you are looking to hire a team in Ukraine or engage individual specialists, knowing these differences can help you avoid legal pitfalls and optimise workforce management.

Regular employment in Ukraine

Regular employment relationships in Ukraine can be either full-time or part-time and are typically governed by an employment contract. Key features include:

Indefinite contracts
The most common type, these contracts have no fixed end date and provide stability for both employer and employee.
Fixed-term contracts
Allowed only in specific situations, such as:
○ Temporarily replacing an absent employee.
○ Filling roles like state officials or judges.
○ When the employee requests a fixed term for personal reasons.
Project-based contracts
Used when the duration of work depends on the completion of a specific project and cannot be clearly defined upfront.

Employers must comply with minimum wage requirements, provide social security contributions, and ensure written contracts are in place. Regular employees benefit from comprehensive labour protections including paid leave, notice periods, and severance entitlements.

Independent contractors in Ukraine

Employing independent contractors in Ukraine offers flexibility but comes with compliance considerations:

Contractors work under civil law agreements, not employment contracts.
They are responsible for paying their own taxes and social security contributions.
Authorities may reclassify contractors as employees if the nature of work or control exercised suggests an employment relationship.
Misclassification can lead to fines and penalties for the employer.
Ideal for specialised, short-term, or freelance work.

Properly distinguishing contractors from employees helps manage risks and maintain compliance with Ukrainian tax and labour laws.

Agency workers in Ukraine

Employing agency workers is an option for businesses with temporary or fluctuating staffing needs.

Some businesses prefer to engage agency workers for temporary or seasonal needs. Ukrainian law permits the use of agency workers only under strict conditions. These include obtaining consent from relevant trade unions, ensuring no staff reductions occurred within the previous year, and complying with employee ratio requirements in key production roles. Agency workers must not replace core staff involved in the main production process or work in hazardous environments. Due to these complexities and legal uncertainties, many employers opt to engage agency workers through general service agreements instead.

Ukrainian legislation imposes specific conditions when hiring agency workers:

Agency worker engagement is only permitted if:
○ The agency’s collective agreement allows it, with trade union consent.
○ No staff reductions occurred in the employer’s organisation within the last year.
○ Statutory employee ratios in main production processes are maintained.
○ Agency workers do not replace employees performing core production tasks.
○ Work does not involve hazardous or physically demanding conditions.
Due to these limitations and legal ambiguity, many employers use general service agreements to engage agency workers instead.

Understanding the various types of employment contracts and worker classifications is vital for businesses aiming to hire people in Ukraine legally.

Widely used languages in Ukraine

When conducting business, recognising the importance of the language in Ukraine is key to effective communication and legal compliance. While Ukrainian is the sole official language, the linguistic landscape of the country is diverse, reflecting its complex cultural history. Employers should be aware of the language preferences across regions and within the workplace to foster clear communication and respect local regulations.

Official languages in Ukraine

Ukrainian is the only official language of Ukraine and is used in all official government documents, legal proceedings, and formal communications. All employment-related paperwork and internal company policies must be prepared in Ukrainian or in bilingual format when necessary. This ensures compliance with national legislation and facilitates smooth administrative processes.

Most of the population uses Ukrainian in daily life, particularly in the central and western parts of the country. Ukrainian serves as the primary language in many business environments and public institutions, reinforcing its dominant position.

Russian language in Ukraine

Although Russian language in Ukraine holds no official status, it remains widely spoken, especially in the eastern and southern regions. Around 30% of the population uses Russian as their main language. In business, media, and informal settings, Russian continues to be common, allowing companies operating in these areas to communicate effectively with a significant portion of the workforce and clientele.

Employers should be mindful that, despite Ukrainian’s official standing, Russian often functions as a practical medium for daily communication in certain contexts.

English language in Ukraine

The English language in Ukraine is increasingly important, particularly in international business and among younger professionals. English proficiency is growing through education and corporate training programmes, making it a useful tool for companies engaged in cross-border trade or partnerships.

While not widespread as a first language, English is frequently used in multinational firms and tech sectors, highlighting its rising significance in the country’s business landscape.

Other information on languages used in Ukraine

Besides Ukrainian, Russian, and English, several minority languages such as Romanian, Hungarian, and Polish are spoken in specific regions. However, these have limited use in formal business communication and are not widely regarded as dominant languages in the country.

Employers aiming to succeed in Ukraine should tailor their communication approach by recognising the official status of Ukrainian, the practical role of Russian, and the growing relevance of English. This multilingual awareness can enhance workplace integration and operational effectiveness.

Corporate presence requirements and payroll setup in Ukraine

For any foreign company looking to hire employees in Ukraine, having a local corporate presence is not just a formality — it is a legal requirement. Employing staff without establishing a local entity may expose your business to permanent establishment risk, which can lead to unexpected tax obligations and regulatory complications.

Setting up payroll in Ukraine

Payroll in Ukraine must align with local employment and tax regulations. Employers are expected to pay employees in Ukrainian hryvnia (UAH) on a bi-weekly basis and ensure that all contributions and taxes are correctly calculated and reported. Both gross and net salaries must be accurately tracked to avoid compliance issues.

Key considerations include:

Pay frequency: Wages are typically paid twice per month.
Currency: All payments must be made in UAH.
Tax scope: Residents are taxed on worldwide income; non-residents, only on Ukraine-sourced income.
Reporting: Employers must submit monthly tax reports and remittances to authorities.

Employers operating in sectors like IT may benefit from tax incentives under the Diia City regime, which encourages investment and innovation with preferential tax rates.

Payroll management systems in Ukraine

Given the complexity of Ukrainian payroll regulations, many companies choose to use specialised payroll management systems in Ukraine or outsource their payroll functions to local providers. These solutions help ensure compliance with the myriads of tax and employment laws and reduce administrative overhead.

Payroll software options range from platforms designed specifically for small and medium-sized enterprises to comprehensive systems that integrate payroll with broader HR management functionalities. Alternatively, outsourcing payroll to a local expert can be a practical choice, particularly for foreign companies unfamiliar with Ukrainian regulations.

Many employers also turn to Employer of Record (EoR) services, which handle payroll, taxes, and compliance on behalf of the company, providing a seamless way to engage local employees without the need to set up a full corporate entity immediately.

Best practices when managing payroll in Ukraine

Effectively managing payroll in Ukraine requires a strong compliance focus and a practical understanding of local employment norms. Consider the following best practices:

Partner with local legal or tax advisors to stay ahead of regulatory changes.
Maintain clear documentation of employment terms and tax calculations.
Use reliable payroll systems or service providers to minimise errors and delays.
Keep communication with employees open, especially regarding pay cycles and deductions.

Being diligent with payroll management not only helps you stay compliant—it also supports employee satisfaction and builds your reputation as a reliable employer in Ukraine.

Build your global team right with CXC

Expanding into Ukraine offers access to a highly skilled, cost-effective workforce—but setting up a legal entity can be complex and time-consuming.

CXC’s Employer of Record solutions in Ukraine let you hire local talent quickly and compliantly, without needing a local entity. We manage contracts, payroll, and HR compliance, so you can focus on growth while we handle the risks.

Whether you are hiring employees or contractors, CXC ensures smooth, fully compliant workforce expansion in Ukraine.

Compliantly hire workers anywhere with CXC

With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

Learn more

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