June 2013
NEWSLETTER

Reporting on Compliance with Quota for Employment of Persons
with Additional Benefits in Employment

On 27 June 2013 the Order of the Ministry of Social Policy of Ukraine "On Approval of the Procedure for Employers' Reporting to Local Departments of the State Employment Service on Occupation and Employment of Individuals with Additional Benefits in Employment" No. 271 of 16 May 2013 became effective.

The said Procedure for Employers' Reporting (the "Procedure") was developed to implement respective rules of the On Employment of Population Law. Specifically, the Law requires employers with more than 20-strong staff to employ a certain percentage of individuals with additional benefits in employment (such as parents with minor children, persons of pre-retirement age, etc.) (the "Quota"). The Quota amounts to 5 percent of the headcount for the previous year. To comply with the Quota, employers could ensure employment of relevant employees independently or seek assistance of an employment center.

Under the Procedure, employers subject to the Quota must report on employment of persons with additional benefits to a local employment center by 1 February of the year following the reporting one. The Procedure provides for a reporting form, as well as guidelines for completing the form. In addition, the Procedure specifies the documents which confirm that an individual belongs to a certain category of persons with additional benefits.

Notably, pursuant to the On Employment of Population Law, should an employer fail to observe the Quota within a year, such an employer may be subject to a fine for each groundless refusal to employ a person having additional benefits in employment within the Quota. The fine amounts to two minimum wages effective at the time when such a violation is identified.



For further information please contact
counsel Svitlana Chepurna and associate Inesa Letych

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