Special Permit is Required to Perform Outsourcing and Outstaffing Activity

On 20 May 2013 the Cabinet of Ministers of Ukraine adopted the Procedure for Issuance of Permits for Recruiting Employees Who Further Perform Work in Ukraine for Another Employer (the "Procedure").

Pursuant to the Procedure, legal entities and private entrepreneurs who recruit employees to further provide them to work for another employer under the employment agreement should apply for the permit.

The permit is issued by the State Employment Service (the "State Service") within 10 business days upon submission of an application and is valid for unlimited term.

The issuance, re-issuance, and cancellation of the permit are free of charge.

To obtain the permit the exhaustive list of documents should be submitted to the State Service.

The State Service may refuse to issue the permit if an applicant is in arrears with the unified state social insurance contribution, has outstanding fines for violation of social laws, or on other grounds provided by the Draft Law of Ukraine No.2118a "On Amendments to Certain Laws of Ukraine Regarding Issuance of Permit for Recruiting Employees Who Further Perform Work in Ukraine for Another Employer" as of 23 May 2013 (the "Draft Law").

The Procedure will become effective simultaneously with the foregoing Draft Law.

Currently, the Draft Law is under consideration of the Committees of the Ukrainian Parliament.

For further information please contact partner Oleksandr Padalka
and senior associate Anna Chornomorets