In Ukraine, the topic of distinction between employees and independent contractors is subject to considerable commentary and debates over recent years. Both the changes in Ukrainian employment law and practice of controlling authorities, as well as emerging transformation of local business environment keep this issue top of the agenda.
On 8 May 2018, the Supreme Court (the "Court") issued a decision, where it for the first time focused on the distinctive features between employees and independent contractors.
In the case that was subject to consideration by the Court, the claimant sought recognition of his employee status in order to carry out correct calculations of his employment record. The claimant in the case was engaged under the contractor's agreement, whereby he was responsible for search of customers for transport services, as well as for support and control over existing transport orders.
The Court found that the lower instances courts failed to establish the facts of the case to the necessary extent and thus returned the case to a new consideration at the court of appeals. At the same time, the Court summarized key features that are important to establish whether the relations qualify as employment ones or not:
The said decision of the Court is a non-binding precedent, however, it is expected that local courts will take into account the above-referred distinctive criteria, as indicated by the Court, while considering similar cases.
For further information please contact Asters' senior associate Inesa Letych.