Remote Working Legislation, Laws & Regulations in Ukraine

There is no consolidated legal act regulating working from home in Ukraine. Working from home is regulated by:

1. Certain provisions of the Labour Code of Ukraine (art. 60, 60-1);
2. Law On Labour Protection № 2694-XII dated 14 October 1992 (partially applicable);
3. Law On Amendments to Certain Legislative Acts on Improvement of Legal Regulation of Remote Work № 1213-IX dated 4 February 2021;
4. Regulation on Employment Terms of Homeworkers, approved by Resolution N 275/17-99 of Labour and Social Issues USSR State Committee dated 29 September 1981 (partially applicable).

A written employment agreement must be drafted for employees working from home.

In case of emergency (e.g. threat of epidemics, pandemics, and military, natural or man-made disasters), it is possible to establish working from home or remote work by an internal order of the company (i.e. a unilateral decision) without producing new written employment agreements.

*Note: Ukrainian labour law differentiates between working from home, where the employee’s working place is fixed at his/her home address, and remote (distance) work, where the employee is free to determine and change the place of work at his/her discretion.

Generally, no.

In cases of emergency (including threat of pandemics and armed conflicts), the employer should be able to establish work from home or remote work by an internal company order (i.e. a unilateral decision). However, due to unclear wording of the law, it is advisable to obtain the employee’s consent on teleworking even for emergency cases. (Consent can be sent via e-mail if wet-inked consent cannot be obtained).

Generally, no.

However, if certain categories of employees (e.g. disabled persons) substantiate the necessity to work from home or work remotely, provided it is possible given the nature of the work and the employer has all the necessary resources, the employer will be obliged to allow them to work from home.

The employer is generally obliged to provide an employee working from home/remotely with the means required for performing all employment duties unless otherwise is agreed by the parties in the employment agreement.

If employees use their own equipment for employment needs, they are entitled to receive compensation for equipment depreciation costs. The amount and terms of payment for such compensation can be agreed upon on a case-by-case basis.

The law does not provide for the reimbursement of expenses to employees working from home. At the same time, the issue of reimbursement for expenses must be regulated in the remote work employment agreement.

No mandatory allowances are provided by law.

No. When performing work remotely or from home, the employee is solely responsible for ensuring safe and harmless working conditions. The employer is responsible for the safety and proper technical condition of the equipment provided to the employee for remote or home-based work.

Specific obligations for the employer include:

1. organisinge home inspection for employees working from home;
2. training employees on workplace health and safety and fire safety in relation to the equipment provided by the employer for working from home/remotely;
3. recording the employment hours of employees working from home;
4. keeping records of all home workers, which includes their work tasks along with an indication of the time required for the performance of the work and the tariff rates of labour payments.  

No, there is no such requirement.

Yes, an employee working from home/remotely is protected by legislation for work-related accidents and illnesses. In practice, however, there are difficulties in classifying home-office or remote work accidents as work-related.

No, there is no such possibility.

There are some requirements that an employee must follow when setting up a home office (not applicable for remote employees):

1. allocation of a particular area at home as the home workspace, which is quiet and free from distractions;
2. responsibility for ensuring proper work conditions at the homeworker’s place of work (e.g. ensuring maintenance of the designated home workspace that guarantees safety, adequate lighting, storage for documents, sufficient electrical outlets to supply computers, printers and other equipment without overloading the network);
3. working from home must not create troubles and disturbances for neighbours;
4. to follow the employing company’s general working hours while working from home;
5. to change address of the home office only upon prior consent of the employer.

None.

“Remote work abroad” as such is not defined in Ukrainian law. In general, it refers to the situation where an employee temporarily performs work at a self-chosen location in a country other than the traditional office of the employer by using technology to remain connected.

There is no Ukrainian legislation that specifically addresses remote work abroad. At the same time, Ukrainian laws do not prohibit remote work abroad. Nevertheless, there are general rules and regulations that should be considered, such as the employee’s right to ask for a change of workplace.

If an employee has left Ukraine due to a threat to life and health during martial law and has the technical ability to perform his or her job functions remotely using information and communication technologies, the employee must be paid in accordance with the terms of the employment agreement governed by Ukrainian law. This position has been confirmed by the State Labour Authorities of Ukraine. Therefore, Ukrainian labour law provisions apply to an employment agreement between a Ukrainian employing company and its employee who is a citizen of Ukraine provided that this agreement explicitly provides for the work being performed outside of Ukraine (and providing that the work does not violate the laws of the country where it is actually performed).

Note that mandatory law of the foreign country (e.g. minimum wage or working hours) are likely to apply during remote work abroad just as the Law of Ukraine on International Private Law states that labour relations must be governed by the law of the state in which the work is performed. Therefore, Ukrainian labour law that is less favorable or in violation of an applicable foreign law may be void and can be automatically replaced by mandatory law.

If an employee is a Ukrainian tax resident, the company must calculate and pay the 22% unified social tax for this employee in accordance with Article 8.5 of the Law of Ukraine "On Collection and Accounting of the Unified Social Tax for Compulsory State Social Insurance".

If the employee is a tax resident of another country, there is legal uncertainty as to whether the unified social tax applies to remuneration paid by the company to a non-resident. Although there are individual tax consultations confirming that there is no obligation to charge the unified social contribution, recent tax rulings suggest that 22% of the unified social contribution should be charged on remuneration paid to non-resident individuals.

Note that double tax treaties do not apply to unified social contributions (USC). In order for the paid unified social tax to be credited in another country, a special social security treaty must be concluded.

According to the general rule of Article 163 of the Tax Code of Ukraine, if an individual receives income from a Ukrainian employer (i.e. remuneration under an employment agreement), such income must be taxed in Ukraine, regardless of the individual's tax residence.

At the same time, individuals who are tax residents of another country must generally declare their income and pay taxes in the country of residence. Under the terms of most double taxation treaties, the amount of personal income tax paid in Ukraine may be credited when paying tax in another country in accordance with the rules of the domestic legislation of the other country.

If a citizen of Ukrainian wishes to work outside of Ukraine, the employee must have a valid residence permit and/or work permit to be able to work legally in that country. We would advise always checking such requirements with a local legal counsel.

Under the domestic laws of a foreign country, an employee working for a Ukrainian company may be able to establish a permanent establishment in that country. The issue of establishing a permanent establishment is also usually governed by a double taxation treaty.

It is important to note that in 2021, the OECD published Updated Guidance on the Application of Tax Treaties and the Impact of the COVID-19 Pandemic. According to this Guidance, if an employee is forced to work remotely from the territory of another country due to the pandemic, this does not create a permanent establishment in that country: working remotely due to an emergency or public health measures imposed or recommended by the government does not create a permanent establishment for the business/employer. This only applies if the temporary workplace is in a country that is not the individual's primary residence. If an individual continues to work remotely after the measures imposed or recommended by the government have ended, the home office may be considered permanent. However, this change alone will not necessarily result in the home office becoming a fixed establishment.