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How to hire remote employees in
Hiring in Ukraine can be notoriously difficult—but not when you know what you’re doing. If you want to hire remote talent in Ukraine, you have two options: Hire people as contractors, or hire them as employees.
If you want to successfully hire in
Ukraine
, you have two options:
Laws about hiring contractors are significantly more simple in
Ukraine
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Ukraine
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Ukraine
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Ukraine
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Ukraine
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Ukraine than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Ukraine.
Employees get 24 calendar days per year as a minimum, 2 days per month.
Unused days accumulate and can be used at a future period. It is paid based on the average salary over the last 12 months.
There are 11 public holidays.
The first 5 days are paid by the employer; further days are paid by Social insurance fund.
Sickness pay is based on the average salary for the last 12 months and depends on the contribution period of employee:
0-3 years – 50%
3-5 years – 60%
5-8 years – 70%
8+ years – 100%
If the employee’s contribution period is less than 6 months within the last 12 months, the sick leave is paid based on minimum wage.
Maternity leave lasts for 126 calendar days. 70 days should be taken before delivery and 56 after delivery.
It can be extended to 140 days by medical recommendation and to 180 days for women affected by the Chernobyl disaster.
Maternity leave is paid by Social Insurance Fund at 100% of salary.
There is no paternity leave but fathers can use the mother’s maternity leave if she has returned to work. For the father to be granted leave he must apply to the employer, providing them with a copy of the child’s birth certificate, a document confirming family ties and a certificate from the child’s mother’s place of employment that she went to work before the end of her leave.
After maternity leave ends, mothers, fathers, and grandparents can take unpaid parental leave until the child turns 3.
Study leave – paid by the employer. The length of the leave depends on the duration of the exam period.
Up to 10 days
Up to 7 days unpaid
Every case is analyzed individually, but in general the rights of employees are strongly protected by legislation.
Permanent employees’ termination conditions must be delineated in the employment contract.
Pregnant women, women with children under 3 years old and pre-pension employees are protected against dismissal.
Termination by the employer must include 2 months notice before the final date.
Termination by the employee must be done in writing 14 days before the final date.
Termination by mutual agreement has no notice period requirement.
Severance pay is one month salary, on average.
The maximum probation period is 1 month for non-qualified employees and 3 months- for specialists and managers.
A workweek is 40 hours per week, 8 hours per day.
A maximum of 4 hours of overtime is permitted during 2 consecutive days at a time and not more than 120 hours overtime per year.
Additional overtime work may be applied in exceptional cases such as disruptions in production due to accidents or to avoid production downtime.
The following employees are forbidden from working overtime:
The following employees can only work overtime with their consent:
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