UKRAINE: NEW REQUIREMENT FOR ISSUANCE OF WORK PERMITS

Asters, Attorneys at Law, Newsletter, Kyiv, Ukraine, Wednesday, 20 May 2009

KYIV - On 15 May 2009, the new Regulation on the Issuance, Extension, and Annulment of Work Permits for Foreigners and Stateless Persons approved by the Cabinet of Ministries (the "Regulation") came into effect. It significantly expands the obligations of foreigners and their Ukrainian employers in regards to opportunities for a foreigner to be employed in Ukraine.

In particular, Regulation enlarges the list of required documents for work permit obtainment. Previously it consisted of such documents as: a letter of application, justification of employment of foreigner, employer's Charter and the certificate of the State registration, draft employment contract, a duly certified copy of the Foreigner’s diploma evidencing his/her education, with a notarized Ukrainian translation, employer’s good standing certificate issued by the relevant tax authority and some other.

Now a foreigner must additionally present a certificate confirming that he/she is not under a criminal investigation or has not been convicted of a crime in the country of residence at the time of the work permit application.

Moreover, an "expat employees" (transferred from offices of the company in other countries) and a person performing services in Ukraine without a corporate presence must submit a formalized decision of a foreign company to transfer the foreigner to Ukraine along with a copy of an employment contract, indicating the projected term of the foreigner's work in Ukraine, or a copy of the contract on direct supply of services in Ukraine. A work permit for such employees shall not exceed 3 years.

An employer will have to pay a higher state fee for issuance of a work permit in the amount of UAH 2,500 (before it was UAH 170) and a fine if a foreigner commences working prior to obtaining a permit in the amount of UAH 12,500 (before it was UAH 850).

The Regulation introduced additional grounds for a refusal to issue, to extend or to annul a work permit. Additionally to the grounds provided by the superseded regulation, now a work permit will not be issued if, within the last 12 months, the foreigner was denied an IM-1 visa, or his/her work permit has been annulled, or he/she was expelled from Ukraine.

It appears that the Regulation makes the procedure of obtainment of work permit more thorough and complicated for employers.

ABOUT ASTERS
Asters is a Kyiv-based Ukrainian law firm founded in 1995 as Shevchenko Didkovskiy & Partners. The firm is among the most recommended law firms for Ukraine according to reputable international legal directories The Legal 500, PLC Which Lawyer?, Chambers Global, IFLR 1000, and Ukraine's legal market research publications.

A list of the firm's clients includes major international corporations, such as Beiersdorf AG, Coca-Cola, News Corp., Nissan Motor, Nokia Corporation, Philip Morris, Renault, Sopharma, Telenor ASA, Toshiba Corporation, and the world's leading financial institutions Barclays Capital, Citibank, Credit Suisse, Deutsche Bank, Dresdner Kleinwort Wasserstein, EBRD, IFC, ING Bank, Standard Bank and Swedbank AB.

Asters law firm is a member of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.usubc.org.

CONTACT: Asters, Attorneys at Law, Leonardo Business Center, 14th floor, 19-21 Bohdana Khmelnytskogo Str., Kyiv, 01030, Ukraine,  Tel. + 380 44 230 6000 Fax + 380 44 230 6001.  Svitlana Novikova, Business Development, Marketing and PR, svitlana.novikova@asterslaw.com