On-site and off-site audits are back


Oksana Voynarovska

Partner, Attorney-at-Law

Labour and Employment,
Private Client and Wealth Management

On August 21, 2019, the Resolution of the Cabinet of Ministers of Ukraine “Certain issues of state supervision and control over labor legislation compliance” No. 823 came into force, returning the inspections of the State Labor and its territorial bodies.

The Resolution expanded the list of grounds for a labor audit. Henceforth, labor inspectors may also check by the instructions of the Prime Minister of Ukraine, the request of the Ombudsman and the People's Deputy. To detect the shadow employment solely, the audits may be conducted based on the information from the State Fiscal Service about the inconsistency of the employees number with production volume and on data of the Pension Fund of Ukraine regarding individuals who perform work or provide services to one employer under civil agreements for more than one year.

The labor inspector should provide additionally to the official ID a copy of the audit referral by the employer’s request.

The Resolution also states the employer’s right to record the audit by means of audio and video equipment.

In fact, Resolution No. 823 duplicates the declared Resolution of the Cabinet of Ministers of Ukraine "Certain issues concerning implementation of Article 259 of the Labour Code of Ukraine and Article 34 of the Law of Ukraine “On Municipal Self-Government in Ukraine” of April 26, 2017, No. 295.

The Sixth Administrative Court of Appeal recognized it invalid and unlawful based on a violation of its adoption procedure by the State Regulatory Service. This ruling has been appealing to the Administrative Court of Cassation.

If you have further questions about on-site and off-site audits, please contact Vasil Kisil and Partners Labour and Employment team.

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