Ukraine: Work Restrictions Impact Freelancers and Dependents; Process Clarifications Benefit Others
December 15, 2022
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At a Glance
A long-awaited law has created the following limits and benefits for foreign workers in Ukraine (among other changes):
- A rule change that essentially eliminates the possibility for assigned freelancers and independent contractors to qualify for a work permit;
- A limitation in time for when work permit renewals must be filed;
- Entry and work authorization benefits for Polish citizens; and
- Benefits for foreign nationals to enter and stay based on an expired temporary or permanent residence permit under certain conditions.
These news rules will likely not see their full effects until after the war in Ukraine de-escalates, since many foreign nationals have left Ukraine since February 2022.
The situation
The Ukrainian government has implemented several legal changes affecting residence and work permit rules.
A closer look
The following changes restrict work permit and residence permit rules in Ukraine:
| Change | Previous related rule | Impact |
| Fee increase. The government filing fee for issuing or extending work permits has increased. Among the key changes include that the government fee for an initial work permit for up to six months is now three times the minimum living wage; for six to 12 months is five times the minimum living wage, for one to two years eight times the minimum living wage; and for two to three years, 10 times the minimum living wage. The government filing fee for issuing or extending work permits has increased. Among the key changes include that the government fee for an initial work permit for up to six months is now three times the minimum living wage; for six to 12 months is five times the minimum living wage, for one to two years eight times the minimum living wage; and for two to three years, 10 times the minimum living wage. |
The previous government fees for these and other categories of work permits were lesser multiples of the living minimum wage. | Employers will face a higher government fee to apply for work permits. |
| Clarification regarding employment agreements. The law clarifies that a local employment agreement is not required for assigned employees (i.e. those sent to Ukraine based on a commercial agreement between the sending entity and the Ukrainian host entity), but is required for intracompany transferees. | It was not clear whether a local employment agreement was required for assigned employees and intracompany transferees. | This rule essentially eliminates the possibility for freelancers and independent contractors to qualify for a work permit as assigned employees since such workers now require an employment agreement with the sending entity to be hired. |
| Work permit renewal timing change. Work permit and dependent permit renewals now cannot be filed earlier than 50 calendar days prior to their expiry date. | There were no early filing restrictions, and employers could file a work permit renewal application at any time before within 20 calendar days of the work permit expiration date. |
Now that the main applicant and their dependent(s) only have 50 days to complete the permit renewal process, there will likely not be enough time for the applicant to renew their dependents’ permits (which takes closer to 70+ days). Affected applicants should work with their immigration counsel to formulate a strategy. |
| Information sharing. The State Employment Service and the Pension Fund of Ukraine will now share information regarding tax payments for foreign employees. | This information was not previously shared between agencies. | The authorities will now monitor the payment of salaries and salary-based social security contributions by employers for work permit holders. Failure to pay such contributions is now grounds for work permit cancellation (in addition to fines for the employer). |
| Pre-approval for Russian and Belarusian work permits. The issuance and extension of work permits for Russian and Belarusian citizens or other nationals of states recognized as posing a threat to the national interests of Ukraine require the approval of the Security Service of Ukraine. | This law codifies this requirement, which has been in effect for several months. | This approval process will prolong the work permit process for affected citizens. |
The following changes ease the rules related to work and residence in Ukraine:
| Change | Previous related rule | Impact |
| Clarified process for lost/damaged work permits. A formal process for the replacement of a lost or damaged work permit has been introduced – employers can file a request and the authorities will issue a duplicate work permit within seven calendar days. | Previously, issuance of duplicate work permits was not regulated, so work permit loss could affect a foreign national’s for a D Visa and the temporary residence permit issuance and renewal. | Foreign nationals with lost or damaged work permits can now obtain a duplicate work permit faster, which should prevent travel issues in such cases. |
| Benefits for Polish citizens. Polish citizens and their dependents (of any nationality) are now eligible for an 18-month visa-free stay in Ukraine, counted from September 16, 2022; and there is a new waiver from the requirement to obtain a D Visa if they seek to formalize their employment-based stay in Ukraine. Polish citizens no longer need a work permit to work in Ukraine. This reflects similar changes the Polish government implemented for Ukrainian citizens. |
Polish citizens were limited to a 90-day stay in a 180-day period (as applies to other EU nationals), and they had to obtain a D Visa to formalize their employment-based stay in Ukraine (in addition to a work permit). | Polish citizens can now stay for business and tourism for longer durations, saving costs and resources associated with multiple 90-day stays. Polish citizens seeking to work in Ukraine can enter and start work immediately (and they must obtain a tax identification number). |
| Entry under expired permits. Foreign (non-Russian) nationals can enter and stay in Ukraine based on an expired temporary or permanent residence permit if such residence permits expired after February 24, 2022. The period of stay under expired documents will not count toward the stay limits of visa-exempt nationals. |
Previously, foreign nationals could not enter Ukraine based on an expired residence permit. | This expands the eligible groups of entrants to Ukraine during a time when many individuals are fleeing the country. |
Background
The Ukrainian government has been working on various initiatives to improve the work permit regulations, but due to the slow legislative process, it took years to implement the new rules.
Looking ahead
These news rules will likely not see their full effects until after the war in Ukraine de-escalates, since many foreign nationals have left Ukraine since February 2022.
The situation in Ukraine remains fluid. Check our Spotlight page on the evolving situation and firm resources. We will report on related developments.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
