Відповідальність роботодавців за приховані трудові відносини в Україні та закордоном.

Translated title of the contribution: Employer Responsibility for Informal Employment in Ukraine and Abroad

Nataliia Klietsova, Zhanna Lezhenina

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The issue of informal employment remains a critical challenge in Ukraine, necessitating robust management and legal reforms. In 2014, the State Labour Service of Ukraine was established as a central executive body tasked with legalizing employment relationships. Despite these efforts, several forms of informal work persist, including employment in the informal sector, unregistered work in the formal sector, and partially informal work, such as underreporting wages or misclassifying employment contracts.
Informal employment exposes workers to significant risks, such as loss of guaranteed wages, social benefits, pension rights, and safe working conditions. Employers often evade taxes and social contributions by hiring workers illegally, undermining economic stability. Ukrainian legislation, particularly Article 265 of the Labour Code, imposes severe penalties for noncompliance, including fines amounting to 30 minimum wages per unregistered employee. However, enforcement remains inconsistent.
The European Union (EU) employs stricter management strategies to combat informal employment, recognizing its threat to economic growth and fair labor competition. EU directives, such as Directive 2009/52/EC, mandate financial penalties and other sanctions for employers hiring undocumented workers. These measures include covering repatriation costs for illegally employed third-country nationals. Additionally, the International Labour Organization (ILO) emphasizes transitioning from informal to formal employment as essential for promoting decent work.
This article analyzes Ukrainian and international practices, highlighting the need for improved management of labor inspections and legislative alignment with EU standards. Effective management of labor relations, supported by clear legal frameworks and robust enforcement mechanisms, can reduce informal employment, safeguard workers' rights, and stabilize economies. Drawing from global best practices, the study advocates for strengthening regulatory and inspection systems to achieve fair and sustainable labor practices.
Translated title of the contributionEmployer Responsibility for Informal Employment in Ukraine and Abroad
Original languageUkranian
Title of host publicationПріоритетні напрямки розвитку правової системи України: Матеріали міжнародної науково-практичної конференції (м. Львів, Україна, 25–26 січня 2019 р.). Львів: Західноукраїнська організація «Центр правничих ініціатив», 2019.
Pages79-82
Number of pages8
Publication statusPublished - 25 Jan 2019

Keywords

  • informal employment
  • employer responsibility
  • labor legislation
  • management
  • labor inspections
  • Ukraine
  • EU
  • ILO
  • labor relations
  • sanctions

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