According to the latest innovations in labor legislation, inspections by the State Labor Service (both scheduled and unscheduled) must take place only in the form of inspection visits, conducted by labor inspectors of the State Labor Service and its territorial bodies. A key point is that inspections related to the timely and full payment of wages, compliance with minimum state guarantees in wage payments, and proper documentation of employment relations may also be carried out by labor inspectors of local government executive bodies.
Information about scheduled inspections can be found on the websites of the Regional Offices of the State Labor Service, where annual inspection plans are published. Alternatively, businesses may become aware of an upcoming inspection upon receiving a written notification, which must be sent to the enterprise at least ten days before the scheduled inspection date.
Unscheduled inspections of labor compliance and occupational safety take place based on legally defined grounds or upon receiving information (even from the internet) about potential violations of workers’ labor rights, which is a rather vague criterion.
Therefore, at the very beginning of a State Labor Service inspection, it is crucial to adopt the right legal position, understanding both the employer’s and the inspectors’ rights and obligations. This, in turn, allows for a proper legal assessment of key inspection issues, such as:
- Are the order and referral for the inspection justified?
- How can the inspectors’ authority be verified?
- Are there grounds for refusing access?
- How should access or refusal of access to the inspection be properly documented?
- Can the inspection be conducted in the absence of the director?
- Does the requested scope of information and documents correspond to the subject of the inspection?
- How should employees behave during the inspection, and can they refuse to answer questions?
- How should any information be provided to the inspectors?
- What should be done if the requested documents are not available on-site?
- Is the employer required to provide the inspectors with a workspace for confidential conversations with employees regarding the inspection subject?
- What is the duration of a State Labor Service inspection visit?
- How should an inspection report be signed with objections?
- What is the procedure for appealing an order or demand from the State Labor Service?
Our experience in supporting State Labor Service inspections clearly confirms that advance preparation and professional legal support during an inspection can not only mitigate negative consequences for the enterprise but also enhance its reputation as a conscientious and reliable employer.
The WinnerLex Law Firm team provides the following services for supporting State Labor Service inspections:
- Preparation for a State Labor Service inspection;
- Legal analysis of the legitimacy of the inspection at the stage of determining whether to grant or deny access to inspectors;
- Review of the list of information and documents required for submission;
- Legal analysis of documents related to employment relationships;
- Attorney support during employee interviews and the provision of explanations;
- Analysis of documents related to civil-law relationships;
- Clarification for employers regarding the rights and obligations of inspectors during the inspection;
- Appealing an order or demand from the State Labor Service.
Practice experience: 19 years
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Practice experience: 21 years Specialization: support of economic, civil, labor and administrative disputes, energy
Practice experience: 11 years Specialization: tax, customs and corporate disputes, support of inspections, contractual activities
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Specialisation: business and civil law, tax and customs practice, corporate law, registration and reorganisation of business
Practice experience: 11 years Specialization: support of economic, civil, labor and administrative disputes, inspections
If an inspector requests documents that are not related to the circumstances of the inspection, this must be noted in the inspection report.
If an individual complaint is cited as the basis for an unscheduled inspection, the approval of the central body of the State Labor Service is mandatory.
A scheduled or unscheduled inspection of a legal entity must be conducted in the presence of the director or an authorized representative. An inspection of an individual entrepreneur must be conducted in their presence or that of their authorized representative.
Before the inspection begins, verify the inspectors’ official credentials on the official website of the State Labor Service of Ukraine.
If you disagree with the findings of the inspection report, you may submit comments, which become an integral part of the report, no later than three working days after the report is signed. The labor inspector must provide a written, reasoned response to these comments within three working days from the date of their submission.
This depends on the risk level of your enterprise’s business activities. According to Article 5 of the Law of Ukraine “On the Basic Principles of State Supervision (Control) in the Sphere of Economic Activity”, scheduled inspections by the State Labor Service are conducted with the following frequency:
- For high-risk business entities – no more than once every 2 years;
- For medium-risk business entities – no more than once every 3 years;
- For low-risk business entities – no more than once every 5 years.
If, following an inspection, the State Labor Service issues an order regarding labor law violations, but you believe it was issued unjustifiably, you have the right to challenge it.
- Administrative appeal: You may file a complaint with the territorial office of the State Labor Service within 10 days, explaining the reasons for your disagreement.
- If the territorial office rejects your complaint, you can appeal to the higher authority – the State Labor Service of Ukraine.
- You may also challenge the fine order in court by filing a lawsuit with the administrative court.
Under current labor laws, the duration of an inspection visit or off-site inspection cannot exceed 10 working days. The inspection period begins the day after the business entity submits explanations and documents required for the visit.
An unscheduled labor inspection by the State Labor Service may be conducted based on:
- A worker’s complaint about a labor law violation;
- A complaint from an individual regarding improper employment documentation;
- A decision by the head of the supervisory authority based on information from mass media or other publicly available sources;
- A court ruling;
- A notification from regulatory or law enforcement bodies regarding signs of labor law violations, including improper employment documentation;
- A discrepancy between the number of employees and the volume of production (services) compared to industry standards;
- Labor law violations detected during other supervisory activities;
- Conducting business without state registration as required by law;
- Paying 30% or more of employees less than the minimum wage;
- Failure to submit employment notifications for hired employees;
- A 20% or greater increase in part-time employees within a month;
- Engaging individual contractors under civil contracts for over a year at the same company;
- No recorded payroll accruals in the latest reporting month;
- No wage indexation within a year or an increase in wages lower than the required indexation amount;
- 30% or more of workers employed under civil contracts;
- A 10% or more reduction in staff at businesses with 20+ employees within a month;
- Information from trade unions about violations of union members’ labor rights;
- A directive from the Prime Minister of Ukraine;
- A request from the Commissioner for Human Rights of the Verkhovna Rada of Ukraine;
- A request from a Member of Parliament of Ukraine;
- Failure to comply with a previous labor inspector’s order.
