Violations of labor legislation in Ukraine are subject to sanctions that can reach up to 100 times the minimum wage. In addition, the offender may face disciplinary, administrative, financial, and criminal liability, with these types of liability being applied independently of each other.
There are numerous legal nuances and peculiarities when contesting fines imposed by the State Labor Service. For instance, if a compliance order is fulfilled within the prescribed period, measures to hold the inspected entity accountable are not taken. However, in cases involving the employment of unregistered workers, such measures are applied regardless of whether the identified violations have been rectified.
Currently, judicial appeals remain the most effective tool for challenging fines imposed by the State Labor Service. Therefore, engaging professional labor dispute attorneys enables businesses to protect their rights and interests effectively.
By seeking assistance from a legal professional, many problems can be avoided, and the desired outcome can be achieved during the dispute resolution process.
Experienced labor dispute attorneys from the WinnerLex Law Firm can help you defend your rights and challenge State Labor Service fines. We develop an effective legal plan to resolve the issue promptly and work out the optimal defense strategy.
We have experience in successfully appealing fines imposed by the State Labor Service, including for the following violations:
- Unregistered employment relationships;
- Reclassification of workers under civil law contracts as regular employees;
- Registering an employee as working part-time while they are actually performing full-time work as established by the company;
- Payment of wages (or compensation) without the accrual and payment of unified social contributions (USC);
- Delayed payment of wages or other payments required by labor laws for more than one month, or payment of such amounts in incomplete amounts;
- Failure to comply with minimum state wage guarantees, resulting in fines amounting to 10 times the minimum wage established by law at the time of the violation, for each affected employee.
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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
When resolving labor disputes regarding the cancellation of fines imposed by the State Labor Service, courts often consider the voluntary elimination of violations. If a business entity voluntarily rectified the identified violations before the court proceedings began, the State Labor Service’s resolution imposing the fine is typically overturned.
The preparation by State Labor Service officials of a report stating the impossibility of conducting an inspection visit due to the absence of company officials at their registered address, without identifying any signs of obstruction, cannot be considered sufficient grounds for imposing liability. Courts also take into account whether the business entity was aware of the planned inspection visit and whether it deliberately created obstacles to prevent its conduct.
During an unscheduled inspection, the State Labor Service cannot address issues that are not grounds for initiating such an inspection.
- A court decision mandating the formalization of employment relations with an individual who performed work without an employment contract, along with the determination of the period such work was performed or the work was carried out on part-time terms despite being done for the full working hours established by the enterprise, institution, or organization.
- A report identifying violations of labor legislation and/or employment regulations during an inspection of a business entity or employer. This report is prepared by an official of the State Labor Service or its territorial office, or the executive body of a city council of a city of regional significance, as well as rural, township, or city councils of a united territorial community.
- A report from an on-site tax audit conducted by the State Tax Service or its territorial office, revealing violations of labor legislation.
An authorized official must, no later than 10 days from the date of the report’s preparation, decide on the review of the case concerning the imposition of a fine. The case must be reviewed within 15 days from the date the decision to review it is made.
If the outcome of administrative appeal proceedings is unfavorable, the order can be challenged in court within three months. This period starts from the day the claimant receives the decision on their complaint against the actions, inactions, or decisions of the authority in question.
The fine must be paid within one month from the date the resolution imposing the fine is issued. The business entity or employer is required to inform the authorized official, who issued the resolution, about the payment of the fine.
