Working without official employment: What are the consequences for employees and employers?

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18.09.2025 19

Working without official employment: What are the consequences for employees and employers?

Informal employment remains a widespread practice in Ukraine. Many people agree to work under such conditions, often without even thinking about the consequences this may have: from a lack of social guarantees to complete vulnerability in the event of disputes.

At the same time, if an employer allows an employee to perform work without a formal employment contract, this is a clear violation of labour law, so such risky ‘savings’ may actually cost the employer much more than formal employment.

In this article, EVERLEGAL experts will look at the risks of informal employment for both parties and what steps can help protect against the negative consequences of ‘grey’ employment.

Read more in the article by EVERLEGAL lawyers for the Budni media platform (robota.ua) at the following link.

In focus:

  • What are the main risks for an employee if they work unofficially?
  • Can an employee who has worked unofficially demand payment of wages and compensation?
  • What fines and sanctions are provided for employers for using undeclared labour?
  • Can the tax authorities or the State Labour Service detect an undeclared employee without a complaint from them?
  • What should an employee do if their employer evades formal registration?
  • Can an informal employee be dismissed without notice?

 

Our experts:

  • Svitlana Teteria, Counsel at EVERLEGAL
  • Alina Ivanchuk, Junior Associate at EVERLEGAL


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