Over the past few years, there has been an active migration of the working population of Ukraine to the European Union.Intermediary companies become an intermediate link between foreign employers and citizens of Ukraine.In this article, we present the main requirements that must be met by officially registered business entities engaged in employment mediation abroad.

Legal status and choice of the taxation system

An economic entity that provides employment mediation services may be registered in the manner prescribed by law:

- legal entity;

- individual entrepreneur. (paragraph 22 of Article 1 of the Law of Ukraine №5067)

During the state registration, the business entity is obliged to indicate the activities it plans to engage in. According to the Classifier of Economic Activities (as amended in 2010), employment activities are divided into a group under code 78.

According to the norms of the Tax Code of Ukraine, an economic entity engaged in employment mediation abroad may be on both the general taxation system and the single tax. Exceptions are business entities in the authorized capital of which the set of shares owned by legal entities that are not payers of the single tax is equal to or exceeds 25 percent and individuals and legal entities are non-residents. These categories of taxpayers are obliged to operate only in the general system of taxation.

General system of taxation - tax liabilities are determined according to accounting data. The amount of income is not limited. Profits are taxed at a rate of 18%.

Simplified taxation system - tax liabilities are determined according to simplified accounting. The object of taxation is:

Group 2 (maximum income UAH 1.5 million) - 20% min. salary - 745 UAH.

Group 3 (maximum income UAH 5 million) - 3% with VAT or 5% without VAT on income.

The amount of VAT is 20%.

License

In accordance with paragraph 20 of Art. 7 of Law № 222 of 02.03.2015, mediation in employment abroad is subject to licensing.

The license is issued by the State Employment Service of Ukraine. An exhaustive list of documents and requirements for obtaining a license are specified in the Resolution of the Cabinet of Ministers of Ukraine 601060 of 16.12.2015.

In particular, an economic entity wishing to carry out employment mediation activities abroad is obliged to:

1. Adhere to the requirements for the availability of premises (own or rented). At the entrance to the premises place information indicating: the name of the company, in accordance with state registration and information about the mode of operation. In case of planned or unscheduled closing of the premises, he is obliged to place an appropriate announcement at the entrance to the premises, indicating the telephone number for information.

In the room, in a place accessible to visitors, place the following information:

 information on the full name, location or place of residence of the entrepreneur, telephone numbers, surname, name and patronymic of the head and / or owner;

 a copy of the extract from the Unified State Register of Legal Entities and Individual Entrepreneurs;

 a copy of the license to conduct employment mediation activities abroad;

 the list of states to which, in accordance with the concluded foreign economic agreements (contracts) on the provision of employment mediation services abroad, the company has the right to employ clients;

 certified by the company written general information about the nature of future work, working conditions and residence in the country of employment;

 contact telephone number of the structural subdivision of the licensing body, which is responsible for the powers in the field of licensing;

 Laws of Ukraine “On licensing of economic activities”, “On basic principles of state supervision (control) in the sphere of economic activity”, excerpt from the Law of Ukraine “On consumer protection” in terms of provision of services, License conditions;

 book of reviews and suggestions. (License conditions, Resolution of the Cabinet of Ministers of Ukraine 601060 of December 16, 2015)

2. Adhere to the requirements in working with foreign employers:

- To have foreign economic agreements (contracts) with all foreign economic entities on the provision of employment mediation services abroad, which must meet the requirements of the legislation. An integral part of a foreign trade agreement (contract) for the provision of employment mediation services abroad is a draft employment contract approved by a foreign employer.

- Provide employment mediation services abroad in accordance with the applications of the foreign employer (its contractor) for vacancies (vacancies) and only within the framework of foreign economic agreements concluded by foreign entities.

- Provide the State Employment Service of Ukraine with: a copy of the employment permit for foreign citizens - if the legislation of the state of employment provides for the issuance of such a permit; a copy or extract from the document of the foreign business entity, which determines the type of its economic activity - if the legislation of the state of employment does not provide for the issuance of permits (licenses) for employment of foreign citizens.

- Provide the State Employment Service of Ukraine with a copy of the collective agreement (contract) between the relevant foreign business entity or employers' association and the trade union organization or their trade union, if such a collective agreement (contract) exists, or a copy of a certificate certified by a foreign employer that such a contract (agreement) was not concluded. The collective agreement must comply with the legislation of the country of employment.

3. Adhere to the requirements in working with clients - citizens of Ukraine:

- provide services to the client only after concluding an agreement with him on the provision of employment mediation services in two copies (one is issued to the client, the other remains with the intermediary). An integral part of this contract is a certified copy of the agreed draft employment contract with a foreign employer. Fulfillment of the terms of the contract is formalized by an act of services provided, which is signed by both parties.

- before concluding an agreement on the provision of mediation services, free of charge to acquaint the visitor with general information about the possibility of employment with the relevant foreign employer, the nature of future work, working conditions and residence in the country of employment;

- not to offer visitors / clients mediation in their employment abroad in activities that are prohibited or the occupation of which entails liability under the laws of Ukraine, the host country or international norms;

- assist persons who have been provided with employment mediation services in resolving issues of legal and social protection and inform them about the mechanism of voluntary participation in the obligatory state social insurance.

4. Timely submit information on the number of persons employed abroad and respond to requests from the State Employment Service, keep a journal of unified customer records.
5. Receive payment from clients for employment mediation services abroad only after the day of receipt by the client of a copy of the employment contract signed by a foreign employer (employment contract) and signing of the act of provided services

An intermediary company that provides employment mediation services abroad is liable for the deterioration of the terms of the employment contract concluded between a person and a foreign employer, a copy of which is kept by such an entity for three years.

Responsibility

Administrative sanctions

Carrying out economic activity without obtaining a license or violating the conditions of licensing - entails the imposition of a fine of one thousand to two thousand non-taxable minimum incomes (17 UAH), which is from 17,000 to 34,000 UAH. with confiscation of the property received as a result of commission of this offence (Art. 164 of the Code of Ukraine about Administrative Offenses).

Financial sanctions

In case the business entity carries out activities to provide employment mediation services abroad without obtaining the appropriate license, a fine of 12 minimum wages set at the time of detection of the violation is charged - today it is UAH 44,676.

In case of non-submission or violation of the procedure for submission by an economic entity that provides employment mediation services, in accordance with this Law, information on persons employed by it is fined twice the minimum wage set at the time of detection of violations - currently UAH 7,446.

In case of violation by a business entity that provides employment mediation services abroad, the requirements of this Law of Ukraine "On Employment" and the Law of Ukraine "On Licensing of Certain Types of Economic Activity" a fine of ten times the minimum wage established at the time detection of violations - today it is UAH 37,230.

Failure of the business entity providing employment mediation services to comply with the requirements of the law during the provision of such services shall be grounds for a decision to terminate the activity or revoke the license by the licensing authority.