The procedure for issuing working permits for foreign nationals and their residence permits in Ukraine was simplified

On 27 September 2017, the procedure for issuing working permits for foreign nationals (the “Working Permit”) and their residence permits was simplified due tocoming into force of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine to Remove Barriers to Attracting the Foreign Investments” No. 2058-19, dated 23 May 2017 (the “Law”), in particular:

• Significantly reduced number of documents for obtaining the Working Permit

The following documents are no longer required: a certificate on the absence of a criminal record, a medical certificate confirming that a foreign national is not sick with alcoholism, drug addiction, etc., and documents on education (for most categories of foreign nationals).

• Combining jobs without obtaining an additional Working Permit is now permitted

Foreign nationals with a monthly salary of at least 50 minimum wages (UAH 160,000, the equivalent of EUR 5,150) can combine jobswithout obtaining an additional Working Permit as long as their Working Permit remains valid.

• Foreign nationals can now perform the job duties of  temporary absent employees

The employers are now allowed to assign a foreign employee to perform the job duties of a temporary absent employee for up to 60 calendar days per year and no additional Working Permit is required for such an arrangement.

• Working Permit validity period is increased for certain categories of foreign employees

The Working Permit is now issued: (i) for the same duration as the employment agreement (contract), but no more than for three years, for special categories of foreign nationals (highly paid professionals, company shareholders, graduates from the listed top world universities, employees of creative occupation, IT professionals); (ii) for the duration of a contract executed between Ukrainian and foreign companies, but no more than for three years, – for the seconded foreign employees; and (iii) for up to one year, – for all other foreign employees.

• Several procedural changes weremade

These changes are aimed at significant simplification and facilitation for employers of the Working Permit issuance procedure.

• Employers are obligated to file for amending the Working Permits

If any information stated in the Working Permit changes (including, if a foreign employee is transferred to another position), an employer now has to apply to the employment centre within 30 calendar days after the change occurred requesting to amend the Working Permit accordingly.

• Working Permit application consideration can be suspended based on certain legal groundsand renewed upon their correction

For instance, any inconsistency between the terms and conditions of an employment agreement (contract) with a foreign national and the Ukrainian employment legislation may now serve as a basis for suspending the Working Permit application consideration.

• Business owners now may be issued temporary residence permits

Shareholder/participant of a Ukrainian entity, whose share in the authorized capital is at least EUR 100,000 at the official exchange rate established by the National Bank of Ukraine as of the date of making a foreign investment, is now entitled to obtain a temporary residence permit in Ukraine.

Possibly, the above changes can be positively perceived by foreign businesses in Ukraine helping to improve the overall investment climate in the country.

Should you need more information, please contact Svitlana Kheda or Olga Kyriusha.