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The Ministry of Economic Development Offered Changes to the Procedure for Maintaining Records of Service of Foreign Representative Offices Employees

Draft Order of the Cabinet of Ministers of Ukraine “On Abolishment of para 2.21 of the Instruction for Records of Service Maintenance” was published on the website of the Ministry of Economic Development for public discussion on April 12th, 2018.

The draft proposes to abolish para 2.21 of the Instruction for Records of Service Maintenance approved by Order of the Ministry of Labor of Ukraine, Ministry of Justice of Ukraine and Ministry of Social Security of Ukraine No. 58 as of July 29th, 1993 (hereinafter – the Instruction).

Now para 2.21 of the Instruction provides that records of service of employees working based on labor contracts at foreign representative offices in Ukraine are stored not by the employer, but in special units of local self-governments or local authorities. For example, records of service of respective employees in Kyiv are stored at the General Directorate of Kyiv City Council for Servicing Foreign Representative Offices, and in the regions – at directorates of foreign affairs and foreign economic activities of regional administrations or enterprises determined by regional state administrations.

Besides, these are the mentioned units which make records on employment and dismissal under employment agreements and employers’ certificates. That is, records in the record of service made by foreign representative offices are considered invalid.

It should be noted that based on the current mechanism of relations regulation, employers cannot satisfy requirements of the Labor Code of Ukraine, namely article 47 which obliges the employer to hand over a properly executed record of service to the employee on the day of his dismissal.

Thus, the approval of the proposed draft will not only allow harmonizing the Instruction with the legislation, but will also improve the conditions for conducting business by foreign representative offices, which in turn will also enhance the attractiveness of conducting business in Ukraine by foreign companies.

Contact the author: Zoya Zamikhovska, associate at Legal Alliance Company, zamikhovska@l-a.com.ua

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