Comment: What and how are auditors from the State Labor Service of Ukraine checking

Since the beginning of 2017, the State Labor Service conducted more than 10 thousand audits. The total amount of fines imposed as a result of checking as at September 1 amounted to about 134 million UAH, of which quite significant fines for enterprises were 320 thousand UAH (15 decisions) for not allowing inspectors to inspect. At the same time, in the spring of this year, an agreement was concluded between the State Labor Service, the SFS and the Pension Fund on the exchange of information, which increased the coordination of actions, the efficiency and effectiveness of the information exchange of these structures in identifying violations of labor law, tax and pension laws.

For example, at the moment, tax inspectors, when checking the payment of taxes, have information about the number of employees and can compare the number with the availability of employment contracts to assess whether there is a similar amount of data in the tax base for accounting of employees as taxpayers (SSC, income tax, etc.). The State Labor Service also provides the SFS and the Pension Fund with information on confirmed or disproved violations.

The most common types of violations are the following: non-payment of wages, non-compliance with the law when dismissing employees, violation of the regime for granting weekends and vacations.

Under such circumstances, the management and owners of enterprises face the problem of protecting their own business from unauthorized checks, fines, restrictions imposed on the company based on the results of revealed violations of the law. In this sense, it is advisable to conduct an audit on compliance with labor laws in the framework of personnel audit programs, services which can be provided by the HLB UKRAINE International Group. Based on the results of the audit, the enterprise management is provided with information on all identified deficiencies that need to be corrected, regarding legal and organizational issues, related to minimizing the risks of fines and other restrictions as a result of checking by regulatory bodies.

A personnel audit can be especially potentially useful for micro, small and medium enterprises that do not have their own lawyers. A check on compliance with labor laws will allow SMEs to eliminate possible violations of labor laws in advance and save them from problems in case of a possible (recently quite widespread) visit of the State Labor Inspector with.


October 2, 2017

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