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Diia City – a new age for the Ukrainian IT sector?

19/ 08/ 2021
  After three months of refining, on 15 July 2021, Verkhovna Rada of Ukraine (the “Parliament”) adopted the draft law № 4303 “On Stimulating Development of the Digital Economy in Ukraine” (the “Law”) in its second reading. On 11 August 2021, the President signed the Law, and on 14 August 2021, the Law entered into force. The Law launches the Diia City regime and defines its key elements: principles and guarantees of the legal regime; criteria for the Diia City residency and compliance requirements for its residents; the regime’s governance system mechanisms; new options for engagement of IT specialists; new legal instruments, exclusive for the Diia City residents, that are common abroad but have not been fully implemented in Ukraine. Gig-contracts The Law introduces gig-contracts and gig-contractors – a new form of talent engagement and an alternative to formal employment and engagement of private entrepreneurs. Gig-contracts are available exclusively for the Diia City residents. Gig-contracts aim to combine the best of the two worlds: flexibility of private entrepreneurship and social security benefits available under formal employment. READ FULL VERSION Contacts Oleksandr Nikolaichyk, Partner Sayenko Kharenko Oleg Klymchuk, Counsel Sayenko Kharenko Vitaliy Odzhykovskyy, Counsel Sayenko Kharenko Andriy Tsyatsyak, Associate Sayenko Kharenko

After three months of refining, on 15 July 2021, Verkhovna Rada of Ukraine (the “Parliament”) adopted the draft law № 4303 “On Stimulating Development of the Digital Economy in Ukraine” (the “Law”) in its second reading.

On 11 August 2021, the President signed the Law, and on 14 August 2021, the Law entered into force.

The Law launches the Diia City regime and defines its key elements:

  • principles and guarantees of the legal regime;
  • criteria for the Diia City residency and compliance requirements for its residents;
  • the regime’s governance system mechanisms;
  • new options for engagement of IT specialists;
  • new legal instruments, exclusive for the Diia City residents, that are common abroad but have not been fully implemented in Ukraine.

Gig-contracts

The Law introduces gig-contracts and gig-contractors – a new form of talent engagement and an alternative to formal employment and engagement of private entrepreneurs. Gig-contracts are available exclusively for the Diia City residents. Gig-contracts aim to combine the best of the two worlds: flexibility of private entrepreneurship and social security benefits available under formal employment.

READ FULL VERSION

Contacts

Oleksandr Nikolaichyk, Partner Sayenko Kharenko

Oleg Klymchuk, Counsel Sayenko Kharenko

Vitaliy Odzhykovskyy, Counsel Sayenko Kharenko

Andriy Tsyatsyak, Associate Sayenko Kharenko

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