Why the new rules of employment for foreigners will improve Ukraine’s investment climate?
In order to create an attractive investment environment and the introduction of international honest business practices, Ukraine should be open to attracting foreign investors and highly skilled professionals, especially during the acute shortage of necessary staff. One of the challenges for them is the procedure for obtaining a work permit and a temporary residence permit in Ukraine.
Thus, at the initiative of the EBA member companies, in cooperation with the People’s Deputy of Ukraine Sergey Kiral, the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Reducing Barriers to Attracting Foreign Investments (on Abolishing Registration of Foreign Investments and Making Amendments to rules of employment and temporary residence of foreigners) “No. 4541. This Law was signed on June 26, 2017 by the President of Ukraine and will come into force on September 27, 2017.
- The range of foreign specialists who can be involved in the work in Ukraine (founders / participants / beneficiaries (controllers) of a legal entity created in Ukraine, graduates of the universities included in the first hundred in world university rankings, foreign IT professionals, highly paid professionals, foreign workers of creative professions, owners of copyrights to objects of intellectual property or foreigners who will occupy positions providing for the creation of objects of copyright).
- The vacancy report (Report 3-PN) is canceled, that is, the requirement to substantiate the expediency of employing foreigners.
- The minimum wage (MLP) for foreigners is established (10 MLP – 32 000 UAH for foreign workers in companies, 5 MLP – 16 000 UAH for foreign workers in public and charitable organizations, educational institutions).
- The list of documents for obtaining a work permit for a foreigner in Ukraine has been doubled.
- The validity period of the permit is increased to 3 calendar years for certain categories of foreigners specified in clause 1.
- A differentiated amount of payment for issuing a permit for the use of a foreigner’s work is established, depending on the validity period of the permit.
- Work of foreigners on a condition of work permit is allowed.
- A new basis for obtaining a temporary residence permit for foreign investors has been introduced.
- The time limit for obtaining a temporary residence permit is shortened.
- The procedure for filing documents to the migration service has been improved.
We hope that these changes in the above-mentioned procedure will have a positive effect on the business environment, and about their impact on the investment climate, we will be able to say clearly only afterwards, after its practical application.