Business Protection During Labor Inspections: How to Avoid Huge Fines

Fines for unregistered employees, introduced since 2017, have become a serious challenge for Ukrainian businesses. Today, the amount of financial sanctions per employee can reach 100 thousand UAH, forcing businesses to take care of legal security in advance.

Attorneys at Law Business Association provide effective assistance in resolving complex labor law issues, ensuring a reliable defense during state supervision.

Risks and Penalties for Labor Law Violations

The situation in the labor market remains tense due to strict state control. The main focus of inspections is to identify employees performing duties without an official employment contract.

Refusing entry to a labor inspector for an inspection aimed at identifying unregistered employees carries a fine that can exceed 300 thousand hryvnias.

Such amounts make professional legal support not just desirable, but critically necessary for business survival in modern realities.

Inspector Powers and the Danger of Refusal of Entry

According to the current inspection procedure developed by the State Service of Ukraine on Labor, inspectors are granted a wide range of powers. This significantly complicates independent protection of rights by business entities.

However, the law grants entrepreneurs the right to involve third parties to protect their interests. Key aspects of interaction with the inspectorate:

• The right to involve lawyers to represent the company’s interests.
• The possibility to demand compliance with the inspection procedure.
• The right to a polite wait for the arrival of the manager or attorney before the inspection of the premises begins.

The Role of an Attorney in Protecting Enterprise Rights

At the moment an inspector visits the office, any employee has the legal right to inform management and an attorney. While the specialists are on their way, the inspector is asked to wait, which is a perfectly legitimate practice.

Legal assistance from Law Business Association includes:

1. Direct presence of an attorney during the inspection.
2. Analysis of documents and materials requested by the inspector.
3. Recording violations by the regulatory authorities.
4. Minimization of risks of imposing unlawful fines.

Comprehensive Inspection Support from LBA

Based on years of experience and high professionalism, Law Business Association provides full support for unscheduled inspections. We help businesses adapt their work model to new legislative norms at the preparation stage.

Our regular clients receive:

• Audit of personnel documentation (Legal Due Diligence).
• Development of staff behavior algorithms during inspections.
• Defense in court disputes with State Labor authorities.
• Full legal protection in Kyiv, throughout Ukraine, and abroad.

Comprehensive legal service from LBA is your guarantee of stability and protection of property rights in the most difficult situations.