Business Protection During State Labor Inspections: How to Avoid Huge Fines

Penalties for undocumented employees, introduced since 2017, have become a major challenge for Ukrainian businesses. Today, financial sanctions per employee can reach 100 thousand UAH, forcing businesses to prioritize legal security in advance.

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

Risks and penalties for labor law violations

The labor market situation remains tense due to strict state control. The main focus of inspections is identifying employees working without an official employment contract.

Denying a labor inspector access to an inspection aimed at identifying undocumented workers carries a fine that can exceed 300 thousand UAH.

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

Inspector powers and the danger of denying access

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

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

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

The attorney’s role in protecting corporate rights

When an inspector visits the office, any employee has the legal right to inform management and the attorney. While the specialists are on their way, the inspector is asked to wait, which is an entirely 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 committed by regulatory authorities.
4. Minimizing the risks of unlawful fines.

Comprehensive inspection support from LBA

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

Our regular clients receive:

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

Comprehensive legal services from LBA are your guarantee of stability and property rights protection in the most challenging situations.