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Understand remote work regulations and policies in Ukraine

Updated on April 25, 2025

Remote work has become a significant part of the modern employment landscape in Ukraine, accelerated by recent global events and technological advancements. This shift has prompted both employers and employees to adapt to new ways of working, moving beyond traditional office-based models. As businesses increasingly look to leverage talent across geographical boundaries, understanding the specific legal framework, practical considerations, and technological environment for remote and flexible work in Ukraine is essential for successful implementation and compliance.

Navigating the nuances of Ukrainian labor law regarding remote arrangements requires careful attention to ensure both employer obligations and employee rights are fully met. This includes understanding how contracts need to be structured, what responsibilities employers have for providing resources, and how data protection and privacy are handled in a distributed work environment. For companies operating internationally or looking to hire in Ukraine, a clear grasp of these elements is fundamental to building effective and compliant remote teams.

Ukrainian legislation provides a clear framework for regulating remote and home-based work, primarily defined within the Labor Code. Remote work involves an employee performing their job duties outside the employer's premises, typically from their own home or another location of their choosing, using information and communication technologies. Home-based work is a specific type where the employee works exclusively from their registered place of residence or another designated location, often involving manual labor or tasks that don't strictly require constant online connectivity.

Key aspects of the legal framework include:

  • Definition: The law distinguishes between remote work (flexible location using IT) and home-based work (fixed location, often non-IT tasks). Both require specific contractual arrangements.
  • Employment Contract: Remote or home-based work status must be explicitly stated in the employment contract or an amendment to an existing contract. A standard employment contract can be converted to a remote or home-based one through mutual agreement.
  • Employer Obligations: Employers must ensure safe and harmless working conditions, provide necessary equipment and software (or compensate for their use), and maintain communication channels. They retain the right to control the employee's work performance within the limits defined by the contract.
  • Employee Rights: Remote employees have the same labor rights as office-based employees, including working hours, rest periods, leave, and social guarantees. They are generally responsible for ensuring their workspace meets safety standards, though the employer must provide guidance.
  • Working Hours: Unless otherwise specified in the contract, remote employees are subject to standard working hours. However, the law allows for flexible working hours arrangements for remote workers, where the employee independently determines their work schedule, provided they complete the required scope of work.

Flexible Work Arrangement Options and Practices

Beyond standard remote work, Ukrainian law and common practice support various flexible work arrangements. These allow for greater adaptability in terms of location, schedule, or both, catering to diverse business needs and employee preferences.

Common flexible arrangements include:

  • Hybrid Work: Employees split their time between working remotely and working from a designated office or co-working space. This requires clear policies on required office days, workspace booking, and collaboration tools.
  • Flexible Working Hours: Employees have autonomy over their daily start and end times, provided they work the contractual number of hours per week/month and are available during core business hours if required. This must be agreed upon and documented.
  • Compressed Workweeks: Employees work full-time hours over fewer than five days. While less common, this can be implemented if agreed upon and compliant with total weekly hour limits.
  • Job Sharing: Two or more part-time employees share the responsibilities of one full-time position. This is a form of part-time work but offers flexibility in covering a role.

Implementing flexible arrangements requires clear internal policies, open communication, and often amendments to employment contracts detailing the specific terms of the flexibility (e.g., hybrid schedule, core hours for flexible time).

Data Protection and Privacy Considerations for Remote Workers

Data protection is a critical concern when employees work remotely, handling sensitive company and client information outside the controlled office environment. Ukraine has data protection laws aligned with international standards, including principles similar to GDPR, particularly concerning personal data processing.

Key considerations for remote work include:

  • Legal Basis for Processing: Ensure that processing personal data by remote employees has a clear legal basis (e.g., consent, necessity for contract performance).
  • Security Measures: Employers must implement appropriate technical and organizational measures to protect data accessed and processed by remote workers. This includes secure access protocols (VPNs), data encryption, strong password policies, and secure software usage.
  • Employee Training: Remote employees should receive training on data protection policies, secure handling of information, identifying phishing attempts, and reporting security incidents.
  • Equipment Security: Policies should cover the security of devices used for remote work, whether company-provided or personal (if permitted). This includes requirements for up-to-date software, antivirus protection, and physical security of devices.
  • Data Transfer: If remote work involves transferring data outside Ukraine, ensure compliance with cross-border data transfer regulations.

Employers should establish clear data protection policies specifically tailored for remote work scenarios and ensure employees understand and adhere to them.

Equipment and Expense Reimbursement Policies

Ukrainian law places obligations on employers regarding the provision of equipment and compensation for expenses incurred by employees performing remote or home-based work.

Employer responsibilities typically include:

  • Provision of Equipment: Employers are generally required to provide remote employees with the necessary equipment (laptops, monitors, software, etc.) and tools to perform their job duties.
  • Compensation for Use of Personal Equipment: If, by agreement, an employee uses their own equipment (e.g., personal laptop, mobile phone), the employer must compensate them for its depreciation (wear and tear) and usage costs. The amount and procedure for compensation should be agreed upon in the employment contract or a separate agreement.
  • Reimbursement of Expenses: Employers are often expected to reimburse remote employees for necessary expenses directly related to their work, such as internet access and potentially a portion of electricity costs if significant and verifiable. The specific expenses and reimbursement procedures should be clearly defined in the employment contract or a company policy.

It is crucial for employers to have a clear, documented policy outlining what equipment is provided, how personal equipment use is compensated, and which expenses are reimbursed, along with the procedures for claiming reimbursement.

Remote Work Technology Infrastructure and Connectivity

Ukraine has a relatively well-developed technology infrastructure, particularly in urban areas, which supports remote work effectively.

Key aspects include:

  • Internet Penetration: High-speed internet access (fiber, DSL, cable) is widely available in cities and increasingly in smaller towns. Mobile internet (4G, with 5G expanding) is also prevalent, providing connectivity options.
  • Reliability: While generally reliable, internet service quality can vary depending on location and provider. Employees in remote or rural areas might face connectivity challenges.
  • Power Supply: Access to stable electricity is generally good in most populated areas, though occasional outages can occur, particularly in specific circumstances. Remote workers may benefit from backup power solutions.
  • Technology Adoption: There is a high level of digital literacy and adoption of collaboration tools and cloud services among the workforce, facilitating remote team operations.

Employers should consider the potential for varying connectivity levels among employees and ensure their remote work policies and technology stack are robust enough to handle potential disruptions, perhaps recommending backup internet options or providing mobile data allowances.

Martijn
Daan
Harvey

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