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Ukraine

Government support for business and workers in Ukraine

Table of contents
  1.  What government schemes(s) are available in your country to help employers and workers in the current COVID-19 crisis and for how long?
  2. What payments are made under the scheme(s) and how/by whom?
  3. Which employers and employees are covered?
  4. What procedure(s) does an employer have to follow to be able to take advantage of the scheme(s)?
  5. Are there any other important eligibility criteria?
  6. Are employees covered by the scheme(s) protected from dismissal?
Ukraine

1. What government schemes(s) are available in your country to help employers and workers in the current COVID-19 crisis and for how long?

Since 2 April 2020, the Government of Ukraine has provided state support for employees affected during the COVID-19 quarantine period by introducing short-working hours (the “SWH COVID-19 Support”) in the form of partial compensation of the respective wage losses.

2. What payments are made under the scheme(s) and how/by whom?

SWH COVID-19 Support is paid at the rate of two-thirds of the wage for each shortened working hour but capped at the statutory minimum monthly wage (currently UAH 4723 or approximately EUR 150). Such support is payable subject to the availability of the financial resources at the State Unemployment Insurance Fund.

SWH COVID-19 Support is paid by the state employment authority to employers, who further distribute the funds to affected employees (those whose working hours have been shortened).

3. Which employers and employees are covered?

SWH COVID-19 Support is distributed to employers for further payment to affected employees (those whose working hours were shortened) if the employer meets the following conditions:

  • it stopped or reduced operations in order to comply with the anti-COVID-19 measures prescribed by the quarantine regime requirements;
  • as a result of the above, it had to introduce the short-working hours (SWH) regime in relation to all or some of its employees;
  • it is a small or mid-scale business;
  • it has no arrears in salary payments or payments of the unified social contributions over the past five years.

Only the formally employed individuals (except for the employees also receiving pensions), are eligible for SWH COVID-19 Support coverage.

4. What procedure(s) does an employer have to follow to be able to take advantage of the scheme(s)?

In order to receive SWH COVID-19 Support, the employer is required to apply to the state employment authority within 30 days after it introduces the SWH with the minimum set of supporting documents, including information on the employees to whom it will apply the SWH regime. The decision on provision of the SWH COVID-19 Support should be released by the state employment authority within 3 business days of receiving of the employer’s application.

5. Are there any other important eligibility criteria?

The SWH COVID-19 Support is available only for the period of duration of the quarantine introduced by the Government.

6. Are employees covered by the scheme(s) protected from dismissal?

No special protection from dismissal is provided to employees receiving SWH COVID-19 Support. However, if an employer decides to furlough an employee who has benefitted from SWH COVID-19 Support (whether through voluntary or involuntary termination) within 180 days following the SWH COVID-19 Support payment to such employee (or a shorter period if the SWH COVID-19 Support was payable for under 180 days), then the employer will be required to pay back the entire amount of SWH COVID-19 Support received from the state.