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Contractors in UaUkraine.






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In Ukraine, independent contractors with diverse specializations are available to help handle short- and long-term projects for your company. If you’re considering hiring an independent contractor in Ukraine, ensure you understand the legal requirements and worker classifications first.

Hiring contractors in Ukraine

Before you begin the hiring process, employees and contractors have key differences you’ll want to be aware of.

Independent contractors vs. full-time employees

The main legal difference between employees and independent contractors is that contractors are self-employed and are not subject to the supervision and control. As their own business, independent contractors have the freedom to establish their own working conditions, offer their services to multiple companies at once, and source their own benefits. They also typically pay their own taxes.

Penalties for misclassification

Understanding the distinction between employees and contractors is critical because your company could be held liable if you misclassify a worker. Treating an employee as a contractor can result in costly lawsuits, penalties, and fines. Additionally, your business may be required to pay all the benefits owed to the employee and all social deduction payments since the beginning of their service.

How to hire independent contractors in Ukraine

Hiring a contractor looks somewhat different from hiring an employee. You can follow these 3 fundamental steps.

1. Carefully conduct interviews.

Contractors offer extensive industry expertise, which will likely be the focus during interviews. Discuss their skills and prior project experience rather than culture fit and other factors you’d consider in an employee interview. Your company is engaging a service, so prioritize your specific project needs.

2. Create a service agreement.

After choosing a contractor, you can establish a consistent working relationship by making a service agreement. While you don’t need to cover benefits or other similar provisions, you should determine these terms with the contractor:

  1. Pay rates and arrangements
  2. Services
  3. Length of the contract
  4. Termination conditions

3. Introduce necessities.

While an involved training program could seem overly supervisory for contracting work, contractors may need a brief introduction to your company’s processes. Ensure they have access to essential tools and an understanding of any workflows they’ll contribute to.

How to pay independent contractors in Ukraine

While contractors are not on employee payroll, you can use a service such as a money transfer provider to compensate them. Be aware of any restrictions you may need to navigate for international payment transfers.

In most situations, companies aren’t obligated to withhold taxes or provide benefits, however, you should meet your contractual responsibilities to deliver payments on time and at the agreed-upon rate.

Terminating independent contractors

For the most part, contractors operate on a project-by-project basis or for a set period. Legally, your company and the contractors you work with are free to set termination and extension conditions.

To stay proactive, it’s best to establish termination protocols in your service agreement. If you have issues with contractor negligence or they’re unexpectedly unable to complete a job, you’ll have clear guidelines to follow for ending services.

Turn to G-P when hiring independent contractors in Ukraine.

As a part of our #1 suite of global employment products, G-P Meridian Contractor™ allows companies to hire and pay global contractors faster, with self-service workflows and a wide set of flexible payment options. Whether you’re hiring employees or contractors, our platform streamlines the process with a single solution for your global workforce.

Contact us to learn more.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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