New fines for labor law violations: challenges for business in 2025

In 2025, Ukrainian entrepreneurs will face significant changes in labor legislation that will affect both the rules of inspections and the amount of fines for violations. The main goal of the innovations is to ensure respect for employees’ rights and improve the transparency of labor relations. However, for many entrepreneurs, this will mean increased risks …

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In 2025, Ukrainian entrepreneurs will face significant changes in labor legislation that will affect both the rules of inspections and the amount of fines for violations. The main goal of the innovations is to ensure respect for employees’ rights and improve the transparency of labor relations. However, for many entrepreneurs, this will mean increased risks and financial costs.

Increasing fines: what will change?

Starting in 2025, the amount of fines for violations of labor laws will be tied to the minimum wage, which is expected to be UAH 8,000.

Here are the main fines that will be in effect from January:

  • Non-admission of a State Labor Service inspector for an inspection – UAH 128,000.
  • Unregistered employees – UAH 80,000 for each.
  • Other violations of labor laws (e.g., errors in recording working hours) – up to UAH 8,000.

The increase in fines reflects the government’s desire to tighten control over compliance with labor laws. At the same time, this creates an additional burden on businesses that are currently operating in a difficult war environment.

Reasons for changes and new realities for business

Since the outbreak of the war in Ukraine, inspections by the State Labor Service have been temporarily suspended, leading to an accumulation of complaints from employees. In particular, people often complained about:

  • illegal dismissals;
  • forcing unpaid vacations;
  • delays in salary payments.

The resumption of inspections in 2022 was the first step toward regaining control. However, the increase in fines in 2025 is the next step, which should encourage businesses to comply with labor laws.

How to prepare for inspections?

In order to avoid fines and problems with regulatory authorities, entrepreneurs should review and streamline their operations in advance.

Here are some practical tips for preparing for inspections by the State Labor Service:

  1. Check the HR documentation.

Make sure that all employees are officially employed and that employment contracts comply with legal requirements. Pay special attention to the recording of working hours.

  1. Train your staff.

Instruct employees on how to behave during inspections. This will help avoid misunderstandings and unjustified accusations.

  1. Take advantage of legal support.

Engage an experienced lawyer who can advise you during inspections and protect your rights in case of conflicts.

  1. Use modern tools.

Use HR platforms and software to automate processes and ensure compliance.

Are changes in approaches to inspections possible?

Despite the importance of control, the current inspection system remains outdated and non-transparent. This creates additional difficulties for businesses, which often perceive inspectors as a punitive body.

To solve this problem, it is necessary to reform approaches to inspections in line with European standards:

  • Risk-oriented approach. Inspections should be carried out only where there are grounds for suspicion of violations.
  • Transparency and standardization. Clear rules will allow entrepreneurs to better prepare for inspections.
  • Advisory support for business. Inspectors should not only impose fines, but also help entrepreneurs understand the new rules.

This system is already in place in many European countries. It helps to establish partnerships between business and the state, which in turn stimulates economic development.

New fines for labor law violations in 2025 will be a serious challenge for Ukrainian entrepreneurs. To avoid risks, businesses should pay special attention to preparing for inspections and complying with regulations. For legal advice, please contact professionals specializing in labor law.

 

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