Ukraine

  1. About UkraineUkraine
  2. Working conditions
  3. Sectors and companies that are recruiting
  4. Applying for a job
  5. Major recruitment pointers
  6. Recruitment Resources and networks

1. About Ukraine

Ukraine is situated in the east of Europe and it is a sovereign state. Its independence was proclaimed in 1991.

The territory of Ukraine is 603 700 square kilometres. Ukraine borders on Russia, Belarus, Poland, Moldova, Slovakia, Hungary, and Romania. It’s washed by the Black Sea and the Sea of Azov and has very important ports. Ukraine is larger than France and Great Britain but considerably smaller than Russia. 5% of Ukraine’s territory is mountainous; the rest part of the Ukrainian area is flat. Ukraine has the Carpathians and the Crimean Mountains. The Carpathians is the natural mountainous boundary of Ukraine. The biggest cities of Ukraine are Kyiv, Kharkiv, Lviv, Dnipropetrovsk, Zaporizhzhya, Donetsk, Odessa, Mykolaiv and others.

Ukraine is developed industrial and agricultural country. It’s rich in iron ore, coal, natural gas, oil, salt and other mineral resources. Ukraine has such branches of industry as metallurgy, machine-building, power industry, chemical industry and agriculture. Scientists of Ukraine make their contributions of important discoveries and inventions to the world science. Ukraine is a member of the United Nation Organization and takes part in the work of many international organizations.

Ukraine has a rich historical and cultural heritage. There are many higher educational establishments, theatres, libraries, museums, art galleries in Ukraine. It’s also famous for many outstanding writers, poets and musicians.

Ukraine is the world’s largest producer of sunflower oil, a major global producer of grain and sugar, and future global player on meat and dairy markets. It is also one of the largest producers of nuts. Ukraine also produces more natural honey than any other European country. Because Ukraine possesses 30% of the world’s richest black soil, its agricultural industry has a huge potential. However, farmland remains the only major asset in Ukraine that is not privatized, hampering access to international investments and best farming technology. The agricultural industry in Ukraine is already highly profitable, with 40-60% profits, but according to analysts its outputs could still rise up to fourfold.

Ukraine is relatively rich in natural resources, particularly in mineral deposits. Although oil and natural gas reserves in the country are largely exhausted, it has other important energy sources, such as coal, hydroelectricity and nuclear fuel raw materials.

Ukraine imports 90% of its oil and most of its natural gas. Russia ranks as Ukraine’s principal supplier of oil, and Russian firms now own and/or operate the majority of Ukraine’s refining capacity. Natural gas imports come from Russia – which delivers its own gas, as well as the gas from Turkmenistan. Instead, Ukraine is transporting Russian gas to the EU through its well-developed gas pipelines system, being Europe’s vitally important connection. The country’s dependence on Russian gas supplies dramatically affects its economics and foreign policy, especially after the recent major gas dispute.

However, Ukraine is independent in its electricity supply, moreover, exporting it to Russia and other countries of Eastern Europe. This is achieved through a wide use of nuclear power and hydroelectricity. The recent energy strategy intends gradual decreasing of gas- and oil-based generation in favor of nuclear power, as well as energy saving measures, shortening of industrial gas consumption. Reform of the still inefficient and opaque energy sector is a major objective of the International Monetary Fund (IMF) and World Bank programs with Ukraine.

Ukraine is a partner country of the EU INOGATE energy programme, which has four key topics: enhancing energy security, convergence of member state energy markets on the basis of EU internal energy market principles, supporting sustainable energy development, and attracting investment for energy projects of common and regional interest.

Read also: Information about the Ukraine at www.cia.gov

Population: 45 million

GDP per inhabitant (2010): USD 6.700,-

Unemployment rate (2012): 8.1%

2. Working conditions

The main sources of labour and employment law in Ukraine are the Constitution, the Labour Code of Ukraine, and labour regulations issued by the Cabinet of Ministers of Ukraine, the Ministry of Labour, and local state administrations.

While the Constitution’s guarantees are stated in general terms, the Labour Code of Ukraine is the more specific source of labour law. It is a comprehensive set of rules which relates to practically all aspects of relations between employers and employees governing employment agreements and contracts, working hours, vacations, days off, compensation, social benefits, discipline, employment of women and minors, resolution of employment disputes, and the respective liabilities of employees and employers.

As a member of the International Labour Organization (ILO), Ukraine has signed and ratified a number of ILO conventions that supersede conflicting provisions of Ukraine’s domestic labour laws. The country has also entered into a number of bilateral and multilateral international agreements that contain provisions on labour, employment, and social protection. Ukraine guarantees to each citizen of working age the following rights:

• freedom to work and choose a profession;
• protection from unreasonable rejection of an employment application or from illegal termination of employment;
• free assistance in locating a position according to the individual’s education and professional training;
• severance pay when a job is lost due to reorganization, or the elimination of the position held by an employee;
• free training while unemployed;
• unemployment compensation.

Holidays: Minimum 24 calendar days of annual vacation, additional vacation for single parent, for mother who has 2 and more children, for disable persons, for Chernobyl victims, etc.

Payroll taxes: From 36,67% till 49,7% (depending on the risk rate of the legal entity).

Payroll pay-outs: Two times per month. Salaries are paid in local currency (hryvnas)..

Minimum salary: Strictly regulated by the government and is the subject for regular increase..

Benefits to employees: Insurance, car, fitness, etc. – are not prohibited by the current legislation but are not considered to be as deductible expenses.

Read more: Information about Working conditions in the Ukraine from prospects.ac.uk

Normal working hours : 8.0 hours per day.

Length of trial / notice period: Trial period – 45 days; Notice period – 2 months.

Hiring in Ukraine: Current Labour legislation in Ukraine strictly regulates the main hiring issues:

Employment (HR) documents: The hiring is fulfilled on the basis of employee’s application and hiring order. While hiring employees shall provide personal and ID documents like labour book, tax code, copy of passport, etc. Labour agreement is not obligator in Ukraine but is highly recommended in order to protect the right of both employees and employer. HR administrative documents of Representative Offices could be developed only by the State Authority on rendering services for Representative Offices.

Social guarantees: The sick leave and vacation periods of employees are the subject for compensation by the company and by the state.

Dismissal: dismissal notice period – 2 weeks in case of general dismissal and 2 months in case of staff reduction. Employees are highly protected by the current Labour Law from the illegal termination of labour relationship and thus employers have limited number of cases that are the grounds for dismissal of employees.

Leave compensation: The payment of unused vacation days and 1 month salary payment in case of reduction are obligatory payments. The leave compensation in other cases of dismissal are the subject for negotiation between employer and employee.

Foreign employees:Could be employed only after receipt of work permit. Foreign employees of Representative Offices do not require work permit but service card.

Current Labour legislation in Ukraine strictly regulates the main employment conditions such as: salary payment, official employment, vacation, foreign employees’ hiring, probation period, etc. The main legislation laws of Ukraine that regulate the working conditions are Labour Code of Ukraine, Law on Vacation, Law on Salary payment, etc. The current legislation is equal for all employees despite of the legal entities (LLC, Representative Office, JSC, etc.), citizenship of employees, etc.

3. Sectors that are recruiting

Employment in the Ukraine

The main sources of labour and employment law in Ukraine are the Constitution, the Labour Code of Ukraine, and labour regulations issued by the Cabinet of Ministers of Ukraine, the Ministry of Labour, and local state administrations.

While the Constitution’s guarantees are stated in general terms, the Labour Code of Ukraine is the more specific source of labour law. It is a comprehensive set of rules which relates to practically all aspects of relations between employers and employees governing employment agreements and contracts, working hours, vacations, days off, compensation, social benefits, discipline, employment of women and minors, resolution of employment disputes, and the respective liabilities of employees and employers.

As a member of the International Labour Organization (ILO), Ukraine has signed and ratified a number of ILO conventions that supersede conflicting provisions of Ukraine’s domestic labour laws. The country has also entered into a number of bilateral and multilateral international agreements that contain provisions on labour, employment, and social protection. Ukraine guarantees to each citizen of working age the following rights:

• freedom to work and choose a profession;
• protection from unreasonable rejection of an employment application or from illegal termination of employment;
• free assistance in locating a position according to the individual’s education and professional training;
• severance pay when a job is lost due to reorganization, or the elimination of the position held by an employee;
• free training while unemployed;
• unemployment compensation.

Labour Market Analysis

The level of working resources in Ukraine constituted more than 20 mio citizens of Ukraine. The level of unemployment according to the governmental statistics was fluctuating in the range of 8-10%. The actual increase of the salary in 2011 was fixed at the level of 11%.

The highest demand in the labour market of Ukraine:
• IT specialist (developers, 1C programmists)
• Sales manager
• Key Account Manager
• Financial specialists (IFRS reporting, budgeting)
• Accountant
• Business analysts
• Production staff

The most active economics areas in the labour market of Ukraine:
• Agriculture
• Pharmaceutics
• FMCG
• Industry (chemical, heavy industry)

Labor force
• 22.08 million

Labor force (by occupation)
• agriculture: 16%
• services: 65%
• industry: 18%

4. Applying for a job

Application documents: Application in response to an advertisement is usually by CV, but speculative applications and word of mouth are also means of finding work. If you do approach a company speculatively, ensure you explain why you want to move to Ukraine and what you hope to achieve. You should target your application to their specific organisation. They need to understand why employing you, rather than a Ukrainian citizen, would be beneficial to them. It may be useful to supply certificates or other documents relating to your qualifications at the time of application, so the potential employer can see how suitable you are.

Advice regarding the CV: CV in Russian or Ukrainian – for local companies and CV in English – for international companies; Cover letter (motivation letter) with explaining why do you think you are the best fit candidate for the position.

5. Major recruitment pointers

Business Etiquette/knowing how to behave during interviews: Nicely dressed, business style, shake hands with recruiter – it is not really necessary. It is important to be on time. Interview processes depend on the type of job applied for. Interviews usually involve at least two stages: an initial interview with someone from Human Resources, then a further interview with the potential line manager. Some recruiters use combinations of several interviews (perhaps with the HR manager, potential line manager, senior manager and the company director), psychometric testing, assessment centre, collection of references and security service checks.

Languages you must be able to speak: After Ukraine achieved independence from the former Soviet Union in 1991, Ukrainian has become the official language. Around 67% of the population speak Ukrainian, while about 24% speak Russian. In practice, most Ukrainians are bilingual, and in some eastern areas of the country, such as the Crimea, Russian is the main language. It is certainly helpful to learn Ukrainian and details of summer courses in Ukraine are available from the Eurolingua Institute and Study in Ukraine. Teach yourself courses are available from Eurotalk Interactive.

Flagship training:National University of the name of Tarasa Shevchenka, National University of “Kiev Mogyla Academy”, National Technical University (KPI – Kiev polytechnic institute).

Compensation&Benefits / Taxes: Fixed salary + bonus or % (for sales positions). Company car, medical and life insurance, laptop are usually offered by international companies. Corporate mobile for sales/client service positions are often offered. Profit sharing scheme is usually using for top-management positions. Deference between gross and net salary is 16-18%.

6. Recruitment resources and networks

Important business networking sites:
www.facebook.com
www.linkedIn.com
www.Headhunter.ua
www.rabota.ua
www.ukrjob.com.ua

Where to network:
Recruitment agencies, newspaper’s ads and internet.