Hiring in Ukraine with an Employer of Record (EOR)

Looking to hire employees in Ukraine? An EOR can assist.

Ukraine is one of the prominent economies in Eastern Europe. Known for its strategic location and evolving infrastructure, Ukraine plays an active role in regional trade and economic development. With a supportive business climate and opportunities across various sectors, Ukraine is an attractive destination for international companies.

If you’re considering expanding your business presence in Ukraine, an Employer of Record or EOR can help you get started quickly. This allows you to bypass the complexities of establishing a local entity or managing HR functions independently.

An Employer of Record serves as the legal employer for your workforce in Ukraine, while you retain control over daily operations and team management.

Why choose an EOR for hiring in Ukraine

Startups, small businesses, and medium-sized enterprises often find themselves needing to expand internationally but may lack the in-house expertise and resources to navigate such a shift effectively. These and other employers can benefit from partnering with an EOR to make new hires in Ukraine.

Empowering your global expansion, an EOR enables you to:

• Hire and onboard employees quickly, without needing to set up a formal business entity in a new country.
• Reduce the risk related to regulatory compliance, as the EOR assumes responsibility for employing staff on your behalf.
• Outsource payroll, tax withholding, and benefits management.
• Ease the administrative burden associated with HR, compliance, and payroll.

As the legal employer for your Ukraine-based workforce, an EOR manages onboarding for local employees, handles payroll, and oversees benefits and taxes—all while ensuring compliance with local employment laws and aligning with your company’s practices.

In short, by allowing an EOR to handle core HR and compliance tasks, you can focus on expanding your business in Ukraine.

Choosing between an EOR and PEO in Ukraine

You need to enter the Ukraine job market quickly. You have two main options: an EOR and a professional employer organization, or PEO. Which way to go hinges on your understanding of the fundamental differences between an EOR and PEO.

An easy choice, an EOR is the way to go for any organization looking to offload all risk for compliance with employment law in Ukraine.

How to select the right EOR provider in Ukraine

A few key questions should guide your decision when determining which EOR is best for your needs. How effectively does the EOR manage compliance with employment law in Ukraine compared to other providers? What level of support does the EOR offer? And can the EOR operate effectively in Ukraine? Not all EORs have the wherewithal to do so. Careful evaluation is necessary when selecting the right EOR. Choosing the wrong one can lead to compliance issues, unexpected costs, and a negative experience for your employees. Here’s what to look for:

• Legal compliance. The ideal EOR should have extensive knowledge of Ukraine’s labor laws, employee rights, tax regulations, and local benefits. Verify their track record and ask about their experience with industry-specific challenges.
• Customer service: Does the EOR provide 24/7 support and assign dedicated account managers for clients? Multiplier provides continuous, human-first support (no automated responses) and assigns dedicated managers to each account.
• Transparent pricing: Some EORs may seem affordable at first but come with hidden fees or unclear pricing structures. Make sure you fully understand the EOR’s costs before making a commitment.
• Total cost of ownership: It’s not just about finding the lowest price. Sometimes, cheaper solutions can lead to higher costs if quality or service is compromised. Ensure you’re investing in an EOR that fits your budget while maintaining quality and reliability.

How EOR services work in Ukraine

Step 1: Send that contract over

Once you’ve identified the right candidate—and the perfect EOR—send a locally compliant employment contract. With Multiplier’s automated HR functions, contracts that adhere to Ukrainian labor law can be generated in under five minutes. You’ll have the ability to customize these contracts with terms such as job responsibilities, working hours, salary, and termination conditions. Your EOR will securely send the contract, once finalized, and manage the signing process.

Step 2: Enhance compensation with competitive benefits

Looking to offer a competitive benefits package? It’s a smart way to attract top talent. Instead of navigating local providers on your own, your EOR will streamline the process by presenting benefits options that align with local standards and employee expectations.

Step 3: Get all your documentation in order

Next, you’ll need to gather the new hire’s tax and banking details. If you’re working with an EOR like Multiplier, this step is managed seamlessly to set up payroll. Multiplier takes care of all required documentation, making the process smooth and hassle-free.
While onboarding employees in Ukraine is complex, partnering with an EOR simplifies it.

Step 4: Run payroll for employees based in Ukraine

Managing payroll in Ukraine can be challenging, with specific tax rates and required social contributions. Employing through an EOR like Multiplier ensures that salaries are paid accurately and on time while handling all local tax, contribution, and withholding obligations. With Multiplier’s global payroll solution, you can manage payroll for your entire international workforce from a single, centralized platform, eliminating the need to coordinate with multiple local vendors.

Step 5: Manage your employees and leave HR compliance to the EOR

Multiplier handles all post-hire onboarding processes, ensuring that new employees in Ukraine receive their first paycheck and all those thereafter on time and calculated correctly, covering all benefits, taxes, and social contributions. If an employee in Ukraine requires termination or leaves voluntarily, Multiplier ensures that all compliance requirements are met.

Moving forward with Multiplier EOR in Ukraine

An EOR is a smart choice for any business looking to expand quickly into Ukraine. Partnering with an EOR offers operational efficiency, flexibility, and reduced risk, making it an invaluable solution.

Multiplier’s Employer of Record (EOR) services are an end-to-end approach for building your team in Ukraine. By outsourcing key HR functions, you can hire talent without dealing with the complexity of setting up a local entity.

Multiplier facilitates seamless hiring, onboarding, and employee management. You’ll benefit from locally compliant contracts, managed payroll and taxes, and a range of customizable benefits tailored to local standards.

Book a demo to see how Multiplier makes HR and compliance in Ukraine simple and effective.