Approximately 3 million people have now emigrated abroad. However, four times as many individuals were forced to move to other regions of Ukraine. And most of them are looking for work. We will tell you how to help them with benefit for the employer.
CMU by Resolution No. 331 dated 20.03.2022 approved The procedure for providing compensation to the employer for labor costs for the employment of internally displaced persons due to hostilities during the martial law in Ukraine.
The text of the Order can be read here.
It entered into force on March 22, 2022 (from the date of publication in “Government Courier No. 65 (7186)).
Who is considered a displaced person? Who can get compensation for?
The term “internally displaced person” means a person who, after the introduction of Presidential Decree No. 64 martial law, has moved from the territory of the administrative-territorial unit where hostilities are taking place actions.
However, one more requirement must be met to receive compensation. Such a territory must be specified in the list of regions in the territory of which assistance is provided to insured persons within the framework of the “eSupport” Program.
That is, currently we are talking about the following regions of Ukraine:
⦁ Volyn Region;
⦁ Dnipropetrovsk Region;
⦁ Donetsk region;
⦁ Zhytomyr region;
⦁ Zaporizhzhia region;
⦁ Kyiv region;
⦁ Kyiv;
⦁ Luhansk region;
⦁ Mykolaiv region;
⦁ Odesa region;
⦁ Sumy region;
⦁ Kharkiv region;
⦁ Kherson region;
⦁ Chernihiv Region.
Another requirement: the natural person must obtain a certificate of an internally displaced person in accordance with the Procedure for issuing and issuing a certificate of registration of an internally displaced person, approved by CMU resolution 01.10.2014 No. 509.
In what amount is the compensation provided?
Cost compensation is provided in the amount of 6,500 hryvnias per month for each employed person, for whom the employer pays a single contribution to the mandatory state social insurance, for the period of wartime and within 30 calendar days after its cancellation or termination.
At the same time, expense compensation is provided to the employer for each employed person under the terms of a fixed-term or open-ended employment contract (contract), gig contract, in particular part-time.
Attention! The total duration of providing compensation for expenses cannot exceed two months from the day of employment of a person. And only one of the employers of the displaced individual can take advantage of such compensation.
Which of the employers can claim compensation?
For this (in addition to the above), employers must fulfill three conditions:
⦁ be registered as an EUS payer;
⦁ charge a salary to a displaced worker for a fully completed monthly (hourly) rate of work not lower than the minimum wage established by law. And now it is UAH 6,500 per month or (for those with hourly wages) UAH 39.26;
⦁ submit the tax reporting for the IV quarter of 2021 or the annual reporting for 2021 in accordance with the procedure established by law. The procedure does not specify which tax is being reported. In our opinion, everyone will be interested in “salary” reporting and reporting on the income of such an employer (income tax, single tax, personal income tax, social security and income tax, etc.).
What should be done to receive funds?
The compensation algorithm is as follows:
Step 1. The employer submits an application for compensation of expenses to the employment center (according to its location) no earlier than 5 calendar days after the employment of the person. You can do it:
⦁ in paper form – in person when visiting the employment center.
Attention! Application forms are different. After all, the application form that is submitted to the Central Employment Center is approved by the State Employment Center, but the application form that is submitted through the “Diya” Portal is not.
If you are applying directly to the Central Office or sending an application by e-mail, you must provide together for employed displaced persons:
⦁ a copy of the order on employment of the person;
⦁ a copy of the employment contract or gig contract;
⦁ a copy of the certificate of registration of an internally displaced person.
If you chose to submit an application on the Action Portal, you need:
1) create a personal electronic account of the user and undergo electronic identification and authentication;
2) fill out, sign and submit a statement containing the following information:
⦁ data on each employed person: surname, first name, patronymic (if available);
⦁ registration number of the taxpayer’s registration card or the series and number of the passport of a citizen of Ukraine (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer’s registration card and have notified the relevant supervisory authority and have a mark in their passport);
⦁ current account of the employer.
Attention! It is quite possible that Diya will include some of this data in the statement itself. If there is a technical possibility, the formation of the application in electronic form is carried out taking into account information received from other electronic information resources or information systems of state authorities in the order of information interaction. And to determine and confirm the information specified by the employer in the application, the information provided by the PFU is used.
Step 2. After confirming the information specified by the employer in the application, information about submitted applications is entered into the Register of Employers Recipients of Expense Compensation.
In particular, every day, except for holidays and weekends, the Ministry of Statistics, through information interaction, submits to the State Employment Center the Register of employers receiving expense compensation with information for the previous day, created by the means of the Diya Portal.
The employer receives a notification about the results of information processing for receiving expense compensation.
If the application was submitted using the “Action” Portal, you can expect a response on the same day or the next day.
In other cases, the decision to grant or refuse to grant compensation for expenses is made by the regional employment center and formalized by an appropriate order within five calendar days after receiving the application from the employer. And it is sent to the employer within three calendar days in the way chosen by the employer to submit the application.
Step 3. The regional employment center transfers funds to the employer for the first month of the employee’s work within five working days after making a decision to provide expense compensation or receiving information from the Register of Employers Recipients of Expense Compensation through the Diya Portal.
Step 4. To receive compensation for expenses for the second month, the employer confirms the continued employment of the persons in respect of whom a decision was made to provide compensation for expenses, by means of the Portal “Action” or by submitting a notification to the employment center (directly or to an e-mail address).
The regional employment center transfers funds to the employer for the second month of the employee’s work within five working days after receiving a notification confirming the continued employment of these persons.
And how did the employee resign?
Two months is supposedly not a long period, but even during this time the employee can decide to change the place of work or go to another area. But in case of termination of employment, the payment of this benefit is also terminated!
In case of termination of employment relations, in particular, termination of a fixed-term or indefinite employment contract (contract), gig contract, before the end of the period for payment of expense compensation, the employer is obliged to return the amount of unused expense compensation to the account of the regional employment center within five working days from the date of such termination. The amount to be reimbursed is defined as the difference between the amount of compensation for expenses (6,500 hryvnias) and its amount, calculated in proportion to the time worked by the employee per month.
Checks and liability for violations
The employer and employees for whom compensation has been paid are responsible for the authenticity of the documents and information, which is the basis for providing compensation for expenses, and the intended use of the received funds in accordance with the law.
In case of submission of unreliable documents and information, inappropriate use of funds received by the employer or their use in violation of this Procedure, the employer is obliged to return the funds received to the Fund voluntarily or on the basis of a court decision.
Of course, the Employment Center has the right to check the authenticity of the information submitted by the employer to receive funds, compliance with the procedure for their use by the employer.
The check can be carried out at the location of the employer or in the premises of the employment center. The employer is obliged to allow the employees of the employment center to carry out the inspection, and in the event that it is carried out in the premises of the employment center, to submit the relevant documents.
The employment center controls the use of funds transferred to the employer as compensation for expenses by conducting an appropriate audit within 180 calendar days after the last payment of such compensation and has the right to receive the necessary explanations from the employer on relevant issues, including in writing.