“With its decisions in relation to business, the government is provoking a new wave of migration” – Roman Semenukha

Roman Semenukha says, “The government represented by the Minister of Social Policy Andriy Reva continues to increase pressure on business in order to patch up the holes in the state budget. And it plans to do this precisely at the expense of the honest business that pays taxes. This is no longer a mere lack of professionalism, this is frank sabotage already.

1. Andriy Reva’s recent suggestion to expand the tax base of the Unified Social Tax in the amount of 22% from 15 to 25 minimum wages is a panic manifestation. Government panic. There is not enough money for pensions, and it is getting more and more difficult to conceal this fact. What does business think about this? Maybe a compromise is possible? The Minister didn’t even bother to ask.

2. The proposal to impose taxes on money transfers of migrant workers is just ridiculous.

3. And finally, the initiative of Minister Andriy Reva about the introduction of a system of fines for companies collaborating with individual entrepreneurs is a knockdown blow for business, in particular, the IT industry.

The essence of this initiative is to introduce a system of fines for the companies that cooperate with individual entrepreneurs through seven criteria proving the employment relationship between the two. The presence of three of these criteria will be the basis for a fine in the amount of 30 minimum wages (today this makes 125,190 hryvnias). That is, we are talking about significant fines for companies if individual entrepreneurs perform for them the same work as full-time employees.

The companies developing their own products and thus having a lot of people working for them are the ones that can be most affected. Meanwhile, IT means the economic potential of our country, the currency earnings from exports, more than 150,000 jobs.

This legislative initiative will in no way contribute to an increase in this figure. On the contrary, it will be a great blow to business.

Such initiatives of the government and the Ministry of Social Policy are unacceptable, they can cause significant harm to Ukrainian business, cause another wave of labour migration, a significant decrease in revenues to the national budget.”

Tetiana Ostrikova says, “The signs of labour relations are spelt out in the bill in a too abstract and difficult way. In practice, this will result in just one thing – the State Labour Service will call all the contracts between a company and individual entrepreneur labour relations referring to the norms of the Labour Code. A single regulation of the draft law clearly states its true purpose, “the existence of labour relations is established by an official of the central executive body implementing state policy on the supervision and control of compliance with labour legislation and its territorial bodies, which is authorized by the state labour inspector”. In fact, this is another way to make profit at the expense of business. This cannot be allowed.

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