Suspending an Employment Contract: How to Document It, Calculate Payments, and Resume Work

An employer may suspend an employment contract if, because of armed aggression, the employer cannot provide the employee with work and the employee is simultaneously unable to perform it. The decision must be justified and formalized by an order. A unilateral suspension is limited to a cumulative total of 90 calendar days during martial law; a longer period requires the consent of both parties and cannot extend beyond martial law.

During a lawful suspension, the employer is not required to pay wages, statutory guarantee payments, or compensation payments, except for amounts already due to the employee on the date the suspension begins. Amounts already due must remain recorded and be paid subject to the applicable deadlines. The employment relationship continues, so the employer must keep records, stay in contact with the employee, and resume the contract on time. The order also does not cancel taxes on income already accrued or automatically make the Pension Fund of Ukraine (PFU) responsible for paying insurance benefits.

When a suspension has a lawful basis

Article 13 of Law No. 2136-IX requires that both parties be simultaneously unable to perform a specific employment contract. Before issuing an order, establish what prevents the employer from providing work and the employee from performing it, how this is connected to armed aggression, and whether the duties can in fact be performed, including remotely if the nature of the work allows. A suspension cannot be used as a concealed punishment of an employee, so a conflict with the employee or a desire to remove them from work does not replace the statutory grounds.

For example, destruction of a store combined with the employee’s inability to perform their work may justify a suspension. A decline in sales, lack of funds for wages, or the employee’s departure from the area do not, by themselves, prove that both conditions are met. If a salesperson is able to work but the store has temporarily stopped operating because necessary conditions are unavailable, assess whether downtime is appropriate.

During downtime, the employee may, with their consent, be temporarily transferred to other work, taking their specialty and qualifications into account. At the same enterprise, a transfer may last for the entire period of downtime; to another enterprise in the same locality, it may last up to one month. Consider this option if the business can provide the employee with other work.

Separate rules apply to unpaid leave during martial law. Under Part 3 of Article 12 of Law No. 2136-IX, the employer may agree to grant it at the employee’s request without a general duration limit. At an employee’s request, an employee who has left Ukraine or acquired internally displaced person status must be granted such leave for the period specified in the request, but no more than 90 calendar days. This period is not the limit for suspending a contract.

Employers may refuse leave for employees engaged in work at critical infrastructure facilities, the production of defense goods, or the performance of a mobilization assignment. The exceptions are maternity leave and leave to care for a child under three. Periods of unpaid leave under Parts 3 and 4 of Article 12 do not count toward service for annual basic leave.

How to prepare the order and set the period

Collect documents explaining why work under this particular contract is impossible: reports on damage to premises or equipment, notices from competent authorities, documents on access restrictions, an employee’s notice, and other relevant evidence. The order must describe the actual reasons, so a general reference to martial law is not enough.

The suspension order must include:

• the reasons for the decision, including an explanation of why the employer and employee cannot perform their duties;
• the suspension period and the conditions for resuming the contract;
• the method for exchanging information between the parties;
• the number and categories of employees, and their surnames, first names, and patronymics, if any;
• the registration numbers of taxpayers’ account cards, or, for people who have lawfully refused such a number, the relevant passport details.

Approval of the order by a military administration is required for employment contracts with officials of state bodies and local self-government bodies. Article 13 does not require such approval for an ordinary private store.

The limit of 90 calendar days for unilateral suspension came into force on March 14, 2026. This is a cumulative limit, so a new order or a break between orders does not create a new separate allowance. Keep a list of all suspension periods for each employee and retain separately any documented consent to extend the suspension beyond 90 days.

Previously issued orders must also be reviewed. The State Labour Service of Ukraine (Derzhpratsi) explains that orders issued through March 13, 2026, inclusive, without a specific period automatically lose effect after the prescribed 90 days. The law provides that an order specifying an excessive unilateral period loses effect on the day after the lawful period ends, unless the parties have agreed to an extension. For an older suspension, compare the dates of the orders, breaks, and agreements before determining the resumption date.

How to notify the employee and keep personnel records

The employer and employee may agree on an available way to create, send, and store personnel documents, including email or another electronic communication channel. Record the agreement and retain evidence that orders and notices were sent so that compliance with the duty to notify the employee can be confirmed.

Both parties must remain reachable during the suspension and report changes in their contact details promptly, but no later than ten calendar days after the change. An employer that is a legal entity or an individual entrepreneur (FOP) updates the Unified State Register. An employer who is an individual but not an entrepreneur sends the new details to the employee. The employee notifies the employer at the address or email listed in the register; if postal or electronic notification is impossible, a text message to the official phone number is permitted.

If a party has not updated its contact details, a notice sent to its last known address, email, or phone number is considered proper. A separate exception applies when postal service and/or technical electronic communications are unavailable at the last known contacts: the statutory notification requirement does not apply. Keep evidence of the circumstances on which you rely.

In the timesheet, record suspension separately from downtime and unpaid leave. Form P-5 is recommendatory, so an employer may add its own notation and specify it in its record-keeping procedure. In territories with active or possible hostilities, the employer independently determines the procedure for personnel administration and archival storage, but must ensure accurate records of work and labor costs.

Information about suspension and resumption of the contract must be submitted for electronic employment-record keeping through the PFU web portal. If the relevant information is absent from the register of insured persons, the social insurance contribution payer or its authorized representative creates an electronic record with the required electronic signature. A suspension itself is not recorded in Appendix D5 as a dismissal or new hiring.

What to pay and record during a suspension

During a lawful suspension, the employer is not required to pay wages, statutory guarantee payments, or compensation payments, or to provide working conditions specified in the contract. Article 13 expressly covers the granting, payment, and compensation of leave and days off, temporary incapacity benefits, and the submission of the corresponding claim-calculation statements. The exception is for amounts already due to the employee on the suspension date: they must remain recorded and be paid.

Accrue wages for days worked under the usual rules. Wages must be paid at least twice a month, with no more than 16 calendar days between payments and no later than seven days after the end of the period for which payment is made. If a payday falls on a weekend, holiday, or non-working day, pay on the preceding day.

Hostilities may be grounds for exemption from liability for late wage payments if the employer proves that the hostilities or other force majeure circumstances caused the delay. This does not cancel the debt. If hostilities make timely payment impossible, Article 10 of Law No. 2136-IX allows payment to be deferred until the enterprise resumes operations.

Compensation for delayed income

If accrued wages are delayed by one or more calendar months, check whether compensation is due for the loss of part of the income caused by rising consumer prices. Under the Law “On Remuneration of Labor,” this right also extends to employees of FOPs. The compensation applies to income already due; it does not create wages for a period of lawful suspension.

For each month of arrears, determine the unpaid amount after withholding taxes and mandatory payments. Convert the State Statistics Service’s monthly consumer price indices for the relevant period into coefficients by dividing each by 100, then multiply them together. For example, an index of 102% corresponds to a coefficient of 1.02. Subtract one from the product: the resulting increase is the figure to multiply by the unpaid income to calculate compensation. If the product is 1.03, compensation equals the unpaid amount multiplied by 0.03. Do not include the index for the month for which the income was accrued. Pay compensation in the same month in which the corresponding debt is repaid. No compensation is accrued if the employee did not receive income on time through their own fault.

Illustrative example: unpaid income after withholdings is 10,000 Ukrainian hryvnias (UAH), and the verified index increase for the relevant period is 3%. Compensation is UAH 10,000 × 3 ÷ 100 = UAH 300. For an actual payment, determine the period for each debt and use official indices; the 3% here is only an assumption for the example. An employee may challenge a refusal to pay compensation in court.

Qualifying periods for annual leave and pension insurance

An ordinary unpaid suspension period does not count toward service for annual basic leave. However, leave days already earned are preserved. Pension qualifying periods must be checked separately against contributions and register data: the absence of wages from one store does not automatically mean that no period qualifies if another social insurance contribution payer paid contributions or a special statutory basis applies.

As a general rule, a full month counts toward the pension qualifying period if at least the minimum insurance contribution has been paid. If the amount is lower, a statutory additional payment or proportional crediting of the period may be possible. For a person officially determined to have been deprived of liberty as a result of aggression, special rules govern counting that period toward the qualifying periods for pensions and annual leave, so their records require a separate review.

Sick leave and maternity benefits

For insurance benefits, the date the insured event began in relation to the suspension date matters. As a general rule, entitlement arises during employment, including a probationary period and the day of dismissal, unless the law provides otherwise. The basis for benefits is a certificate of incapacity for work; a paper form is used in the cases specified by law when an electronic certificate cannot be generated.

For an ordinary illness or non-work-related injury, the employer pays the first five days of incapacity, and from the sixth day the PFU funds the benefit until the employee recovers or a disability is established, as applicable. The law preserves payment regardless of the employee’s subsequent dismissal, but this rule cannot automatically be applied to a suspended contract, for which Article 13 sets special conditions.

Temporary incapacity benefits are not paid for periods of unpaid, creative, or additional study leave. Article 16 of Law No. 1105-XIV also provides for refusal for a period stated in a certificate of incapacity for work that has been found unjustified. Other grounds include an injury or illness sustained while the insured person committed a criminal offense; intentionally harming their own health to avoid work or other duties; or feigning illness. Illness or injury is a ground for refusal due to intoxication if it occurred as a result of alcohol, drug, or toxic intoxication or actions related to it. Benefits are also not paid for time spent under arrest, undergoing a forensic medical examination, or receiving compulsory treatment by court order. Before refusing, check the documents confirming the specific statutory ground.

For maternity benefits, the law expressly provides for payment from the date entitlement to the relevant leave arises during downtime through no fault of the employee, annual leave, unpaid leave, study leave, or creative leave. Contract suspension is not listed, and the appearance of a certificate of incapacity for work does not by itself resume the contract. If such a certificate is issued during a suspension, contact the PFU territorial body and specify the start date of incapacity, the suspension date, and the period in the order. Ask for a written explanation of entitlement to benefits and the procedure for granting them in your situation. If the benefit amount was already due to the employee on the suspension date, apply the Article 13 exception: suspension does not release the employer from paying it.

How to obtain funding through the employer

When the employer grants the benefit, documents relating to temporary incapacity must be reviewed no later than ten working days after receipt, and maternity documents no later than three working days. A notice of refusal, stating the reason and appeal procedure, must be issued or sent no later than five days after the decision. For an employee under an employment contract, Article 24 of Law No. 1105-XIV requires benefits to be paid on the next payday after the date of the award. The general deadline to apply for an award is six calendar months from recovery or the end of maternity leave.

Submit a claim-calculation statement to the PFU no later than five working days after the decision to grant the benefit. It may be submitted on paper in person or by mail, or electronically through the PFU web portal with the required signature; submission through Diia is possible if technically available. If the necessary data are absent from state electronic resources, attach color scans or photographs of the original documents confirming the insured event, its circumstances, or the employee’s status. Copies must show all pages and fields, including the series and number of the form, and be legible. Use jpg or pdf format, with each file no larger than 1 MB; a scanning resolution of 300 dots per inch (dpi) is recommended.

If deficiencies are found, the PFU must notify the employer within three working days after receiving the application that processing has been put on hold. It must allow at least three working days after the employer receives the notice to correct the deficiencies. The employer creates a corrected application based on the previous one and resubmits it. Check that it has the status “Прийнято” (“Accepted”): funding is provided within three working days after such an application is received. Funds are deposited into a separate account and may be used exclusively for insurance benefits.

The PFU may refuse funding if the employer refuses or obstructs an inspection, submits inaccurate information, or breaches the rules for using insurance funds. A decision is made within three working days after the relevant circumstances arise or are discovered and sent to the employer no later than three working days after it is made. The decision may be appealed administratively or in court. To resume funding, correct the reason for refusal; the resumption is formalized by an order of the PFU territorial body. Separately, Procedure No. 28-1 provides for suspension of funding in respect of a certificate of incapacity for work issued on the basis of an unjustified medical opinion.

After paying the benefit, notify the PFU no later than 30 calendar days after the funds are credited and the application receives the status “Оплачено” (“Paid”). Any unused excess funding must be returned within three working days. If the excess arose from an accrual error, send a reasoned written explanation along with the refund. Failure to notify within three months may be grounds for an unscheduled inspection.

When the employee applies directly to the PFU

An order suspending a contract is not, by itself, a universal basis for direct payment by the PFU. Article 22 of Law No. 1105-XIV provides for a separate application if the employer failed to perform its insurance obligations because its location could not be established and/or due to force majeure during martial law or a state of emergency, as confirmed by state register data. The employee submits a paper or electronic application, and the PFU territorial body at the employee’s place of residence or stay makes the payment.

Cabinet of Ministers of Ukraine (CMU) Resolution No. 531 provides for applications to the PFU by insured persons who cannot exercise their right to insurance benefits under the ordinary procedure and have relocated from territories on the current list of hostilities or occupation, or from an emergency zone. It also covers people whose homes were destroyed or damaged by aggression to the point of being uninhabitable, including insured persons abroad.

For people who actually live in localities where state authorities fully exercise their powers, clause 1-1 of Resolution No. 531 provides separate grounds. These apply to people who are or were employed by an employer registered in a territory on the specified list or in an emergency zone.

A separate ground concerns public-law legal entities and legal entities subordinate to them that relocated from localities where state authorities do not exercise their powers to localities where those powers are fully exercised. The change of location must be entered in the Unified State Register, and the employer must not yet have resumed operations. Relocation and registration of a new address alone are not enough for this ground.

The resolution also covers employment relationships with an employer that failed to meet its insurance benefit obligations because its location could not be established and/or due to force majeure during martial law or a state of emergency. The failure to meet these obligations must be confirmed by data from the State Register of Compulsory State Social Insurance. Before applying, determine which ground matches the employee’s circumstances.

Payments are made through banks on the basis of documents confirming entitlement or information obtained through electronic exchange. If the necessary information is unavailable, Resolution No. 531 provides for payment at the minimum amount set by the PFU Board, followed by recalculation after supporting documents and data are received. If benefits were awarded under Procedure No. 8, after receiving documents confirming qualifying insurance periods or other information affecting the amount, apply to the PFU for recalculation and attach those materials. Clause 23 of that procedure provides for recalculation at the insured person’s request.

If the PFU applies Procedure No. 8 to your application, prepare an application with bank details and the current account number, the certificate of incapacity for work, an identity document, and a copy. Before applying, check with the PFU whether your bank meets clause 18 of that procedure: it provides for an account at a bank designated by the Cabinet of Ministers of Ukraine for payments from the budget and insurance funds to internally displaced persons. For a paper passport booklet, the procedure lists copies of pages 1–4 and 11–16. A copy of the taxpayer number is also required, except where a person has lawfully refused it, notified the tax authority, and has a note in their passport. Bring the original documents, as clause 10 requires the receiving authority’s employee to certify the copies.

A displaced person must attach a copy of their internally displaced person registration certificate. For the category in clause 2.2 of the procedure, a certificate from the employer confirming the employment relationship on the date of the insured event is required. If a relocated subordinate institution or organization has not resumed operations, a certificate from the institution to which it is subordinate confirming this circumstance is also required. For payment for care of a sick child, attach a copy of the birth certificate. To qualify for a preferential benefit rate, attach the relevant certificate or other supporting documents. A voluntarily insured person attaches a copy of the voluntary participation agreement and available evidence of payment of the single social contribution (SSC). A copy of the employment record book and a bank certificate are submitted if available. A legal representative must also present an identity document and proof of authority.

For a direct application to the PFU, observe the deadlines in the current Article 24 of Law No. 1105-XIV. Documents relating to temporary incapacity must be reviewed no later than ten working days after receipt, and maternity documents no later than three working days. For an insured person working under an employment contract, this article requires payment on the next payday after the benefit is awarded.

Clause 20 of Procedure No. 8 sets deadlines of up to 20 days after documents are received for awarding benefits and up to ten working days after the award for payment. Apply it in accordance with the current law: provisions of a subordinate procedure cannot extend deadlines set by law. For displaced persons, clause 21 also requires confirmation of status before a decision is made. When submitting documents, clarify with the PFU how this check will be conducted, and ask it to specify the review period and payment date for your category.

For the category in clause 2.3 of Procedure No. 8, clause 22 sets out a separate procedure for cases where the employer’s location cannot be established. Clause 2.3 excludes employers registered in temporarily occupied territory, in the area of the Anti-Terrorist Operation in Donetsk and Luhansk regions, or in an emergency zone, so determine the applicable procedure with the PFU in light of current Resolution No. 531. Within five working days of the application, the authority requests data on the absence of contributions for the six-month period before the application and asks for the employer’s location to be checked. At the same time, clause 3.4 of the older procedure refers to a six-month period after the insured event. Ask the PFU to clarify in writing which register data are needed in your case. Clause 22 of Procedure No. 8 provides for the benefit to be awarded no later than ten days after receipt of register confirmation and an inspection report, and for payment no later than ten working days after the award. Apply these provisions in accordance with Article 24 of current Law No. 1105-XIV: documents concerning temporary incapacity must be reviewed no later than ten working days after receipt, and maternity documents no later than three working days. For an employee under an employment contract, the law requires payment on the next payday after the benefit is awarded. Ask the PFU to state in writing what evidence is required, from which date it calculates the review period, and when it must pay the benefit.

Procedure No. 8 remains in force. The PFU also confirmed its application in the explanatory note to the draft of a new procedure; the end of consultations on that draft does not mean it has entered into force. Because Procedure No. 8 contains old names of authorities, territorial conditions, and references to a previous version of the law, contact the PFU territorial body before applying to determine the procedure for your category under current Law No. 1105-XIV and Resolution No. 531. Apply within the general six-month period in Article 24 of Law No. 1105-XIV. If that period has already expired, ask the PFU to issue a written decision on applying the exception in clause 13 of Procedure No. 8 to your application. The absence of a paper employment record book does not by itself deprive a person of the right to apply, because the procedure provides for the use of register data and assistance in collecting documents.

Taxes, SSC, and reporting

The tax consequences depend on the type and date of accrual of the payment. The employer withholds personal income tax (PIT) at 18% and military levy at the general rate of 5% from ordinary wages and sick leave benefits. Maternity benefits are exempt from these withholdings but are included in the base for SSC; the employer accrues SSC at its own expense.

For old wage arrears, retain the military levy rate applicable to the relevant period. Under the transitional rule in Law No. 4015-IX, income for tax periods before December 1, 2024, is taxed at the previous rate of 1.5%, regardless of the actual payment date, subject to the special rules of the Tax Code of Ukraine (TCU). Repayment of an already accrued debt and a new additional accrual are different transactions; leave pay and sick leave benefits also have rules for allocation to the relevant periods.

The general SSC rate is 22%. If there is no payment forming the contribution base for a full month of suspension, the employment relationship alone does not create a minimum SSC liability. If there are wages for part of the month, a bonus, sick leave benefits, or another relevant payment, check the minimum base, maximum limit, and applicable exceptions.

In 2026, the minimum wage is UAH 8,647, so the minimum contribution at the 22% rate is UAH 1,902.34. For ordinary employment income, the maximum monthly base is 20 minimum wages, or UAH 172,940. The minimum base rule applies at the employee’s main place of work for a full calendar month of employment or for working all scheduled days. Exceptions include, among others, secondary employment, non-fixed working hours, and the statutory preferential rates for employees with disabilities.

A FOP or legal entity may apply the 8.41% rate to relevant payments to an employee with a disability after receiving proper confirmation: a certified extract from the expert team’s decision or the relevant certificate from the Medical and Social Expert Commission (MSEC) issued before January 1, 2025. Check when the document was received and its period of validity; the preferential rate cannot be applied on the employee’s word alone.

Illustrative example: an employee at their main place of work remained employed for the whole month, received UAH 6,000 in wages for the part of the month worked, and had the contract suspended for the rest of the time. If the 22% rate applies and there are no exceptions, SSC is UAH 1,902.34, of which UAH 1,320 relates to the actual base and UAH 582.34 to the difference up to the minimum. Without a tax social benefit, PIT is UAH 1,080, military levy is UAH 300, and the amount payable is UAH 4,620.

For low monthly income, check eligibility for a tax social benefit, which reduces the PIT base. The general benefit in 2026 is UAH 1,664 for income of no more than UAH 4,660; the threshold is not reduced in proportion to days worked. The benefit applies at one place of wage accrual after the employee submits an application and the required documents. Different amounts and threshold rules apply to certain family categories; simultaneous receipt of the budgetary cash support specified by law may exclude the benefit.

In D1 or FIZ-D1, retain information on current employment relationships and relevant accruals; do not record suspension days as unpaid leave days. Allocate sick leave and maternity benefits by month in separate rows. The absence of wages cannot automatically be treated as the absence of employees and used as a reason to stop filing returns.

In 4DF or FIZ-4DF, report accrued income regardless of whether it has been paid, and report actual payment and taxes transferred in the relevant separate columns. Wages paid on time in the following month are reported for the accrual period under the special rule. A later repayment of arrears is recorded while retaining the indicator for income accrued earlier.

Before the filing deadline, correct errors with a “Звітний новий” (“New Reporting”) Tax Calculation; after that deadline, the general rule is to submit an “Уточнюючий” (“Amending”) Tax Calculation. To replace an incorrect row with details or tax amounts, repeat it with indicator “1” to exclude it and add the correct row with indicator “0”. Accrual types 2 and 3 are used to correct SSC amounts specifically in an “Уточнюючий” calculation. A separate restriction applies to the quantitative indicators in the main section: for a legal entity’s calculation, these are rows 091, 091.1, 092, 101, and 111; for a FOP or independent professional’s calculation, they are rows 091, 091.1, 091.2, 092, and 101. They can be corrected only with a “Звітний новий” calculation, so check these indicators before the filing deadline.

How to resume the contract or arrange dismissal

After the lawful suspension period ends, the contract resumes in full. If the employer cancels the suspension early, before the order’s period ends or before martial law ends, the employer must notify the employee 14 calendar days before they are required to return to work. Record the return date, notice, and relevant changes in the records.

An inability to work after resumption does not mean automatic dismissal. A separate lawful ground for terminating the contract and compliance with its conditions are required. Likewise, a suspension does not prevent the parties from terminating the contract earlier on a statutory ground.

Check special protections before dismissal. An employee whose workplace is in territory with active hostilities and who is absent from work cannot be dismissed for absenteeism under paragraph 4 of Part 1 of Article 40 of the LCU. Check the specific territory, its category, and the relevant dates against the current list approved by Order No. 376. Such absence is unpaid and does not count toward service for annual basic leave.

Statutory guarantees for military personnel and people whose deprivation of liberty as a result of aggression has been confirmed also remain in force. For employees whose deprivation of liberty has been confirmed, their job and position are retained for the entire period of deprivation of liberty and for six months after their release if they are undergoing the statutory medical, rehabilitation, or psychological assistance, sanatorium and health-resort treatment, or other specified recovery measures. Status is confirmed by a decision of the special Commission, and the information can be confirmed with a free extract from the relevant register; lack of contact alone does not establish this status.

The ban on dismissal at the employer’s initiative covers pregnant women, women with children under three, or, in the specified cases involving home care, under six, and single mothers with a child under 14 or a child with a disability. In the event of full liquidation of an enterprise, institution, or organization, the law permits their dismissal with mandatory employment placement. Mandatory employment placement is also required at the end of a fixed-term employment contract. Preserve average wages during the placement period after such a contract ends, but for no more than three months from its end date. The relevant guarantees also extend to fathers raising children without their mother, guardians, and other people specified in Article 186-1 of the LCU.

During martial law, dismissal at the employer’s initiative may be formalized during sick leave or leave, with the first working day after it ends specified as the dismissal date. This rule does not cover maternity leave or leave to care for a child under three and does not cancel other dismissal prohibitions. Prior trade union consent under Article 43 of the LCU generally does not apply, but an exception remains for employees elected to trade union bodies.

When terminating a contract, pay all amounts due, including compensation for all unused annual leave days and relevant additional leave for employees with children. Article 13 sets a special deadline for final settlement and, if the employer keeps the employment record book, for issuing that book: no later than the next working day after the dismissed employee makes a written request. If the book has been lost or is inaccessible, issue a duplicate in accordance with the prescribed procedure.

Separately, comply with the documentary duties under Articles 47 and 116 of the LCU. On the dismissal date, give the employee a copy of the order and written notice of amounts accrued and paid to them. On the date of actual payment, notify them in writing of these amounts, specifying each type of payment separately. If the employee keeps their employment record book, enter the dismissal record in it at their request. If there is a dispute about the settlement amount, pay the undisputed portion within the applicable deadline. For an individual employer called up for the military service specified in Article 47 during mobilization or as a reservist during a special period, this article allows the specified duties to be completed within one month after release from service, without penalties or fines.

Appeals and employer liability

The employee or a trade union acting on their instructions may appeal a suspension order to Derzhpratsi or its territorial body. With the agreement of a military administration, Derzhpratsi may issue a binding directive to cancel the suspension order or remedy the violation in another way. The employer must comply with the directive within 14 calendar days of receiving it. Article 13 sets a separate deadline of ten calendar days to challenge the directive in court.

An unlawful suspension may result in reinstatement of the contract and recovery of average earnings from the employer. The Supreme Court applies Parts 1 and 2 of Article 235 of the LCU by analogy: the general limit is one year, and if a case takes more than a year through no fault of the employee, average earnings may cover the entire period of forced absence. The compensation at the expense of the aggressor state provided for by Article 13 concerns a justified suspension and does not remove the employer’s liability for its own unlawful decision.

Time limits for judicial protection depend on the claim. For challenging a suspension order as a separate non-monetary claim, the general rule in Part 1 of Article 233 of the LCU provides three months from the day the employee learned or should have learned of the rights violation. The Constitutional Court found this limitation unconstitutional for claims to recover wages and other amounts due to employees, so different claims in one lawsuit must be assessed separately. A dismissal challenge must be filed within one month of delivery of a copy of the order; for payment of all amounts due on dismissal, Part 2 of Article 233 provides three months from receipt of written notice of those amounts. Under Article 234 of the LCU, a court may restore a time limit missed for valid reasons. For claims concerning dismissal and payment of amounts due on dismissal, that article adds a condition: no more than one year may pass from receipt of a copy of the dismissal order or written notice of amounts accrued and paid on dismissal.

For a culpable delay in final settlement where there is no dispute over the amount, Article 117 of the LCU provides for average earnings until actual settlement, but no more than six months. If there is a dispute, compensation depends on its resolution in the employee’s favor; in case of partial success, the authority hearing the dispute determines the amount.

During martial law, full and timely compliance with an inspectorate directive following an unscheduled inspection provides the exemption from Article 265 of the LCU fines specified in Article 16 of Law No. 2136-IX. This exemption does not cancel the debt or remove administrative, tax, or criminal liability under their separate grounds.

For fines under Article 265 of the LCU, use the minimum wage in effect when the violation is discovered. If such a fine has already been imposed on a legal entity or FOP using hired labor, also check the date the decision was delivered. Payment of 50% of the fine within ten banking days of that date means the decision has been complied with. Paying the fine does not remove the duty to remedy the violation.

For labor violations, Article 41 of the Code of Ukraine on Administrative Offenses (CUAO) provides for a fine against the responsible official or entrepreneur of 30–100 non-taxable minimum incomes, or 100–300 for specified repeat violations or violations concerning protected categories.

An additional assessment of SSC that was not accrued on time may result in a fine of 10% for each full or partial reporting period, but no more than 50% of the additionally assessed amount. As a general rule, a penalty on arrears accrues from the first calendar day after the payment deadline through and including the actual payment date.

As a general rule, pay penalties and fines within ten calendar days of receiving the decision, or challenge it within that period with a higher-level STS body or in court. At the same time, notify the STS body that issued the decision in writing of the appeal. An appeal against a sanctions decision suspends the payment deadline until the case is resolved. If you challenge a demand to pay arrears in court, the deadline for paying sanctions connected with those arrears is also suspended until the court rules. Before paying, check which document is being challenged and whether the sanctions relate to the emergence or late payment of the disputed arrears.

An appeal against a demand to pay arrears suspends the accrual of penalties from the date the complaint is filed with the STS or the lawsuit is filed in court. No statute of limitations applies to the accrual, application, or recovery of SSC arrears, fines, or penalties.

The wartime exemption from fines applies to violations committed from the beginning of martial law on February 24, 2022, up to, but not including, August 1, 2023. No penalty accrues for the same period, and a penalty already accrued is written off. These general exemption rules do not apply to new violations.

If aggression makes it impossible to meet tax or reporting obligations, use the Ministry of Finance Procedure No. 225. The application must state the taxpayer’s name or full name, code or taxpayer number, tax address, name of the STS body, and filing date. For an individual, also state the taxpayer registration number or the passport details permitted by law. Explain which obligations and for which periods cannot be met, and how specific circumstances arising from aggression prevented compliance. Attach evidence, list its titles, details, and number of pages, and sign the application; affix a seal if one is available. Select documents according to the relevant grounds: these may include evidence of destruction, loss of accounting records, unexecuted bank payments, or a communications outage. Submit unexecuted payment documents together with the prescribed evidence that the bank or payment systems stopped operating. If an individual submits other evidence, attach an identity document. A suspension order may be one item of evidence but does not replace an STS decision that tax obligations could not be met.

The filing deadline depends on which ability the taxpayer lost and regained. If the taxpayer could not submit the application and evidence by the initial deadline, under clause 4 of Section II of Procedure No. 225, file them when it becomes possible to meet at least one tax obligation, but no later than 60 calendar days from the first day of the following month. If the taxpayer previously complied with obligations and later lost that ability because of aggression, clause 6 counts the 60 days from the first day of the month after the ability to submit the application and evidence is restored.

If the STS has already decided that obligations could not be met, notify it that the ability has been restored no later than 60 calendar days from the first day of the following month. The notice must state the taxpayer and STS details, the date the ability was restored, and the date and number of the latest decision finding it impossible to comply. Under subclause 69.1 of the TCU, deferred obligations whose deadlines passed before the ability was restored must be fulfilled within these 60 days. If the ability is not restored during martial law, the general rule in this subclause requires obligations to be fulfilled within six months after martial law ends or is revoked.

The application, evidence, and notice may be submitted through the Electronic Cabinet, in person to the STS body at the tax address or to a service center, or by mail with delivery confirmation. The STS reviews an application within 20 calendar days from the day after receipt, subject to the extension allowed by the procedure. If a preliminary decision requests additional evidence, submit it within ten calendar days from the day after receiving the decision. Additional materials are reviewed within 20 calendar days from the day after receipt.

An STS decision may be appealed administratively or in court. Failure to submit the application and evidence on time, or an STS decision that obligations could be met, results in the taxpayer being treated as able to comply on time. Keep original evidence for the limitation period set by the TCU and retain proof that materials were submitted.

Special cancellation of sanctions applies to documentary audits resumed or started from August 1, 2023, and completed before martial law ends or is revoked. For taxes, fully pay the additional tax liability within 30 calendar days from the day after receiving the tax notice-decision. For SSC, fully pay the contribution additionally assessed as a result of such an audit within 30 calendar days from the day after receiving the demand to pay arrears. If these conditions are met, fines accrued on the relevant amount are considered canceled, and no penalty accrues. A tax liability or SSC paid under this procedure cannot be appealed, so check the additional assessment before paying. Independently correcting tax errors in compliance with the requirements and limitations of Article 50 of the TCU also exempts the taxpayer from the fines under clause 50.1 and from penalties under current wartime rules. Check other fines against their separate conditions.

Separately check the tax penalty under Article 129 of the TCU. For a self-assessed liability, it generally begins after 90 calendar days of delay and is calculated at 100% of the National Bank of Ukraine (NBU) annual discount rate. This rule does not cover every employer tax-agent violation. If an audit finds taxes were not paid or were transferred late before or when income was paid, the penalty begins on the first working day after the payment deadline and is calculated at 120% of the NBU annual discount rate in effect for each relevant day, including the repayment date. Separate rules govern when penalties begin and end for underreported taxes.

No penalty accrues, or an accrued penalty is canceled, under the circumstances expressly provided for in the TCU. Check whether the violation was caused by the introduction of martial law or resulted from the fault of a bank or another payment service provider specified by law. A confirmed error or malfunction of the Electronic Cabinet is a separate ground for not accruing or canceling a penalty if it was the sole cause of the violation. For a timely but mistaken payment to a different budget account, the actions required under Article 43 to obtain a refund must also be taken. Document the specific cause; the suspension order alone does not establish these circumstances.

Unjustified, intentional nonpayment for more than a month of amounts required by law by the head of an enterprise, institution, or organization, or by an entrepreneur, may constitute a criminal offense under Article 175 of the Criminal Code of Ukraine (CCU). Part 3 of that article provides for exemption from criminal liability if the person makes the relevant payment before being charged with a criminal offense. Gross violations of labor legislation may constitute an offense under Article 172. A lawful suspension does not in itself constitute these offenses. To assess the risk and remedy a violation, compare the lawful basis for the order, actual accruals, payment deadlines, and the actions of the responsible people.

Official sources

• Law “On the Organization of Labor Relations under Martial Law” No. 2136-IX: Articles 1, 5, 7, 10, 12–13, 15–16.
• Law No. 4412-IX amending labor relations during martial law: Section II, clause 1; Derzhpratsi explanation of deadlines and previously issued orders.
• Labour Code of Ukraine No. 322-VIII: Articles 34, 47, 113, 115–119, 119-1, 179, 184, 186-1, 233–235, 265.
• Law “On Leave” No. 504/96-VR: Articles 9, 24, 26.
• Law “On Remuneration of Labor” No. 108/95-VR: preamble, Article 34; Law No. 2050-III on compensation for loss of part of income: Articles 1–5, 7; CMU Resolution No. 159: clauses 1–6 of the Compensation Procedure.
• Law “On Compulsory State Social Insurance” No. 1105-XIV: Articles 12, 15–16, 18, 22–24, Section VII, clauses 2 and 4.
• PFU Resolution No. 28-1 of 19.08.2025 on funding social insurance contribution payers: clauses 3–15 of the Procedure; CMU Resolution No. 531: clauses 1 and 1-1; Social Insurance Fund Resolution No. 8 of 24.01.2017: clauses 2–5, 8, 10–15, 18–23 of the Procedure.
• Law on SSC No. 2464-VI: Articles 4, 7–9, 20, 25, Section VIII, clauses 9-21, 9-22, 9-24; Ministry of Finance Instruction No. 449: Section III, clause 2, subclauses 5–6; Law on Pension Insurance No. 1058-IV: Article 24.
• Law “On the State Budget of Ukraine for 2026” No. 4695-IX: Articles 7–8, 32.
• Tax Code of Ukraine No. 2755-VI: Articles 49, 57, 112, 119, 124, 125-1, 129, 164–169, 176; Subsection 10 of Section XX, clauses 16-1, 69.1, 69.37–69.38.
• Law No. 4015-IX: Section II, clauses 1–2; Law No. 4113-IX: Section II, clause 1; TCU edition before the change to the general military levy rate: Subsection 10 of Section XX, clause 16-1, subclause 1.3.
• Ministry of Finance Order No. 4 on the Tax Calculation: Sections I–III of the Procedure; Ministry of Finance Order No. 243 amending the forms and Procedure: clause 4.
• PFU Resolution No. 11-1 on electronic employment-record keeping: clauses 4, 7–8; State Statistics Committee Order No. 489: note 2 to Form P-5.
• Ministry of Development Order No. 376 on the list of territories; CMU Resolution No. 1364: clause 1-1; Law No. 2010-IX on people deprived of liberty as a result of aggression: Articles 3–4; CMU Resolution No. 1281: clauses 13–15 of the Register Procedure.
• Ministry of Finance Order No. 225 on confirming inability to perform tax obligations: Sections II–III of the Procedure and lists of supporting documents.
• Review of the practice of the Joint Chamber of the Supreme Court’s Civil Cassation Court: Section 6.4, conclusion on the ruling of 05.05.2025 in case No. 758/4178/22; Constitutional Court Decision No. 1-r/2025: clauses 1–3 of the operative part.
• Code of Ukraine on Administrative Offenses No. 8073-X: Articles 41, 163-4, 165-1, 188-6; Criminal Code of Ukraine No. 2341-III: Articles 172, 175.