When recruiting people individual entrepreneurs should adhere to the provisions of the Labour Code because an individual entrepreneur makes use of natural persons and is the employer (items 14.1.222 Tax Code of Ukraine, part 1, Art. 1 of the Law of Ukraine “On organizations of employers”). Individual entrepreneurs should have almost the same set of staff documents as the legal entities, however, certain differences do exist.

Hence, the main staff documents that an entrepreneur should have in compliance with the Labour Code, are:

1. Internal Labour Rules and Regulations. This document is to be developed by the employer in accordance with the established procedure and should regulate organization of work so as to adhere to the labour discipline and regulate criterion behaviour of the employees. The necessity to approve (by the general meeting of the labour collective) the Internal labour Rules and Regulations at each enterprise, institution and organization is envisaged by Art. 142 of the Labour Code of Ukraine. Resolutions of the labour collective are recorded in minutes.
2. Remuneration and Bonus Scheme. This is a local normative document which describes the principles of formation and calculation of wages, bonuses and other payments in compliance with the current legislation requirements and with due account of specific works and working conditions. The employer is obligated to agree the labour remuneration with the body authorized to represent the labour collective (Art. 97 of the Labour Code of Ukraine (hereinafter, Labour Code), part 1, Art. 15 of the Law of Ukraine “On labour remuneration” of 24.03.199, No.108/95 –VR.) Hence, a new document appears that the individual entrepreneur should have.
3. Minutes of the general Meetings of the Labour Collective. These minutes approve of the Internal Labour Rules and Regulations and the Remuneration and Bonus Scheme, election of the authorized social insurance agent, etc.
4. List of staff is an organizational and administrative document describing the company structure, numbers of departments, number of employees as well as the size of their salaries. The staff list should be developed with due account of the Occupational Classification DK 003-2010. The document retention period is three years. Number of changes and intervals between changes in the staff list during the current year is not defined.
5. Vacations schedule. Provisions of part 4, Art. 79 of Labour Code and part 10, Art. 10 of the Law on vacations state that the vacations schedule should be available at each enterprise. These norms definitely and without other alternatives, state: “the order of vacations is defined in the schedules to be approved by the owner or the body authorized by the owner as agreed with the elected body of the primary trade-union organization (trade-union representative) or by other body authorized by the labour collective, and is made familiar to all employees”.
6. Employee data cards P-2. Their standard form is approved by Order of the State Statistics Committee and the Ministry of Defence of Ukraine of 25 December, 2009, No. 495/656. P-2 data cards are one of the main tools of a personnel manager and comprise all personal data. Employee data cards are kept for permanent and part-time employees who work on a contract basis and for those who have been employed seasonally.
7. Timesheet (twice a month) is a name list containing notes on the work time use during the record period.
8. Labour contracts with employees. Order of the Ministry of Labour of 08.06.2001, No. 260 approved of the form of labour contract between an employee and the individual uses the hired labour. We recommend deleting from this form the lines which were earlier filled in by the employment centre because it is not required to register labour contracts with the employment centre when hiring a person. Now the entrepreneur has to assign numbers to labour contracts independently.
9. Labour contract logbook. After a labour contract is signed by both parties it is required to register it. The employee signs in the logbook confirming that he/she received his/her copy of the labour contract.
10. Notification of the State Fiscal Service of employing workers. In accordance with the concluded labour contract the entrepreneur gives such notification to the appropriate tax administration as a payer of the unified social tax (UST) in accordance with the developed form before the employee starts to work. In other words, notifications should be submitted at hiring each employee.
11. Orders concerning staff matters. These include the orders concerning employment (appointment to a position), transfer (reassignment) to other position (job), dismissal (labour contract termination), secondment, changes in biography data (surname, name, etc.), rewards (awards, bonuses), imposition of a punishment, material (charity) aid, vacations (basic leave additional leave, study leave, maternity leave, unpaid leave, etc.) and business missions.
12. Job description is the document which regulates organizational and legal status of employees and defines their specific tasks and obligations, rights, authority, liability, knowledge and qualification that are required to assure efficient work of employees. The structure and contents of the job descriptions are described in the General provisions, issue 1, of the Dictionary of Occupational Titles of Employees approved by Order of the Ministry of Labour and Social Policy of Ukraine of 29 December, 2004, No.336 (hereinafter, the Dictionary).
13. Employment record book is the main document concerning work activities of the employee which confirms length of employment and making it possible for the owner to have some idea of the candidate experience. A record in the employment record book is to be made within 5 days after the employment. The procedure of keeping employment record books is regulated by the Instructions on keeping employment record books of employees approved by Order of the Ministry of Justice, Ministry of Labour and Ministry of Social Protection of 29.07.93, No.58 (hereinafter Instructions No.58).
14. Documents referring to social insurance (election of the commission or the authorized person, minutes of meetings). In accordance with item 3, Art. 30 of the Law of Ukraine “On obligatory state social insurance” of 23.09.1999, No.1105-XIV as edited according to the Law of Ukraine of 28.12.2014, No. 77, a decision on welfare protection and provision of social services concerning insurance in connection with temporary loss of labour ability is adopted by the social insurance commission (authorized person). The social insurance commission consists of representatives of the administration and insured persons delegated by each representational party independently and in equal number, depending on the number of insured persons in the organization. The term of powers of the commission members and their number from each party are established by a common decision of the representational parties (no restrictions concerning the minimum or maximum number of the commission members are not legally established).

Hence, is you have prepared and filled in all the above indicated documents in accordance with the current legislation requirements, you can easy meet inspectors of the State Labour Service of Ukraine.