HOW TO HIRE AN EMPLOYEE

HOW TO HIRE AN EMPLOYEE

Employing an employee starts with agreement on the work, salary, working time and start date. The director determines the position and terms, the employee provides the required information, and the accountant receives the basis for payroll.

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The Labour Code requires employment relations to be formalised before a person is allowed to work, so for the owner proper hiring means that the employee can work lawfully from the first day and the business has documents for salary and taxes.

What the Director Agrees with the Employee before the First Working Day

The parties agree the position, job function, place of work, working regime, pay and start date. For permanent work, an indefinite employment agreement is usually chosen. A fixed-term agreement is used where there is a lawful basis connected with the nature or conditions of the work. If the work is performed remotely, the director and employee separately define communication, equipment, working-time records and document exchange.

It is useful to link clear bonus or incentive rules to salary from the outset. The accountant should see which amount is guaranteed, which payments depend on results and from what date the new terms apply. The owner gains control over personnel costs, while the employee understands how much they earn for the agreed work.

For positions with access to money, clients or important information, the director defines the employee's rights before the first day. Banking authority, qualified electronic signature, CRM, corporate email, warehouse and cash desk access are given to a specific person within their job duties. This makes a later change of position or dismissal easier.

Before hiring, the owner calculates the full cost of the workplace: salary, taxes, equipment, software, training and the manager's time spent onboarding the person. This makes it possible to compare a new employee with an external contractor or automation of a particular function. If a permanent employee brings more sales, serves clients faster or frees the director's time, the hire has a clear economic rationale.

Which Documents Are Prepared before the First Working Day

The Labour Code provides for an employment agreement and formalisation by an employer's order or instruction. The employment notification is submitted before the person is allowed to start work. From 2026, when employment relations are formalised electronically through the Obrii system, the relevant information may be transmitted automatically under Resolution No. 413 as amended.

The employee provides the documents and information required by law for the specific position. Work subject to special requirements may require documents on education, qualifications or health. The director uses only the information needed for employment and HR records.

A job description is useful where the owner wants to set out day-to-day duties in detail. It should correspond to the employment agreement and the work actually performed. For a small business, a short clear document that the employee uses in practice is better than a large formal text.

During the interview, the manager discusses the actual tasks and expected result. For a salesperson this is revenue and client work, for an accountant timely accounting and reporting, and for an administrator order in documents and services. After this discussion, it is easier to set salary, bonuses and a probation period linked to the real position.

What Helps an Employee Start Work Properly

On the first day, the director or immediate manager explains the tasks, who the employee reports to, which systems and property they use, and what result is expected. The accountant receives the HR documents for payroll. The administrator provides the agreed access. The employee starts work with authority that has already been defined.

If the parties have agreed a probation period in cases permitted by law, the manager sets clear results for this period: sales volume, quality of work, completed orders or other indicators linked to the position. A UBC specialist can prepare the employment agreement, order and other HR documents for the specific employee and business conditions.

It is also useful for the owner to determine which decisions the employee may make independently. A manager may approve a discount within set limits, a purchasing employee an order up to a defined amount, and a department head the schedule of their team. Clear authority reduces the number of minor questions going to the director and speeds up the business.

After hiring, the director should define the first tasks for one to three months. A new employee becomes useful faster when they know the specific clients, goods, documents and indicators for which they are responsible. The department head provides access to the required information and accepts the result on agreed dates. The owner sees when the cost of the new workplace begins to return through sales, completed orders or management time saved.

If the business is growing quickly, the director can prepare a standard package in advance for typical positions: employment agreement, job description, pay rules, list of property and access rights. For each new person, only the personal data, position, salary and special terms change. This speeds up hiring without losing control over the content of the documents.

If an employee communicates with clients, the director immediately determines who owns the work phones, correspondence and contact database. After an HR change, these data remain with the business and are transferred to the new responsible employee. The owner retains the client relationships together with the company.

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Proper formalisation of an employee gives the director a lawful basis for the person's work and gives the accountant a basis for salary and taxes. UBC can help prepare HR documents for a specific position and working arrangement. We wish you success in business!

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The principal activities of the UBC group of companies include financial and investment services, assistance with obtaining finance and attracting investors, the purchase and sale of established businesses, IT services and commercial property development in Ukraine and abroad. Company registration in Ukraine and abroad, corporate law, offshore jurisdictions and offshore companies, business consulting, audit, certification, LLC registration, registration of financial companies, asset management companies and mutual investment funds, registration of joint-stock companies, securities and bond issues, support for foreign investment, construction licences, permits for design and construction, and other services for successful business in Ukraine are also available. We provide our clients with a full range of turnkey business services within the shortest practical timeframe. Our continuously expanding network of regional and international partners helps resolve our clients' issues effectively when doing business both in Ukraine and abroad.

We always work towards the result you need and will do everything possible to achieve it within the required timeframe, taking account of your wishes and requirements. Why is it better to start a business in Ukraine with UBC? The answer is simple: we have considerably more practical experience, resources and capabilities. We have been and remain leaders in Ukraine in corporate services, and the UBC corporate structure comprises more than 10 companies operating in different business sectors.

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Frequently Asked Questions

When Should the Employment Notification Be Submitted?

The manager defines measurable results linked to the position: sales, completed orders, quality, deadlines or other work indicators.

Is a Written Agreement Always Required?

The form depends on the circumstances and legal requirements; in every case the terms need to be agreed and confirmed by HR documents.

How Is Remote Work Formalised?

Describe the place, working regime, communication, equipment, safety, time recording and document-exchange procedure in the applicable form.

What Should Be Included in a Probation Plan?

Tasks, measurable results, deadlines, the responsible manager and dates for interim and final assessment.

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Since 2003, UBC has created thousands of successful companies in Ukraine - we can help you too. We will be pleased to answer any further questions you may have. We wish you every success in business!