The main factors driving labor migration are the unfavorable economic situation in Ukraine, the lack of jobs in the labor market, low motivation for legal employment, and, as a result, the problem of adequately paid work. All these factors provide grounds for Ukrainian citizens to leave for employment abroad. There are several channels of labor migration for Ukrainian citizens. These include independent job search, use of travel agencies, direct invitations of Ukrainian specialists by foreign parties, and use of intermediary structures for employment abroad.
Through intermediary structures for employment abroad, Ukrainian citizens have the opportunity to obtain legal work outside the country and reliable social protection from the foreign employer (within the framework of the legislation of the country of employment). However, even when a person tries to go abroad for work legally, they still risk falling into the hands of fraudsters from illegal recruitment agencies. To prevent this, the citizen must know that the intermediary is obliged to rely on a number of permits in its activities.
Structures engaged in mediation for employment abroad annually provide employment services to only 1-2% of the total number of Ukrainian migrants working abroad. As of February 24, 2007, 515 business entities registered in Ukraine had a license from the Ministry of Labor for mediation in employment abroad. The number of Ukrainian citizens using the services of these structures is growing (see table).
Control over the work of business entities engaged in mediation for employment abroad is carried out by the Commission on Mediation in Employment Abroad and Issuance of Permits for Employment of Foreigners in Ukraine and regional commissions in accordance with the Procedure for Control over Compliance with the Licensing Conditions for Conducting Business Activities in Mediation for Employment Abroad, approved by joint order of the State Committee of Ukraine for Regulatory Policy and Entrepreneurship and the Ministry of Labor and Social Policy of Ukraine dated June 24, 2004 No. 78-141 (registered with the Ministry of Justice of Ukraine under No. 887/9486 dated July 15, 2004).
During 2006, 221 inspections of licensees were carried out, of which 25 were unscheduled. Based on the results of inspections of intermediaries' activities, the Ministry of Labor and Social Policy of Ukraine revoked 43 licenses, declared 32 licenses invalid, and issued 80 orders to business entities to eliminate violations within a set timeframe.
Number of citizens employed abroad with the help of licensed intermediaries 2000
19.9 thousand 2001
36 thousand 2002
40 thousand 2003
38 thousand 2004
45 thousand 2005
56 thousand 2006
61.4 thousand
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According to Ukrainian legislation, activities related to mediation in employment abroad belong to the types of economic activity that are licensed by the state. Its conduct is regulated by Resolution of the Cabinet of Ministers of Ukraine No. 756 of July 4, 2001 "On Approval of the List of Documents Attached to the Application for a License for a Separate Type of Economic Activity," and Order of the State Committee for Entrepreneurship and the Ministry of Labor of December 19, 2001 No. 155/534 "On Approval of Licensing Conditions for Conducting Business Activities in Mediation for Employment Abroad." By Resolution of the Cabinet of Ministers No. 1698 of November 14, 2000 "On Approval of the List of Licensing Authorities," the Ministry of Labor and Social Policy was designated as the licensing authority for mediation in employment abroad.
According to the Licensing Conditions for Conducting Business Activities in Mediation for Employment Abroad, mediation in employment abroad is the provision by business entities of services for finding employment in accordance with employers' requests for vacant jobs (vacant positions) and the provision of information and advisory services regarding employment opportunities, conditions and amounts of remuneration, and the name and location of employers.
Business entities that have a license from the Ministry of Labor conduct their activities only with those foreign partners who work on the basis of permits for the employment of foreigners issued to employers, or licenses for conducting intermediary activities in the employment of foreigners issued to intermediaries. Relevant registration documents of the foreign employer or intermediary, foreign economic agreements, and draft employment contracts are also provided.
A foreign economic agreement (contract) for the provision of intermediary services in employment abroad is a written agreement between a business entity and a foreign employer (its counterparty) or a foreign intermediary. The content of the foreign economic agreement must comply with the legislation of the country of employment and international treaties of Ukraine. It is aimed at establishing rights and obligations in foreign economic activity for selecting the employees needed by the employer or foreign intermediary.
The draft employment contract is a document certified by a foreign employer, which must comply with the legislation of the country of employment and international treaties of Ukraine. It contains the main details of the employer, professional requirements for the employee, information about the nature of work, working conditions, remuneration and accommodation on the territory of the country of employment, social protection (including insurance), the term of the contract, conditions for its renewal and termination, the procedure for covering transport costs for the entry and exit of the Ukrainian employee to and from the country of employment. The draft also includes information about the employee's liability to the employer in accordance with the employment contract.
When a Ukrainian citizen contacts a business entity engaged in employment mediation for work abroad, in order to use its services, attention should be paid to the fact that the intermediary must have:
- a license from the Ministry of Labor and Social Policy for carrying out mediation activities for employment abroad;
- a license (permit) for employment (for mediation in employment) of Ukrainian citizens, issued to the employer (intermediary) by an authorized body of the country of employment;
- a foreign economic agreement (contract) on mediation in employment abroad, between the intermediary and a foreign business entity (employer or intermediary);
- a draft employment contract certified by a foreign employer, which must comply with the legislation of the country of employment, international treaties of Ukraine and contain the main details of the employer, professional requirements for the employee, information about the nature of work, working conditions, remuneration and accommodation on the territory of the country of employment, social protection (including insurance), the term of the contract, conditions for its renewal and termination, the procedure for covering transport costs, etc.
According to the joint Order of the State Committee of Ukraine on Regulatory Policy and Entrepreneurship and the Ministry of Labor and Social Policy dated December 19, 2001 No. 155/534 'On Approval of Licensing Conditions for Conducting Business Activities on Mediation in Employment Abroad,' the intermediary is obliged to conclude an agreement between the licensee and the client. This is an agreement on the provision of mediation services for employment abroad to the client. It stipulates the rights and obligations of the parties, the list and cost of services, ways to resolve disputes, and the responsibility of the licensee and the client for fulfilling the terms of the agreement.
It is prohibited to charge any types of advance payments for mediation services for employment abroad before the client concludes an employment contract with a foreign employer.
Material provided by the Department of Employment Policy and Labor Migration of the Ministry of Labor and Social Policy of Ukraine.