How to survive business in conditions of checks?

Today everyone in Ukraine actively discusses the situations in business checks sphere. End
of 2017, by law the moratorium should end on December 31. Ukrainian government is actively tell
us about the "smart" moratorium in 2018. What does it mean?
What do we have now? State authorities, including the subject of moratorium, approve plans
of inspections for 2018. Plans are published on the websites of these authorities, so you have
theoretical possibility to check whether you are in the risk zone. However, is not easy to search in
dozens of tables for your enterprise.
We have also the Integrated Automated System of State Supervision
(, where you can check if you company is in these plans. But for now it is
only a pilot module. Our attempts show that the integrated system is loaded only with a plan of
complex measures, and that is all.
The expiration date of the moratorium, established by the law on temporary features of state
control, has not been changed. Therefore, now it is not clear how they plan to continue it and make
it "smart" in 2018.
According to the information agency UNN (, the Law on the State
Budget prolonged the moratorium on inspections of small and medium businesses for 2018, but the
bill (on the website of Verkhovna Rada) does not contain such provisions.
According to information posted on the website of the Office of effective regulation
(, the government in each case will decide one or the other is ready to get out of
the moratorium. They also will introduce certain standards that allow the control authorities to get
out of the moratorium.
On December 18, 2017, the Cabinet of Ministers passed decisions aimed to "deregulate
business" and canceled 340 regulatory acts in the areas of labor protection, sanitary and
epidemiological control, as well as fire safety.
Today, there is a list of authorities, which the moratorium does not concern. The most active
among them are fiscal officials, labor inspection, architectural and construction and eco-inspections,
as well as State Procurement Service.
There are some situation when the moratorium does not apply. They includes checking
based on a court decision or at the request of officials in cases specified by the Criminal Procedure
That is why it is always necessary to be careful and ready for the arrival of inspectors.
Labor inspection for example can apply fine to 372 300 UAH for non-admission to
verification on certain issues. Inspectors actively use such sanctions, and the appeal of fines is often
Qualitative preparation for inspections increases the chances of successful appeals. But how
you can to prepare?
First, organize the documents that can be verified. In the case of verification of compliance
with the requirements of labor legislation – it is labor or civil law contracts, job descriptions,
internal labor regulations, documents for payment of wages etc.
Avoid situations where civil contracts settle process of labor organization or establish the
duty to obey the rules of internal labor regulations. Such a situation often leads to the qualification

of civil law contract as labor and fines for admission of an employee to work without proper
registration of an employment contract in the amount of 111 690 UAH.
The success of the appeal in this case depends on the quality of the concluded contract.
It is necessary to remember the possible ways to bring in inspectors. If you do not have
employees, but the production volumes are huge, it would cause questions for everyone. In
conclusion, your employees work without proper registration, so wait for the inspector.
If the inspector has already arrived, remember your rights. Do not be afraid to check his
identity and documents. Provide the inspector with documents and explanations for his legal claim.
In case of violations on the part of the control authorities – record them on video, as well as indicate
to the inspection report. Ignoring violations in the future will complicate the process of appealing
the results of the audit.
Get a competent lawyer or attorney, but not at the stage of appealing a fine. Not even when
the inspector came. Best of all – conduct an audit of your business, establish risks and eliminate
them before the authority comes. That is how you can better protect yourself from fines.
If a fine is applied, then appeal. Quite often courts abolish fines if control authorities violate
the procedure. However, it is necessary to compete for this, therefore – to prevent violations is
easier and you still have some time for this.

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