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Sunday, October 25, 2026

A civil law contract instead of an employment contract can cost the employer a fine of UAH 259,410 — what you need to know in 2026 - Судово-юридична газета

The conclusion of a civil law contract itself does not exclude employment relations, but their presence is determined based on the actual circumstances of the parties' cooperation.

In martial law conditions, it is especially important for businesses to properly formalize relations with people involved in performing work or providing services. The use of civil law contracts may be justified, but under certain circumstances, the actual relations may have signs of employment.

Below we will analyze the differences between an employment contract and a civil law contract, what circumstances control authorities and courts consider, and when the employer faces the risk of liability.

Why the contract title is not enough

For business, a civil law contract is one of the ways to engage specialists to perform specific work or provide services. At the same time, the contract’s title itself does not determine the nature of the legal relations.

The key point is what the actual content of the relations is and how they are implemented in practice. This approach was applied by the Supreme Court in the Cassation Administrative Court ruling dated September 9, 2026, in case No. 300/1733/25. The court emphasized that when distinguishing between employment and civil law relations, it is necessary to assess the actual circumstances of their execution, and the formal registration of relations as a civil law contract does not exclude the possibility of establishing actual employment relations.

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