Hiring employees in 2025: how to properly formalize employment relationships

Hiring new employees is always a responsible step for HR managers. After all, it determines not only how quickly an employee can be integrated into the work process, but also the legal validity of the cooperation.

In this article, we will discuss the current regulations and procedures for hiring employees in 2025.

Hiring procedure: step-by-step instructions

Labor legislation clearly defines what an employer must do when hiring a new employee. In 2025, the procedure consists of the following steps.

Step 1. The employee submits the necessary documents

The list of documents to be provided is specified in Article 24 of the Labor Code:

• passport or other identity document;
• employment record book (if any) or information about employment from the register of insured persons of the State Register of Compulsory State Social Insurance (extract in the form of Appendix 8 from the Diya portal or from the insured person’s electronic account on the PFU portal);
• military registration document (for persons liable for military service);
• taxpayer registration number.

In cases provided for by law, the employee also provides:

• documents on education (if special qualifications are required for the job);
• medical documents (if the person being employed is under 21 years of age, has a disability, or if the position requires a preliminary medical examination);
• documents confirming the right to benefits (сertificate of combatant status, IDP certificate, etc.).

Step 2. If necessary, the employee undergoes a medical examination

The company agrees with the State Labor Service on the list of positions for which mandatory preliminary medical examinations are required upon hiring, as well as the procedure for conducting them. This information is also specified in the collective agreement.

According to Art. 191 of the Labor Code, a medical examination upon hiring is mandatory for all persons under the age of 18, as well as for persons under the age of 21 who have not undergone an annual medical examination during the last 12 months prior to hiring.

If employees perform heavy work, work in harmful or dangerous conditions, or if the job requires professional selection, the employer is obliged to organize a medical examination for them at their own expense (Art. 169 of the Labor Code).

If the medical opinion shows that the applicant is unable to perform the proposed work due to their state of health, the employer is obliged to refuse them employment (Part 3 of Art. 22 and Part 6 of Art. 24 of the Labor Code).

Step 3. The employee submits an application for employment

The application must contain the following details:

• addressee;
• information about the applicant;
• name of the document;
• text of the document;
• date of the document;
• signature.

Sample application for employment:

Step 4. The employer legally formalizes the employment relationship with the employee

To formalize the employment relationship, the employer may conclude with the employee:

• an employment contract for full-time employees;
• a contract;
• a gig contract.

Employment contract is an agreement between an employee and an employer, under which the employee undertakes to perform a specified amount of work, and the employer undertakes to pay a salary and provide the working conditions necessary for the performance of the work, as provided for by labor legislation, a collective agreement, and an agreement between the parties (Article 21 of the Labor Code).

Contract is a special form of employment contract that is concluded only in writing with certain categories of employees in cases provided for by law (for example, enterprise managers, foreigners, etc.).

Gig contract is a civil law contract concluded between a gig specialist and an enterprise that has the status of a resident of Diya City. Under a gig contract, the employee must perform a specified amount of work and/or provide services in accordance with the customer’s tasks. In turn, the customer undertakes to create appropriate conditions for the performance of work, pay for the work performed, and provide social guarantees as provided for in Section 5 of Law No. 1667.

Step 5. Order on hiring

The order on hiring an employee is drawn up using standard form No. P-1 in accordance with DSTU 4163:2020.

Sample order on hiring:

The personnel inspector familiarizes the employee with the order. The original order is stored in a separate folder for long-term storage orders, and a copy is added to the employee’s personal file.

Step 6. Notification of state authorities about the hiring of an employee

Before a new employee starts work, the employer must submit a notification of hiring to the State Tax Service (p. 4 of Art. 24 of the Labor Code) at the place of registration of the enterprise as a payer of social security contributions. The form of the notification is specified in the App. 1 to CMU Resolution No. 413.

After hiring an employee, the employer must also submit notifications to:

• The Pension Fund of Ukraine — no later than the day after the hiring order is issued (CMU Resolution No. 1332);
• the Tax and Customs Committee and the State Tax Service at the place of registration of the employee — no later than seven days after the issuance of the order on hiring (paragraph 4 of clause 34 of Order No. 1487).

Step 7. Familiarization of the employee with internal regulations against personal signature

Before starting work, the HR inspector familiarizes the employee with the following internal regulations:

• job description;
• provisions on personal data protection (cl. 2 of Art. 12 of the Law of Ukraine «On Personal Data Protection»);
• military registration rules.

Step 8. Preparation of a personal file, personal card P-2, entry in the employment record book at the employee’s request

After concluding the employment contract and issuing the order on employment, the personnel inspector prepares a personal file. The procedure for its creation and the list of documents are specified in paragraph 12 of Ch. 2, Sect. IV of Rules No. 1000/5.

Given the requirements of Instruction No. 286 and the provisions of labor legislation, the personal card remains an important document in personnel records, and its completion is recommended. This will help avoid possible fines and ensure proper personnel records at the enterprise.

Currently, there is no standardized form for personnel records in personnel records management. Most often, the form approved by Order No. 495/656 of the State Statistics Committee of Ukraine and the Ministry of Defense of Ukraine dated December 25, 2009, is used. Each organization can develop its own form and include information that is important for that particular company.

Sample personnel record sheet (P-2):

Common mistakes made by HR managers during recruitment

Violations of the recruitment procedure by a company may result in fines. In particular, Art. 265 of the Labor Code provides for fines for the following violations:

In addition to financial penalties for the company, the manager bears personal responsibility under Art. 41 of the Code of Administrative Offenses:

In 2025, the rules regarding military registration of new employees remain relevant. In particular, CMU Resolution No. 1487 on military registration of conscripts provides for a fine for legal entities for violating military registration in the amount of UAH 34 000 to UAH 59 000 for each employee. If the fine is not paid immediately, the amount will double after the case is transferred to the enforcement service.

How digital tools simplify the hiring process

Current labor legislation allows documents to be processed electronically during the hiring process. To do this, company HR departments use both universal electronic document management services (such as Vchasno.EDO) and specialized solutions for HR paperwork (such as Vchasno.Kadry).

Digital services offer HR professionals a number of advantages, including:

• they speed up HR processes;
• they reduce the number of errors in documents;
• they allow for better control over document circulation.

Thanks to the use of digital services, HR professionals significantly reduce the time spent on hiring new employees. This is confirmed by the experience of Vchasno’s clients.

The hiring procedure in the Vchasno.Kadry service is as simple as possible for both HR managers and employees. It consists of the following steps:

1. The HR inspector enters the employee’s phone number into the service.
2. The employee receives a link to a questionnaire with personal data. They can enter the data manually or automatically transfer it via «Dіya.Sharing».
3. The HR inspector receives a notification about the received questionnaire and checks it.
4. If any documents are missing, the employee uploads them to the service.
5. Based on the questionnaire, the system generates an application, an order of employment, and a P-2 form.
6. The HR inspector sets up the document signing route within the company.
7. Managers sign the documents in a specified sequence.

The Vchasno.Kadry service uses artificial intelligence algorithms in test mode. Employees can upload photos of documents to the service, after which the system recognizes the necessary data and enters it into the questionnaire.

The Vchasno.Kadry service ensures reliable storage of documents in an electronic archive in compliance with all legal requirements. The Vchasno archive is hosted on Amazon S3 servers located in the European Union. Documents are protected from any unauthorized access or physical destruction.