Problems of wages legalization in Ukraine

Natalia Dobrova
PhD in Economics, Associate professor, Economics and Management of National Economy Department, Odessa National Economic University, e-mail:dobrova63@mail.ru

Cite this article:

Dobrova, N. (2016), Problems of wages legalization in Ukraine. Ed.: M. Zveryakov (ed.-in-ch.) and others [Problemy lehalizatsii zarobitnoi platy v Ukrainі; za red.: М. I. Zveriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, Issue 1, No. 60, pp. 213–221.

Abstract

In the following article the main problems of wages legalization in Ukraine were considered, which is the actual subject in current economic crisis in Ukraine nowadays. Besides, the problems of shadow employment in Ukraine were considered, in particular, the background of labor legislation infringement, which is expressed, firstly, in the payment of wages to employees «in an envelope»; secondly, in hiring employees to work without proper employment contracts with them. It is proved that the payment of wages «in envelopes» is the burden of our time, which entails a lot of problems, weakening the social protection of workers and reducing revenues to budgets and state social funds. The features of the social protection of employees in Germany are examined. The directions of wages legalization as well as social and labor relationships in Ukraine are suggested.

Keywords

shadow economy; legalization; wages; labor contract; labor relations; social protection.

JEL classification: H100; H300;  DOI: https://doi.org/10.33987/vsed.1(60).2016.213-221

UD classification: 331.2:347.135.224(477)

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