Legal regulation of remuneration in remote work: challenges and prospects for improvement

Abstract

In the context of intensive globalization and the pervasive digitalization of economic processes, the remote work format has established itself as an integral component of modern labor relations in Ukraine. The rapid increase in popularity of this mode of work organization, particularly during the period of martial law and post-pandemic recovery, has highlighted the urgent need to improve the legal regulation of wage payment for employees performing their duties outside the traditional workplace. Based on the Constitution of Ukraine, the Labor Code, and other regulatory acts, as well as considering international experience, a new legal framework is being formed, aimed at ensuring fair remuneration for work in the context of remote employment.

The research paper investigates the specific aspects of the legal regulation of the wage payment system for remote workers in contemporary Ukraine. The study provides an in-depth analysis of current challenges stemming from the insufficient adaptation of existing labor legislation to the unique characteristics of remote work. Specifically, it delves into problems related to the effective and objective tracking of actual working hours, the development and implementation of adequate criteria for assessing the productivity of remote employees, and ensuring unconditional adherence to established deadlines and the completeness of wage payments. Particular attention within the research is devoted to the complex issues of administering personal income tax, military levy, and the calculation of the unified social contribution in the context of employees performing their duties remotely, including instances of working from abroad for Ukrainian employers, which gives rise to risks of double taxation and necessitates clear regulatory settlement. The research findings indicate the necessity of amending the Labor Code (KZpP) concerning the recording of working hours, compensation for expenses related to remote work, and the development of model employment contracts. Emphasis is placed on the importance of implementing electronic tracking and control systems, as well as on enhancing the legal awareness of the parties to labor relations.