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What are the risks of not entering into employment contracts with employees?

Published 26 May 2026 year, 14:00

Various types of sanctions may be imposed for violations of labor laws, depending on the nature and consequences of the violation, as well as on the business entity that committed it.

If a labor dispute is resolved in favor of the employee, the employer will be required to restore the employee’s violated right and compensate the employee for all losses incurred, including paying the employee’s wages for the entire period of employment regardless of whether they were paid during that time, and paying the unified social contribution for the entire period of the employee’s employment. The amount of such wages may not be less than the average wage in the relevant industry. The employee will also be entitled to compensation for moral damages.

Gross violations of labor law may result in criminal liability!

Do not take risks! Operate within the law!