Hired employees and contracts with attorneys: what to consider for attorneys at law and law firms

Like other legal entities, law firms and bureaus may enter into employment contracts. Relations with employees are regulated by the Labor Code. Other attorneys may also be engaged on a contractual basis.

It should be borne in mind that the Tax Code of Ukraine does not set any restrictions on the number of employees for legal entities that apply the simplified taxation system - the single tax of the 3rd group.

When hiring an employee, the employer must notify the tax authorities in accordance with the Resolution of the Cabinet of Ministers of Ukraine No. 413 dated 17.06.2015 «On the Procedure for Notifying the State Tax Service and its Territorial Bodies of Hiring an Employee / Concluding a Gig-Contract».

In this case, the notice must be submitted before the employee starts working under the concluded employment contract, in particular, by means of electronic communication using a qualified electronic signature of the employer's responsible (official) persons in the form «J(F)3001001» Notice of Employment of an Employee».

In addition, the bureau and association of attorneys may engage other attorneys on a contractual basis to fulfill the concluded agreements on the provision of legal aid. In this case, the bureaus and associations must ensure that the professional rights of attorneys and guarantees of the practice of law are respected (part 6 of Article 14, part 6 of Article 15 of the Law on the Bar and Practice of Law).

In this regard, the Bar Council of Ukraine approved clarifications regarding the conclusion of an agreement between a law firm and another lawyer who is self-employed (Decision No. 33 dated 12.04.2019). The document states that civil law does not require the conclusion of a specific type of agreement. This issue is resolved by agreement between the attorney and the law firm.

Therefore, if there is a need for a one-time engagement of an attorney to the activities of the Attorneys' Office, it is necessary to conclude an agreement (contract) on the engagement of an attorney, which cannot contradict civil law, the Law «On the Bar and Practice of Law», UNBA acts and the charter of the relevant Attorneys' Office.

The article was prepared by Dmytro Khutornyi, deputy chairman of the UNBA Committee on Attorneys' Practice.