The DOU publication writes that anonymous specialists from IT service companies are increasingly talking about the transition to the «Diia Employment» model. The number of transitions, in particular by IT professionals from sole proprietorships, to this model is not disclosed, but the Ministry of Digital Affairs confirms this trend.
The DOU publication writes that anonymous specialists from IT service companies are increasingly talking about the transition to the «Diia Employment» model. The number of transitions, in particular by IT professionals from sole proprietorships, to this model is not disclosed, but the Ministry of Digital Affairs confirms this trend.
Among the reasons, the DOU cites restrictions on cooperation with individual entrepreneurs. The Ministry of Digital Affairs indicates that companies paying income tax, whose annual income does not exceed UAH 40 million, can cooperate with individual entrepreneurs and other single taxpayers without restrictions throughout the entire period of work at «Diia.City». For all other residents, payments to individual entrepreneurs and other single taxpayers should not exceed 20% of total expenses for the past year.
As noted by Victoria Polyanska, Senior Legal Counsel at Intellias, which uses employment contracts, Diia.City has three models of cooperation with specialists:
1. Employment agreements (contracts).
2. Gig contracts.
3. The sole proprietorship model.
«Diya Employment» is an official employment contract concluded between a resident company of Diya City and a specialist working for the company. Such cooperation is regulated by the labor legislation of Ukraine, taking into account the provisions of the special regime.
This agreement can contain more agreements between the parties regarding their mutual obligations than a sole proprietorship agreement. In particular, there is a prohibition against taking specific actions.
«Employment contracts have been one of the formats of cooperation at Diya City from the very beginning. Intellias became a resident of Diya City in February 2024. After that, we began to actively develop and use Diya Employment as a model of cooperation with specialists. One of the key factors why we use it is the ability of Diya City residents to book officially employed workers,» said Polyanska.
In addition to restrictions on working with sole proprietors, the popularity of this employment contract is facilitated by social protection, which provides the opportunity to use the guarantees of labor legislation, protection of labor rights, and reservations for specialists subject to military service.
Among the disadvantages, it is noted that the employee is under greater control of the company. For example, the company can impose restrictions on non-solicitation or non-compete, which will be legally supported.
However, a company using this model will need to attract more resources for additional work with personnel and military records and documentation.
