Remote Work Rights: Why Employers Can't Deny Pay Just Because They Lost the Paperwork

A recent landmark ruling by the Supreme Court of Ukraine has clarified a critical aspect of remote work law: the burden of proof lies squarely with the employer, not the employee. In a case involving over 765,000 UAH in unpaid wages, the court established that an employer cannot withhold payment simply because they failed to maintain proper documentation or create adequate working conditions.

The Case Background

The dispute centered on a chief accountant at the municipal enterprise "Hotel Ukraine." After being transferred to remote work in April 2020 due to quarantine measures, the enterprise faced severe financial and technical difficulties, including electricity disconnections due to debt. Management admitted they lacked the funds and technical capability to maintain accounting records or submit financial reports.

Despite these challenges, the employee continued to perform her duties as much as possible, cooperating with management on debt issues and providing necessary information. However, when she filed for wage arrears in December 2024, lower courts denied her claim, arguing she failed to provide evidence of her work performance and that the enterprise was inactive.

The Supreme Court’s Verdict

The Supreme Court overturned the lower courts' decisions, emphasizing several key legal principles:

• Employer’s Responsibility: It is the employer’s duty to prove that they created the necessary conditions for remote work (such as access to resources) and that the employee refused to work without valid reasons.
• Documentation Failures Are Not Employee Faults: The absence of personnel or accounting documents cannot be used as grounds to deny wages. Labor legislation places the obligation on the employer to organize work, ensure control over the labor process, and maintain reliable records.
• No Disciplinary Action Implies Compliance: For four years, the employer took no disciplinary actions against the employee for alleged non-performance. This silence indicates that the employer did not formally challenge her work output during that period.
• Remote Work Does Not Terminate Rights: Switching to remote work does not terminate labor relations or alter the scope of an employee’s rights. Wage payment remains a priority obligation regardless of force majeure events like power outages or financial insolvency.

Key Takeaway for Remote Workers and Employers

This ruling reinforces that employees are the weaker party in labor relations and must be protected from the negative consequences of an employer’s organizational failures. If you are working remotely, remember that your right to timely remuneration is protected by law. Conversely, employers must ensure they have robust systems in place to document work hours, tasks, and outputs, as failing to do so will not absolve them of their payment obligations.

For more insights on labor rights during challenging times, consider reading about rules applicable during martial law regarding downtime and dismissal.