Does a foreign gig specialist in Diia City need a work permit?

Who counts as a gig specialist

Law No. 1667-IX "On Stimulating the Development of the Digital Economy in Ukraine" created the Дія Сіті (Diia City) legal regime and a new type of contract, the гіг-контракт (gig contract). The law defines a gig specialist as an individual who works as a contractor or service provider for a Diia City resident under a gig contract. This is not an employment contract in the classic sense. Nor is it an ordinary contract for work or services.

For a foreigner, a gig contract can become the basis for working and living in Ukraine. First, though, it has to be established whether a work permit is required, and on that point the internet still offers two different answers.

Where the "no permit needed" idea comes from

When the Diia City law was adopted in 2021, it added a separate paragraph to Article 42 of the employment law. A Diia City resident gained the right to engage foreigners under gig contracts without a permit and could apply for one voluntarily. Articles and slide decks from 2021-2022 still quote that rule.

Later the part of the employment law that governs foreign workers was substantially rewritten. The current text of Article 42 no longer contains the paragraph allowing gig specialists to work without a permit. Instead, Article 42-3 expressly names gig workers among those who receive a permit for the term of the gig contract.

So a foreign gig specialist needs a work permit, just like any other foreign worker.

How the permit is obtained

The applicant is the Diia City resident, in the same role as the employer in the standard procedure. The package hardly differs from the usual one. Instead of a draft employment contract, a draft gig contract is filed, and the application names the work or services the gig specialist will perform. The remaining documents, meaning the passport with a translation, a photo and proof of fee payment, are the same as those listed in the article on documents for a work permit.

A gig specialist's permit is issued for the term of the gig contract, which is up to two years. Renewal, amendments and revocation follow the general rules. When the gig contract ends, the resident is obliged to apply to the центр зайнятості (employment centre) to revoke the permit.

A residence permit for a gig specialist

The law on the legal status of foreigners expressly names the conclusion of a gig contract as a ground for staying in Ukraine. A gig specialist applies for a посвідка (temporary residence permit, TRP) in the same way as any other employee who holds a work permit. The package for the ДМС (State Migration Service, DMS) includes the permit and the Diia City resident's undertaking to notify the DMS and the employment service if the gig contract is terminated early.

That TRP is issued for the period stated in the work permit. How the application works in practice is described in the article on the work-based residence permit.

Gig contract or employment contract

A Diia City resident can also hire a foreigner under an ordinary employment contract. From the work permit's point of view there is almost no difference. In both cases a permit from the employment centre is needed, and the maximum term is the same. The difference lies in the relationship itself. A gig contract carries its own set of rights and guarantees defined by the Diia City law, and only residents of this regime can use it.

What a Diia City resident should know

Only a Ukrainian legal entity can obtain Diia City resident status. A company registered under the law of another state cannot become a resident, even if it operates in Ukraine through a representative office. Foreign founders are no obstacle, and a Ukrainian LLC with foreign capital can become a resident.

Engaging a foreigner brings a resident the same obligations as any ordinary employer. These include filing a copy of the contract with the employment centre, paying the single social contribution where it applies, amending the permit when something changes and having it revoked once the contract ends. The obligations are gathered in the article on employment conditions for foreigners.

Lawyer's experience

Diia City residents most often come to us convinced that a permit for a gig specialist is optional. They rely on materials from the period when Diia City was launched, and at that time it really was optional. I always show them the current wording of Articles 42 and 42-3 and explain why risking a fine for work without a permit makes no sense.

My second piece of advice concerns the wording of the gig contract. The work or services described in it must match those stated in the permit application. If the contract describes one thing and the gig specialist actually does another, that already counts as work on terms other than those set by the permit.

If your company is a Diia City resident and plans to engage foreigners, we handle the work permit application together with a review of the gig contract.

Frequently asked questions