IT Ukraine Participated In a discussion about Diia City Residency

IT Ukraine Participated In a discussion about Diia City Residency

On November 16, Redcliffe Partners law firm organized a panel discussion Should one become a resident of Diia City? Konstantin Vasyuk, the Executive Director of the Association, discussed the legal aspects of the residency with his colleagues.

Konstantin’s colleagues on the discussion panel were Oksana Bulba, the Head of Legal at Luxoft and Liudmyla Lapchuk, a Senior Associate at Redcliffe Partners. They discussed many details on the implementation of the Diia City legal regime for IT business: agreements on non-competitive actions, intellectual property, and peculiarities of gig contracts implementation, etc.

Key theses of the panel:

  1. The Law on Diia City shows legal certainty for all its participants. However, there are also risks that we will have to work with. All this will be shown in time by case law.
  2. In fact, a gig contract is a kind of civil contract, an alternative to private entrepreneurs. Gig contracts receive social guarantees in the amount not less than enshrined in the Labor Code. Employment relationships with gig contracts are not regulated by the Labor Code.
  3. A non-compete agreement is an agreement to refrain from competing. This phenomenon is not common in Ukraine; it is rather a world practice. Thus, only case law will give grounds for their wider application, namely in the framework of the implementation of Diia City.
  4. Non-disclosure agreements must clearly define what constitutes confidential information and what constitutes a trade secret from the company’s point of view. They must protect the interests of both resident companies and employees.

IT Ukraine is working to improve the legislation on the legal regime of Diia City and provides expert advice and suggestions from the IT industry. We are glad that due to the constant dialogue with the authorities, the key wishes from the IT business have been taken into account in draft laws No. 4303 and No. 5376. Currently, the key task for the Association is to provide our members with professional consulting support when deciding to join Diia City.