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Can an Employee’s Salary Be Transferred to Another Individual’s Account?

Ukrainian legislation allows an employee to freely manage their salary. According to Part 1 of Article 25 of the Law of Ukraine “On Labor Remuneration,” any restriction on an employee’s right to receive and use their salary is prohibited. This means that the employee has the right to independently determine the method of receiving their payments.

In accordance with Part 5 of Article 24 of the Law of Ukraine “On Labor Remuneration,” salary payments can be made through banks or non-bank payment service providers authorized to open and service accounts, or by postal money order to an address specified by the employee. The main condition is a written request from the employee stating the details for the transfer.

The employee has the right to submit a free-form request addressed to the head of the company, specifying the particular account of another individual to which they wish to receive their salary. The request must clearly state the recipient’s full name, bank details or postal address, and, if applicable, the recipient’s taxpayer identification number.

It is important to emphasize that the employer does not have the right to refuse such a request and cannot impose a specific method or account for receiving the salary. It is also forbidden to charge the employee any commission or other costs associated with transferring the salary to the specified account. Payment for the services of banks or postal operators in such cases is the responsibility of the employer.

For the company’s accounting and HR departments, the procedure is as follows:

  • Obtain a written request from the employee with the recipient’s full details.
  • Register the request in the company’s internal documentation.
  • Issue a corresponding order based on the request.
  • Make the transfer within the legally established timeframe.

Thus, transferring an employee’s salary to another individual’s account is entirely lawful, provided that the requirement for written consent is met.

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