New Procedure for Military Reservation: Government’s Resolution

On 31.01.2023, Resolution of the Cabinet of Ukraine No. 76 dated 27.01.2023 (the “Resolution”) which defines the procedure for reservation of persons liable for military service during martial law entered into force

Reservation of persons liable for military service involves granting them a reprieve, during the effective term of which the relevant persons are not subject to mobilization / completion of other types of military service, in connection with the work performed by them, which is important for supporting the economy and/or ensuring defense.

This procedure includes the possibility of reservation of both public authorities’ officials and employees within the private sector of economy. This review relates to the latter category only.

Who Has the Right to Apply for Reservation?

The reservation applies to employees liable for military service and working at the enterprises (institutions, organizations) that:

  • are provided with mobilization tasks/orders (contractors of mobilization tasks), or
  • manufacture goods, perform works or render services necessary in favour of the Armed Forces and other military formations under a relevant state contract / agreement (executors of state contracts in the military formations’ favour), or
  • are critically important for economy and ensuring the livelihood of the population within the special period (critically important enterprises).

The deferral period for booking is limited to 6 months; however, there is no prohibition for applying such a postponement several times in a row given there are relevant grounds. At the same time, the reservation applied before the approval of the Resolution will remain effective for a respective period. The effective period of the granted reprieve will end should the employer (enterprise) lose its status (for example, if it completes a mobilization task and has no other ones).

50% of the employees liable for military service working in the enterprise, or a larger number as needed, may be subject to reservation.

Reservation Procedure

For reservation, enterprises should file appropriate applications together with supporting documents proving they belong to the mentioned categories of employers, as well as information on employees liable for military service:

  • contractors performing mobilization tasks/orders – to the entity which provided the corresponding task / order,
  • contractors of state contracts in the military formations’ favour – to the Ministry of Defense, the Ministry of Internal Affairs or the Ministry of Strategic Realms of Industry (depending on the subordination of the military formation whose needs are met),
  • critically important enterprises – to local military administrations / central executive bodies, according to the criteria / proposals of which the corresponding status was granted (see below).

The Ministry of Economy decides on the reservation subject to approval of the General Staff of the Armed Forces. Employers must inform the recruitment centres on such a decision.

Enterprises, whose workers are subject to reservation, must report on the number of such employees on a quarterly basis.

Critically Important Enterprises

Enterprises may be considered as critically important for economy and ensuring the livelihood of the population within the special period, should they simultaneously satisfy at least three of the following criteria:

  • the total amount of taxes, fees, payments (except customs) paid by the enterprise for the reporting tax year to the state and local budgets, exceeds the equivalent of €1.5 million,
  • the amount of the company’s income in foreign currency (except credits and loans) exceeds €32 million;
  • the enterprise has strategic importance for the economy and security of the state (applies to state enterprises and is determined by the Cabinet of Ministers);
  • the enterprise is of strategic importance for the branch of the national economy (determined by the relevant executive body) or meeting the needs of the territorial community (determined by the relevant local military administration),
  • the company has no debts for the Unified Social Contribution,
  • the amount of an average salary of the company’s employees for the last calendar quarter is no less than the average salary in the region,
  • the company is a Diya City resident.

Local administrations or executive authorities in a respective realm of the economy decide on recognition of an enterprise as a critically important one, and must annually review such decisions.

Beyond the above criteria, critically important enterprises will include UN institutions, foreign diplomatic institutions in Ukraine, representative offices of donor institutions, executors of international technical assistance projects, representative offices of international organizations, international and Ukrainian NGOs implementing humanitarian projects at the expense of international partners, which are critically important for the functioning of the economy and ensuring the livelihood of the population within special period. The above entities shall enjoy the right to reservation without limitation of the number of workers. The Ministry of Foreign Affairs must provide its approval for this purpose.