Publication date: 21.05.2024
Lawyer
Reservation of employees in Ukraine. The legislative framework
The legislative framework
On January 27, 2023, the Cabinet of Ministers of Ukraine issued Order No. 76, which updated the procedure for Reserving employees, replacing the previous procedure provided for by Resolution No. 194. The new order streamlines the process and sets clear deadlines for each stage. booking procedures.
Procedure for booking conscripts
The updated procedure, clarified by Decree No. 400 of April 28, 2023, defines specific deadlines for each stage of the reservation process:
Submission of lists: State authorities and other government bodies must, within five working days, submit lists of conscripts recommended for reservation to the General Staff of the Armed Forces, the Security Service of Ukraine (SBU) or the Foreign Intelligence Service (FIR).
Approval and submission: The General Staff (SBU, SZR) must review and approve the lists, and then send them to the Ministry of Economy within ten working days.
Decision of the Ministry of Economy: The Ministry of Economy has five working days to make a decision on the reservation of conscripts.
Enrollment in special military registration: The territorial center for conscription and social support is obliged to register the conscript with special military registration within five working days.
Diia.City, a special legal and tax framework for IT companies in Ukraine, allows its resident employees to be booked under certain conditions. However, the clauses only apply to employees registered under an employment contract; Applications from individual entrepreneurs (FOP) and contractors are not accepted.
Criteria Reservation of Diia.City resident employees
To begin the booking process, a Diia.City resident must meet several criteria:
Diia.City resident status: The enterprise must officially have Diia.City resident status.
No debt to the Social Security Administration: The enterprise must be free from any debt to the Single Social Contribution Authority (SSC).
Tax payments: The company had to pay more than 1.5 million euros in taxes to the state and local budgets during the past year, excluding customs duties. In addition, the company had to generate income of more than 32 million euros (excluding loans and credits).
National Economic Significance: The enterprise must demonstrate its importance to the national economy or meet specific national needs.
Compliance with average wages: The average wage at the enterprise should not be lower than the regional average for the specified period.
Step-by-step guide to recruiting employees
Appeal to the Ministry of Digital Development: The company requests that it be recognized as critical for mobilization purposes. The Ministry evaluates the request according to the specified criteria and makes a decision.
Letter of justification to the General Staff: After the consent of the Ministry of Digital Transformation, the enterprise submits a letter of justification and a list of conscripts to the General Staff of the Ministry of Defense.
Approval process: The Ministry of Digital Transformation coordinates with the General Staff the approval of the draft list.
Issuing an order: The Ministry of Economy issues an official order regarding the reservation of workers.
Notification to Employees: The Company provides certificates of reservation status to its employees.
Quarterly reporting: The company must report quarterly to the Ministry of Digital Transformation on the number of reservations saved.
Employee reservations are the most important mechanism for ensuring the continuous operation of key enterprises during periods of mobilization and wartime. By following the outlined procedures and meeting the necessary criteria, essential businesses can provide temporary benefits to their critical employees, thereby supporting both national security and economic stability.
