The Cabinet of Ministers of Ukraine issued Resolution No. 650 on "Some Issues with Reservation of Persons Liable for Military Service during Martial Law", dated 5 June 2024 ("Resolution"), which came into force on 8 June 2024.
The Resolution provides for an opportunity, in addition to the existing paper-based procedure, to reserve employees of certain companies online through the Unified State Web Portal of Electronic Services ("Diia Portal"). The Resolution also amended the "Procedure for Reservation of Persons Liable for Military Service during Martial Law" and the "Criteria and Procedure for Determining Companies, Institutions and Organizations Critical for the Functioning of the Economy and the Life of the Population during the Special Period, as well as Critical for the Needs of the Armed Forces and Other Military Formations during the Special Period", which were approved by Resolution No. 76 of the Cabinet of Ministers of Ukraine, dated 27 January 2023.
Key changes
- Exemptions from military service during mobilization, which were granted to reserved persons liable for military service by decisions of the Ministry of Economy before the Resolution came into force, are valid until the end of the term for which they are granted.
- For reserved employees of companies recognized as critical for the functioning of the economy and the life of the population during the special period ("Critically Important Company"), the exemption period has been extended to 12 months.
- Employees of Critically Important Companies, who are liable for military service, may be exempted regardless of their military rank, age and military speciality.
- Persons liable for military service, who may be exempted from mobilization on other grounds provided by law, are not eligible for reservation by their employers.
- The possibility of exempting persons from mobilization through online application using the Diia Portal is now available for the companies included in the Unified List Of Companies For the Reservation of Persons Liable for Military Service ("Unified List"), which is to be maintained by the Ministry of Economy.
- The application for employees' reservation should indicate that the credentials of persons liable for military service as stated on the reservation list align with their military registration documents, and that such persons have complied with the data updating requirement.
- In some cases, the ultimate beneficial owners (controllers) and members of the supervisory boards of Critically Important Companies are eligible for reservation.
- If there is a change in the position of a reserved employee, the employer is obliged to notify the military registration office, where the employee is registered for military service, of such changes within three days.
- The list of grounds for annulment of the exemption from mobilization has been expanded. In particular, the exemption is subject to cancellation in the event of the following:
- Removal of the company's critical status
- Liquidation of the company
- Dismissal of a person liable for military service from the company (except for dismissal from a position with subsequent appointment to another position within the same company)
- Temporary termination of the employment agreement of a person liable for military service with the company
- Provision of an exemption to a person liable for military service for other reasons, as specified by the law
- A Critically Important Company is obliged to submit relevant information to the Pension Fund of Ukraine via the web portal in electronic form with a qualified electronic signature no later than the next day after the following events: (i) hiring an employee; (ii) transferring them from one structural unit to another or transferring them to another permanent position or job; (iii) dismissal; (iv) reinstatement at work; or (v) temporary suspension or renewal of an employment agreement.
Recommendations
We recommend that employers in Ukraine consider the above-mentioned legislative changes while making reservations of employees liable for military service, transferring or dismissing them, etc.
By Lina Nemchenko, Partner, Mariana Marchuk, Counsel, Baker McKenzie
