On 31 January 2023, the Resolution of the Cabinet of Ministers of Ukraine "Some issues with implementation of the provisions of the Law of Ukraine 'On Mobilization Training and Mobilisation'" No. 76 dated 27 January 2023 ("Resolution") came into effect. The Resolution approves a new procedure for reserving persons subject to military service, as well as criteria for determining companies that are critically important for the functioning of the economy and ensuring the livelihood of the population during a special period.
Key changes
- Qualified companies can reserve 50% of employees subject to military service (or more if there are relevant grounds).
- The Director (CEO) of the company and their deputies may be subject to reservation regardless of their military rank, age, and military specialty.
- Several categories of companies can reserve their employees: those that carry out mobilisation tasks; those that produce goods, perform work, or provide services necessary to support military formations; and those that are critically important for the functioning of the economy or for ensuring the livelihood of the population during a special period.
- To be recognised as critically important, a company must meet at least three of the following criteria:
- The total amount of taxes, fees and payments made to the state and local budgets (excluding customs payments) exceeds the equivalent of EUR 1.5 million.
- The amount of income in foreign currency (except for credits and loans) exceeds the equivalent of EUR 32 million.
- The company is of strategic importance for the economy and security of the state.
- The company is important to the sector of the national economy or for meeting the needs of the territorial community.
- The company has no outstanding Unified Social Contribution payments.
- The amount of the average salary of the company's employees for the last calendar quarter is not less than the average salary in the region for that period.
- The company is a resident of Diia City.
- The determination of the company as critically important is carried out by the state governing body of the relevant sector of the national economy or by the regional state administration (military/military-civilian administration).
- UN agencies, foreign diplomatic missions in Ukraine, representative offices of international organisations and executors of international technical assistance projects also can reserve their employees.
By Lina Nemchenko, Partner, Mariana Marchuk, Counsel, Baker McKenzie
