Reservation of Conscripts at an Enterprise
Reservation of conscripts is a procedure for granting deferments from conscription to employees whose absence at the workplace could adversely affect the operation of the enterprise during times of war. Reserved conscripted employees are not subject to military service, meaning they are granted a deferment for a specified period.
Required Conditions for Reservation
To obtain permission to reserve employees, an enterprise must obtain the status of being critically important for the functioning of the economy and ensuring the livelihood of the population. Criteria for a critically important enterprise (compliance with three or more points) include:
- The total amount of taxes (fees, payments) paid to the budget, excluding customs duties, for the reporting tax year exceeds 1.5 million euros.
- The amount of foreign currency receipts (excluding loans) for the reporting tax year exceeds 32 million euros.
- The enterprise has the status of being strategically important according to the Cabinet of Ministers’ Resolution No. 83 dated March 4, 2015.
- The enterprise has significant importance for the national economy or meeting the needs of the territorial community.
- No outstanding debts for the payment of Unified Social Security Contributions (ESV).
- The average wage for the last calendar quarter is not less than the average wage in the region for the fourth quarter of 2021.
- The enterprise is a resident of Action City.
Whom Can Be Reserved
If an enterprise, organization, or institution is allowed to reserve its employees, then effectively, a deferment from mobilization can be obtained by everyone, but on the condition that:
- An employment contract is concluded between the employee and the enterprise.
- The employee falls into the category of conscripts and is registered accordingly.
Consequences of Reservation
Deferment from conscription guarantees a deferment from military service in the Armed Forces of Ukraine. An employee from the list provided by the enterprise and approved by the Ministry of Defense remains at their workplace and continues to perform their duties in accordance with the employment contract.
In addition, such an employee has the right to leave the country since, for a certain period, due to the deferment, they are not subject to mobilization. When crossing the border, it is necessary to present a certificate of deferment from mobilization, as well as a notification of enrollment in military special records.
Reserving Employees at an Enterprise During Wartime is carried out according to the following algorithm:
- Identification of the entity making the proposal.
- Compilation of a substantiating letter in any form.
- Completion of Appendix No. 1 to Resolution No. 194, “Certain Issues of Conscript Reservation in the Legal Regime of Wartime,” dated March 3, 2022.
- Submission of documents (items 2, 3) to a government agency in accordance with item 1 of this algorithm.
- Obtaining an extract from the Ministry of Economy’s order.
The key task of this algorithm is to identify the entity that needs to submit an application for reservation and formulate the proposal. In most cases, the subject is a central government body – a relevant ministry or department. In other words, if an agricultural enterprise submits an application, it should apply to the Ministry of Agricultural Policy. Regarding IT specialists, it is necessary to contact the Ministry of Digital Transformation.
In the substantiating letter, which includes a list of individuals, it is necessary to specify the nature of the enterprise’s activities and the significance of this activity for supporting the state and the Armed Forces of Ukraine. Additionally, it is necessary to justify the role of the conscripted employee, why it is critical, and what is the basis for granting a deferment.
After submitting the letter, the central government body reviews it and then makes a decision to approve or reject the request. In the case of a positive decision, the employer can reserve its employees.
Let’s delve into the number of reserved employees:
- Directors, deputy directors, and 50% of the total number of conscripts at the time of submitting the list.
- You can exceed the number of reserved employees by 50%, but in this case, it is necessary to justify this need at the time of submission.
- The percentage limit on reserved employees does not apply to enterprises included in the list approved by the Ministry of Energy of Ukraine.
The Ministry of Economy’s decision specifies that the deferment period should not exceed 6 months. If necessary, the issue of reservation is reconsidered for the next 6 months. If you have questions regarding the reservation of conscripted employees at enterprises during wartime and need additional consultation, please contact the legal experts at Dextralaw. We guarantee professional legal assistance and support to ensure your enterprise continues to function smoothly even in challenging times.