The Government Approves an Updated Procedure for Reserving Conscripts

On January 27, Law No.7687 on the new order for reserving persons liable for military service was amended by the government with a resolution. It introduces new criteria for recognizing companies as critically important for the economy.

The resolution introduces a new procedure for booking conscripts according to the list of conscripts for the period of mobilization and martial law. It establishes that the reservations issued earlier are valid during their given period. Men of conscription age occupying management positions in critical enterprises, institutions, and organizations are subject to a reservation regardless of military rank, age, and military occupation.

A procedure and criteria have been established for determining which businesses, institutions, and organizations are crucial to the functioning of the economy and maintaining the population’s well-being during special circumstances. The company seeking to reserve its employees must meet at least 3 criteria: 

• the overall amount of paid taxes in the last year exceeds €1,5 million;
• the total receipts, except for credits and loans, for the last year exceed the equivalent of €32 million;
• the strategic importance of the enterprise for the economy and security of the state, according to the list of state-owned property, Resolution of the Cabinet of Ministers of Ukraine of March 4, 2015 No. 83;
• the enterprise’s critical importance for the national economy or meeting the needs of the local community is determined by the executive bodies (such as relevant ministries or military administrators) based on criteria they set;
• absence of debts in single contribution payment to the compulsory state social insurance;
• the company’s average salary must not be lower than the regional average;
• the company is a resident of Diia.City.

The decision-making bodies must evaluate the company’s application and make a decision within 5 working days. If the application is denied, they must provide justification.

“In general, the adoption of the new procedure is a reform of the sphere, which has not been changed since 1991. But some provisions of the reform may require adaptation to Ukraine’s IT industry realities to find the solution for the GIG contractors and Individual Entrepreneurs and take into account the interests of startups and small and medium-sized companies. These are logical next steps in improving the mobilization and conscription system considering the specifics of the tech industry and all its needs,” adds Nestor Shvets, Chief Legal Officer of the Lviv IT Cluster.

Lviv IT Cluster has been actively working with the relevant ministries to improve this procedure. The association will continue to cooperate with the Ministry of Digital Transformation, the Ministry of Economy, and regional military administrations to consider the interests of the tech industry in the procedure. For the Lviv IT Cluster, it is important that the voice of the tech industry, one of the key spheres of the country’s economy be heard.

In addition, the Lviv IT Cluster helps and consults member companies that meet the new criteria of reservation on getting an opportunity to reserve key employees for their companies.