Ukrainian Ministers Make Changes to Employee Reservation Procedure for Critical Enterprises

On November 29, 2024, Ukraine's Cabinet of Ministers approved amendments to Resolutions No. 76 and No. 1332, updating the process for reserving conscripts at critically important businesses.

“We have given all enterprises more than three months for this (renewing critical status). At the same time, to ensure the effective operation of the economy, we have allowed critical enterprises to reserve or re-reserve employees during this transitional period while critical status is being renewed,” said Deputy Minister of Economy Vitalii Kindrativ, as reported by Ukrinform.

Starting December 1, 2024, businesses will once again be able to reserve conscripts through the Diia portal. However, to do so, businesses must first obtain or renew their "critical importance" status under new mandatory criteria. They have until the end of February 2025 to meet these criteria.

Key Changes to the Employee Reservation Process for Businesses

• Reservation for Existing Critical Enterprises: Businesses that already have critical status can reserve new employees or extend reservations for current employees until Feb. 28, 2025—giving them time to update their status by the deadline. For example, if an employee's reservation expires on Jan. 5, 2025, but the company has not renewed its critical status by Dec. 2024, the reservation can be extended through Diia, but only until Feb. 28, 2025. Once the company updates its critical status, employees can be reserved for a full 12 months.
• New Critical Status Requirements: To update or obtain critical status, businesses will need to meet new criteria, including maintaining salary levels above a certain threshold and having no outstanding tax debts. The government has given businesses more than three months (until February 2025) to meet these requirements.
• Salary Verification Simplified: Starting Dec. 1, 2024, businesses will need to confirm that any employee they wish to reserve earns at least 20,000 UAH per month before taxes. The salary history of the employee before the reservation is no longer relevant. The Ministry of Economy warned that businesses found providing false salary information will lose their critical status for at least six months.

Audit Results and Future Requirements

Following an audit of critical enterprises, 5% lost their critical status, while 95% retained it. The government has also introduced new procedures for confirming critical status to ensure that businesses meet updated criteria. Deputy Minister of Economy Vitalii Kindrativ emphasized that the government has allowed a transitional period for businesses to make the necessary adjustments while continuing to reserve employees.

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These changes are designed to ensure that only enterprises meeting the new criteria can reserve conscripted workers, while simplifying and streamlining the process for businesses in critical sectors.