Government Announces Changes to the Reservation System for Persons Liable for Military Service: What Businesses Should Expect

Government Announces Changes to the Reservation System for Persons Liable for Military Service: What Businesses Should Expect

According to the Ministry of Economy of Ukraine, the Government has approved changes to the reservation system for employees liable for military service and to the criteria for determining critically important enterprises.

As of the publication date, the official text of the Cabinet of Ministers resolution has not yet been published. This analysis has been prepared based on the official announcement of the Ministry of Economy of Ukraine. The relevant changes will gain practical significance after the official publication and entry into force of the resolution.

The stated purpose of the changes is to improve the reservation system, increase the transparency of the deferment mechanism, and minimize potential abuses in determining enterprises as critically important for the economy and defense capability of the state.

Salary Threshold Increase

One of the key changes is the revision of the minimum salary level of an employee for:

• confirming the status of a critically important enterprise;
• reserving employees liable for military service.

According to the Ministry of Economy, a new threshold is planned to be established — no less than three minimum wages, which currently amounts to UAH 25,941.

For enterprises located in frontline territories, a softened criterion will remain in place — 2.5 minimum wages (UAH 21,618).

If the changes enter into force, a significant number of enterprises will be required to:

• review their remuneration structure;
• conduct personnel and payroll audits;
• assess compliance with the new criticality criteria.

Updated Procedure for Counting Part-Time Employees and Employees with Deferments

The Government has also announced changes regarding employees who:

• work part-time;
• already have a deferment from mobilization.

Such employees are planned to be counted within the reservation quota only at one place of employment.

In practice, this is aimed at limiting the practice of formally increasing the number of persons available for reservation through simultaneous employment in several companies.

Revision of Criteria for Critically Important Enterprises

A separate block of changes concerns the criteria for determining enterprises as critically important.

Ministries, other central executive authorities, and regional military administrations must review their own criticality criteria within one month and reapprove them with the Ministry of Defense and the Ministry of Economy.

It is expected that the updated criteria will place greater emphasis on:

• the actual contribution of the enterprise to the economy;
• participation in the fulfillment of state or defense tasks;
• ensuring the critical needs of the population;
• the significance of the enterprise for the functioning of infrastructure and vital sectors.

Reassessment of the Status of Critically Important Enterprises

The Government has also announced a reassessment of enterprises that already hold critically important status.

According to the Ministry of Economy, such a review may be carried out within three months after the changes enter into force.

This means that companies that have already obtained critically important status and reserve employees will likely have to:

• reconfirm compliance with the criteria;
• update their document package;
• undergo a new approval procedure.

At the same time, it is reported that during the transitional period, existing reservations and criticality status will remain valid until new decisions are made regarding a specific enterprise.

What Businesses Should Do Now

Although the final text of the resolution has not yet been published, businesses are advised to:

• conduct an audit of personnel documentation;
• verify the salary levels of employees subject to reservation;
• assess compliance with current and potentially updated criticality criteria;
• prepare for the possible reconfirmation of critically important enterprise status.

The basic regulatory act governing the reservation system remains Resolution No. 76 of the Cabinet of Ministers of Ukraine dated January 27, 2023, which is expected to be amended accordingly.