Ukrainian ministers are making changes to the way companies apply for exemptions for workers from the draft

On November 29, 2024, the Cabinet of Ministers of Ukraine approved amendments to Resolutions No. 76 and No. 1332, which updated the procedure for reservation of conscripts in companies of vital importance, which would exempt them from military service and allow them to continue to serve work.

“We gave all companies more than three months to do this (renewing critical status). At the same time, to ensure the effective functioning of the economy, we have allowed critical companies to reserve or re-reserve employees during this transition period while the critical status is renewed,” said Deputy Minister of Economy Vitaliy Kindrativ, as reported by Ukrinform.

From December 1, 2024, companies can again reserve conscripts through the Diia portal. To do this, however, companies must first achieve or renew “critical importance” status according to new binding criteria. You have until the end of February 2025 to meet these criteria.

Important changes to the employee reservation process for companies

• Reservation for existing critical companies: Companies that already have critical status can reserve new employees or extend reservations for current employees until February 28, 2025 – giving them time to update their status by the deadline. For example, if an employee’s reservation expires on January 5, 2025, but the company has not renewed its critical status by December 2024, the reservation can be extended through Diia, but only until February 28, 2025. Once the company is upgraded to critical Employees can be reserved for a full 12 months.
• New critical status requirements: To update or maintain critical status, companies must meet new criteria, including maintaining salary levels above a certain threshold and having no outstanding tax liabilities. The government has given companies more than three months (until February 2025) to comply with these requirements.
• Salary verification simplified: From December 1, 2024, companies must confirm that each employee they wish to reserve earns at least HRK 20,000 ($480) per month before taxes. The employee’s salary history prior to the reservation is no longer relevant. The Ministry of Economy warned that companies found to be making false salary statements will lose their critical status for at least six months.

Audit results and future requirements

After an audit of critical companies, 5% lost critical status while 95% retained it. The government has also introduced new critical status confirmation procedures to ensure companies meet the updated criteria. Deputy Minister of Economy Vitaliy Kindrativ emphasized that the government has given companies a transition period to make the necessary adjustments while continuing to reserve employees.

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These changes are intended to ensure that only companies that meet the new criteria can reserve conscripts, while simplifying and streamlining the process for companies in critical sectors.