Procedure for reserving employees updated

On 28 February 2025, the Cabinet of Ministers of Ukraine (the "CMU") adopted Resolution No. 233, which introduces changes to the rules for reserving employees and determining critically important enterprises, regulated by CMU Resolution No. 76 dated 27 January 2023.

Resolution No. 233 entered into force on 5 March 2025 and introduces the following key changes to the procedure for reserving employees subject to military service:

• For reservation purposes the total number of employees subject to military service now includes employees who were called up for military service as part of mobilization after 18 May 2024.
• The frequency for submitting requests to cancel the reservation has been increased: employers may now submit such requests once every 5 days, instead of once per month. This change is intended to accelerate the reservation cancellation process.
• The reservation of individuals liable for military service who are employed by or serving in state authorities, including the National Police of Ukraine, the National Anti-Corruption Bureau of Ukraine, the State Bureau of Investigation, prosecutor's offices, the Economic Security Bureau of Ukraine, the State Emergency Service of Ukraine and other similar institutions, is carried out without applying the general 72-hour reservation period (processing a request to reserve an employee from mobilization via the Diia application takes up to 72 hours. During this period, the employee is not yet considered officially reserved and, in the absence of valid prior reservation, may be subject to mobilization).

The criteria and procedure for designating an enterprise as critically important have also been amended. As of now, an enterprise’s average salary will be calculated based on the most recent calendar month, rather than the previous calendar quarter. In light of this updated approach, in order to confirm the average salary amount, employers must submit tax reporting data for the relevant calendar month, rather than for the quarter.

Additionally, by 5 April 2025, the Pension Fund of Ukraine and the Ministry of Digital Transformation of Ukraine were required to ensure electronic data exchange between the State Register of Mandatory State Social Insurance and the Unified State Web Portal of Electronic Services to enable determining whether employee salaries meet the conditions for reservation.

The key change was the separation of the general reservation procedure from the procedure applicable to individuals liable for military service registered with the Security Service of Ukraine and Ukrainian intelligence agencies. As a result, Resolution No. 76 no longer applies to individuals, who are subject to mobilization in these specific categories.