Critical Enterprise Status and Employee Reservation: What’s Changed and What Businesses Should Do

16/ 07/ 2026

On 15 July, the Southern Ukrainian Office of the EBA held an offline meeting entitled Critical Enterprise Status and Employee Reservation: Whats Changed and What Businesses Should Do. The event brought together representatives of member companies seeking to adapt in a timely manner to the updated rules governing the designation of critical enterprises and the reservation of employees liable for military service. The topic is highly relevant for Ukrainian businesses. Following the amendments to Resolution of the Cabinet of Ministers of Ukraine No. 76 by Resolutions No. 692 of 30 May 2026 and No. 862 of 1 July 2026, the system for determining critical enterprises has been operating under new rules since 2 June, with additional changes taking effect on 3 July. By 1 September 2026, all previously granted critical enterprise statuses must be reviewed against the updated criteria. This means that businesses should already assess their compliance with the new requirements and prepare the necessary documentation for re-confirmation. The keynote speaker was Andrii Dukhnytskyi, Partner and Head of Corporate Practice at Crowe Mikhailenko. The discussion was moderated by Valerii Shnurenko, Head of the EBA Odesa Corporate Security Working Group. During the meeting, participants examined the provisions of Cabinet of Ministers Resolution No. 76, which regulates the reservation of employees liable for military service and the procedure for granting critical enterprise status, as well as the latest amendments introduced by Resolutions No. 692 of 30 May 2026 and No. 862 of 1 July 2026. Particular attention was paid to the updated procedure for obtaining and confirming critical enterprise status, the revised sectoral and regional criteria approved by the Ministry of Economy and regional military administrations, and the practical aspects of submitting applications through the relevant ministries or regional military administrations depending on a companys field of activity. The speaker emphasized that, for most companies, meeting a single criterion is no longer sufficient. Businesses must now provide documentary evidence demonstrating compliance with several sector-specific criteria. Depending on the industry, these may include completed projects, volumes of work or transportation services, workforce size, tax payments, the availability of production and technical facilities, and fulfilment of tasks supporting the state or critical infrastructure. In addition, regional military administrations pay considerable attention to compliance with military registration requirements. Participants also noted that the process of updating the criteria is still ongoing. While the Ministry of Economy has already revised its sectoral criteria, several regional military administrations continue to update their own requirements. Companies that previously obtained critical enterprise status based on sectoral or regional criteria were therefore advised to reassess their compliance, verify that all supporting documentation is in place, and closely monitor further regulatory developments. A separate focus was placed on the fact that obtaining critical enterprise status today requires far more than merely meeting formal criteria. It involves comprehensive preparation, including proper documentation, verification of tax indicators, compliance with military registration requirements, determining the competent authority responsible for reviewing the application, and maintaining continuous internal compliance controls. Thorough preparation significantly increases the likelihood of successfully completing the procedure. Employee reservation generated significant interest among participants. The discussion covered reservation quotas, categories of employees eligible for reservation, the reservation of ultimate beneficial owners, and the new salary requirements introduced by the updated legislation. Special attention was given to the amendments that will enter into force on 1 September 2026. Under the new rules, reserved employees must receive a salary of at least three minimum wages. Failure to comply with this requirement may result in the loss of critical enterprise status, with no possibility of reapplying for six months. The meeting also clarified the updated approach to calculating reservation quotas. Employees who already have a deferment from military service under Article 23 of the Law of Ukraine On Mobilization Preparation and Mobilization, as well as employees working for multiple employers, will be counted towards the reservation quota only at their primary place of employment, where they have the longest employment record. The speaker further stressed that employee reservation is no longer merely an HR function but has become an essential element of corporate governance and compliance. The updated rules require companies to establish robust internal control systems covering the hiring of employees liable for military service, proper military registration, monitoring reservation quotas, maintaining the required salary level, and ensuring that HR and military registration records remain accurate and up to date. Failure to comply with these requirements may lead not only to the cancellation of individual employee reservations but also to the revocation of the companys critical enterprise status. Another part of the meeting focused on the monitoring of critical enterprises, the grounds for revoking critical enterprise status, and the cancellation of employee reservations. The speaker emphasized that the authorities responsible for granting the status continuously monitor compliance with the applicable criteria. Companies should therefore regularly review their compliance, promptly respond to legislative changes, and proactively mitigate potential risks. As is customary, a substantial part of the meeting was dedicated to participants questions. Business representatives discussed practical cases related to the re-confirmation of critical enterprise status, interaction with public authorities, documentation requirements, the organization of internal compliance processes, ongoing monitoring of legal requirements, and the key risks businesses may face. We sincerely thank Andrii Dukhnytskyi for his in-depth expertise and practical recommendations, Valerii Shnurenko for expertly moderating the discussion, FS Group for supporting the event and partnering in its organization, and all participants for their engagement, insightful questions, and lively exchange of experience.

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On 15 July, the Southern Ukrainian Office of the EBA held an offline meeting entitled “Critical Enterprise Status and Employee Reservation: What’s Changed and What Businesses Should Do.” The event brought together representatives of member companies seeking to adapt in a timely manner to the updated rules governing the designation of critical enterprises and the reservation of employees liable for military service.

The topic is highly relevant for Ukrainian businesses. Following the amendments to Resolution of the Cabinet of Ministers of Ukraine No. 76 by Resolutions No. 692 of 30 May 2026 and No. 862 of 1 July 2026, the system for determining critical enterprises has been operating under new rules since 2 June, with additional changes taking effect on 3 July. By 1 September 2026, all previously granted critical enterprise statuses must be reviewed against the updated criteria. This means that businesses should already assess their compliance with the new requirements and prepare the necessary documentation for re-confirmation.

The keynote speaker was Andrii Dukhnytskyi, Partner and Head of Corporate Practice at Crowe Mikhailenko. The discussion was moderated by Valerii Shnurenko, Head of the EBA Odesa Corporate Security Working Group.

During the meeting, participants examined the provisions of Cabinet of Ministers Resolution No. 76, which regulates the reservation of employees liable for military service and the procedure for granting critical enterprise status, as well as the latest amendments introduced by Resolutions No. 692 of 30 May 2026 and No. 862 of 1 July 2026. Particular attention was paid to the updated procedure for obtaining and confirming critical enterprise status, the revised sectoral and regional criteria approved by the Ministry of Economy and regional military administrations, and the practical aspects of submitting applications through the relevant ministries or regional military administrations depending on a company’s field of activity.

The speaker emphasized that, for most companies, meeting a single criterion is no longer sufficient. Businesses must now provide documentary evidence demonstrating compliance with several sector-specific criteria. Depending on the industry, these may include completed projects, volumes of work or transportation services, workforce size, tax payments, the availability of production and technical facilities, and fulfilment of tasks supporting the state or critical infrastructure. In addition, regional military administrations pay considerable attention to compliance with military registration requirements.

Participants also noted that the process of updating the criteria is still ongoing. While the Ministry of Economy has already revised its sectoral criteria, several regional military administrations continue to update their own requirements. Companies that previously obtained critical enterprise status based on sectoral or regional criteria were therefore advised to reassess their compliance, verify that all supporting documentation is in place, and closely monitor further regulatory developments.

A separate focus was placed on the fact that obtaining critical enterprise status today requires far more than merely meeting formal criteria. It involves comprehensive preparation, including proper documentation, verification of tax indicators, compliance with military registration requirements, determining the competent authority responsible for reviewing the application, and maintaining continuous internal compliance controls. Thorough preparation significantly increases the likelihood of successfully completing the procedure.

Employee reservation generated significant interest among participants. The discussion covered reservation quotas, categories of employees eligible for reservation, the reservation of ultimate beneficial owners, and the new salary requirements introduced by the updated legislation.

Special attention was given to the amendments that will enter into force on 1 September 2026. Under the new rules, reserved employees must receive a salary of at least three minimum wages. Failure to comply with this requirement may result in the loss of critical enterprise status, with no possibility of reapplying for six months.

The meeting also clarified the updated approach to calculating reservation quotas. Employees who already have a deferment from military service under Article 23 of the Law of Ukraine “On Mobilization Preparation and Mobilization,” as well as employees working for multiple employers, will be counted towards the reservation quota only at their primary place of employment, where they have the longest employment record.

The speaker further stressed that employee reservation is no longer merely an HR function but has become an essential element of corporate governance and compliance. The updated rules require companies to establish robust internal control systems covering the hiring of employees liable for military service, proper military registration, monitoring reservation quotas, maintaining the required salary level, and ensuring that HR and military registration records remain accurate and up to date. Failure to comply with these requirements may lead not only to the cancellation of individual employee reservations but also to the revocation of the company’s critical enterprise status.

Another part of the meeting focused on the monitoring of critical enterprises, the grounds for revoking critical enterprise status, and the cancellation of employee reservations. The speaker emphasized that the authorities responsible for granting the status continuously monitor compliance with the applicable criteria. Companies should therefore regularly review their compliance, promptly respond to legislative changes, and proactively mitigate potential risks.

As is customary, a substantial part of the meeting was dedicated to participants’ questions. Business representatives discussed practical cases related to the re-confirmation of critical enterprise status, interaction with public authorities, documentation requirements, the organization of internal compliance processes, ongoing monitoring of legal requirements, and the key risks businesses may face.

We sincerely thank Andrii Dukhnytskyi for his in-depth expertise and practical recommendations, Valerii Shnurenko for expertly moderating the discussion, FS Group for supporting the event and partnering in its organization, and all participants for their engagement, insightful questions, and lively exchange of experience.