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BDO in Ukraine: The Cabinet of Ministers has changed approaches to employee booking (CMU Resolution No. 650 dated 05.06.2024)

16/ 06/ 2024
  The Cabinet of Ministers of Ukraine adopted Resolution No. 650 dated June 5, 2024, which introduces significant changes to employee booking. The new provisions are aimed at supporting critical businesses and improving the reservation process for persons liable for military service. In particular, the period for booking employees of critical businesses has been extended from 6 to 12 months and it is allowed to book persons liable for military service engaged in shortage military specialties (SMS). Electronic booking through the Diia portal is also being introduced, which simplifies the procedure and increases its efficiency. The Government has approved the relevant mechanism, which is currently being implemented by the respective ministries. The Resolution provides for the following: Ministries and CEAs will enter entities, institutions and organizations that have the right to book employees into the Unified List of Institutions (authorities, entities, organizations), in accordance with the law. Persons liable for military service at businesses critical to the Armed Forces of Ukraine and other military formations, as well as those critical to the economy, are subject to reservation regardless of military rank, age and military specialty. Employees will be booked through the Unified State Web Portal of Electronic Services (Diia portal).This service will be launched in a month. It is now possible to book ultimate beneficiaries Automatic transfer of persons liable for military service to special registration (when booking through the Diia portal). Managers or authorized persons of the institution (government agency, enterprise, organization) will submit lists of persons liable for military service who need to be booked through the Diia portal. The data of persons liable for military service through the registers will be verified online. In this case, the person liable for military service must be officially employed and his/her military registration data must be in the Register of Persons Liable for Military Service “Oberih”. In case of a positive decision, the system automatically transfers the person liable for military service to a special military registration for the duration of the reservation. From that moment on, the person is considered booked. The head of the company or an authorized person receives a notification about this in a personal account on the Diia portal. The employee’s booking information will be updated in the Reserve+ application. The booked person can also receive a paper booking confirmation. If desired, booking documents can also be submitted in paper format with both forms equally valid. The amendments to the resolution do not yet change the booking criteria and stages of the procedure. At the same time, businesses are subject to systematic update of approaches. As before, the Ministries and the Regional Military Administrations (RMA) determine entities as critical, submit the data to the Ministry of Defense for verification and only afterwards - to the Ministry of Economy. In other words, the Ministry of Economy does not determine  employees of which entities should be booked, and which should not, but rather checks the legal grounds for the deferral and issues a booking order. Please do not hesitate to contact us if you have any questions or need additional information on the new approaches to employee booking. We are always ready to provide a necessary advice and assist in implementing the new rules and procedures. Our experts will help you adapt to the changes and effectively use new opportunities.

The Cabinet of Ministers of Ukraine adopted Resolution No. 650 dated June 5, 2024, which introduces significant changes to employee booking. The new provisions are aimed at supporting critical businesses and improving the reservation process for persons liable for military service.

In particular, the period for booking employees of critical businesses has been extended from 6 to 12 months and it is allowed to book persons liable for military service engaged in shortage military specialties (SMS). Electronic booking through the Diia portal is also being introduced, which simplifies the procedure and increases its efficiency. The Government has approved the relevant mechanism, which is currently being implemented by the respective ministries.

The Resolution provides for the following:

  • Ministries and CEAs will enter entities, institutions and organizations that have the right to book employees into the Unified List of Institutions (authorities, entities, organizations), in accordance with the law.
  • Persons liable for military service at businesses critical to the Armed Forces of Ukraine and other military formations, as well as those critical to the economy, are subject to reservation regardless of military rank, age and military specialty.
  • Employees will be booked through the Unified State Web Portal of Electronic Services (Diia portal).This service will be launched in a month.
  • It is now possible to book ultimate beneficiaries
  • Automatic transfer of persons liable for military service to special registration (when booking through the Diia portal).
  • Managers or authorized persons of the institution (government agency, enterprise, organization) will submit lists of persons liable for military service who need to be booked through the Diia portal.
  • The data of persons liable for military service through the registers will be verified online. In this case, the person liable for military service must be officially employed and his/her military registration data must be in the Register of Persons Liable for Military Service “Oberih”.
  • In case of a positive decision, the system automatically transfers the person liable for military service to a special military registration for the duration of the reservation. From that moment on, the person is considered booked. The head of the company or an authorized person receives a notification about this in a personal account on the Diia portal. The employee’s booking information will be updated in the Reserve+ application.

The booked person can also receive a paper booking confirmation. If desired, booking documents can also be submitted in paper format with both forms equally valid.

The amendments to the resolution do not yet change the booking criteria and stages of the procedure. At the same time, businesses are subject to systematic update of approaches.

As before, the Ministries and the Regional Military Administrations (RMA) determine entities as critical, submit the data to the Ministry of Defense for verification and only afterwards – to the Ministry of Economy. In other words, the Ministry of Economy does not determine  employees of which entities should be booked, and which should not, but rather checks the legal grounds for the deferral and issues a booking order.

Please do not hesitate to contact us if you have any questions or need additional information on the new approaches to employee booking. We are always ready to provide a necessary advice and assist in implementing the new rules and procedures. Our experts will help you adapt to the changes and effectively use new opportunities.

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