Business proposes changes to the new reservation procedure from mobilization

27/ 07/ 2022

Since the beginning of russias military aggression and the introduction of martial law in the country, the issue of predictability of doing business has become extremely relevant. Moreover, in the conditions of general mobilization and unpredictability, the implementation of a transparent system of reservation employees by enterprises against mobilization is decisive for the stable operation of the business. Thus, since the beginning of March, the Cabinet of Ministers of Ukraine adopted Resolution No. 194 Some issues of reservation of conscripts in the conditions of the legal regime of martial law, by which the corresponding procedure was carried out. At the same time, unfortunately, the practical implementation of the procedure slowed down significantly from the beginning of May due to the impossibility of fulfilling certain provisions, in particular, the conclusion of contracts for mobilization tasks, which, in most cases, simply did not appear at the level of local authorities. In addition, even in the case of such a task, the time for approval of the reservation by the authorities in practice is 5-6 weeks, which, according to the business, is extremely long, because businessmen plan their activities for a week or two. Disagreements have repeatedly arisen regarding the format of the document that confirms such a reservation and the necessary visas and details on it, issues with the departure of booked employees abroad for industrial purposes, despite the availability of all the documents provided for by law. At the same time, the current reservations are valid for six months, and from September almost the entire economy of Ukraine may find itself in a situation where employees critical to the operation of the enterprise may be mobilized at any moment. Such uncertainty of approach on the part of state authorities not only creates uncomfortable conditions for business operations but also significantly slows down work, even in difficult times. Undoubtedly, business understands the complexity of the situation in which the country, state authorities, in fact, as well as business. Of course, effective work at the front is necessary to cope with it, but the economy and business must work as well because without economic stability it will be difficult for the country to survive. Thus, according to available information, the Government is working on changes to Resolution No. 194 to resolve the problems that arose during the first wave of bookings. Therefore, the European Business Association appeals to the Government to take into account the most critical problems - to provide greater transparency, as well as to ensure a uniform format and procedure for booking employees. In particular, the community suggests taking into account the following 6 proposals: 1) to allow the reservation of conscripts who have not previously completed military service, since this factor does affect the criticality of one or another employee for the enterprise and the potential mobilization, for example, of the chief technologist, can completely stop the enterprise; 2) record the validity period of the reservation (not up to six months, but six months) since the creation of the so-called fork of the term can lead to corruption risks; 3) establish clear deadlines for approval of reservations and issuance of relevant orders and extracts; 4) cancel the need for re-certification of extracts from reservation orders at the Territorial Centers for recruitment and social support (since orders with lists of persons are already approved by the Ministry of Defense), as well as inform all local and central authorities about the need to recognize such documents; 5) to allow reservation of up to 70% of staff without the need to conclude mobilization tasks, which, as a practice has shown, are almost non-existent in most sectors of the economy. 6) digitize the process of submitting documents for reservations and create a single digital register of reserved persons with access to it by all interested authorities and enterprises. These proposals will allow most enterprises that ensure the economic and food security of the state to work without interruption, and will also leave a sufficient window of opportunity for mobilization. We sincerely hope that the voice of business will be heard!

Since the beginning of russia’s military aggression and the introduction of martial law in the country, the issue of predictability of doing business has become extremely relevant. Moreover, in the conditions of general mobilization and unpredictability, the implementation of a transparent system of reservation employees by enterprises against mobilization is decisive for the stable operation of the business.

Thus, since the beginning of March, the Cabinet of Ministers of Ukraine adopted Resolution No. 194 “Some issues of reservation of conscripts in the conditions of the legal regime of martial law”, by which the corresponding procedure was carried out.

At the same time, unfortunately, the practical implementation of the procedure slowed down significantly from the beginning of May due to the impossibility of fulfilling certain provisions, in particular, the conclusion of contracts for mobilization tasks, which, in most cases, simply did not appear at the level of local authorities. In addition, even in the case of such a task, the time for approval of the reservation by the authorities in practice is 5-6 weeks, which, according to the business, is extremely long, because businessmen plan their activities for a week or two.

Disagreements have repeatedly arisen regarding the format of the document that confirms such a reservation and the necessary visas and details on it, issues with the departure of booked employees abroad for industrial purposes, despite the availability of all the documents provided for by law. At the same time, the current reservations are valid for six months, and from September almost the entire economy of Ukraine may find itself in a situation where employees critical to the operation of the enterprise may be mobilized at any moment.

Such uncertainty of approach on the part of state authorities not only creates uncomfortable conditions for business operations but also significantly slows down work, even in difficult times. Undoubtedly, business understands the complexity of the situation in which the country, state authorities, in fact, as well as business. Of course, effective work at the front is necessary to cope with it, but the economy and business must work as well because without economic stability it will be difficult for the country to survive.

Thus, according to available information, the Government is working on changes to Resolution No. 194 to resolve the problems that arose during the “first wave of bookings”. Therefore, the European Business Association appeals to the Government to take into account the most critical problems – to provide greater transparency, as well as to ensure a uniform format and procedure for booking employees. In particular, the community suggests taking into account the following 6 proposals:

1) to allow the reservation of conscripts who have not previously completed military service, since this factor does affect the criticality of one or another employee for the enterprise and the potential mobilization, for example, of the chief technologist, can completely stop the enterprise;

2) record the validity period of the reservation (not “up to six months”, but “six months”) since the creation of the so-called “fork of the term” can lead to corruption risks;

3) establish clear deadlines for approval of reservations and issuance of relevant orders and extracts;

4) cancel the need for re-certification of extracts from reservation orders at the Territorial Centers for recruitment and social support (since orders with lists of persons are already approved by the Ministry of Defense), as well as inform all local and central authorities about the need to recognize such documents;

5) to allow reservation of up to 70% of staff without the need to conclude mobilization tasks, which, as a practice has shown, are almost non-existent in most sectors of the economy.

6) digitize the process of submitting documents for reservations and create a single digital register of reserved persons with access to it by all interested authorities and enterprises.

These proposals will allow most enterprises that ensure the economic and food security of the state to work without interruption, and will also leave a sufficient window of opportunity for mobilization. We sincerely hope that the voice of business will be heard!