Business asks for the possibility to reserve employees without mobilization tasks – draft law No. 7687 is the solution

24/ 10/ 2022

Back on September 20, with a shortened preparation period, the Verkhovna Rada of Ukraine adopted as a basis draft law No. 7687, which proposes to introduce two key positions necessary for the organization of a transparent and comprehensible procedure for reserving persons liable for military service: allow reserving employees without mobilization tasks for enterprises that are critical for the functioning of the economy and ensuring the livelihood of the population; authorize the Government to develop a new reservation procedure, which should include criteria for classifying enterprises as critical. These two interconnected norms are extremely important for the normal functioning of the economy during martial law, as predictability and the ability to plan activities are perhaps the main conditions for business operations. At the same time, the potential loss of key personnel is currently one of the biggest challenges for both business and the economy. Anna Derevyanko. EBA Executive Director. Recently, we often hear information from businesses about an extremely high percentage of mobilization - 10%, 17%, and sometimes even more employees. And sometimes these are extremely important employees for the continuation of work, such as production managers, etc. Obviously, it is extremely difficult for businesses to operate in such situations, not saying about other challenges. Of course, we understand that mobilization is part of the work that must be done in a country that is at war, but all issues should be approached consciously, carefully, and strategically, understanding all the risks. After all, there are critical people in the government, without whom work in certain areas is almost impossible, the same as in business. It should be reminded that under the current reservation system, a mandatory condition is the fulfillment of mobilization tasks. At the same time, as noted by business representatives, it is almost impossible to obtain such tasks, since local authorities have, either not prepared them at all or have prepared them in a very small amount. Therefore, the further stable operation of the economy is held hostage to the impossibility of the law that cannot be implemented. As of today, there are approximately 4 weeks left until the end of the current reservations and further delays in the adoption of the draft law may cause significant damage to the economy, jeopardize the proper provision and conduct of the autumn sowing campaign. It is worth noting that the adoption of draft law No. 7687 is only the first step towards solving the problem, since only after that the Cabinet of Ministers will have the opportunity to develop and adopt the necessary by-laws, which, according to the current procedure, will take at least another month. Therefore, the European Business Association calls on the peoples deputies of Ukraine not to postpone this issue and take this first, but such a crucial step to the problem of reserving critical personnel. Business calls for the adoption of Draft Law No.7687, as well as for the prolongation of the existing reservations for another 2 months without the need for re-approval by the Ministry of Defense.

allow reserving employees without mobilization tasks for enterprises that are critical for the functioning of the economy and ensuring the livelihood of the population;
authorize the Government to develop a new reservation procedure, which should include criteria for classifying enterprises as critical.

These two interconnected norms are extremely important for the normal functioning of the economy during martial law, as predictability and the ability to plan activities are perhaps the main conditions for business operations. At the same time, the potential loss of key personnel is currently one of the biggest challenges for both business and the economy.

Anna Derevyanko EBA Executive Director

Recently, we often hear information from businesses about an extremely high percentage of mobilization - 10%, 17%, and sometimes even more employees. And sometimes these are extremely important employees for the continuation of work, such as production managers, etc. Obviously, it is extremely difficult for businesses to operate in such situations, not saying about other challenges. Of course, we understand that mobilization is part of the work that must be done in a country that is at war, but all issues should be approached consciously, carefully, and strategically, understanding all the risks. After all, there are critical people in the government, without whom work in certain areas is almost impossible, the same as in business.

It should be reminded that under the current reservation system, a mandatory condition is the fulfillment of mobilization tasks. At the same time, as noted by business representatives, it is almost impossible to obtain such tasks, since local authorities have, either not prepared them at all or have prepared them in a very small amount. Therefore, the further stable operation of the economy is held hostage to the impossibility of the law that cannot be implemented.

As of today, there are approximately 4 weeks left until the end of the current reservations and further delays in the adoption of the draft law may cause significant damage to the economy, jeopardize the proper provision and conduct of the autumn sowing campaign.

It is worth noting that the adoption of draft law No. 7687 is only the first step towards solving the problem, since only after that the Cabinet of Ministers will have the opportunity to develop and adopt the necessary by-laws, which, according to the current procedure, will take at least another month.

Therefore, the European Business Association calls on the people’s deputies of Ukraine not to postpone this issue and take this first, but such a crucial step to the problem of reserving critical personnel. Business calls for the adoption of Draft Law No.7687, as well as for the prolongation of the existing reservations for another 2 months without the need for re-approval by the Ministry of Defense.