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EBA calls for a revised approach to employee reservation in frontline regions

25/ 02/ 2026
  The European Business Association has addressed Prime Minister Yuliia Svyrydenko and Minister of Economy, Environment and Agriculture Oleksii Sobolev with a proposal to improve the employee reservation mechanism for critically important enterprises operating in frontline regions. At present, the Reservation Procedure allows up to 100% of employees liable for military service to be reserved only for companies officially registered in frontline territories. However, according to the Association’s member companies, this approach fails to reflect the actual structure of business operations. Companies are often registered in one location — for example, Kyiv — while in practice conducting manufacturing, trading or logistics activities in frontline regions through their branches and structural subdivisions. Such subdivisions create jobs for residents of frontline territories, where there is an acute labour shortage, supply goods and services to local communities, contribute tax revenues to local budgets, and operate under heightened security risks. Yet due to the formal linkage to a company’s registered address, they are unable to benefit from the right to reserve up to 100% of employees liable for military service who work in these structural units in frontline regions. What does the business community propose? The Association proposes taking into account the actual place of business activity rather than solely the company’s legal address, and introducing the relevant amendments to the Reservation Procedure so that the mechanism reflects the real operating conditions of enterprises in frontline areas. In particular, it suggests enabling: the application of 100% reservation to specific structural subdivisions of enterprises that genuinely operate in frontline territories; such reserved employees not to be counted towards the overall reservation quota in other regions. It is envisaged that enterprises would submit lists of employees along with supporting documentation through the relevant regional or city administrations. Businesses in frontline regions operate under exceptionally challenging conditions and require maximum support. An updated approach to employee reservation would help sustain regional economic activity and preserve revenues for local budgets.

The European Business Association has addressed Prime Minister Yuliia Svyrydenko and Minister of Economy, Environment and Agriculture Oleksii Sobolev with a proposal to improve the employee reservation mechanism for critically important enterprises operating in frontline regions.

At present, the Reservation Procedure allows up to 100% of employees liable for military service to be reserved only for companies officially registered in frontline territories.

However, according to the Association’s member companies, this approach fails to reflect the actual structure of business operations. Companies are often registered in one location — for example, Kyiv — while in practice conducting manufacturing, trading or logistics activities in frontline regions through their branches and structural subdivisions.

Such subdivisions create jobs for residents of frontline territories, where there is an acute labour shortage, supply goods and services to local communities, contribute tax revenues to local budgets, and operate under heightened security risks. Yet due to the formal linkage to a company’s registered address, they are unable to benefit from the right to reserve up to 100% of employees liable for military service who work in these structural units in frontline regions.

What does the business community propose?

The Association proposes taking into account the actual place of business activity rather than solely the company’s legal address, and introducing the relevant amendments to the Reservation Procedure so that the mechanism reflects the real operating conditions of enterprises in frontline areas.

In particular, it suggests enabling:

  • the application of 100% reservation to specific structural subdivisions of enterprises that genuinely operate in frontline territories;
  • such reserved employees not to be counted towards the overall reservation quota in other regions.

It is envisaged that enterprises would submit lists of employees along with supporting documentation through the relevant regional or city administrations.

Businesses in frontline regions operate under exceptionally challenging conditions and require maximum support. An updated approach to employee reservation would help sustain regional economic activity and preserve revenues for local budgets.

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