The CMU approved a new procedure for booking employees

28/ 01/ 2023

On January 27, the Government approved a new procedure for booking persons liable for military service, as well as the Procedure and Criteria for Identifying Enterprises Critical to the Functioning of the Economy. Thus, under the new procedure, businesses will be able to book up to 50% of employees who are subject to military service and are critical for the company to continue operating. A company is determined to be critical to the economy based on an exhaustive list of criteria, including the total amount of taxes and other fees paid (exceeding EUR 1.5 million), the amount of foreign currency receipts (equivalent to EUR 32 million), strategic importance for the countrys economy and security (in accordance with CMU Resolution No. 83 of 2015), the importance for meeting the needs of the local community, absence of unified social tax arrears, salary amount not less than the average in the region, and Diia City residency. Moreover, it has been established that deferrals that have already been granted to employees under the old procedure will remain valid for the period for which they were granted. The European Business Association has long emphasized that the country urgently needs to adopt a clear and transparent deferral system so that businesses can continue to operate, knowing that critical employees will not be mobilized. After all, everyone has to work on their own front to support the country. So, we hope the new procedure will do just that. At the same time, it is now extremely important that the Prime Minister of Ukraine signs the relevant Procedure promptly and publishes it, as this is the only way it will come into effect. Therefore, we expect that this process will not take long, as there will be no more extensions of existing deferrals.

Thus, under the new procedure, businesses will be able to book up to 50% of employees who are subject to military service and are critical for the company to continue operating. A company is determined to be critical to the economy based on an exhaustive list of criteria, including the total amount of taxes and other fees paid (exceeding EUR 1.5 million), the amount of foreign currency receipts (equivalent to EUR 32 million), strategic importance for the country’s economy and security (in accordance with CMU Resolution No. 83 of 2015), the importance for meeting the needs of the local community, absence of unified social tax arrears, salary amount not less than the average in the region, and Diia City residency.

Moreover, it has been established that deferrals that have already been granted to employees under the old procedure will remain valid for the period for which they were granted.

The European Business Association has long emphasized that the country urgently needs to adopt a clear and transparent deferral system so that businesses can continue to operate, knowing that critical employees will not be mobilized. After all, everyone has to work on their own front to support the country. So, we hope the new procedure will do just that.

At the same time, it is now extremely important that the Prime Minister of Ukraine signs the relevant Procedure promptly and publishes it, as this is the only way it will come into effect. Therefore, we expect that this process will not take long, as there will be no more extensions of existing deferrals.