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Military Registration and Employee Exemptions for Businesses — Practical Tips

10/ 10/ 2024
  In today’s context, as Ukraine continues to fight for its freedom and independence, the importance of business as the driving force of the economy is clearer than ever. Businesses not only provide jobs, but also actively contribute to the country’s stability and growth during wartime. However, businesses face numerous challenges, including workforce mobilization and a shortage of skilled personnel. When we ask companies what assistance they need most right now, the top request is to optimize conditions for reserving key employees. In fact, three-quarters of the member companies we surveyed in the Association reported that mobilization and staff shortages impose significant restrictions on their operations, affecting all industries and professions. Therefore, it is critically important to establish a transparent and understandable procedure for employee mobilization, allowing businesses to reserve key staff without whom they may simply cease to operate. While there’s no doubt that ensuring the military is adequately staffed is crucial, it’s equally vital that businesses maintain the country’s economic front. That is why, on October 10, 2024, the Southern Ukrainian Office of the EBA held a meeting titled “Military Registration and Employee Exemptions for Businesses — Practical Tips.” Speakers at the event included Dmytro Mikhailenko, Chairman of the Supervisory Board of Crowe Mikhailenko, President of the Association of Tax Consultants, and Legal Advisor to the EBA IT Committee, as well as Andriy Dukhnitsky, Partner at Crowe Mikhailenko and Head of Corporate Practice. Valeriy Shnurenko, Head of the Corporate Security Working Group of the Association in Odesa and Head of Corporate Security at Risoil Group, acted as moderator. The meeting attracted attention from business representatives, HR specialists, and legal professionals involved in military registration issues. Within the event, key aspects of reserving conscripted employees in the context of martial law were highlighted, including: Employee Reservation Procedures. New reservation rules were discussed, including changes to Procedure No. 650. Participants learned that, starting from October 2, 2024, additional information such as the employees military registration document details, military specialty, and the date of the latest military data update must be provided for reservations. Choosing Between Reservation Formats. The pros and cons of electronic and paper formats were discussed, with a recommendation to use electronic formats due to their simplicity and convenience. Paper Reservation Specifics. The key characteristics of paper-based reservations and when it is necessary to use them, particularly when the electronic version may be unavailable, were outlined. Another important topic was obtaining the status of a critically important enterprise. Participants received the following key insights: Selection Criteria. Criteria for businesses to receive critically important status were discussed. To qualify, companies must meet at least three criteria (according to item 2 of the Criteria and Procedure approved by the Resolution of the Cabinet of Ministers of Ukraine on January 27, 2023, No. 76). Strategic Importance. The strategic importance of enterprises to the economy and national security, as defined by the approved list, was also examined. Community Relevance. Enterprises should consider their role in meeting the needs of their local communities. Exceptions. Instances where meeting only two criteria is sufficient were also discussed. The issue of foreign business trips for reserved employees was covered, along with the following specifics: Necessary Documents. A list of required documents, with attention to the latest border guard clarifications, was provided. Registration in the “Oberig” Registry. Information about employee reservations must be recorded in the “Oberig” registry. Recommendation. It was advised to provide the traveling employee with an invitation from foreign partners in addition to the required documents. Employee reservation reporting was another key topic. The speakers emphasized: Reporting Obligations. Companies that reserve employees must submit reports by the 10th day of the month following the reporting quarter. This information is crucial for monitoring and ensuring compliance with the rules. Submission Methods. Whether to submit reports in paper or electronic form was discussed. Exemption for the Diia Platform. For employees reserved through the Diia platform, no reports need to be submitted, simplifying the process for employers. We extend our gratitude to all attendees and the experts from Crowe Mikhailenko, as well as the event partners, the International Humanitarian University and IDS Aqua! Participants received answers to their questions and had the opportunity to engage with experts, which will undoubtedly contribute to greater awareness in the field of military registration and employee reservation. The meeting served as an important platform for sharing experiences and receiving recommendations on optimizing business operations amid current regulations and upcoming changes.
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In today’s context, as Ukraine continues to fight for its freedom and independence, the importance of business as the driving force of the economy is clearer than ever. Businesses not only provide jobs, but also actively contribute to the country’s stability and growth during wartime. However, businesses face numerous challenges, including workforce mobilization and a shortage of skilled personnel. When we ask companies what assistance they need most right now, the top request is to optimize conditions for reserving key employees. In fact, three-quarters of the member companies we surveyed in the Association reported that mobilization and staff shortages impose significant restrictions on their operations, affecting all industries and professions. Therefore, it is critically important to establish a transparent and understandable procedure for employee mobilization, allowing businesses to reserve key staff without whom they may simply cease to operate. While there’s no doubt that ensuring the military is adequately staffed is crucial, it’s equally vital that businesses maintain the country’s economic front.

That is why, on October 10, 2024, the Southern Ukrainian Office of the EBA held a meeting titled “Military Registration and Employee Exemptions for Businesses — Practical Tips.” Speakers at the event included Dmytro Mikhailenko, Chairman of the Supervisory Board of Crowe Mikhailenko, President of the Association of Tax Consultants, and Legal Advisor to the EBA IT Committee, as well as Andriy Dukhnitsky, Partner at Crowe Mikhailenko and Head of Corporate Practice. Valeriy Shnurenko, Head of the Corporate Security Working Group of the Association in Odesa and Head of Corporate Security at Risoil Group, acted as moderator. The meeting attracted attention from business representatives, HR specialists, and legal professionals involved in military registration issues.

Within the event, key aspects of reserving conscripted employees in the context of martial law were highlighted, including:

  • Employee Reservation Procedures. New reservation rules were discussed, including changes to Procedure No. 650. Participants learned that, starting from October 2, 2024, additional information such as the employee’s military registration document details, military specialty, and the date of the latest military data update must be provided for reservations.
  • Choosing Between Reservation Formats. The pros and cons of electronic and paper formats were discussed, with a recommendation to use electronic formats due to their simplicity and convenience.
  • Paper Reservation Specifics. The key characteristics of paper-based reservations and when it is necessary to use them, particularly when the electronic version may be unavailable, were outlined.

Another important topic was obtaining the status of a critically important enterprise. Participants received the following key insights:

  • Selection Criteria. Criteria for businesses to receive critically important status were discussed. To qualify, companies must meet at least three criteria (according to item 2 of the Criteria and Procedure approved by the Resolution of the Cabinet of Ministers of Ukraine on January 27, 2023, No. 76).
  • Strategic Importance. The strategic importance of enterprises to the economy and national security, as defined by the approved list, was also examined.
  • Community Relevance. Enterprises should consider their role in meeting the needs of their local communities.
  • Exceptions. Instances where meeting only two criteria is sufficient were also discussed.

The issue of foreign business trips for reserved employees was covered, along with the following specifics:

  • Necessary Documents. A list of required documents, with attention to the latest border guard clarifications, was provided.
  • Registration in the “Oberig” Registry. Information about employee reservations must be recorded in the “Oberig” registry.
  • Recommendation. It was advised to provide the traveling employee with an invitation from foreign partners in addition to the required documents.

Employee reservation reporting was another key topic. The speakers emphasized:

  • Reporting Obligations. Companies that reserve employees must submit reports by the 10th day of the month following the reporting quarter. This information is crucial for monitoring and ensuring compliance with the rules.
  • Submission Methods. Whether to submit reports in paper or electronic form was discussed.
  • Exemption for the “Diia” Platform. For employees reserved through the “Diia” platform, no reports need to be submitted, simplifying the process for employers.

We extend our gratitude to all attendees and the experts from Crowe Mikhailenko, as well as the event partners, the International Humanitarian University and IDS Aqua! Participants received answers to their questions and had the opportunity to engage with experts, which will undoubtedly contribute to greater awareness in the field of military registration and employee reservation. The meeting served as an important platform for sharing experiences and receiving recommendations on optimizing business operations amid current regulations and upcoming changes.

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