Society

Reservations may be cut: up to 85% for defense and energy companies, and up to 60% for municipal workers

The final percentages must be agreed upon within five days

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The share of employees liable for military service whom businesses can reserve from mobilization in Ukraine may be reduced for the defense industry, energy sector, and certain municipal services. The Cabinet of Ministers approved the relevant resolution subject to revision, and the provisions on percentage limits are to be finalized within five days.

People’s Deputy Yaroslav Zheleznyak reported the government’s decision. The resolution is titled “On Certain Issues of Organizing the Reservation of Employees Liable for Military Service During Mobilization and Wartime”. Its adoption was conditional on the document being revised within one day.

According to the deputy, the proposed limits will vary depending on the business sector:

  • For the defense industry and energy sector, the share of employees eligible for reservation may be reduced from 100% to 85%.
  • For heat supply, water supply, and household waste management companies, a reduction from 75% to 60% is proposed.
  • For other critically important businesses, the current limit of 50% of employees liable for military service is expected to remain in place.

Another possible change is the establishment of a Coordination Center under the Cabinet of Ministers. It will take part in decisions on recognizing businesses as critically important and approving higher reservation limits.

The new body is expected to include 17 representatives of government agencies. Those named include:

  • Ministry of Economy — its representative is to become a co-chair of the center.
  • Ministry of Defense — its representative is also to become a co-chair.
  • Security Service of Ukraine.
  • Main Directorate of Intelligence.
  • Foreign Intelligence Service.
  • National Police.
  • Pension Fund.
  • State Labor Service.

Under the draft, a business will not be able to receive a reservation limit above 50% without a recommendation from the Coordination Center. The center will also be able to recommend revoking a business’s critically important status.

Ministries and regional state administrations must review sector-specific criteria for determining whether businesses are critically important and coordinate them with the new center by October 20.

Approval of a higher reservation limit is proposed to be restricted to a term of no more than one year. If a business does not process reservations through Diia within five business days of receiving the relevant decision, that decision will expire.

At the same time, the fate of existing reservations that exceed the proposed new limits remains unclear. The published information about the draft contains no mechanism for handling such cases.

According to the deputy, a proposal to exclude employees who already have a deferment from mobilization on other grounds from the total number of employees liable for military service was removed from the document. Such a provision could have significantly reduced the number of employees eligible for reservation.

“It was retained that employees with deferments (students, caregivers, parents of three children) may be included. In other words, it remains as it is now,” People’s Deputy Yaroslav Zheleznyak explained.

The lawmaker advises businesses seeking to retain their critically important status to prepare documents confirming their operations in advance. These include information on:

  • defense contracts;
  • tax payments;
  • foreign currency earnings;
  • wage levels;
  • the absence of outstanding debts.

The proposed reductions in limits cannot yet be considered final: their parameters may change once revisions to the government resolution are complete.



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