A new version of the Law of Ukraine “On Mobilization Preparation and Mobilization” was recently adopted, introducing significant changes to the procedure of reserving (deferring) employees from mobilization. Therefore, it is important to understand the key points.
Who is subject to reservation?
Servicemen liable for military duty who work at enterprises, institutions, and organizations that are critically important for the functioning of the economy and ensuring the life-support of the population during a special period.
To understand whether your enterprise or organization belongs to the list of critical infrastructure and meets all the necessary criteria for obtaining the possibility of economic reservation of employees, please contact our law firm for a consultation.
The concept of economic reservation aims to increase the amount of funding provided to the army by reserving employees who remain in the workforce.
As a general rule, up to 50% of employees of an enterprise, institution, or organization may be reserved. However, the government has introduced certain changes to the Procedure for Reserving Military Liable Citizens, allowing critical enterprises in the fuel and energy sector and the IT sector to reserve employees without limitations. This means such enterprises may reserve 100% of their workforce.
In addition, employees of contracting organizations involved in construction, repair, restoration, manufacturing and/or supplying equipment, providing services, or implementing other engineering and technical measures to ensure the uninterrupted functioning of the unified energy system and gas transmission system of Ukraine are also subject to reservation.
Economic reservation is a new mechanism that promotes effective cooperation between business and the state, ensuring stability and development of the economy.
One of the possible alternatives alongside economic reservation is economic mobilization. This approach helps save the state budget by redirecting the saved funds toward additional financing of the defense forces.
Economic mobilization means that businesses, through the mechanism of labor military duty, provide necessary services and perform work in areas where they have greater competence and efficiency compared to the military.
For example, this may include such areas as procurement, logistics, supply chain management, medical services, equipment repair, IT, construction of fortifications, household services, clerical support, human resource management, and more. As a result, servicemembers who are relieved of these duties can focus on other, more important and specialized tasks.
Therefore, do not hesitate — contact us for a consultation and support the economy!
