Ukraine updates policy for ‘critical’ entities – Denys Shmyhal

Source: Denys Shmyhal/Telegram

Ukraine’s PM Denys Shmyhal said on Friday that his government wrapped up its audit of “critical’ enterprises and organizations that can seek professional exemptions for their employees under the country’s wartime mobilization rules.  It looks like changes are coming, and they’ll impact businesses across the board.

Under the new guidlines, the criteria used by local councils and industries to grant a ‘critical’ entity status will need an approval from the Ministry of Defense and the Ministry of Economy. The rules will become stricter. Companies in the private sector looking to have their workers exampt from the call-up must now ensure that their average salary is no less than 2.5 minimum wages — currently set at 20,000 hryvnias.

It’s not just about salary. Employees themselves must be earning at least the same amount in order to qualify for exemption. On top of that, businesses can’t be behind on taxes or any other payments to the government.

Starting December 1, 2024, the policy will go into effect, and exemption applications known in Ukraine as reservations will be processed only through the “Diya” mobile app. Companies will also face monthly checks to ensure they meet all the updated criteria.

For those companies already holding reservations, there will be a transition period until February 28, 2025. By this deadline, all businesses will be required to reapply for employee examptions to adjust their policies to the new guidelines.