Employee Reservation: How an Enterprise Can Calculate the Quota and Not Lose Critical Status

New government Resolution No. 692 has significantly changed the basic Reservation Procedure No. 76. The changes affected not only the salary requirements for reserved employees but also influenced the mechanism for calculating the total number of conscripted employees, on which the enterprise's quota depends.

Since exceeding the established limits is now a direct reason for revoking the status of a critically important enterprise, legal accuracy in calculations has become a matter of business survival.

Defining the base

The first step in the calculation is to determine the total number of conscripted employees of the enterprise. This figure serves as the basis for further application of the established reservation quotas (50%, 75%, or 100%).

The base includes:

• all conscripted employees who are on the enterprise's staff;
• employees called up for military service during mobilization after May 18, 2024 — they continue to be counted in the total number of conscripted employees, which allows maintaining the correctness of the enterprise's quota;

Clarification: conscripted employees who have a deferment based on grounds provided by Article 23 of the Law of Ukraine "On Mobilization Preparation and Mobilization," as well as part-time employees, are counted in the total base only at one place of work according to the requirements of Resolution No. 692.

According to paragraph 12 of the Procedure, the following are not included in the total number:

• conscripted women;
• persons registered for military service with the Security Service of Ukraine or intelligence agencies;
• conscripted employees defined in subparagraphs 2–6 of paragraph 5 of the Procedure, including certain categories of government officials;
• conscripted employees reserved by other enterprises in case of part-time employment — if the reservation is made at the primary place of work.

Applying the quota

After determining the base number of conscripted employees of the enterprise, a percentage reservation limit is applied, established depending on the category of the economic entity.

The basic reservation level is 50% of the total number of conscripted employees.

This figure is generally applied to most enterprises, institutions, and organizations, including local self-government bodies and other entities defined as critically important.

Extension of the reservation limit beyond 50%

The number of conscripted employees subject to reservation may exceed 50% of the total number of employees only if there is a corresponding decision by the Ministry of Defense of Ukraine.

Such a decision is made by the Ministry based on proposals from the Interdepartmental Working Group established according to the Cabinet of Ministers of Ukraine resolution dated June 18, 2024, No. 707.

Reasoned proposals to increase the reservation volume are submitted to the Ministry of Defense of Ukraine by the relevant state authority or other state body that made the decision to designate the enterprise, institution, or organization as critically important.

A special limit of 75% is set for enterprises whose activities are related to providing vital services, including:

• production and supply of thermal energy;
• centralized water supply;
• sewage;
• household waste management.

Unlimited 100% reservation of conscripted employees applies to

• Employees of the fuel and energy complex and their subcontractors engaged in restoring the energy system.
• Employees of the defense-industrial complex according to the Ministry of Defense list.
• Technical workers of providers and mobile communications (in regions designated by the Ministry of Digital Transformation and subject to restoration work).
• Medical workers of state and communal ownership.

For enterprises actually operating in territories of possible or active hostilities, the limit may also be 100 percent of the number of conscripted employees.

Economic filter

To reserve employees, it is necessary to ensure the financial compliance of each reserved employee.

A coefficient of 3.0 is provided for most critically important enterprises. The monthly salary of a reserved employee throughout the entire deferment period must be at least three times the minimum wage.

A coefficient of 2.5 remains for enterprises operating in territories of possible or active hostilities according to the list of the Ministry of Development.

These requirements do not apply to state/communal institutions, Diia City residents, religious organizations, and energy enterprises with destroyed capacities.

Important: if only one conscripted employee works at a critically important enterprise, the limits of 50% or 75% do not apply to them — they may be reserved.

Consequences of violating limits

Resolution No. 692 has strengthened sanctions for calculation errors. If the limit is exceeded, the head is obliged within 10 working days to submit an application through the Diia Portal to cancel the reservation of excess employees.

Exceeding the established limits on the number of reserved employees is now an official reason for revoking the enterprise's critically important status.

Important: enterprises whose status was revoked due to non-compliance with requirements, including salary, cannot be designated as critically important earlier than six months later.

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