Author: Olena Andriyko, lawyer at F&P
Since May 18, 2024, new laws regarding military registration of citizens have come into force in Ukraine, significantly expanding the obligations for both individuals and businesses. These changes not only affect citizens but also impose new requirements on enterprises, compliance with which is mandatory. In case of violation of the legislation, company officials may be subject to administrative responsibility.
Changes from July 16, 2024: new obligations for businesses
July 16, 2024, marked the entry into force of new rules for military registration and mobilization, which greatly expand the scope of obligations for companies. From now on, all citizens aged 16 to 60 are required to be registered in the military registration system, and businesses are obligated to ensure compliance with these requirements.
Business obligations under the new rules
Previously, enterprises already had certain obligations regarding the military registration of their employees, but with the new changes, their role has become even more important. Now, companies must maintain records of employees based on up-to-date military registration documents, participate in notifying employees, and report violations of registration to territorial recruitment centers (TRCs).
Enterprises must designate responsible persons to oversee the fulfillment of their employees’ military obligations, medical examinations, training, and readiness for mobilization.
Administrative responsibility for violations
Changes to the Code of Ukraine on Administrative Offenses introduce stricter sanctions for companies that violate military registration rules. Specifically, the following fines are provided for violations:
- For the first violation: from 17,000 to 25,500 UAH.
- For a second violation: from 25,500 to 34,000 UAH.
- During the war period: from 34,000 to 59,500 UAH.
During martial law, violations are automatically classified under the most severe scale, increasing responsibility for businesses.
Procedure for imposing fines
The new law introduces changes to the procedure for bringing companies to responsibility. In particular, during martial law, TRC employees do not draw up a protocol but immediately issue a decision to impose responsibility. An important innovation is that even in the absence of a responsible person from the company at the TRC call, a fine can be imposed in absentia.
Reputational risks for businesses
Although the law does not provide for criminal liability for enterprises, reputational risks for businesses can have much more serious consequences. Violations of mobilization legislation can lead to:
- Loss of trust from government agencies, resulting in additional inspections and oversight.
- Loss of the right to reserve employees, even if the company has critical infrastructure status.
- Loss of partners and clients, as most companies prefer to cooperate with those who comply with the law.
- Financial losses and possible bankruptcy due to contract termination.
Conclusions
The introduction of new requirements for mobilization registration increases the role of business in the country’s defense capability system. It is important for enterprises to diligently fulfill their obligations to avoid not only fines but also serious reputational and financial risks. Compliance with mobilization legislation is not only a legal obligation but also a contribution to ensuring the country’s security and stability.
