Reservation employees of Diia City residents: legal aspects, criteria, and procedure

Author: Anastasia Holovatyuk, Lawyer at F&P

During the period of martial law, the reservation of conscripted employees has become particularly relevant. Diia City resident companies, as part of the IT sector critical to the state, can exercise the right to reserve employees in accordance with legislative norms. However, to do this, it is necessary to undergo a complex procedure to obtain the appropriate status and be included in the Unified Register of Enterprises, Institutions, and Organizations entitled to reserve employees.

Before reserving employees, a Diia City resident company must obtain the status of a critically important enterprise. To do this, it must meet at least three of the following criteria:

1. The amount of paid taxes and fees exceeds the equivalent of 1.5 million euros per year.
2. Foreign currency receipts exceed 32 million euros per year.
3. The company is of strategic importance for the economy and security of the state. Confirmation of the status of importance for the industry can be achieved through the enterprise’s activities defined in the Law of Ukraine “On Stimulating the Development of the Digital Economy in Ukraine.”
4. The enterprise is key to the national economy or the territorial community.
5. Absence of debt to the budget and social insurance funds.
6. The enterprise is a resident of Diia City.
7. The enterprise is a provider of electronic communication services using mobile communication networks, with an average monthly net income exceeding 200 million hryvnias, or a provider of electronic communication services using fixed communication networks, with an average monthly net income exceeding 20 million hryvnias.

An application for obtaining the status of a critical enterprise is submitted to the Ministry of Digital Transformation of Ukraine or to the relevant military administration at the company’s place of registration. Inclusion in the Unified Register of Enterprises, Institutions, and Organizations entitled to employee reservation is carried out based on a notification submitted by the Ministry of Economy or a state body about inclusion in the Unified Register, which is formed using the Diia Portal.

Therefore, the confirmation of the recognition of a Diia City resident as a critical infrastructure enterprise will be the corresponding decision of the competent authority and inclusion in the Unified Register of Enterprises, Institutions, and Organizations entitled to employee reservation.

After the company is recognized as critical, it can apply for employee reservation. The process consists of the following stages:

1. Formation of the list of employees to be reserved.
2. Submission of the list to the relevant ministry or military administration for approval.
3. Transfer of the approved list through the Diia Portal to the Ministry of Economy.
4. Submission of the list to the Territorial Center for Recruitment and Social Support (TCRC and SS) for registration in the database of military personnel.

It is worth emphasizing that no more than 50% of the company’s military personnel can be reserved. At the same time, gig contractors and individuals providing services to the enterprise as sole proprietors are not subject to reservation.

The reservation is made for a period of 6 months with the possibility of extension after submitting an updated list.

Overall, the reservation of employees for Diia City residents is an effective mechanism for retaining key personnel in critically important sectors of the economy during martial law.

At the same time, the procedure requires careful legal support and the company’s compliance with clearly defined criteria. Adhering to all requirements allows Diia City residents to reserve employees, ensuring the continuous operation in the digital economy sector.