How Can a Business Obtain Critical Importance Status for Employee Exemption?

Obtaining the status of a critically important enterprise is a key factor in ensuring business continuity under martial law. In today’s conditions, many companies face challenges related to employee mobilization, which may threaten uninterrupted operations. At the same time, the government has defined a list of institutions that play a vital role in maintaining the country’s functioning and contribute significantly to its economy. Such companies may be granted critically important status and reserve certain employees from mobilization.

At first glance, the procedure for obtaining this status seems straightforward—criteria are outlined, and a document submission process is defined. However, in practice, companies often encounter difficulties. What evidence proves the company’s importance? How should its role be properly justified? How can common mistakes be avoided? We have already helped numerous companies secure this status and understand the legal nuances that can become obstacles without legal support.

In this article, we will review the criteria that a critically important enterprise must meet, procedural specifics, document review timelines, and other key aspects to help you prepare for the process.

You might also like: Obtaining Critically Important Enterprise Status for a Telecom Company

Criteria for Obtaining Critically Important Enterprise Status

To be granted the status of a critically important enterprise, a company must meet at least three criteria that demonstrate its significance for the functioning of the economy and sustaining the population during a special period.

At the same time, it is important to consider that under Cabinet of Ministers Resolution No. 76 dated January 27, 2023, two of the three criteria must include at least one of the following:

1. The average salary of the company's insured employees for the last calendar month must not be lower than the minimum wage established nationwide multiplied by a factor of 2.5 (for Q4 2024, this amounts to at least UAH 20,000). This salary level must be maintained for all reserved employees throughout the entire deferral period, including external part-time workers.

2. Additionally, the enterprise must not have any outstanding debts for taxes payable to the state or local budgets, nor for the Unified Social Contribution (USC). This shall be confirmed by an extract from the State Tax Service information system regarding the company’s payment status, certified by the company’s head. If any debts are present, obtaining the status of a critically important enterprise is not possible.

In addition to the two mandatory criteria mentioned above, the company must meet at least one additional criterion. These may vary by industry—for example, in the energy, healthcare, or digitalization sectors. One such additional criterion is the company’s significant impact on the development of a specific economic sector or its performance of a strategically important function in meeting the needs of a territorial community.

Please note: According to Cabinet of Ministers Resolution No. 1332 dated November 22, 2024, ministries, state authorities, and regional administrations have been instructed to review and update the criteria for determining critically important enterprises. The new sector-specific requirements must be approved by both the Ministry of Economy and the Ministry of Defense. In light of this, the Government has extended the deadline for re-reservation of employees until March 31.

Who Grants the Status of a Critically Important Enterprise?

The status of a critically important enterprise is granted by the relevant authority, depending on the company’s area of activity and territorial jurisdiction. Specifically, companies may apply to:

• The central executive authority, another state body, or a governmental agency whose jurisdiction covers the entire territory of Ukraine, if the enterprise falls under its sectoral or economic management.
• The regional state administrations, as well as the Kyiv or Sevastopol city state administrations, or military administrations (if established), if the enterprise is located within their territorial jurisdiction.

You might also like: Securing Critically Important Enterprise Status and Reserving Employees: A Kyiv IT Company’s Experience

Procedure for Recognizing a Company as Critically Important

To obtain the status of a critically important enterprise, a company must go through several key stages:

1. Document Preparation

The most important document is the application for the company to be granted critically important status.

The application must be accompanied by copies of supporting documents, as well as information regarding the company’s tax reporting.

This information can be confirmed with the following documents:

• A copy of the tax declaration with the stamp of the controlling authority that received the declaration.
• A receipt of tax declaration submission if it was filed through electronic communication means.
• A receipt from the relevant controlling authority, responsible for verifying and accepting taxpayer reports.
• A postal notification with a delivery receipt to the controlling authority if the tax declaration was sent by mail.

2. Document Submission

As mentioned above, the documents must be submitted to the relevant authority, depending on your area of activity and location.

3. Review of Documents and Decision-Making

After receiving the application from the company, the relevant authority must review it within 10 working days. During this period, the authority will assess the applicant’s compliance with the criteria. Based on the review, a decision will be made regarding the company’s conformity or non-conformity with the established criteria.

How Long Does It Take to Obtain Critically Important Enterprise Status?

If all requirements are met, the decision-making process for granting critically important status will not exceed 10 working days. However, it is important to account for the time needed to gather and prepare all the necessary documents for submission. Additionally, a crucial stage in this process is the actual reservation of military personnel, as this is the primary goal of obtaining critically important enterprise status.

What is the Validity Period of Critically Important Enterprise Status?

The validity period of the critically important enterprise status requires the enterprise to confirm its status at least once a year. To do so, the company must submit an application to the same authority that initially granted the status.

What to Do After Obtaining Critically Important Enterprise Status?

After obtaining critically important enterprise status, the company can submit a list of employees for reservation. This list is approved by the Ministry of Economy, after which the reserved employees receive the relevant document, exempting them from mobilization for a specified period.

You might also like: Employee Reservation for a Driving School: A Successful Case

When Can an Enterprise Lose Its Critically Important Status?

Unfortunately, there are situations where an enterprise may lose its critically important status, including:

1. Failure to Meet the Criteria

If the enterprise no longer meets at least three of the mandatory criteria required for this status, it loses the right to retain it.

2. Violations Detected During Inspections

Competent state authorities have the right to inspect enterprises with a critically important status. If violations are found, such as submitting false information or failing to comply with legal requirements, the status can be revoked. In such cases, the enterprise can only regain its critically important status after six months.

3. Company Liquidation

If a decision is made to liquidate the company, the enterprise automatically loses its critically important status.

You might also like: Military Registration Check at an Enterprise: How to Prepare for an Inspection by the Territorial Recruitment and Social Support Center

Legal Support in Obtaining Critically Important Enterprise Status and Employee Reservation

Obtaining critically important enterprise status is a vital but complex process that requires careful attention to detail at every step. Mistakes can result in rejection or delays, which can disrupt business operations. Securing critical status for employee reservation may require significant effort, but with professional legal support, you can avoid unnecessary risks and successfully obtain a decision recognizing your company as critically important.

We understand the process and have already helped many businesses navigate it successfully. Our team will:

• Assess the company’s compliance with the required criteria
• Prepare and submit all necessary documentation, guiding you through the review process with government authorities

If you have any questions or need a consultation, reach out to us. We’ll help your business maintain stable and effective operations, even under martial law!