Despite the fact that due to mobilization in many critical sectors of the economy there is already a noticeable shortage of personnel, reservation mechanisms are still insufficiently regulated. Controversy rages over economy booking. The Verkhovna Rada has registered several alternative draft laws on the introduction of this type of deferment from military service.
How many specialists are booked?
According to the Ministry of Digital Transformation, by the end of 2023, about 700,000 workers were booked in Ukraine.
Almost a third of them (29%) are energy industry workers. Another 16% were booked by farmers, and 14% by transport and logistics companies.
In May, a new section with vacancies appeared on the employment platform work.ua, in which it is stated that the employer can book employees. Currently, the aggregator offers 6.8 thousand such positions from more than 100 thousand available ads.
This data allows you to understand exactly who companies are willing and able to book, as well as in which areas these vacancies are most common.
The largest number of such vacancies is in labor specialties and manufacturing, including the energy sector. However, relative to the total number of advertisements, these vacancies are inferior to logistics and foreign economic activity, where every tenth open position involves the possibility of booking. The fewest such vacancies are in the field of design and beauty salons – less than 1%. However, even in these areas there are announcements, for example, the position of storekeeper of the goods receiving department or florist in one of the “Epicentr” hypermarkets.
Requirements for enterprises
In order for a company to be able to book its employees, it must meet at least three of the seven criteria (in some cases – two):
- The sum of paid taxes, fees, payments to the budget and a single contribution to mandatory state social insurance for a year exceeds 1.5 million euros.
- Annual receipts in foreign currency, in addition to credits and loans, exceed 32 million euros.
- The enterprise is of strategic importance for the economy and security of the state according to the relevant list of state-owned objects.
- The enterprise is important for the national economy or for meeting the needs of the territorial community.
- Absence of arrears for the payment of a single contribution to mandatory state social insurance.
- The size of the average salary of the company’s employees for the last quarter is not less than the average salary in the region for the IV quarter of 2021.
- The enterprise has the status of a resident of Diya City.
Energy and defense industry
In June, the government revamped its approach to reserving workers from conscription, which includes protections for almost everyone employed in the defense industry, the energy industry, and construction workers involved in the construction of fortifications.
The Cabinet of Ministers noted that these changes are not completely new, but rather an improvement of the mechanisms established in Resolution No. 76. The changes were introduced after consultations with experts and business representatives. In addition, an electronic reservation system for employees will be implemented in Ukraine.
The reservation conditions have been improved for enterprises working for defense, as well as for enterprises in the energy sector. Manufacturers of weapons, drones, as well as energy companies restoring the power system will be able to book 100% of their workers. Also, the terms of booking employees of critical enterprises have been increased from 6 months to a year.
It is allowed to book conscripts regardless of age, military rank or military specialty, even if it is in short supply. The government is also introducing electronic booking. Such a function will soon be available in Action.
Agriculture
This month, the head of the Ministry of Agrarian Policy and Food of Ukraine, Taras Vysotskyi, announced that farmers and agricultural enterprises can now reserve workers from the draft for a period of up to 12 months (previously it was allowed for 6 months). Agrarian companies will be able to book up to 50% of their employees who are subject to mobilization.
Industry representatives have expressed concern about the shortage of staff due to the draft. For example, last year in Odesa Oblast the situation was so critical that the Oblast Military Administration (OMA) contributed to an increase in the number of reserved workers in the agricultural sector.
Booking for taxes
The head of the parliamentary committee on economic development, Dmytro Natalukha, and other deputies registered a draft law that provides for the introduction of economic reservation. They later submitted two alternative bills.
The main draft law proposes the reservation of specialists who are difficult to replace, subject to the payment of an increased military fee of UAH 20.4 thousand per month. Alternative draft laws contain other models.
The first alternative bill provides for the reservation of employees who receive an official salary of more than UAH 36,336 (the amount of taxes and fees on such income is about UAH 14,500). The second, mixed option, provides for 36,336 hryvnias of salary for employees or 20,400 hryvnias of military duty for FOP.
Imperfect booking
The economic reservation system in Ukraine has undergone significant changes and development since its introduction. However, despite numerous improvements, it still contains a number of shortcomings that affect the effectiveness of its functioning:
- Frequent crashes and technical problems remain one of the main problems. This applies to both public and private reservation systems, resulting in user dissatisfaction and wasted time.
2. Many booking systems are not integrated with each other, which complicates the booking process for users who have to interact with several different platforms.
3. Often the staff responsible for maintaining reservation systems do not have a sufficient level of training and knowledge, which leads to errors and delays.
4. The insufficient level of coordination and control over the operation of reservation systems at the state level leads to uneven quality of services.
5. Cyber security issues are becoming more and more relevant, and many reservation systems do not have sufficient means of protecting users’ personal data.
Corruption during booking
Corruption remains one of the most acute problems in Ukraine. Corruption schemes continue to permeate various spheres of life, including economic reservation. What schemes are used?
- Bribery of officials. Officials responsible for the reservation process receive undue benefit to expedite or favor certain companies or individuals. For example, government officials accept bribes to grant economic reservation permits outside the queue or to lower requirements for applicants.
2. Falsification of documents. Creating and using forged documents to obtain economy bookings. For example, using fake certificates, licenses or other official documents to obtain the right to make a reservation or to circumvent established rules and requirements.
3. Abuse of official position. Use of official position to obtain undue advantage or to give advantages to certain individuals or companies. Officials use their power to influence the booking process by providing preferences to their acquaintances or companies with which they have personal or financial interests.
4. Extortion. Officials demand undue benefits from applicants in exchange for providing services or speeding up the booking process. At the same time, applicants are forced to pay bribes for the processing of their applications for economy reservations or for the provision of additional services that should be provided free of charge.
5. Shell companies. Creation of fictitious companies to participate in the process of economic booking for the purpose of receiving undue benefit. In addition, front companies are used to obtain government contracts, grants or subsidies, which are then transferred to the personal assets of the scheme organizers.
Last year, the SBU exposed a scheme to evade mobilization in Zhytomyr. A local company that received a defense order booked its workers without reason. The law enforcement officers discovered that the organizers of the scheme hired acquaintances and booked them to avoid the draft.
Another scheme was discovered in Odesa. The 48-year-old man from Odessa involved the head of an agricultural company, which also received a defense order. For $4,500, they employed men of draft age and helped them go abroad. The organizers arranged fictitious business trips to Moldova for their “clients” under the guise of establishing business contacts and expanding the client base.
