95% deferment limit for defence and energy sectors: who falls within the cap

The Cabinet of Ministers of Ukraine has updated the deferment rules for employees liable for military service. The maximum deferment level for companies in the defence-industrial and fuel-and-energy sectors is now capped at 95%.

According to the Ministry of Economy, Environment and Agriculture, the cap will primarily apply to auxiliary and support staff. Employees directly involved in production, fulfilling defence contracts, operational work, repairs, and emergency recovery work must be fully reserved. Each company’s head will decide which employees to reserve within the established limit.

Employees entitled to deferment on other grounds, including parents of large families and guardians, will also be included when calculating the quota.

Review of critically important status

The government has instructed central executive authorities and regional military administrations to review the criteria used to designate companies as critically important within 10 days of the changes taking effect. The updated requirements must be agreed with the newly established Coordination Centre for Employee Deferment.

However, the review of criteria will not automatically strip companies of their existing status. According to the Ministry of Economy, Environment and Agriculture, companies whose criticality criteria remain unchanged will retain their status.

Powers of the Coordination Centre

The Cabinet of Ministers established the Coordination Centre for Employee Deferment as a temporary advisory body. Representatives of government authorities responsible for the economy, defence, security, humanitarian policy, and critical infrastructure will participate in its work. The Deputy Minister of Economy, Environment and Agriculture and the Deputy Minister of Defence will co-chair it.

The Centre will coordinate the alignment of criticality criteria, propose amendments, and consider submissions from government authorities on designating companies as critically important. It will also recommend revoking this status, including where law enforcement agencies have provided relevant grounds.

Another task of the Centre is to approve deferment increases above 50%.

However, the Centre cannot revoke a company’s critically important status independently. Authorised ministries will make final decisions.

When an increase in the quota may be refused

The Centre may refuse a company an increase in its deferment limit if its head has committed at least two confirmed violations of military registration rules within a single year.

Once a decision to increase the quota is made, the company has 10 working days to arrange additional reservations through Diia. If the company does not complete the process within this period, the decision will become invalid, and the deferments will be cancelled within five working days.

Last week, Prime Minister Serhii Koretskyi stated that the maximum deferment level for defence industry companies would no longer be 100%. He noted that unconditional full reservation was unfair to those serving in the military and created opportunities for abuse. At the same time, the government is preparing a mechanism for 100% reservation for companies that regularly and voluntarily enlist some of their employees for military service.