New approach to  IT professionals’ reservation  is on track

New approach to IT professionals’ reservation is on track

From the first weeks of the War, the Association has maintained an open dialogue with the government and raised important for maintaining the stable operation of the national IT industry issues:

  • The reserve of IT professionals as conscripts from mobilization during martial law.
  • The possibility of temporary travel abroad of IT specialists engaged in foreign economical activity.
  • Preservation of the resident of Ukraine status for domestic taxpayers who are under temporary protection in EU countries.

For several times the Association came up with specific proposals for solving these issues during meetings with the First Vice Prime Minister - Minister of Economy of Ukraine Yulia Svyridenko in May and with the Prime Minister of Ukraine Denys Shmyhal in September. Recently, updated proposals were sent to the Government, including regarding the reserve of conscripts.

On September 20, the Verkhovna Rada adopted as a basis the long-awaited draft law No. 7687 on the reservation of conscripts during mobilization and martial law with a reduction in the period of preparation for its second reading. 305 members of the parliament voted for this decision.

The document specifies the categories of conscripts that can be reserved during martial law and mobilization. In particular, those liable for military service who work at enterprises, institutions and organizations that are critically important for the functioning of the economy and ensuring the vital activities of the population in the special period will be subject to reservation. Business entities will be assigned to such enterprises, institutions and organizations according to the criteria and in the order established by the Cabinet of Ministers.

It should be noted that the Association insists on the implementation of the reserve mechanism for conscripts who work in IT companies or provide services to such companies as sole traders as soon as possible. The Association has developed proposals for the formation of the procedure and criteria for assigning business entities to enterprises, institutions and organizations that are critically important for the functioning of the economy and ensuring the vital activities of the population in a special period, as well as for draft law No. 7687. The Association proposes to reserve conscripts who are hired as employees or engaged under a contract as sole traders or as gig specialists in accordance with the Law of Ukraine "On Stimulating the Development of the Digital Economy in Ukraine". Not only legal entities (enterprises, institutions and organizations), but also sole traders should be critically important for the functioning of the economy and ensuring the vital activities of the population in the special period. Therefore, such subjects should be "business entities and non-profit organizations".

The Association also prepared the Cabinet of Ministers of Ukraine resolution draft "On Amendments to the Resolution of the Cabinet of Ministers of Ukraine No. 194 of March 3, 2022 on "Certain issues of reservation of conscripts under the legal regime of martial law" regarding the establishment of criteria for determining business entities and non-profit organizations that are critically important for the functioning of the economy and ensuring the vital activities of the population in the special period."

The Association proposed criteria for determining the specified subjects in a norm with the following content: "The Ministry of Economy, in accordance with paragraph 5 of the first part of Article 25 of the Law of Ukraine "On Mobilization Preparation and Mobilization", checks business entities and non-profit organizations that are critically important for the functioning of the economy and (or) ensuring the vital activities of the population in the special period, in accordance with the following criteria:

  • the monthly amount of payment of the employees involved is at least UAH 20 000;
  • the number of employees is at least 10;
  • the legal entity does not have a tax debt, the total amount of which is more than 10 minimum wages (based on the amount of the minimum wage established on January 1 of the current calendar year)".

Looking forward to the next reading!