Legal updates (14.03.2025)

Below, you will learn about:

• Employee reservation rules have been amended;
• Existing reservations have been extended until March 31;
• The Commercial Code has been abolished;
• The employment notification form has been updated;
• The deadline for re-passing the military medical commission for limitedly applicable persons has been postponed.

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Employee reservation rules have been amended

On March 5, 2025, a resolution of the Cabinet of Ministers of Ukraine (hereinafter – the “CMU”) came into force amending the procedure for reservation for persons liable for military service.

Key aspects:

• It establishes that when calculating the total number of persons liable for military service subject to reservation, companies should consider employees called up for military service during mobilization after May 18, 2024.
• The term for the cancellation of deferment for employees of the companies has been reduced to 5 days.
• It defines a monthly period for the criterion of the amount of the accrued average salary of the employees when determining a critical company.

^{Source: Resolution of the CMU “Some Issues of Implementation of the Provisions of the Law of Ukraine “On Mobilization Preparation and Mobilization” on Reservation of Persons Liable for Military Service for the Period of Mobilization and for Wartime” dated January 27, 2023, No. 76.}

Existing reservations have been extended until March 31

On February 26, 2025, a resolution of the CMU came into force, which extended the validity of reservations for military service during mobilization granted to persons liable for military service by decisions of the Ministry of Economy of Ukraine or through the Diia portal until March 31, 2025. Also until April 1, 2025, re-reservation of persons liable for military service through the Diia portal has been simplified by removing the 72-hour verification requirement.

^{Source: Resolution of the CMU “On Amendments to the Resolutions of the CMU dated November 22, 2024, No. 1332 and January 14, 2025, No. 36” dated February 25, 2025, No. 208.}

The Commercial Code has been abolished

On February 28, 2025, the Law of Ukraine “On Peculiarities of Regulation of Activities of Legal Entities of Certain Organizational and Legal Forms in the Transition Period and Associations of Legal Entities” (hereinafter – the “Law”) came into force, which cancelled the Commercial Code of Ukraine. The Law also amended the Civil Code of Ukraine (hereinafter – the “Civil Code”) and a number of other codes and laws.

Key aspects:

• The establishment was prohibited and a transitional period of 3 years was introduced, during which all business owners should decide on reorganization for legal entities in the following organizational and legal forms:
  • private enterprise;
  • state unitary enterprise (state commercial enterprise, state non-commercial enterprise, state-owned enterprise);
  • municipal enterprise (municipal commercial enterprise, municipal non-profit enterprise);
  • joint municipal enterprise;
  • subsidiary enterprise;
  • foreign enterprise;
  • enterprises of citizens’ associations (religious organization, trade union);
  • consumer cooperative enterprise.
• It is established that from the date of entry into force of the Law, the Law of Ukraine “On Limited Liability Companies and Additional Liability Companies” shall apply to subsidiary enterprises, foreign enterprises, enterprises of citizens’ associations, consumer cooperative enterprises, private enterprises in cases where the relevant legal relations are not regulated by their charters and other laws.
• Stipulates that during reorganization, enterprises and their successors are exempt from paying the administrative fee for state registration actions. Reissuance of permits is also free of charge. In addition, permits, licenses, certificates, declarations, approvals, notifications and other public services issued (agreed upon, provided) to the enterprise in respect of which the decision on its transformation was made are valid for the legal entity – the successor.
• Creditors are entitled to collect from debtors who have overdue the fulfilment of their monetary obligations a penalty in the amount of double the National Bank of Ukraine (NBU) discount rate not only if such a penalty is provided for in the contract, but also on the basis of the provision established by the Civil Code. It is also provided that the contract may stipulate a lower penalty amount.
• Amendments were made to the rules for the use of standard forms of contracts. Laws or contracts may stipulate that certain terms and conditions of the contracts shall be determined in accordance with the standard terms and conditions of the contracts and model contracts of a certain type approved by the CMU or its authorized state body. In this case, the parties may not deviate from the content of the standard terms and conditions of the contracts but have the right to specify them.

^{Source:  The Law of Ukraine “On Peculiarities of Regulation of Activities of Legal Entities of Certain Organizational and Legal Forms in the Transition Period and Associations of Legal Entities” dated January 9, 2025, No. 4196-IX.}

The employment notification form has been updated

On February 26, 2025, the Resolution of the CMU came into force, which amended the form of notification of hiring an employee (domestic employee) / entering into a gig contract, which is submitted to the State Tax Service. In particular, the form was supplemented with information on citizenship for the purpose of accounting for employed foreigners and stateless persons.

^{Source:  Resolution of the CMU “On Amendments to Annex 1 to the Resolution of the CMU dated June 17, 2015, No. 413” dated February 21, 2025, No. 184.}

The deadline for re-passing the military medical commission for limitedly applicable persons has been postponed

On February 15, 2025, a law came into force extending the deadline for re-passing of the military medical commission (hereinafter – the “MMC”) for Ukrainian citizens aged 25 to 60 who were previously recognized as limitedly applicable for military service. The deadline is set for June 5, 2025.

Key aspects:

• Provides for the obligation to pass the MMC only for persons liable for military service who have the status of “limitedly applicable” and are between the ages of 25 and 60, except for persons recognized as persons with disabilities in accordance with the established procedure. Persons under the age of 25 do not need to pass the MMC.
• Persons liable for military service with the status of “limitedly applicable” are obliged to apply to the temporary center for recruitment and social support and receive a referral to the MMC on their own. This can also be done through the electronic cabinet “Reserve+”.

^{Source:  The Law of Ukraine “On Amendments to Clause 2 of Section II “Final and Transitional Provisions” of the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Ensuring the Rights of Military and Police Personnel to Social Protection” dated February 12, 2025, No. 4235-IX.}