The issue of reserving conscripted employees remains one of the key challenges for Ukrainian businesses amid the full-scale war. This issue is particularly sensitive for the dairy industry. Dairy production operates as a continuous technological cycle and depends on the stable functioning of raw material supply, production, logistics, energy, and veterinary components. A disruption or staffing gap at any stage may affect not only a specific enterprise, but also the supply of socially significant food products to the population.

On 30 May 2026, the Cabinet of Ministers of Ukraine (СMU) adopted Resolution № 692, “Certain Issues of Reserving Conscripts During Mobilisation and Wartime” (“Resolution № 692”), which amends the procedure for reserving conscripts and the rules for designating enterprises as critically important, approved by Resolution of the Cabinet of Ministers of Ukraine № 76 dated 27 January 2023, as amended by CMU Resolution №1332 dated 22 November 2024.

For businesses, these changes mark a new stage in the review of criticality status, the strengthening of salary requirements, stricter control over reservation limits, and the need to assess staffing risks in advance of 1 September 2026.

Criticality of enterprises: current decisions remain valid, but no later than 1 September

One of the key new provisions is the establishment of a maximum validity period for existing decisions designating enterprises as critically important. Decisions that were valid as of the date Resolution № 692 entered into force remain valid for the period for which they were adopted, but no later than 1 September 2026.

In practice, this means that enterprises will need to go through the process of reconfirming their criticality status. For businesses, it is important not only to formally submit documents, but also to verify the exact criteria under which the status was obtained, whether these criteria may be amended, and whether the enterprise complies with the updated requirements.

By 10 June 2026, relevant ministries and regional military administrations are required to review sectoral criticality criteria. These are the criteria under which enterprises are recognised as being important for a particular sector of the national economy or for meeting the needs of a territorial community.

For the dairy industry, the key criteria remain those applied by the Ministry of Economy, Environment and Agriculture of Ukraine and the relevant regional military administrations, depending on the authority whose criteria were used to obtain the status of a critically important enterprise.

As explained by the Ministry of Economy, Environment and Agriculture of Ukraine, if the criterion under which an enterprise obtained criticality status remains unchanged, the enterprise may proceed under the general procedure and renew its criticality status by 1 September 2026. However, if the relevant criterion is amended or removed, there is a risk that the current status may be cancelled. In such a case, the enterprise will need to renew its status in advance by 1 July 2026 in accordance with the new sectoral criteria or switch to the general criteria provided for by CMU Resolution № 76.

For dairy enterprises, the mandatory criteria continue to include, in particular, the absence of tax arrears and compliance with the established average salary level at the enterprise. In addition, the enterprise must meet at least one further criterion, which may include a sectoral criterion.

We expect that the relevant sectoral criteria of the Ministry of Economy applicable to dairy enterprises should not undergo significant changes. At the same time, businesses that obtained criticality status through regional military administrations should already be communicating with the relevant departments to clarify whether any revision of criteria is planned at the regional level.

Salary requirements: two separate rules that should not be confused

Businesses should pay particular attention to salary requirements. Resolution № 692 effectively distinguishes between two separate requirements: the requirement regarding the average salary at the enterprise and the requirement regarding the salary of a specific reserved employee.

The first requirement concerns the average salary at the enterprise. For most enterprises, this threshold is increased from 2.5 to 3 minimum monthly wages. This criterion is relevant for confirming or renewing the status of a critically important enterprise.

Accordingly, if an enterprise plans to renew its criticality status in June, it must take into account salary indicators for May. If the renewal takes place in July, compliance will need to be confirmed based on June figures. This is a practical point that may become decisive when preparing the required documents.

The second requirement concerns the salary of a specific reserved employee. It will start applying from 1 September 2026. Until that date, the current requirement remains in force for reserved employees, namely a salary of no less than 2.5 minimum monthly wages.

At the same time, for enterprises located and actually operating in territories of possible or active hostilities or temporarily occupied territories for which no end date of hostilities or occupation has been determined, the coefficient of 2.5 minimum monthly wages remains in place.

For the dairy industry, this issue is particularly sensitive, as a significant number of enterprises operate in regions directly affected by war-related risks, logistical restrictions, staff shortages, and rising production costs.

Part-time employees and employees with other grounds for deferment: what will change from 1 September

One of the most debated changes concerns the inclusion of part-time employees and employees who have deferment on other grounds provided for by Article 23 of the Law of Ukraine “On Mobilisation Preparation and Mobilisation” in the total number of conscripted employees.

The new logic is that such employees should be counted toward the quota only at one place of employment. At the same time, as noted by the Ministry of Digital Transformation of Ukraine, the practical mechanism for implementing this rule still requires technical and regulatory clarification.

As of now, it is important that this rule enters into force on 1 September 2026. Until that date, enterprises must follow the current methodology for calculating reservation limits. In other words, if part-time employees are currently included in the total number of conscripted employees and generate a reservation quota, they continue to be included until 1 September.

However, businesses should not wait until the last moment. Enterprises should already conduct a separate calculation of their potential quota after 1 September 2026. This will allow them to identify in advance whether an excess of the reservation limit may arise after the methodology changes, and to prepare appropriate staffing or legal solutions.

One of the approaches currently discussed in practice is that a part-time employee should contribute to the quota of the enterprise where they are actually reserved. This approach appears logical; however, the final mechanism must be confirmed through official clarifications and technical implementation in the relevant systems.

Reservation limits: control is becoming stricter

Resolution № 692 also strengthens enterprises’ responsibility for compliance with reservation limits. If the established limit is exceeded, the enterprise must, within 10 business days, submit an application via the Diia portal to cancel the reservation of the relevant employees.

This rule already applies from the date the resolution entered into force. Therefore, if an enterprise has an actual excess of the limit under the current calculation methodology, the head of the enterprise must take action to bring the reservations into compliance.

The key risk is that exceeding established reservation limits is defined as a ground for cancelling the status of a critically important enterprise. Loss of criticality status automatically means the loss of the ability to reserve employees.

For businesses, this changes the approach to administering reservations. Previously, the main focus was on obtaining the status of a critically important enterprise and submitting lists of employees. Now, continuous internal monitoring becomes equally important: the number of conscripted employees, valid reservations, part-time employees, persons with other grounds for deferment, and potential changes after 1 September.

Extension of reservations after renewal of criticality status

After renewing the status of a critically important enterprise, a company will be able to extend employee reservations in accordance with the validity period of the new criticality decision.

The procedure is carried out through the Diia portal. Provided that criticality status is reconfirmed in advance, no gaps in reservation should arise: the enterprise effectively extends the existing reservations for the duration of the new status.

Enterprises in frontline territories

For enterprises operating in territories of possible or active hostilities, documentary confirmation of their status will be of separate importance. The document package will need to include a decision of the relevant regional military administration confirming that the enterprise is located in the respective zone.

This is important not only for applying the salary coefficient, which remains at 2.5 minimum monthly wages for such enterprises, but also for properly confirming the conditions under which the enterprise operates.

At the same time, it is important that the reservation limits approved for enterprises in frontline territories, including limits of up to 100%, as well as the fixed number of employees subject to reservation under previously approved decisions, remain in force. This has significant practical importance for enterprises that continue operating under difficult conditions and ensure the continuity of production and logistics processes.

In the case of the dairy industry, this provision may be especially important for producers, processors, and logistics structures that, despite war-related risks, continue to supply the population with socially significant products and support the country’s food security.

What businesses should expect

“For dairy enterprises, the new changes to the employee reservation procedure are significant, as they directly affect workforce planning, production continuity, and the ability to reliably supply the population with socially significant food products. The dairy industry is not merely a business sector; it is part of the country’s food security. Therefore, in implementing the new rules, it is important to ensure a balance between defence needs and the necessity of preserving critically important production,” said Krystina Shpak, Head of the Legal Department of the Union of Dairy Enterprises of Ukraine.

According to her, the Union of Dairy Enterprises of Ukraine will continue communication with the relevant public authorities to ensure the clearest and most practically applicable mechanism for enterprises in the sector.

“We see that some provisions require additional interpretation and technical refinement. This primarily concerns the inclusion of part-time employees, employees with other grounds for deferment, control over reservation limits, and the procedure for renewing criticality status. It is important for us that dairy enterprises do not find themselves in a situation of legal uncertainty or risk losing reservations due to technical or procedural gaps. That is why the Union of Dairy Enterprises of Ukraine will work to ensure that companies in the sector receive the necessary support, clarifications, and the opportunity to continue operating steadily,” emphasised Krystina Shpak