Military record keeping at the workplace

Since the declaration of martial law in Ukraine in 2022, military registration at enterprises has become one of the most pressing HR issues for both employers and employees. The reason for these concerns is the renewed regulations and requirements for employers introduced by various legislative acts.

Keeping military records is currently mandatory for enterprises in Ukraine. This includes a set of measures aimed at ensuring military records are maintained with details regarding the employees eligible for mobilisation working at an enterprise, as well as whether the employer has fulfilled their obligations regarding mobilisation training.

• National security and defence: Ensuring adequate staffing of the Armed Forces of Ukraine and other military formations.
• State control: Recording the presence and qualifications of military personnel;
• Planning mobilisation: Carefully planning and running mobilisation activities in a timely manner.
• Employee exemptions from military service: companies may seek to ensure employee exemptions from military service as their role contributes to the effective functioning of essential economic sectors and public services.
• Legal liability: Avoiding significant fines for businesses and citizens violating registration rules (between UAH17,000–25,500 during the period of martial law).

Penalties for violating military registration rules are provided for in Articles 210 and 210-1 of the Code of Ukraine on Administrative Offenses.

Law No. 3696-IX “On amendments to the Code of Ukraine on Administrative Offences regarding the improvement of responsibility for violations of military registration rules and legislation on defence, mobilisation training, and mobilisation” (the Law) was officially published in Holos Ukrainy on 18 May 2024. The Law subsequently came into force on 19 May 2024.

The Law sets the following administrative fines for citizens, officials, and legal entities:

• Violation of military registration rules by military personnel results in a fine of 200 to 300 non-taxable minimum incomes (UAH3,400–5,100). Repeated violations result in a fine of 300–500 non-taxable minimum incomes (UAH3,400–8,500). During a special period - a fine of 1,000–1,500 non-taxable minimum incomes (U  AH17,000–25,500).
• Violation of laws on defence, mobilisation training, and mobilisation result in a fine imposed on officials of state authorities, local self-government bodies, legal entities, and public associations, with this fine ranging from 1,000–1,500 non-taxable minimum incomes (UAH17,000–25,500). Repeated violations result in a fine ranging from 1,500 –2,000 non-taxable minimum incomes (UAH25,500–34,000). During martial law regime, the fine may range from 2,000–3,500 non-taxable minimum incomes (UAH34,000–59,500).

Administrative penalties for violating military registration and mobilisation regulations related to mobilization during martial law regime may be imposed within three months from the date the violation is detected, but no later than one year from the date of the violation was committed.

Maintaining military records is mandatory for all enterprises, institutions, and organisations, where military personnel work, regardless of ownership.

The situation at each enterprise is naturally unique and requires an individually tailored approach. In order to avoid unnecessary complications and penalties from the Commission for Verification of Military Registration Status, set up and maintain military records for your workforce today!

Tetyana Krynytska, Director, Tax & Legal, KPMG in Ukraine, TKrynytska@kpmg.ua