Answers to labor issues during martial law

Because of the war in Ukraine, many men and women have come to the defense of the state. Some were mobilized, some joined the terrorist defense, and some became internally displaced. In this regard, many employers have questions about how to keep records of labor relations with such employees.

The employee was mobilized or drafted

It doesn't matter how the employee got into the ranks of the Armed Forces of Ukraine: mobilized, drafted as a reservist, or voluntarily entered into a contract for military service - the company will account for such employees in the same way. After receiving documents from the employee about the call-up (a copy of the contract, a summons, etc.), you must issue an Order to release the employee (do not confuse it with dismissal) from work for the duration of military service.

If the mobilized person is a director, then he or she must transfer his or her powers in full to another employee for the duration of his or her absence. It is ideal if the constituent documents and the Unified State Register contain, in addition to the director's data, the data of the deputy director who performs his or her duties in the absence of the director. In this case, it is enough to issue an order on the transfer of powers.
In this situation, there is no additional payment for performing the duties of the director, since the job description of the deputy director provides for the temporary performance of the duties of the director. In other words, the deputy director receives his or her base salary as before.
If the company does not have a deputy director and the director has the right to delegate his or her powers (such a right is enshrined in the company's charter) to another person, then it is possible:

• issue a single order stating that the director is serving in the military and at the same time appointing a person to act as director until he returns,
• In addition to the order, a power of attorney must be issued to the person who will act as director. Without a power of attorney, the person acting as a director will not be able to represent the company's interests in legal relations with third parties. Such a power of attorney is not required if the Unified State Register contains information about persons who are authorized to act as signatories on behalf of the company, other than the director.

There is no need to make changes to the Unified State Register, an order and a power of attorney are sufficient. The tax authorities will learn about the authorized representative through the Notice on provision of information on qualified electronic signature. This means that an authorized representative needs to obtain an electronic signature (currently, they are issued remotely).
Such an employee will have to be paid the difference in salaries, since his job description does not provide for the performance of director's duties.
If the charter does not provide for the possibility of transferring the director's duties to another person, then a general meeting of shareholders must be convened to resolve this issue. The period of absence of a mobilized employee is indicated in the time sheet by the letter code "IN".
A mobilized employee retains his or her job and average salary. The average salary is calculated in accordance with Procedure No. 100. The calculation is based on the salary for the last two calendar months. There is no need to calculate the average salary on a monthly basis.

An employee in the terrorist defense

Both military and civilians can be members of the territorial defense. Everything is clear with employees who have been mobilized and assigned to the territorial defense forces: they are covered by labor guarantees, just like those who have been assigned to the Armed Forces.
Civilians who volunteered for territorial defense are a bit more complicated, as they are not directly guaranteed guarantees of job security, position and average salary in the Labor Code.
Such workers are covered by the legal and social protection guarantees provided by the Law of Ukraine "On Social and Legal Protection of Military Personnel and Members of Their Families." Another problem for such workers is that they do not have documents confirming their membership in the terrorist defense forces. Such workers should be contracted as territorial defense volunteers, but in practice this is hardly ever done.
The State Labor Service advocates retaining such employees' jobs and average earnings if they have a contract.
At the moment, it is recommended that such employees be marked "NZ" or "I" on their timesheets. You cannot dismiss such employees for absenteeism. As for paying salaries to such employees: you can pay them on your own initiative, there is no obligation to maintain their average earnings.

The employee has traveled abroad or moved to another city

At the time of writing, it is prohibited to dismiss such employees, even if they are not working. Such an absence is considered to be an absence from work for valid reasons (Letter of the Ministry of Social Policy of 08.07.2014 No. 7302/3/14-14/13).

Mobilization of individual entrepreneurs

A mobilized entrepreneur is exempt from paying the Unified Social Contribution for himself, personal income tax and social security tax for the duration of his military service. There is also no need to report on these taxes.