Author: Stanislav

During martial law in Ukraine, the ability of men aged 18 to 60 to travel abroad is significantly restricted. An exception is made for certain categories of individuals, including military-liable persons who are “reserved” (granted a deferment from mobilization) for the period of mobilization and wartime, in accordance with Art. 23 of the Law of Ukraine “On Mobilization Preparation and Mobilization.” Such employees are not subject to conscription and are registered on a special military list.

Current regulations, particularly the Rules for Crossing the State Border by Citizens of Ukraine, provide for the possibility of reserved employees traveling abroad only for official business trips. The issue of traveling abroad during a vacation is not legally regulated. Currently, the procedure for such a trip is determined at the discretion of the border guard service during inspection, which creates a high level of uncertainty and risks for both the employer and the employee.

To cross the border, you must have:
● A foreign passport;
● A military registration document or an electronic record in the “Rezerv+” application with a note of reservation;
● An extract or a copy of the vacation order (specifying the country, duration, and position);
● Additional documents confirming the purpose of the trip.

However, practice shows that reserved employees are often denied crossing the state border based on a vacation order. Most successful cases of traveling abroad are related to оформленням business trips, not vacations. The Ministry of Justice of Ukraine emphasizes the need to clarify the requirements with the State Border Guard Service in advance (by calling 1598 or through official communication channels).

The employee should verify the absence of any travel restrictions and ensure compliance with military registration rules. In case of refusal to cross the border, the consequences can be both reputational and disciplinary.

Clarification from the Ministry of Justice on reserved employees traveling abroad for vacation.

Ukrainian legislation allows an employee to freely manage their salary. According to Part 1 of Article 25 of the Law of Ukraine “On Labor Remuneration,” any restriction on an employee’s right to receive and use their salary is prohibited. This means that the employee has the right to independently determine the method of receiving their payments.

In accordance with Part 5 of Article 24 of the Law of Ukraine “On Labor Remuneration,” salary payments can be made through banks or non-bank payment service providers authorized to open and service accounts, or by postal money order to an address specified by the employee. The main condition is a written request from the employee stating the details for the transfer.

The employee has the right to submit a free-form request addressed to the head of the company, specifying the particular account of another individual to which they wish to receive their salary. The request must clearly state the recipient’s full name, bank details or postal address, and, if applicable, the recipient’s taxpayer identification number.

It is important to emphasize that the employer does not have the right to refuse such a request and cannot impose a specific method or account for receiving the salary. It is also forbidden to charge the employee any commission or other costs associated with transferring the salary to the specified account. Payment for the services of banks or postal operators in such cases is the responsibility of the employer.

For the company’s accounting and HR departments, the procedure is as follows:

• Obtain a written request from the employee with the recipient’s full details.
• Register the request in the company’s internal documentation.
• Issue a corresponding order based on the request.
• Make the transfer within the legally established timeframe.

Thus, transferring an employee’s salary to another individual’s account is entirely lawful, provided that the requirement for written consent is met.

According to Article 1 of the Law of Ukraine “On Remuneration,” a salary is compensation, typically calculated in monetary terms, that an employer pays to an employee for work performed under an employment contract. The legislation clearly states that salaries in Ukraine must be paid exclusively in the national currency—the hryvnia (UAH) (Part 1, Article 23 of this Law). The hryvnia is the sole legal tender in the territory of Ukraine.

At the same time, Article 192 of the Civil Code of Ukraine allows for monetary obligations to be defined in the equivalent of a foreign currency. This means that an employment contract can specify the salary amount in hryvnias while also indicating its equivalent in a foreign currency. However, the actual payment must be made exclusively in hryvnias.

To avoid disputes, it is advisable to clearly define the mechanism for converting the foreign currency into hryvnias. Specifically, the contract can specify the National Bank of Ukraine (NBU) exchange rate as of a certain date and fix it as a minimum. If the official exchange rate increases by a certain date of the reporting month, the calculation is made at the new, higher rate, but not below the established minimum level. This ensures payment stability and protects the employee from currency fluctuations.

It is also important to regulate the salary calculation procedure in the company’s internal documents: the collective agreement, the salary policy, and the staffing table. The staffing table should specify the position’s salary in hryvnias with a note indicating the foreign currency equivalent and the exchange rate to be used for the conversion.

Formalizing such terms requires amending the employment contract (including through a supplementary agreement), issuing a corresponding order on the change in remuneration, and verifying that the new terms comply with the company’s salary policy.

Key points to consider:

• Salary payments are made exclusively in hryvnias (UAH).
• The option to specify an equivalent in a foreign currency must be clearly regulated by the contract.
• It is recommended to establish a minimum exchange rate to protect the employee.
• All of the company’s internal regulations must be updated accordingly.

Thus, defining a salary in the equivalent of a foreign currency is a legal practice, provided that all legislative requirements are met and the process is properly documented.

1. New Procedure for Dismissing Employees in Combat Zones

Article 5, Clause 3 establishes that employees whose workplaces are located in active combat zones cannot be dismissed for absenteeism (as per Part 1, Article 40, Clause 4 of the Labor Code of Ukraine). The period of absence is unpaid and is not included in the length of service that grants the right to annual leave. This innovation aims to protect employees who are objectively unable to perform their duties.

2. Organization of Record-Keeping and Accounting

Article 7, Clause 1 has been clarified: in combat zones, the employer independently determines the procedure for record-keeping and document storage, provided that accurate records of employees’ work and labor costs are maintained. This allows employers to flexibly adapt their document workflow procedures.

Communication Obligation

Article 7, Clause 3 introduces an obligation for each party to the employment contract to ensure the possibility of communication and to report any change in contact details within 10 days. Failure to comply with this requirement gives the other party the right to communicate using the last known contact details (Article 7, Clause 4).

3. Suspension of the Employment Contract

The new version of Article 13, Clause 1 provides for the suspension of an employment contract at the initiative of one of the parties for up to 90 days, with the possibility of extension by mutual agreement until the end of martial law. During the suspension, the employer does not pay wages, compensation, or other payments, except for amounts accrued before the suspension date. The employer is obliged to notify the employee of the resumption of the contract 14 days in advance.

Importantly, after the suspension period ends, the contract is automatically resumed. If it is impossible for the employee to perform their duties, the contract may be terminated. It is also stipulated that orders for suspension exceeding 90 days without the parties’ consent will become invalid (this provision will enter into force on March 14, 2026).

4. State Supervision and Control

The new version of Article 16 allows for unscheduled state supervision measures (inspections) based on applications from employees or trade unions, now also covering issues of mobbing (bullying). It is important to note that inspections regarding mobbing cannot be conducted simultaneously with other inspections (this provision will enter into force on October 1, 2025).

Practical Recommendations for HR Professionals

1. Update internal document workflow procedures, including the storage of electronic and paper documents in combat zones. Ensure the reliability of timekeeping and labor cost accounting.
2. Develop a communication algorithm, including templates for notifying about changes in contact details and confirming their receipt. Ensure you have up-to-date employee contacts and make timely changes to your records.
3. Carefully monitor the terms of employment contract suspensions, especially in the context of the 90-day limit. Ensure that additional agreements are properly executed if the term is extended by mutual consent.
4. Prepare employees for potential unscheduled inspections, particularly concerning mobbing issues. Conduct awareness campaigns on acceptable forms of communication and how to prevent violations.