War, mass migration and talent shortage have created new challenges for Ukrainian companies. One of them is the correct maintenance of staff and military accounting, which are interrelated processes. Non-compliance of accounting documents with legislative requirements can lead to significant fines and complications when reserving employees. How to organize HR records in a way that avoids problems, and how conducting HR audit will help in this – read further.
HR audit: how to avoid risks in wartime
In the context of war, businesses in Ukraine are facing new challenges in the field of staff administration. In addition to traditional issues of staff accounting, another critically important aspect has emerged — military accounting. Reserving of employees, correct execution of documents, interaction with territorial staffing and social support centers (TSC) — all this requires a systematic approach. The lack of a clear organization of these processes can cause significant financial risks for companies due to administrative fines, as well as complicate the work of enterprises due to the mobilization of key specialists.
A timely, HR audit will help avoid violations and ensure the sustainability of the company's operations.
Legal requirements and liability
HR accounting in Ukraine is regulated by the Labor Code of Ukraine (hereinafter — the Labor Code), as well as the Rules for the Organization of Record Keeping and Archival Storage of Documents in State Bodies, Local Government Bodies, Enterprises, Institutions and Organizations, approved by Order of the Ministry of Justice No. 1000/5 of June 18, 2015 (hereinafter — Rules No. 1000/5).
The obligation of enterprises, institutions and organizations to maintain military records is established by Part 5 of Article 34 of the Law of Ukraine "On Military Duty and Military Service" and regulated by Resolution of the Cabinet of Ministers of Ukraine (hereinafter — the CMU) No. 1487 of December 30, 2022, which approved the Procedure for organizing and maintaining military records of conscripts, persons liable for military service and reservists, and which determines the mechanism for organizing and maintaining military records of conscripts and persons liable for military service (hereinafter — military records) by central and local executive bodies, other state bodies, executive bodies of village, settlement, city councils and executive apparatuses of district, regional councils, territorial centers for recruiting and social support, military units, enterprises, institutions, organizations and educational institutions, regardless of their subordination and form of ownership.
In particular, according to paragraph 5 of Appendix 27 to the said resolution, during the inspection of enterprises, institutions and organizations, the following is checked:
- correctness of the appointment of persons responsible for maintaining military records;
- level of ensuring the completeness, reliability and quality of accounting for all conscripts and those liable for military service in accordance with the requirements established by the Ministry of Defense and the State Statistics Service;
- state of maintaining constant interaction with the relevant district (city) territorial staffing and social support centers on the terms and methods of verifying the data of the personal cards of conscripts and military personnel with the registration data of the district (city) territorial recruitment and social support centers in which they are on military registration, making appropriate changes to them and organizing notification of conscripts and military personnel;
- state of the organization of periodic verification of personal cards of conscripts and those liable for military service with entries in certificates of registration at the conscription station, military ticket ID card and temporary certificates;
- timely introduction of changes to employees' personal cards regarding marital status, place of residence, education, place of work and position of conscripts and military personnel, and notification of the district (city) territorial staffing and social support center about changes in registration data;
- timeliness of documents for booking military conscripts at enterprises, institutions, organizations, and educational institutions for the mobilization period and for wartime;
- state of constant monitoring of compliance by conscripts and military personnel with military registration rules, and the conduct of educational work among citizens on the fulfillment of military registration obligations;
- notification of the district (city) territorial staffing and social support center about conscripts and conscripts who have violated the requirements of the law regarding the performance of military duty, in order to bring the guilty to justice in accordance with the law;
- keeping a log of the results of checks on the status of military registration of conscripts and those liable for military service and verifying registration data with data from district (city) territorial staffing and social support centers.
In addition, the following documents are checked during the inspection: orders of managers on the appointment of persons responsible for maintaining military records and their job descriptions; staffing list; orders of managers on the acceptance and dismissal of conscripts and military conscripts; management documents; administrative documents on the organization of issues subject to inspection; file cabinet of P-2 cards (personal cards of civil servants); documents of official correspondence with the district (city) territorial staffing and social support center; planning and reporting documents for the past and current years; documents on the processing of proposals for the list of positions and professions subject to reservation; list of positions and professions of military conscripts subject to reservation for the mobilization period and for wartime; information on the number of military conscripts who are reserved according to the lists of positions and professions, and military conscripts subject to reservation; certificate of deferment from conscription to the Armed Forces for the period of mobilization and for wartime, information on their issuance; logbook of the results of checks of the military registration status of conscripts and those liable for military service and verification of registration data with the data of district (city) territorial staffing and social support centers; receipts for receipt of military registration documents; lists of those liable for military service and conscripts, information on the accrual and receipt of wages by employees and other documents."
The heads of a legal entity or an authorized person appointed by them, responsible for organizing and maintaining military records (item 8 of Order No. 1487), are liable for violations of mobilization legislation (item 87 of Order No. 1487). Namely for:
- failure to submit to the TSC lists of citizens subject to registration at conscription stations;
- hiring conscripts who are not on military registration;
- failure to notify employees who are subject to military service of their call-up to the TSC;
- preventing workers from arriving at assembly points and draft stations on time;
- untimely submission of documents necessary for military registration, and failure to provide information about such persons.
Thus, it is the employer's duty to notify the TSC of the employee's employment (as well as dismissal). Within seven days from the date of issuance of the order on employment (dismissal), it is necessary to submit to the district (city) TSC a notification about changes in the registration data of conscripts, those liable for military service and reservists (paragraph 4, item 34 of Order No. 1487).
During martial law (special period), the amount of the administrative fine (Part 3, Article 210-1 of the Code of Administrative Offenses) for officials of enterprises and organizations for violating the military registration procedure and mobilization legislation is from 34,000 to 59,500 UAH.
Solution: how to organize staff and military records
To minimize risks and optimize processes, it is recommended to conduct a comprehensive HR audit, which will help identify problem areas and develop a plan to eliminate them.
The review should include an analysis of the documentation's compliance with legal requirements, an assessment of personnel processes and the effectiveness of their automation, an audit of military accounting, and an analysis of interaction with the TSC.
Special attention should be paid to employee reservation processes. A clear definition of positions and specialties to be reserved, as well as proper execution of necessary documents, will allow the company to retain key personnel.
HR audit in wartime is not just a document check, but also a strategic approach to HR management that will help reduce risks, maintain business continuity, and protect the company from penalties. A comprehensive analysis of HR processes allows you to adapt your business to the new reality and avoid possible problems associated with military accounting.
