Legal Digest of May: Digital Law, Employee Reservation, and New Supreme Court Practice

Martial Law and Mobilization

In May, the President of Ukraine signed decrees extending martial law and general mobilization. Accordingly, the powers of military administrations, special movement regulations for citizens, document checks, and the possibility of compulsory seizure of property for defense needs remain in force. For businesses and citizens, this means the continuation of mobilization rules, employee reservation procedures, and special operating regimes for critical infrastructure.

New Version of the Civil Code: Towards European Law

One of the most significant legal events was the adoption in the first reading of the draft of the new Civil Code of Ukraine. This reform is one of the largest-scale reforms since Ukraine’s independence. The draft provides for:

• integration of commercial law directly into the structure of the Civil Code;
• gradual abandonment of the Commercial Code;
• adaptation of Ukrainian legislation to EU standards;
• expansion of freedom of contract and the principle of good faith between parties.

These changes are effectively shaping a new architecture of private law in Ukraine, where the key element is the balance between business freedom and the protection of the rights of legal relationship participants.

Special attention is devoted to the digitalization of private legal relations. For the first time, the draft law comprehensively regulates smart contracts, electronic transactions, and digital assets. The proposed changes include:

• recognizing digital form as a полноценной alternative to paper documents;
• regulating issues of digital inheritance;
• introducing new mechanisms for personal data protection;
• simplifying the use of electronic evidence in court proceedings.

Law is gradually moving into the digital sphere, where electronic tools are becoming equal to traditional legal forms.

Employee Reservation Procedures Will Become More Automated

Among the important changes is a new employee reservation procedure for enterprises cooperating with the Ministry of Defense. Reservation status may now remain valid for the entire duration of a contract without the need for regular re-submission of documents. Some procedures have been transferred to an electronic format through enterprise e-cabinets, which should reduce paperwork for businesses. The list of professions eligible for reservation has also been expanded.

New Requirements for Medical Institutions

The Ministry of Health has updated the licensing requirements for medical practice. For certain types of medical institutions, the following may now become mandatory:

• backup power supply sources;
• autonomous water supply systems;
• technical solutions ensuring uninterrupted operation of surgical and intensive care units.

These changes are related to the functioning of the healthcare system under martial law conditions and the risks associated with energy instability.

Energy Sector and New Business Tariffs

In the energy sector, approaches to tariff formation for enterprises have been revised. Some of the changes concern regions experiencing increased infrastructure pressure due to shelling. Businesses are also being offered incentives to invest in their own power generation and energy storage systems.

Education During Wartime: New Safety Regulations

The Ministry of Education has approved new safety requirements for the educational process. One of the key conditions for conducting offline classes is the availability of shelters. The regulations also establish procedures for responding to air raid alerts and allow the recognition of educational results obtained by Ukrainian children abroad.

Judicial Practice: What the Supreme Court Has Changed

During the meeting, the lawyers also analyzed a number of significant Supreme Court decisions, including:

• disputes regarding electronic microloans and the need to verify electronic evidence;
• eviction of children during wartime;
• classification of a trading place as a service rather than a lease;
• disputes concerning neighboring land development and sunlight obstruction;
• establishment of caregiving as grounds for deferment from mobilization;
• issues related to alimony and fulfillment of obligations during wartime.

Particular attention was drawn to the Supreme Court’s position on electronic agreements: a simple PDF printout without original electronic data and metadata cannot automatically be considered proper evidence of contract conclusion.

International Register of Damages: New Opportunities for Business

The participants also discussed the launch of new categories within the International Register of Damages. Applications may now be submitted not only by individuals, but also by businesses and legal entities affected by the war. In addition, some regions have already introduced local compensation programs for entrepreneurs who lost property or equipment due to shelling.

We continue monitoring legislative changes and current judicial practice in order to keep our clients informed about the most important legal developments in a timely manner.