Global HR Compliance in Kyrgyzstan

If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Kyrgyzstan Guide below will help you understand the nuances of labor legislation in the country.

Companies hire international workforce for various reasons but in most cases they are:

• entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
• hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.

Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.

If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Kyrgyzstan, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Kyrgyzstan and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.

We are experts in global workforce employment in , and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Kyrgyzstan.

See the guide below for a general overview of labor rules and regulations in Kyrgyzstan or contact us if you need to employ workers in Kyrgyzstan or would like to get more details.

Hiring and Firing Workforce in Kyrgyzstan Guide

# Employment contracts

Labor contract is a contract between employee and employer, which states commitment of an employer to provide an employee with the work as specified in the labor contract.

Labor contract shall be concluded for:

1. indefinite terms;
2. for fixed term not exceeding five years (fixed – term labor contract) unless other duration is set forth in this Code, other legislation.

Fixed – term labor contract shall be concluded in cases consistent with the Kyrgyz Republic legislation, and when indefinite terms of labor contract can’t be applied due to the nature and conditions of the work, including those:

• supervisor, deputy supervisor and chief accountants of the organizations regardless of their organizational and legal form and ownership form;
• for replacement of temporarily absent employee, when the latter will have his place reserved pursuant to legislation;
• for temporary (up to two months) and seasonal works when the work can be done within certain period (season) only due to natural conditions;
• for emergency cases to prevent accidents, wrecks, catastrophes and removing consequences thereof; other emergency cases;
• for works that are beyond normal run of the organization (reconstruction, assembling and starting and adjusting works, audit), as well as for works relevant to deliberately temporary (up to one year) increase in production or volume of services provided;
• persons employed by small and medium size businesses with staff up to 25 employees (in retail trade and household service organizations – up to 15 employees), as well as employed by employers – natural persons; with persons sent abroad for work;
• persons hired to organizations established deliberately for certain period of time or for execution of deliberately known work;
• persons hired for deliberately certain work in cases when completion (accomplishment) thereof cannot be determined by a certain date;
• for work directly relevant to internship and professional training for employee;
• students;
• part time employees;
• scientific, pedagogy and other employees, that concluded labor contracts for fixed – term work on a competitive basis upon the results of the tender conducted pursuant to legislation or regulations of the state agency or local governance bodies;
• when elected for a definite period of time in the board of the elected body or for elected position when remuneration is provided;
• or hired to do work directly relation to ensure operations of the members of elected bodies or officials in public management bodies and local governance bodies, in political parties and other public associations;
• creative employees from mass media, cinema, theatre and concert organizations, circuses and other persons involved in creation and (or) performance of works of art, professional athletes in accordance with the List of Professions approved by the Government of the Kyrgyz Republic;
• with retired by age, other persons that are allow to work for fixed term only due to medical statement;
• for public works.
Contract shall be deemed as concluded for indefinite period of time unless the labor contract states duration in writing. Contract shall be deemed as concluded for indefinite period of time when neither party requested termination of the fixed term contract and employee continues working after expiry of the contract.

Labor contract concluded for indefinite period of time cannot be renewed for fixed term without prior consent of an employee.

# Minimum (Statutory) Employment Rules and Regulations in Kyrgyzstan

# Hours of work:
Work time is a time within with an employee shall carry out labor responsibilities in compliance with the internal labor schedule rules or work schedule, or terms of labor contract. Work time shall be computed by setting duration norms for a calendar week (labor week) and within a day (work day, work shift).

Normal duration of work time may not exceed 40 hours a week unless otherwise stated in this Code.
Labor contracts upon agreement of the parties may set shorter duration of work time.

# Probation period:

When concluding labor contract the parties may agree to a test to check that the employee meets work requirements. The condition on such probationary period shall be set forth in the labor contract.

Absence of such condition in the labor contract means that the employee is hired without a probationary period. Employee subject for probationary period shall be treated in compliance with this Code and other normative acts, contract, collective-bargaining agreement and internal normative acts of the organization.

Probationary period shall not exceed three months, and for managers of companies and their deputies, chief accountants and their deputies, managers of branches, representative offices and other special structural departments of organizations it shall not exceed six months, if other is not set up by the law. Probationary period shall not include temporary disability period and other periods when employee was not at work place.

Such test shall not be applied for minors, disabled persons, winners of the competition, persons that graduated primary, secondary and high professional educational establishments and first starting work at this profession, elected persons, persons hired for seasonal work, for less than two months of work, persons transferred to work in another region or to another organization, other cases stipulated in other normative legal acts.

Unsuccessful probationary period enables employer to terminate labor contract with the employee before probationary period expires with three days written notice. Employer shall state in writing grounds for recognition of probation test failure by an employee. Employee may appeal employer’s decision in the court.

When the employer did not make a decision to terminate labor contract before the probationary period expires, the employee shall be regarded as passed probationary period, and afterwards labor contract could be terminated in compliance with general procedures. If an employee decides during probationary period that this work does not fit him, he may terminate labor contract upon own wish by giving a three days written notice to an employer.

# Annual leave:
Employees shall be granted annual principal paid leave for 28 calendar days. Annual principal paid leave longer than 28 days (extended principal leave) could be granted to employees pursuant to this Code and other laws.

Extended annual leave with duration more than 28 days shall be granted to:

1. civil servants pursuant to the Kyrgyz Republic legislation;
2. employees under 18 (including those accepted for professional training) and disabled persons – thirty calendar days. When an employee reaches age of 18 or disability is removed during the work year, in which an extended annual leave was granted, duration of the latter shall not be reduced;
3. employees of forest production and forestry – thirty calendar days. The government of the Kyrgyz Republic shall compile the list of industries, works, professions and positions that could be granted the right for an extended principal leave.

# Parental leave:
Women upon request and upon medical statement shall be given a leave on pregnancy and childbirth with the duration of seventy calendar days before childbirth and fifty-six (in case of complicated childbirth and seventy for birth of two or more children) calendar days after the birth, and paid public social insurance in the statutory amount.

The leave on pregnancy and birth shall be calculated in total and granted to the women regardless of the number of the days actually spent on leave prior to the childbirth. Working women upon request shall be granted additional unpaid maternity leave until child reaches the age of eighteen months. Parties of the labor agreement may agree to increase the maternity leave for eighteen more months.

Maternity leave could also be used in entirety or by parts by father, grandmother, grandfather and any other relative of the child or guardian de facto taking care of the child. Women or persons stated in paragraph two of this Article upon request may be granted an opportunity to work part time or at home during maternity leave. The above employees’ work place shall be reserved during maternity leave. Maternity leaves shall be added to general and professional work record (except when calculating pension on preferred conditions, for duration of work and other statutory cases).

# Overtime:
Overtime work is a work carried out by the employee upon employer’s initiative in excess of established work time (daily work, shift) duration, as well as work carried out in excess of normal quantity of work hours within the accounting period. Calling up to overtime work shall be done upon suggestion, order or consent of an employer and upon written agreement of an employee.

Overtime work shall be allowed in the following extraordinary cases:

1. works required for defense of the country or for prevention of production accidents or removal or subsequences of production accidents or natural disasters;
2. necessary works for public in the area of water, gas, heating, electricity supply, drainage, transportation, communication – for removal of unexpected circumstances that constraint normal functioning thereof;
3. necessity to carry out (complete) work which was not completed during normal work hours due to unexpected delay caused by technical production conditions, when failure to carry out (complete) such work may entail damage or destroyal of employer’s property, state- or municipally-owned property, or pose a threat to life and health of people;
4. carrying out temporary work to fix and recover mechanisms or facilities when disrepair thereof may lead to termination of work for a significant number of employee;
5. continue work when shift colleague does not show up, when no break is possible. In such cases employer shall immediately take steps to replace the shift person by another employee.

No overtime work for more than four hours within two days in a row shall be allowed for the same employee. It shall be prohibited to call up to overtime work the employees that carry out difficult physical work, or work in harmful or hazardous labor conditions. Disabled employee or pregnant women could be called up to overtime work unless such work is prohibited by medical statement. Minors shall not be allowed to work overtime.

# State minimum salary:
Kyrgyzstan’s minimum wage is 970 Kyrgyzstani som per month ($14). Kyrgyzstan’s minimum wage was last changed in January 2015.

# Employee dismissal:
The following are the grounds for termination of labor contract:

1. agreement of the parties;
2. expiry of terms of the labor contract;
3. employee’s initiative;
4. employer’s initiative;
5. request or agreement of the employee to be transferred to work to another employer or transfer to elected (work) position;
6. circumstances beyond control of the parties.
7. refusal of the employee to be transferred to another work due to health state backed up with medical statement;
8. refusal of the employee to continue work due to change in significant labor conditions;
9. refusal of the employee to continue working in the organization due to change of the owner, change of accountability (supervision agency) and reorganization;
10. refusal of the employee to be transferred due to move of the employer to another locality.

Labor contract could be terminated on other grounds in compliance with this Code and other legislation. In all cases the last day of work shall be considered as a dismissal date.

Termination of labor contract shall be formalized by issuance of an act (order, resolution) by the employer. Termination of labor contract due to the reasons stated in the Labour Code shall be followed by severance payment in the amount not less than two average monthly wages. Labor contract or collective-bargaining agreement may provide for other cases when severance payment is provided in regular or higher size.