- Overview: Turkmenistan
- Global HR Compliance
- Global PEO and payroll
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Turkmenistan
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Turkmenistan Guide below will help you understand the nuances of labor legislation in the country.
When the company is planning to enter a new foreign market of Turkmenistan and has a need to employ a local national there, the first question to answer is how it is going to make local hires.
We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.
This solution helps you employ your global sales force in Turkmenistan as well as in other countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.
Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.
So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Turkmenistan instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.
Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.
Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Turkmenistan.
We are experts in global workforce employment in Turkmenistan, 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 Turkmenistan.
See Hiring and Firing Workforce in Turkmenistan Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Turkmenistan or would like to get more details.
Hiring and Firing Workforce in Turkmenistan Guide
# Employment Agreements
Permanent employment contracts
If the employment contract is not the stipulated period of validity, the contract is considered to be concluded for an indefinite period.
Signs of an employment contract
- Implementation of employee work performance in a particular occupation, profession, qualification or position according to the job descriptions
- The performance of duties according to the internal labor regulations enterprise
- Receipt of employee salaries in accordance with the quantity and quality of labor, the complexity of the work
- Availability of working conditions provided by the legislation of Turkmenistan.
Casual employment contracts
The terminal (fixed-term) employment contract is signed in cases when employment relationships have no permanent character or cannot be established sine die (indefinite) taking into account nature of the forthcoming work or conditions of its accomplishment if other is not provided by this Code and other regulatory legal acts of Turkmenistan.
Maximum cumulative duration of successive fixed-term contracts is 60 months.
Although the Labor Code allows for collective bargaining, in practice it is not used.
# Employment Termination and Severance Pay (Dismissal)
The employee has the right, on his own initiative, to terminate the employment contract concluded for indefinite period, as well as a fixed-term employment contract before its expiration, in writing by notifying the employer in advance. Upon expiration of the warning period dismissal, the employee has the right to stop work, and the employer is obliged to give the employee work book and make a payment with him.
An employment contract may be terminated at the initiative of the employer in the following cases:
- Liquidation of the enterprise or termination of activities by an individual employer
- A reduction in the number or staff of workers, including in connection with changes in production technology, organization of labor, reduction in the volume of work
- The employee’s inconsistencies with the position held or the work performed due to insufficient qualifications, including those confirmed by the certification results
- Change of the owner of the enterprise
- Absence from work for more than four months in a row due to temporary disability, not counting the period of maternity leave, unless the legislation of Turkmenistan establishes a longer term for maintaining a place of work (position) for a specific disease.
- Systematic non-performance by an employee without valid excuses of employment duties assigned to him by the employment contract or the internal labor regulations of the enterprise, if the employee has previously been subject to disciplinary measures
- Absenteeism, including absence from work without good reason for more than three hours during the working day
- Appearance at work in a state of alcoholic, narcotic or other toxic intoxication
- The disclosure of secrets protected by the legislation of Turkmenistan (state, commercial, official and other), which became known to the employee in connection with the performance of his job duties
- Commission at the place of work of embezzlement of property, embezzlement, its deliberate destruction or damage established by a valid court verdict or decision of the body whose competence includes the imposition of an administrative penalty
- Violation by an employee of labor protection requirements, if this violation entailed grave consequences (work accident, accident, catastrophe) or deliberately created a real threat of such consequences
- In case of revealing the fact of submission by the employee to the employer of forged documents or knowingly false information when concluding an employment contract
- Stipulated by the employment contract with the head of the enterprise, members of the executive body of the enterprise.
An employment contract can be terminated by written agreement of the parties of employment contract at any time.
# It is prohibited to dismiss
It is prohibited to dismiss: pregnant women and/or women on maternity leave, workers with family responsibilities, minors.
# Notice period
The employee has the right to terminate the employment in writing by notifying the employer two weeks in advance.
The employer is obliged to notify the employee of his intention in writing to terminate the employment contract within the following terms:
- Not later than two months in case of termination of the employment contract in connection with liquidation the enterprise or the termination of activities by the employer-individual, as well as reduction in the number or staff of employees (including due to changes in production technology, labor organization, reduction in the volume of work)
- Not later than two weeks in case of termination of the employment contract in connection within consistency of the employee with the work performed due to insufficient qualifications
- Not later than two weeks before the expiration of the fixed-term employment contract
- In cases of termination of the employment contract in connection with the employee’s illegal actions, the employer notifies the employee at least three calendar days in advance of the termination labor relations.
# Severance payments
Severance pay is paid upon termination of an employment contract:
- Upon termination of the employment contract at the initiative of the employer
- Due to circumstances beyond the control of the will of the parties
- In connection with the employee’s refusal to continue work.
Persons working part-time are not paid severance pay.
Severance pay in the amount of two weeks average wages is paid employees upon termination of an employment contract in connection with:
- The conscription or admission of an employee to military service, the direction of the employee to work, the performance of which is stipulated by the legislation of Turkmenistan on military duties and military service
- Reinstatement at work of an employee who previously performed this work
- The employee’s refusal to transfer to another job that is not contraindicated for him health condition on the basis of a medical certificate, or the employer’s absence of the relevant work
- The refusal of the employee to transfer to work in another location to which employer is moving
- The employee’s refusal to continue working in connection with a change in the working conditions of the contract
- Recognition of an employee as completely incapacitated for work in accordance with medical conclusion.
Employees released upon termination of an employment contract in connection with the liquidation of the enterprise, the termination of activities by the employer, reducing the number or staff of employees of the enterprise:
- Severance pay is paid in the amount of the average monthly salary
- The average salary for the period of employment is preserved, but not more than two months from the date of dismissal, taking into account the payment of severance pay.
# Employee Benefits and Contributions
Mandatory benefits required by law to be provided by an employer: Public holidays’ entitlement, annual leave, sick leave, maternity and parental leave.
# Probationary period
Employer has the right to establish probation period to the worker. The probationary period cannot exceed 3 months for workers and 6 months for managerial employees.
Overtime is considered work performed by an employee at the initiative of the employer in excess of the established duration of working time, daily work (shift), and work beyond the normative number of working hours for the accounting period (month, quarter, year).
Overtime work can be performed with the written consent of the employee, taking into account the opinion of the trade union or other representative body of workers.
# Work hours
Normal working hours cannot exceed 40 hours per week. The employer is obliged to keep track of the time actually worked by each employee.
# Annual Leave
Working citizens of Turkmenistan have the right to an annual basic paid vacation in accordance with the Labour Code.
The annual basic vacation is established for a period of thirty calendar days per year.
For teachers and heads of educational institutions of all types, as well as for the disabled, the annual vacation is set for forty-five calendar days.
Scientists who hold regular positions in scientific organizations, institutions and enterprises and have the scientific degree of Doctor of Science, the annual vacation is set for forty-five calendar days, with the degree of Candidate of Science – thirty-six calendar days.
The annual basic vacation should be given to the employee every year. The employer must notify the employee about the time of the beginning of the annual basic vacation not later than fifteen days before the start of the holiday.
The right to an annual basic vacation during the first year of work comes after eleven months of continuous work from the date of the conclusion of the employment contract. The annual basic vacation before the expiration of eleven months of continuous work should be provided at the request of the employee
# Sick Leave
Insured persons may receive five days of paid leave to care for a sick family member; seven days in certain cases or 14 days if caring for a child younger than age 14 (or for the duration of the illness if the child is hospitalized).
Fourteen days of unpaid leave is provided to women caring for children younger than age 3, a woman or a single parent raising two or more children younger than age 14, or a man whose wife is on maternity leave. Workers with disabilities are entitled to 30 days of unpaid leave.
# Parental Leave
Maternity rights and leaves
Women in Turkmenistan receive 112 calendar days of social leave for pregnancy and childbirth, 56 days prior to and 56 days after childbirth. If the mother or child experiences medical complications, the mother’s leave can be extended up to 16 calendar days. Additionally, if the woman has multiple births, then maternity leave is extended by 40 days for a total of 152 calendar days. Social leave allows mothers to extend their time off after their paid leave has ended. After paid social leave, the employee-mother can take unpaid social leave until the child reaches three years old. She has the right to return to work at any time, and her position will be kept open until the child reaches three years old. A childcare leave can be used in whole or in part.
Paternity rights and leaves
A parental leave may also be granted to the person actually caring for the child, including the father, the child’s guardian, and also in cases specified by the legislation of Turkmenistan, to another relative.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Turkmenistan by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.