Employment Relations in Kyrgyzstan: Employer Obligations Frequently Ignored

Employment relations in the Kyrgyz Republic are regulated by the Labour Code, as well as other legal and regulatory acts aimed at ensuring the legal protection of employees and creating fair working conditions.

However, despite the existence of a detailed legal framework, there are frequent cases of its disregard in actual practice. Employers, either deliberately or due to a lack of legal awareness, evade their established obligations, leading to systemic violations of workers' rights. This is manifested in unjustified use of fixed-term employment contracts, delays in wage payments, non-compliance with occupational safety regulations, denial of mandatory leave, unlawful dismissals, and other violations.

The purpose of this article is to draw attention to the most common employer obligations which, despite being mandatory, are often not fulfilled in practice.

Let us consider the following cases of non-compliance with labour standards:

1.Absence of a written or electronic employment contract

According to Articles 19 and 20 of the Labor Code of the Kyrgyz Republic, an employment contract must be concluded in writing or electronically before the start of work.
One of the most common and, at the same time, most dangerous violations of labor law in relation to employees is the absence or untimely conclusion of an employment contract. In modern labor law, the existence of an employment contract concluded in written or electronic form is not just a formality, but a key condition for ensuring the rights and guarantees of the employee. The absence of such an agreement entails a number of serious consequences that can negatively affect the employee's position both in the context of labor relations and in other areas. Below we will consider the main risks.

А) Lack of legal protection
In the absence of an employment contract, an employee is not formally considered to have entered into an employment relationship. This means that they cannot take advantage of the protective mechanisms provided by law. In the event of a conflict with an employer, for example, in the case of non-payment of wages, it will be extremely difficult for an employee to prove the fact of their employment. Without official confirmation of the employment relationship, it is difficult to go to court or file a complaint with state authorities.

B) Risks of non-payment or underpayment of wages
An employer who has not formalized their obligations in an employment contract can violate wage agreements with impunity — delay payments, pay less than the established amount, or refuse to pay at all. In addition, in the absence of a contract, the provisions of the Labor Code governing the terms and procedure for the payment of wages do not apply.

С) Loss of social guarantees
Without a signed employment contract, there are no mandatory deductions:

• pension contributions to the Pension Fund,
• social contributions to the Social Insurance Fund,
• contributions to compulsory health insurance.

This means that the employee does not accumulate work experience or pension rights, and in the future may be left without a pension or social security benefits.

D) No guarantees upon dismissal
An employee who is not officially registered can be dismissed at any time without explanation, compensation, or prior notice. They will also not be entitled to payment for unused vacation time, severance pay, or other compensation required by law.

E) Loss of entitlement to vacation and sick leave

Without an employment contract, an employee is not entitled to:

• annual paid vacation,
• sick leave,
• maternity leave and related benefits.

Formally, they simply do not have these rights.

F) No protection in the event of accidents at work

If an employee is injured or killed at work, no compensation or insurance payments will be made to them or their family. The employer can completely avoid liability by citing the absence of a formal employment relationship.

2. Employment record book

An employment record book is the main document of a standard form that records an employee's work history and length of service. If an employee does not have an employment record book, this can lead to a number of problems:

1. Their length of service will not be counted, which may result in a reduction in their pension or even a refusal to grant it.

2. Without an entry in the employment record book, it is more difficult to find a new job, especially if it is in the civil service or a position with special requirements.

3. Without an employment record book, it is difficult to prove that a person has actually worked, and in the event of a dispute with an employer, it will be more difficult to defend one's rights.

4. There may be difficulties in receiving various social benefits that depend on confirmed work experience.

3. Payment for overtime and holiday work

Work on weekends, holidays, and overtime hours is subject to mandatory payment or compensation in the form of additional time off (Article 50 of the Labor Code of the Kyrgyz Republic).

In accordance with Article 57 of the Labor Code, it is prohibited to engage employees who are engaged in heavy physical work, as well as work with harmful and/or dangerous working conditions, in overtime work.

However, in practice, these requirements are often violated, especially in small businesses. The reasons for this lie in a combination of factors:

• insufficient legal awareness on the part of both employers and employees;
• lack of properly executed employment contracts;
• failure to record and document actual overtime hours worked;
• difficulties in proving the fact of overtime work;
• the employer's desire to minimize tax and social obligations.

All this leads to systematic violations of employees' labor rights.

4. Annual paid leave

According to Article 68 of the Labor Code of the Kyrgyz Republic, an employee who has worked for 11 months is entitled to annual basic paid leave of at least 28 calendar days. If an employee does not use their leave, the employer is obliged to pay monetary compensation for the unused days of leave. Upon termination of employment, the employee is also entitled to compensation for all unused days of annual paid leave.

5. Occupational health and safety

According to Article 204 of the Labor Code of the Kyrgyz Republic, employers are required to ensure safe working conditions, provide appropriate training to employees, and issue personal protective equipment (PPE). However, in practice, these obligations are often not fulfilled, especially in industries such as construction, warehouse logistics, and manufacturing. Ignoring occupational health and safety requirements often leads to accidents in the workplace, injuries, and the development of occupational diseases.

6. Social insurance

Employers are required to register each employee with the Social Fund and pay monthly insurance contributions, which form the basis for future pension rights and social guarantees. However, in practice, it is common to divide wages into “official” and “unofficial” parts. This practice allows employers to reduce their tax and social security burdens, but has serious consequences for employees: lower pension accruals, difficulties in obtaining social benefits, and problems when applying for loans due to low official income levels.

7. Violation of dismissal procedures

Termination of an employment contract must be carried out strictly in accordance with the requirements of the law, as provided for in Articles 41–46 of the Labor Code of the Kyrgyz Republic. This includes compliance with established notice periods, the existence of legal grounds for dismissal, as well as the mandatory payment of compensation and final settlement. However, in reality, there are often cases where employees are forced to write a letter of resignation “of their own accord” or are dismissed without explanation and without proper settlement.

8. Contacting lawyers if your rights have already been violated

To summarize, it should be emphasized that in order to properly formalize labor relations and obtain the guarantees provided by law, an employee must conclude a written employment contract, familiarize themselves with its terms and conditions, and have an employment record book. The availability of properly executed documents ensures legal certainty of the employee's status, confirms their work experience, and serves as the basis for obtaining social and pension rights. However, if you are not paid your salary, have been dismissed without legal grounds, or have been denied compensation upon termination of your employment contract, it is important to seek professional help in a timely manner. The LEX law firm provides qualified legal support in such situations. The company's experienced lawyers will help you restore your violated rights, represent your interests in negotiations with your employer or in court, and provide full support for your case until the desired result is achieved.