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Friday, 30 September, 2022

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New version of Labor Code to be developed in Kyrgyzstan –

In Kyrgyzstan, business proposes to reform labor legislation. This was reported in the International Business Council.

The IBC emphasized that one of the main areas that investors in any sector of the economy around the world are interested in is labor legislation. Business is always interested in how things are with the regulation of labor relations in a particular country.

In Kyrgyzstan, the Labor Code largely retains elements of the Soviet Labor Code.

This approach to the regulation of labor relations is expressed in the priority of the interests of the employee over the employer.

“Such an imbalance and outdated provisions of the Labor Code affect the investment attractiveness of Kyrgyzstan and its position in international business rankings, because many of them contain an indicator on the regulation of labor relations,” said Askar Sydykov, head of the IBC.

He recalled that the market economy dictates its own rules, here the balance of interests of the employee and the employer is maintained – without bias in one direction or another. In many rapidly developing and developed countries, there is almost complete freedom to discuss labor relations within an employment contract.

There are many examples of how outdated the labor legislation of Kyrgyzstan is. It does not contain any statute of limitations for the recovery of wages, which leaves room for abuse.

There were cases when employees after 10-15, or even 20 years, collected wages in full and also fines with sanctions.

The situation with penalties for late issuance of a work book can lead to the same consequences. Although the very concept of “work book” in the modern world is no longer relevant, everyone is switching to an electronic format.

The requirements to submit monthly reports to employment services have long been outdated. Today it is not easy to issue a fixed-term employment contract under the law, although this is necessary for many employers. Labor relations are often not formalized – there is informal remuneration. As a result, the shadow economy is growing, the rights of neither the employee nor the employer are protected, and social payments are not deducted.

Business believes that the principle of freedom of contract, which is contained in civil law, should be largely present in the framework of labor law.

“If we make labor legislation convenient, balanced and modern, taking into account the principles of a market economy, then employers themselves will seek to legalize labor relations in the form of employment contracts,” the head of the IBC believes.

Accordingly, the volume of social contributions will increase, the rights of both the employee and the employer will be better protected. Plus, the state will receive more statistical and other information on employment.

Askar Sydykov voiced his ideas at a meeting of the Investment Council. Chairman of the Cabinet Akylbek Zhaparov supported the idea. It was decided not just to amend, but to create a completely new edition of the Labor Code, based on the principles of a market economy.


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