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Kyrgyzstan

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Kyrgyzstan

Notice period

In Kyrgyzstan, the Labor Code establishes minimum notice periods for employment termination, with variations depending on the type of contract and the initiating party.

The Kyrgyz Republic Labor Code is the primary legal foundation for notice periods. Collective bargaining agreements within specific sectors may establish different or additional notice periods.

Minimum Notice Periods

Employee Initiated Termination

For indefinite term contracts, the Labor Code grants employees the right to terminate by providing written notice to the employer at least two weeks (14 calendar days) in advance.

Employer Initiated Termination

During the probationary period (maximum 3 months for regular employees and 6 months for managers/senior positions), either party can terminate the contract with just three days' written notice stating the reason for termination.

For indefinite term contracts, the minimum notice period for the employer depends on the reason for termination. If the dismissal is due to redundancy or company restructuring, the notice period is based on the employee's length of service: less than one year requires one month's notice, one to five years requires two months' notice, and five or more years requires three months' notice. For dismissal for other reasons outlined in the Labor Code (e.g., employee misconduct), the employer must provide written notice with details of the termination reason, but the Labor Code does not specify a minimum notice period. However, adhering to a reasonable notice period is generally considered good practice.

For fixed-term contracts, the notice period is generally shorter than for indefinite term contracts and should be clearly defined within the contract itself. In the absence of a specified notice period, termination notice can be provided based on the length of the fixed-term contract.

Important Considerations

The notice period serves as a timeframe for the employee to continue working (or be placed on paid leave) and allows for handover of responsibilities and a smoother transition. During the notice period, both employer and employee are obligated to fulfill their contractual duties (work performance for the employee and salary payment for the employer). In cases of serious misconduct by the employee or circumstances allowing for summary dismissal, the notice period may not apply.

Severance pay

In Kyrgyzstan, the Labor Code outlines circumstances where employers may be required to provide severance pay (выходное пособие) to employees upon termination of their employment. The primary legal foundation for severance pay in Kyrgyzstan is found within the Kyrgyz Labor Code, specifically Articles 123 and 125.

Eligibility for Severance Pay

Employees are entitled to severance pay in the following circumstances:

  • Dismissal due to redundancy or company liquidation: This includes situations where the employee's job becomes unnecessary due to changes in the organization or the entire company ceases operations [Labor Code, Article 123].
  • Dismissal due to the employee's health condition preventing them from fulfilling their work duties: This requires supporting medical documentation [Labor Code, Article 123].
  • Dismissal due to the employee's insufficient qualifications preventing them from fulfilling their work duties: The employer must demonstrate that the employee's qualifications or skills are inadequate to perform the job requirements [Labor Code, Article 123].
  • Conscription for military service or alternative civilian service: The employee is called to serve in the military or engage in alternative civilian service [Labor Code, Article 125].

Calculation of Severance Pay

The amount of severance pay is calculated based on the employee's average monthly earnings. Here's how it's determined under the Labor Code:

  • Redundancy, Health, Insufficient Qualifications: The employee is entitled to at least the equivalent of two average monthly wages [Labor Code, Article 123]
  • Conscription for Military or Alternative Service: The employee is entitled to at least the equivalent of three average monthly wages [Labor Code, Article 125].

Important Considerations

Severance pay is distinct from other payments that may be due upon termination. Some collective bargaining agreements may specify alternate severance pay provisions. Employers are required to make the severance payment within seven days from the date of the employee's termination [Labor Code, Article 123].

Termination process

In Kyrgyzstan, the Labor Code outlines specific grounds upon which an employer can lawfully terminate an employee's contract. These include mutual agreement between the parties, expiration of a fixed-term contract, the employee's initiative, and the employer's initiative. The latter can include reasons such as company liquidation or reduction of staff, the employee's failure to meet job requirements or insufficient qualifications, repeated failure to fulfill work duties without a valid reason, absenteeism without a valid excuse, appearing at work under the influence of alcohol, drugs, or other intoxicants, revealing confidential information or trade secrets, and committing an act at work that results in the employer losing trust in the employee.

Termination Procedure

The termination procedure in Kyrgyzstan involves a written notice from the employer. The notice must clearly state the reason(s) for termination and reference the relevant section of the Labor Code.

Special Protections

The Kyrgyzstan Labor Code provides special protections to certain categories of employees, making their termination more difficult. These include pregnant women, women on maternity leave or leave to care for a child under three years old, single parents with children under 14 years old (or a disabled child under 16), employees suffering from temporary disability, and trade union members.

Wrongful Termination

If an employee believes they were terminated without legal justification, they have the right to challenge the termination in court. If the court finds the termination unlawful, they may order reinstatement of the employee or compensatory damages.

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