The Labor Code of Turkmenistan is the main legal framework that governs employment agreements in the country. It outlines the rights and obligations of both employers and employees, including the types of employment agreements that can be established.

Standard Employment Contract

The standard employment contract is the most common type of employment agreement in Turkmenistan. It formalizes the relationship between an employer and an employee for a specific role or project. The contract typically includes details such as job title and duties, salary and benefits, working hours and schedule, vacation and leave entitlements, and termination clauses.

Fixed-Term Employment Contract

A fixed-term employment contract is used when an employer needs to hire an employee for a predetermined period. This contract must specify the duration of employment and the reason for the fixed term. However, fixed-term contracts cannot be used indefinitely to avoid providing standard employment contract benefits to the employee.

Part-Time Employment Contract

Part-time employment contracts are used for positions that require less than the standard 40-hour workweek. These contracts should clearly outline the reduced working hours and any adjustments to salary and benefits based on the reduced schedule.

Agreements Not Considered Employment Contracts

The Labor Code also excludes certain agreements from being classified as employment contracts. These include agreements of a civil nature, where services are provided for a one-time project or specific task, and positions on boards of directors or supervisory boards, unless the individual has a separate employment contract with the company.

This is not an exhaustive list, and other types of employment agreements may exist under specific circumstances. If you're unsure about the type of agreement you need, it's advisable to consult with a legal professional specializing in Turkmenistan's labor laws.

An employment agreement in Turkmenistan should clearly outline the rights and obligations of both the employer and the employee. Essential clauses that should be included are:

Parties to the Agreement

The employer (company name and registration details) and the employee (full name, passport information) should be clearly identified.

Job Details

The job title and a detailed description of the employee's responsibilities should be specified. The primary work location or if the role requires remote work should be indicated.

Remuneration and Benefits

The employee's base salary, including currency and payment frequency, should be outlined. Any benefits offered, such as health insurance, paid time off, bonuses, or allowances should be specified.

Working Hours and Schedule

The standard workweek (typically 40 hours) and any overtime regulations should be defined. The work schedule, including start and end times, breaks, and any shift work details should be specified.

Leave and Vacation

The employee's entitlement to annual leave (minimum of 30 calendar days) and other forms of leave, such as sick leave, should be outlined.

Termination Clauses

The grounds for termination by the employer and employee, along with required notice periods, should be specified. Severance pay terms (if applicable) should be outlined.

Dispute Resolution

A process for resolving any disagreements arising from the employment agreement should be established.

The probationary period is a significant initial phase in an employment relationship in Turkmenistan. It allows both the employer and the employee to assess suitability for the role. The Labor Code of Turkmenistan establishes the framework for probationary periods within employment agreements.

Duration

The maximum duration of a probationary period is clearly defined by law:

• 3 months for regular employees.
• 6 months for managerial positions such as heads of enterprises, chief accountants, branch heads, etc.

Purpose

The probationary period serves several purposes:

• Evaluation for the Employer: The employer can assess the employee's skills, qualifications, and work ethic to determine if they are a good fit for the role and the company culture.
• Assessment for the Employee: The employee can evaluate the job duties, work environment, and company culture to see if the position aligns with their expectations.

Termination During Probation

Both the employer and the employee have the right to terminate the employment contract during the probationary period with written notice (typically 3 days) without needing a specific reason. If the employer terminates the contract during probation, they are not obligated to provide severance pay unless otherwise stipulated in the employment agreement.

Importance of Clear Expectations

A well-defined probationary period clause in the employment agreement outlining expectations, performance evaluations, and communication channels is essential for a smooth transition into the role.

Note: Certain categories of employees are exempt from probationary periods, including:

• Individuals under 18 years old
• People with disabilities
• Recent graduates entering their field for the first time
• Employees in government positions

In Turkmenistan, the Labor Code forms the basis for employment agreements, but it doesn't explicitly mention confidentiality or non-compete clauses. Nevertheless, these clauses can be incorporated into employment agreements to safeguard an employer's legitimate business interests.

Confidentiality Clauses

Confidentiality clauses can be utilized to protect an employer's trade secrets, customer information, or other sensitive data that an employee may access during their employment. These clauses define the employee's duty to maintain confidentiality and prohibit them from disclosing such information to unauthorized individuals or entities.

While not explicitly regulated, Turkmen courts are likely to uphold confidentiality clauses as long as they are reasonable and protect a legitimate business interest. It is crucial to consult a legal professional familiar with Turkmenistan's labor law when drafting confidentiality clauses to ensure their enforceability.

Non-Compete Clauses

Non-compete clauses, which limit an employee's ability to work for a competitor after leaving the company, are not commonly used in Turkmenistan. There is a lack of clear legal precedent regarding their enforceability. If a non-compete clause is overly broad or restricts an employee's ability to earn a living in their field, it may be challenged in court.

Employers seeking to protect their interests after employment ends may consider post-termination restrictions. These clauses restrict specific activities, such as soliciting clients or employees, for a limited period after termination. Alternatively, retention agreements, which offer financial incentives to employees to stay with the company for a set period, can be a more enforceable alternative to non-compete clauses.

It's important to note that Turkmenistan's labor laws prioritize employee rights. Any clauses restricting an employee's future employment opportunities should be carefully considered and drafted by a legal professional specializing in Turkmenistan's labor law to ensure they comply with legal requirements and are enforceable.