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Business proposals are included in the draft Labor Code

June 30, 2023

The International Business Council took an active part in the discussion of the draft of the new edition of the Labor Code of the Kyrgyz Republic, developed by the Ministry of Labor, Social Security and Migration.

The draft Labor Code contains proposals and recommendations that have been reached during tripartite discussions of the working group on reforming the country's labor legislation. Three groups participated in the tripartite social dialogue: employers' organizations, trade unions and the state.

“A number of proposals from the International Business Council were included in the draft Labor Code. In particular, the statute of limitations for disputes over the recovery of wages is three years from the day when the wages should have been paid in accordance with the legislation of the country,” said Cholpon Joldosheva, Head of the Economics and Finance Sector at IBC, a member of the working group.

If the employer violates the deadline for paying wages, paying for vacation, paying the settlement upon dismissal and other payments, the employer is obliged to pay additionally for each overdue calendar day 0.25% of the unpaid amount of money on the day of the actual calculation.

The concept of “combined remote work” has been introduced into the draft Labor Code. This is the performance of a labor function defined by an employment contract, both at the location of the employer and through remote work.

Many editorial proposals received from IBC members were accepted. For example, a rule has been laid down to recognize electronic documentation as an official document and a rule has been finalized on termination of an employment contract at the initiative of the employer.

Thus, the IBC protected the interests of employers and did not allow the inclusion in the draft Labor Code of a number of proposals that, if adopted, could adversely affect the rights of employers.