Hiring guide in Kyrgyzstan

What should I know about hiring in Kyrgyzstan?

If you want to grow your company or establish a presence in Kyrgyzstan, you must first understand the laws and employment practices of the country. There are a few things you should be aware of before hiring your new Kirghiz employee, even though some steps in the hiring process in Kyrgyzstan could be comparable to those in your country.

A written employment contract outlining the employee’s responsibilities, working conditions, pay, and benefits must be given to all new hires in Kyrgyzstan. The minimum wage, working hours, paid time off, and termination procedures should all be taken into account since they are governed by Kyrgyzstan’s labour regulations.

The biggest advantage of hiring new employees in Kyrgyzstan is the country’s large pool of skilled workers who offer competitive wages. However, it is important to note that Kyrgyzstan’s labour laws and regulations are still developing, and it is essential to always stay on top of any changes in labour policies.

Why is Kyrgyzstan a good choice for finding remote employees?

Kyrgyzstan can be a good choice for finding remote employees for many different reasons. The country has a large pool of skilled workers, many of whom are fluent in English and have experience working with global teams.

Hiring remote workers in Kyrgyzstan can also be cost-effective for companies because of the lower cost of living in the country. Businesses can, therefore, access high-quality talent at a lower cost than they might find in other countries.

Moreover, Kyrgyzstan’s time zone can be convenient for businesses in Europe and Asia, which makes communication and collaboration across countries easier.

Kyrgyzstan has also made significant investments in its telecommunications infrastructure in recent years. High-speed internet is widely available, which means that remote workers can stay connected with their clients and colleagues without any issues.

How can Native Teams help you hire in Kyrgyzstan?

With Native Teams’ Employer of Record service, you can easily hire employees from abroad without establishing a separate local entity. Our legal experts will make sure your new employee will be hired according to all local employment laws and regulations.

---

Hire your first Kyrgyz employee with Native Teams.

---

Legal requirements for hiring in Kyrgyzstan

If you’ve directed your efforts towards hiring new team members from Kyrgyzstan, here are the labour laws and regulations you’ll need to follow. 

Legal framework

Types of employment contracts

There are 2 main types of employment contracts: indefinite and fixed-term contracts. Indefinite contracts are the standard type and don’t have a specified end date. On the other hand, fixed-term contracts are only permitted under specific circumstances, such as for temporary or seasonal work, and must clearly state the duration of the employment. Employers are prohibited from using fixed-term contracts as a means to bypass the obligations associated with indefinite contracts.

Content of an employment contract

The employment contract must include specific details about the job, such as job duties, work location, salary, working hours, and other essential terms.

Other elements include the job title, the employee’s work location, the contract’s duration (whether fixed or indefinite), payment terms (including wages and frequency), working hours, rest periods, and any probationary period. 

The contract must also specify health and safety requirements and outline the conditions under which either party may terminate the agreement. Any changes to the contract must be mutually agreed upon and documented in writing.

---

 Download a free employment contract for Kyrgyzstan through Native Teams.

---

Oral, written or electronic employment contracts

The Labour Code mandates that the preferred and legally required form of the employment contract be written. 

Although oral contracts are recognised under Kyrgyz law, they carry risks due to the absence of tangible evidence of the agreed terms. Oral agreements may be valid, especially in temporary or informal employment situations, but the Labour Code strongly encourages written contracts to avoid misunderstandings.

If an employment relationship begins with an oral agreement, the employer must formalise the agreement in writing as soon as possible. Failure to do so can result in disputes and legal challenges, with the court potentially favouring the employee in cases of disagreement.

Kyrgyzstan has also embraced electronic employment contracts in response to technological advancements. These contracts are legally binding if they comply with electronic signature laws.

Working hours

The standard working week is 40 hours, typically spread across 5 or 6 days, depending on the employer’s policies or collective agreements. Employment contracts must specify the number of working hours in alignment with this statutory limit or any agreed-upon deviations. 

Overtime work in Kyrgyzstan is closely regulated. The Labour Code stipulates that employees can’t be required to work more than 4 hours of overtime over 2 consecutive days or exceed 120 hours of overtime per year. Any overtime must be compensated at a premium rate, typically at least 1.5 times the standard wage unless otherwise agreed upon in collective or individual contracts. Employees must consent to overtime work, except in emergencies such as natural disasters or urgent public service needs.

The law also includes specific provisions for certain groups of employees. For instance, minors, pregnant women, and employees with disabilities are entitled to reduced working hours. Minors under 16 years old can work a maximum of 24 hours per week, while those aged 16 to 18 may work up to 36 hours per week.

Night work

The Kyrgyz Labour Code outlines specific regulations regarding night work, which is defined as work performed between 10 PM and 6 AM. Employers must compensate employees for night work at a rate of at least 1.5 times their regular hourly wage unless a higher rate is stipulated in a collective bargaining agreement or individual contract. 

Certain categories of employees are exempt from night work. Under Kyrgyz law, pregnant women, employees under 18 years old, and individuals with disabilities are prohibited from working during night hours. Employees working night shifts must undergo regular medical check-ups, with the employer covering the costs. This is particularly important in sectors where night shifts are common, such as healthcare, manufacturing, and security.

Breaks and types of leaves

Employees are entitled to a minimum of 28 calendar days of paid annual leave, a requirement that must be included in the employment contract, along with details on accrual, timing, and usage.

While employers may negotiate when the leave is taken, the law mandates that at least part of the leave—no less than 14 consecutive days—must be granted each year. Unused leave can be carried over to the next calendar year, but it can’t be forfeited, and employers are prohibited from offering financial compensation in place of leave, except upon termination of employment.

In addition, employees working more than 4 consecutive hours are entitled to a break of at least 30 minutes for rest and meals. This break is unpaid and doesn’t count as working time.

Annual leave

The Code mandates a minimum of 28 calendar days of paid annual leave, which includes weekends but excludes public holidays. This leave is an essential aspect of the employment relationship and must be clearly outlined in the employment contract to avoid any confusion. The contract should specify how annual leave is accrued when it can be taken, and the process for requesting leave.

Employees are typically entitled to take their leave after completing 11 months of continuous employment, though employers may allow leave to be taken earlier if agreed upon. The contract should specify these terms, ensuring that once the employee has worked the required period, they are eligible to use their accrued leave. 

The leave can be split into parts if both parties agree, but one portion must be at least 14 consecutive days to guarantee the employee a substantial rest period. Notably, the law prohibits compensating employees for unused leave during the employment period, except in the case of termination.

Employers are responsible for ensuring that leave is taken within the calendar year. However, with the employee’s consent or in the event of business needs, leave can be deferred, but this deferral cannot exceed 18 months. The employment contract should address the deferral of leave, outlining the conditions under which it can occur and ensuring that the employee retains the right to take their leave in subsequent years.

Public holidays

Public holidays in Kyrgyzstan include January 1 for New Year’s Day, March 8 for Women’s Day, March 21 for the People’s Holiday of Nooruz, May 1 for Labour Day, May 5 for Constitution Day, May 9 for Victory Day, August 31 for Independence Day, and November 7 for the anniversary of the Great October Socialist Revolution. Additionally, Muslim holidays such as Orozo Ait and Kurman Ait, determined according to the lunar calendar, as well as January 7 for Orthodox Christmas, are recognised as non-working days.

Salary

The law mandates that the minimum wage must be sufficient to meet the subsistence level for an able-bodied individual and is periodically adjusted to reflect economic conditions. However, the minimum wage doesn’t account for additional payments, such as bonuses or allowances for work under unusual conditions. Employees who work the full required hours and meet performance standards must receive at least this legally established minimum salary. For 2024, the national minimum wage increased from KGS 2,337.00 to KGS 2,460.00 per month.

---

To calculate the salary and taxes in Kyrgyzstan, click here.

---

Sick leave

Employees are entitled to sick leave when they are unable to work due to illness, injury, or other health-related issues. To initiate sick leave, the employee must present a medical certificate from an authorised medical institution, which serves as proof of the employee’s condition and justifies their absence from work.

Sick leave is fully paid if the employee submits the required documentation from a licensed healthcare provider. Employers are responsible for compensating employees during their sick leave, ensuring their earnings remain in line with national regulations. The length of sick leave varies depending on the severity of the illness, with no fixed duration for recovery periods. 

Sick leave is distinct from the employee’s regular annual leave, and it isn’t counted as part of the annual leave entitlement. During sick leave, the employee’s job and salary are legally protected, meaning that an employer can’t terminate an employee based solely on their use of sick leave.

Parental leave

Women are entitled to fully paid maternity leave, supported by a medical certificate. This leave covers 70 calendar days before the expected date of delivery and 56 calendar days following childbirth, or 70 days in cases of complications or multiple births. Payment during maternity leave is provided through public social insurance.

In addition to maternity leave, working mothers and other caregivers can request unpaid parental leave until the child reaches 18 months of age. With the employer’s consent, this leave can be extended for an additional 18 months, allowing for up to 3 years of leave. Parental leave can be taken in full or in parts, offering flexibility to caregivers. The law also allows other family members, such as fathers, grandparents, or legal guardians, to take parental leave if they are responsible for the child’s care.

During both maternity and parental leave, employees’ jobs are legally protected. Employers are prohibited from terminating employment during this period, ensuring that employees have job security while fulfilling their parental responsibilities.

Methods of employment termination

Termination can occur by mutual agreement, when a fixed-term contract expires, at the initiative of either the employee or employer or due to circumstances beyond either party’s control. Each of these grounds requires adherence to strict procedural requirements to ensure that the termination is lawful and justified. 

Termination by mutual agreement allows for the contract to end whenever both the employer and employee agree to part ways. This approach is often considered the most amicable, offering both parties the flexibility to negotiate terms that suit their needs, such as the final day of employment and any severance or benefits owed. This type of termination must be formalised in writing, with clear communication between the parties involved.

In the case of a fixed-term contract, the employment relationship automatically concludes when the contract expires. The employer must notify the employee 3 days before the contract’s end. If the contract is tied to the completion of a specific task or project, it ends once that task is finished. Fixed-term contracts can also be terminated earlier by mutual agreement or if other legal grounds apply.

Ordinary dismissal by the employer

The valid grounds for dismissal include staff reduction, organisational restructuring, the employee’s failure to meet job qualifications, or health conditions that prevent the employee from performing their duties. 

When an employer seeks to terminate an employee, they are required to provide advance notice, typically lasting 1 month, for dismissals related to liquidation or reorganisation. If the dismissal is due to health issues or the employee’s lack of qualifications, the employer must offer alternative work, if available. If no alternative position exists, or if the employee declines the offer, the employer may proceed with termination, reducing the notice period to 2 weeks. 

In addition, the dismissal must be communicated in writing, with a clear explanation of the reasons for termination and any compensation the employee is entitled to, such as severance pay, which is typically 2 months’ average salary.

Notice period and challenging the dismissal

For employer-initiated dismissals, the standard notice period is 1 month, which applies to most termination situations, such as layoffs due to liquidation, reorganisation, or staff reductions. During this notice period, the employee continues to fulfil their job duties, and all terms of their employment contract, including wages and benefits, remain in effect.

In cases where the dismissal is due to an employee’s failure to meet job qualifications or health-related issues, the notice period may be shortened to 2 weeks, provided there is appropriate medical certification or performance documentation justifying the termination.

In addition, during the notice period, employers must grant the employee time off, typically 1 day per week, to search for new employment without reducing their wages. Both parties may also mutually agree to shorten the notice period, in which case the employer must compensate the employee for any unused notice days based on their daily wage.

Rights and obligations of unemployed individuals

Unemployed individuals are granted various rights to support their job search and ensure financial security during unemployment. These rights, outlined in the Labour Code, include access to unemployment benefits, assistance from employment agencies, and opportunities for retraining. 

Individuals who lose their jobs through no fault of their own, such as company liquidation or staff reduction, are entitled to unemployment benefits for a specified period. To qualify for these benefits, individuals must register with the state employment service within 10 days of termination. 

During their period of unemployment, individuals receive financial support from the government through unemployment insurance or direct payments, depending on the circumstances of their job loss.

Severance pay

Severance pay provisions ensure that employees receive compensation when their employment is terminated under specific conditions. Severance pay applies in situations such as staff reductions, organisational liquidation, or similar circumstances. Employees are entitled to severance pay amounting to at least 2 months’ average wages. 

However, severance pay isn’t guaranteed in all termination cases. For example, employees dismissed due to insufficient qualifications, health issues, or disciplinary reasons may not receive severance, or the amount may be adjusted based on the circumstances. In cases of organisational restructuring, such as layoffs or liquidation, severance pay is required by law. 

Furthermore, employees who register with the state employment agency within 10 days of their dismissal can extend their severance-related benefits for up to 3 months if they remain unemployed.

Prohibition of competition

Employers often incorporate non-compete clauses into these contracts to protect business interests, particularly regarding intellectual property, confidential information, and trade secrets. These clauses prevent employees from engaging in similar business activities or working for competitors both during and after their employment.

Typically, these clauses define the types of activities that are restricted, the geographical area in which the employee is prohibited from competing, and the duration of the restriction, which can extend beyond the termination of employment. 

While employed, an employee has a duty of loyalty to their employer, which prevents them from engaging in activities that directly or indirectly compete with the employer’s business. However, post-employment non-compete clauses are subject to certain legal standards. The employment contract must clearly define the conditions under which the employee is restricted from competing and may also include compensation provided for these post-employment restrictions.

Remote working policy

Remote work, or telecommuting, is legally recognised in Kyrgyzstan through the Labour Code, which allows employers and employees to establish remote work agreements under specific conditions. In such arrangements, employees work outside the employer’s physical premises, typically from home or another location, using telecommunications technology. 

The employment contract should clearly define the remote work setup, including the work location, employee responsibilities, working hours, and communication protocols with the employer. It should also specify how the employer will monitor performance to ensure work is completed as agreed. The contract should address how meetings will be held, deadlines will be managed, and any reporting duties of the employee.

The Labour Code places certain obligations on employers regarding remote workers, such as providing the necessary equipment and tools to perform their job, unless the contract specifies otherwise. Employers must also ensure that remote workers’ rights under the Labour Code, such as rest periods, overtime pay, and health and safety standards, are upheld. The contract should include clear terms on the duration of the remote work arrangement, any probationary periods, and the conditions under which the arrangement can be terminated to prevent disputes.

Responsibilities within a remote work arrangement

Employers are required to supply the necessary tools, equipment, and resources for employees to perform their duties remotely. If employees use their personal equipment, the contract should specify how the employer will reimburse related costs. Additionally, the employer must ensure that the employee’s work environment complies with health and safety standards, which can be more complex when the employee works from home.

Employees, in turn, are responsible for maintaining productivity and adhering to the agreed work schedule. The contract should define the working hours, any flexibility in the schedule, and the method for tracking progress. Failure to meet performance expectations could result in disciplinary action, as the Labour Code holds employees accountable for their duties, whether working remotely or in the office. Both parties must ensure that the remote work arrangement aligns with labour regulations on working hours, overtime, and breaks.

Health and safety at home

In Kyrgyzstan, health and safety regulations apply to both traditional workplaces and remote work arrangements. The Labour Code outlines the shared responsibility between employers and employees to ensure that work conditions—whether in the office or at home—are safe and conducive to productivity. For remote work, it is essential that the employment contract includes provisions that address health and safety concerns specific to the remote work environment.

Intellectual property rights

Typically, when an employee creates something during the course of their employment, such as inventions, designs, or literary works, the rights to that creation are presumed to belong to the employer.

The Labour Code supports the employer’s claim to IP created by employees when the work falls within the scope of the employee’s responsibilities as defined in the employment contract. It’s essential that the contract explicitly clarifies IP ownership, specifying whether the employer automatically retains rights to the employee’s creations or if special arrangements apply. 

Furthermore, the employer is generally responsible for protecting and commercialising the intellectual property generated by the employee’s work. Employees may be entitled to additional compensation or recognition if the IP provides significant benefits to the employer, though this depends on the terms specified in the employment contract or other agreements between the parties.

Employee data privacy

Employers must obtain explicit, informed, and specific consent from employees before collecting and using their personal data. This consent is required not only during the initial hiring process but also for any ongoing processing of employee data throughout the course of employment. The data collected must be limited to information that is relevant to the employment relationship, such as performance, salary, and benefits, and employers can’t collect unrelated personal information.

What are the advantages of hiring employees from Kyrgyzstan vs other countries?

Hiring employees from Kyrgyzstan offers several distinct advantages that can benefit businesses looking to expand their workforce. One of the primary benefits is cost efficiency. Salaries in Kyrgyzstan are significantly lower compared to many developed countries, making it an economical choice for companies seeking to optimise labour costs.

Kyrgyzstan’s geographic location offers practical advantages as well. Its time zone (GMT+6) is compatible with many Asian and European countries, ensuring smooth collaboration and communication during overlapping work hours.

Finally, the business environment in Kyrgyzstan is also becoming increasingly attractive. The country is emerging as an outsourcing hub for industries like IT and customer support, thanks to its skilled workforce and competitive rates.

Why use Native Teams for hiring in Kyrgyzstan?

Native Teams lets you employ team members ‘like a local’, meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximising your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.

Local support: We can assist you in understanding and complying with the relevant local laws.