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New Labor Code Comes Into Force in Kyrgyzstan

A new Labor Code has been implemented in Kyrgyzstan, introducing significant changes to labor relations in the country. The updated code includes provisions for remote work, digital labor records, and streamlined labor contracts. Additionally, relations between employees and employers will now be regulated by a separate law, “On Social Partnership.” President Sadyr Japarov signed the new Labor Code into law following its approval by Kyrgyzstan’s parliament. The reforms aim to modernize the nation’s labor practices by accelerating the digitalization of processes. Under the new code, paper labor contracts are no longer mandatory. Instead, electronic contracts will suffice for official use and inspection purposes. One of the notable provisions in the code allows for remote and hybrid work arrangements. “The labor contract, by agreement of the parties, may establish both remote work and combined remote work,” states the law, marking a shift toward more flexible employment practices. The reforms also address labor books, which traditionally served as a lifelong record of an individual’s work history. Citizens now have the option to use digital labor books, though paper versions remain valid. However, the exact platform or system for storing the digital data has yet to be determined. Another change eliminates the longstanding practice of shifting days off to accommodate public holidays. Previously, the Ministry of Labor, Social Security, and Migration could declare surrounding weekdays as non-working days. Under the new code, this practice has been discontinued, reducing the total number of non-working holidays. The Labor Code introduces several worker protections. Employers are now required to provide lump-sum benefits in the event of labor-related injuries or the death of an employee. A single penalty rate of 0.25% has been established for late payments of wages, vacation pay, severance pay, and other compensation. Employees will also have a three-year limitation period to file wage-related disputes. Additionally, the code prohibits the employment of pregnant women and nursing mothers in hazardous or physically demanding jobs, further strengthening workplace protections for vulnerable groups. These reforms are expected to streamline labor relations, improve worker protections, and align Kyrgyzstan’s labor policies with modern international standards.

Russia Economy Labor Migrants Migrant Workers

Migrants from Kyrgyzstan Anticipate Tougher Conditions for Work in Russia

A majority of Kyrgyz citizens believe that working conditions for migrants in Russia will deteriorate significantly in the near future, according to a recent survey by the FOCUS Alliance of Euro-Asian Sociologists. Survey Findings The survey results paint a grim outlook for migrant workers from Kyrgyzstan: 61.5% of respondents believe that conditions for migrant workers in Russia will worsen significantly. 14.7% think the situation will remain the same. 10.7% are confident that despite challenges, migrants will adapt. Only 4.4% are optimistic, expecting improved conditions for foreign workers. Another 8.9% found it difficult to predict the future of migrant labor in Russia. A similar sentiment was observed in Uzbekistan. According to the same survey: 35% of Uzbek respondents believe it will become impossible for migrants to find work in Russia. 28% believe the situation will remain stable. 22% are confident that migrant workers will overcome challenges. 6% expect conditions to improve. The survey, which included 1,433 participants, used a random sampling method with a margin of error of 3%. Stricter Migration Policies in Russia Russia has tightened its migration policies in recent months, with the State Duma passing multiple bills aimed at increasing oversight of foreign nationals. The crackdown on migration follows a terrorist attack at Moscow's Crocus City Hall, which reignited debates around national security and the regulation of foreign labor. Russian President Vladimir Putin emphasized that the interests of Russian citizens must take priority in drafting migration laws. He also stressed the importance of migrants adhering to local legislation and having knowledge of the Russian language. These developments reflect a growing trend in Russia to limit migration and impose stricter conditions on foreign workers. Kyrgyzstan’s Response Despite the challenges, Kyrgyzstan remains committed to labor migration as a critical aspect of its economy. Deputy Chairman of the Cabinet of Ministers Edil Baisalov reassured that the country will continue to export labor to Russia. Russia is a key destination for Kyrgyz migrant workers, with remittances from workers abroad making up a significant portion of Kyrgyzstan’s GDP. However, with stricter migration laws and a shifting labor market, the ability of Kyrgyz workers to sustain their livelihoods in Russia may face serious obstacles. The survey results highlight widespread pessimism among Kyrgyz and Uzbek citizens regarding the future of migrant work in Russia. Stricter migration policies and a focus on prioritizing Russian citizens are contributing to uncertainty for Central Asian migrant workers. While Kyrgyzstan continues to rely on labor migration to support its economy, adapting to the evolving conditions in Russia will require resilience and potentially new strategies to protect its migrant workforce.

Labor Stock Market Regulation Share Offering Human development

Employees in Uzbekistan to be Rewarded with Company Shares

Uzbekistan is to introduce an initiative to reward employees with shares in companies, under a regulation developed by The National Agency for Perspective Projects (NAPP). According to the NAPP, the transfer of shares to employees, as part of additional incentive programs, including bonuses, will help increase employee interest in the company's sustainable development and improve labor relations. The main goal of the initiative, modelled on ESOP (Employee Stock Ownership Plan) successfully applied in other countries, is to improve the population's welfare and develop the domestic capital market. Although joining in the Stock Ownership Plan will be voluntary, its development will be mandatory for joint stock companies with more than 50% state participation. The presidential decree on capital market development, issued in September 2023, envisioned the implementation of ESOP. Funds of up to one month's salary used to purchase shares will not be subject to personal income tax.

World Bank: Uzbekistan Must Tackle Gender Inequality

The World Bank Uzbekistan has published a new “Country Gender Assessment Report: Uzbekistan” on gender assessment in the country. This report (CGA) was produced with financial support from Great Britain. This report examines gender equality in Uzbekistan in various areas such as education, health, economic activity, protection from gender-based violence, marriage, divorce, and participation in public life. CGA examines social norms, assessing cultural attitudes and practices that affect women’s rights and understandings in Uzbek society. The report makes recommendations to close the gender gap and promote inclusive prosperity. CGA notes that since 2017, significant progress has been made in terms of gender equality in Uzbekistan. Notable achievements include the 2022 Labor Code, which provides for equal pay for women and removes job restrictions. In addition, 2023 amendments to the Criminal Code criminalize domestic violence. Consequently, the “Women, business and Rights” index released annually by the World Bank recognized Uzbekistan as one of the top five countries in terms of gender equality in 2024. Women’s access to education and health services has improved significantly. For example, during the period 2017-2022, the number of admissions to higher education institutions increased significantly, the number of men increased by three times to 29%, and the number of women increased by four times – to 27.4%. Young women face higher unemployment rates than males (15.5% vs 10%), and the share of young women who were not in employment, education, or training (NEET) has reached 42%, compared to 8.8% for males. In addition, the gender pay gap is significant, with women earning 34% less than men, which is more than the global average of 20%. Women’s low wages and employment rates directly hinder economic growth and exacerbate poverty in Uzbekistan. If women participated in the country’s economy on an equal basis with men, the national income in Uzbekistan would increase by 29%. Simply equalizing men’s and women's wages would lift more than 700,000 people out of poverty. However, gender norms, which place women primarily in charge of caregiving and household tasks, hinder progress towards gender equality and inclusive economic growth. The report states that the authorities must address gender inequality to realize Uzbekistan’s full economic potential. These include entrenched social norms that limit women’s economic participation, disparities in access to higher education in STEM fields, health care limitations, deteriorating family planning options, incomplete protection from gender-based violence, and the disparity of women in leadership roles.

Uzbekistan to Open Centres for Workers Seeking Employment Abroad

The Uzbek government is to open 27 educational institutions across the country for the purpose of training potential migrants in professions in demand by foreign employers. Students will also have access to lessons in various languages including English, German, Japanese, Korean and Arabic. Courses will be offered on a paid-contract basis for a year. Attendees with existing proficiency in languages spoken in countries of their choice, will be eligible for a 50% reimbursement by the state of costs incurred in attaining related certificates. Teachers at the centres will receive a 100% salary supplement. The government of Uzbekistan had earlier announced measures to support citizens seeking employment abroad and from June this year, migrant workers will be offered compensation for passing the qualification exam, obtaining a work visa in a foreign country, travel costs and insurance. In addition to training programmes to open up opportunities in better-paid and professional jobs outside Uzbekistan, the government has now confirmed further subsidies for legal and material assistance. According to the Uzbek Agency for External Labour Migration, some 70,000 citizens have legally secured work abroad over the past two years and Germany, Great Britain and Japan have recently shown great interest in employing Uzbek migrants. Remittances from labour migrants to Uzbekistan remain a material part of the country's gross domestic product (GDP) -- accounting for 17.8% in 2023. In neighbouring Tajikistan, migrant remittances account for almost half of the country's economic output, and in Kyrgyzstan, 20%.

Tajikistan: Remittances from labor migrants exceed foreign investments

DUSHANBE (TCA) — Tajikistan’s labor migrants abroad send home much more money than direct foreign investments coming to Tajikistan, Avesta news agency reported. According to Tajik government sources, in 2013-2019 the economy of Tajikistan received a little more than US $3 billion of direct foreign investment. In November, Jamshed Nurmakhmadzoda, chairman of the National Bank of Tajikistan, said that in January-September 2019, Tajik labor migrants abroad sent home $2.490 billion, a 7-percent increase on-year. Experts say that the main source of living of hundreds of thousands of Tajik families is money sent home by their family members working abroad. Most Tajik labor migrants work in Russia. It was earlier reported that over the past five years (2013-2018), Tajik labor migrants sent home via bank transfers more than $15 billion, which manifold exceeds the amount of direct foreign investments during the period. Avesta earlier reported that the amount of money sent home by Tajik labor migrants from Russia in January-September of this year exceeded Tajikistan’s annual budget. It was also reported that remittances from labor migrants abroad account for more than 75 percent of all income of Tajikistan’s population.