Termination of Employment in Turkmenistan

1) What types of employment termination are there?

Grounds for termination of the Employment Agreement (hereinafter – "EA"):

1. The employee’s refusal to continue work due to changes in the terms and conditions of the EA;
2. Transfer of the employee, at their request or with their consent, to another permanent position with a different employer;
3. The employee’s refusal to be transferred to another position, which, based on a medical certificate, is not contraindicated for their health condition, or the employer's lack of a suitable position;
4. The employee’s refusal to transfer to a job in another locality where the employer is relocating;
5. The employee’s refusal to continue work due to a change of enterprise ownership, change of subordination (affiliation) of the enterprise, its reorganization, or its lease;
6. By mutual agreement of the parties;
7. At the initiative of the employee;
8. At the initiative of the employer;
9. Additional grounds applicable to specific categories of employees;
10. At the demand of a trade union body;
11. Due to circumstances beyond the control of the parties;
12. As a result of violations of the labor legislation of Turkmenistan during the conclusion of the employment agreement.

2) What are the legal grounds for termination initiated by the employer?

An Employment Agreement may be terminated at the initiative of the employer in the following cases:

1. Liquidation of the enterprise or cessation of activities by an individual employer;
2. Reduction in the number or staff of employees, including due to changes in production technology, labor organization, or a decrease in the volume of work;
3. Incompetence of the employee for the position held or the work performed due to insufficient qualifications, including as confirmed by the results of an attestation;
4. Change of ownership of the enterprise (applicable to the head of the enterprise, their deputies, and the chief accountant);
5. Absence from work for more than four consecutive months due to temporary incapacity;
6. Systematic failure by the employee, without valid reasons, to fulfill their employment duties as established by the employment contract or internal labor regulations of the enterprise, provided that disciplinary measures had previously been applied to the employee;
7. Absence from the workplace without valid reasons for more than three hours during a working day (absenteeism);
8. Appearance at work in a state of alcohol, narcotic, or other toxic intoxication;
9. Disclosure of a legally protected secret of Turkmenistan (state, commercial, official, or other) that became known to the employee in connection with the performance of their job duties;
10. Theft, embezzlement, deliberate destruction or damage of property at the workplace, confirmed by a legally binding court verdict or a decision of a competent authority imposing an administrative penalty;
11. Violation by the employee of occupational health and safety requirements, if such violation resulted in serious consequences (workplace accident, industrial accident, catastrophe) or knowingly created a real threat of such consequences;
12. Discovery that the employee submitted forged documents or knowingly false information to the employer when concluding the employment contract;
13. Other cases provided for by the employment agreement concluded with the head of the enterprise or members of the executive body of the enterprise.

3) What are the legal procedures required for terminating an employee?

Procedures for termination of the Employment Agreement:

1. The termination is carried out by persons authorized to hire employees or by persons authorized by them;
2. Termination is formalized by the issuance of an official order (decree);
3. On the day of termination (dissolution) of the Employment Agreement, the employer must provide the employee with their employment record book and a copy of the order on the termination of the Employment Agreement;
4. Severance pay and other compensatory payments must be calculated and paid.

4) What are the mandatory notice periods for termination?

Notice periods depending on the grounds for termination of the Employment Agreement:

1. Upon the employee’s initiative or by mutual agreement of the parties – the employee must provide the employer with written notice at least two weeks prior to resignation;

2. Upon the employer’s initiative – the employer must provide the employee with written notice (against signature) of their intention to terminate the Employment Agreement:

1) In the event of liquidation of the enterprise or cessation of activities by an individual employer, as well as staff reductions – no later than two months prior to dismissal;
2) In case of the employee’s incompetence to perform their duties due to insufficient qualifications – no later than two weeks prior to dismissal;
3) Upon expiration of a fixed-term Employment Agreement ,  no later than two weeks before the contract’s expiration date;
4) Upon termination of the Employment Agreement with the head of the enterprise, their deputies, or the chief accountant due to a change of ownership – at least two months prior to dismissal;
5) In cases involving unlawful actions committed by the employee – at least three calendar days prior to dismissal.

5) What severance pay and compensation are employees entitled to?

Money compensation:

1. For unused annual basic and additional leave entitlements;
2. In connection with transfer, hiring, or assignment to work in another locality;
3. In cases of workplace accidents and occupational diseases;
4. In connection with the liquidation of the enterprise or cessation of activities by an individual employer, as well as staff reductions ,  the notice period may be replaced by monetary compensation;
5. In connection with a change of ownership of the enterprise,  monetary compensation is provided to the head of the enterprise, their deputies, and the chief accountant.

Severance payments:

1. Upon termination of the Employment Agreement due to violations of the labor legislation of Turkmenistan at the time of concluding the contract;
2. In connection with the liquidation of the enterprise or cessation of activities by an individual employer, as well as staff reductions;
3. In connection with the employee’s conscription or enrollment into military service, or assignment to work related to obligations under the legislation of Turkmenistan on military service and conscription;
4. In connection with the reinstatement of an employee previously holding the position, based on a decision of a competent authority or court;
5. In connection with the employee being declared completely unfit for work according to a medical certificate;
6. In connection with restrictions on the joint employment (service) of relatives;
7. In connection with the employee’s refusal to continue work in the following cases:

a. Refusal to continue working due to changes in the terms of the Employment Agreement;
b. Refusal to transfer to another job that is not contraindicated for the employee’s health, based on a medical certificate, or the employer’s lack of an appropriate position;
c. Refusal to transfer to a different locality where the employer is relocating.

6) How should employers handle termination due to poor performance or misconduct?

The Labor Code of Turkmenistan does not provide for "dismissal due to low performance" as a legal ground.

According to the Labor Code of Turkmenistan, if the employee fails to meet production standards through their own fault, payment is made in accordance with the volume of work actually completed. Thus, Turkmenistan's legislation does not consider failure to meet production standards as grounds for dismissal, but instead establishes specific rules for wage payment in such cases.

However, the Labor Code of Turkmenistan does provide a ground for dismissal related to violations: "systematic failure by the employee, without valid reasons, to fulfill the labor duties assigned to them by the employment contract or the internal labor regulations of the enterprise, if disciplinary measures have previously been applied to the employee."

7) What legal recourse is available to employees in case of unlawful termination?

In case of unlawful dismissal, the employee has the right to appeal to a Labor Dispute Resolution Body:

1. A higher authority (for certain categories of employees);
2. The Labor Dispute Commission;
3. The enterprise’s trade union body and its subdivisions;
4. The court.

8) What is the procedure for terminating an employment contract with foreign nationals?

The provisions established by the Labor Code and other regulatory Legal Acts of Turkmenistan apply to Labor Relations involving both citizens of Turkmenistan and foreign nationals.

Procedure for termination of an Employment Agreement with foreign nationals:

1. Carried out by persons authorized to hire employees or their designated representatives;
2. Issuance of a notice of termination of the employment agreement;
3. Issuance of an order of dismissal;
4. On the day of termination (dissolution) of the employment agreement, the employer must issue the employee’s employment record book and a copy of the dismissal order (in practice, this requirement applies only if necessary for a foreign national engaged in employment activities in Turkmenistan);
5. Calculation and payment of severance pay and other compensatory payments;
6. Notification of the State Migration Service regarding the termination of the employment agreement with the foreign national and taking the necessary steps for their deregistration and departure from Turkmenistan (in accordance with the Law of Turkmenistan "On Migration").

Author: Lachin Amandurdiyeva