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Protection of Wages Convention, 1949 (No. 95) - Kyrgyzstan (RATIFICATION: 1992)

The Committee notes the information supplied by the Government in its last report and wishes to draw its attention to the following points.

Article 4 of the Convention. The Committee notes that the Labour Code does not contain any provisions regulating the partial payment of wages in the form of allowances in kind. However, according to the information provided by the Government in earlier reports, the payment of wages in kind has become widespread due to serious liquidity problems of enterprises. In addition, the Government states that workers are sometimes compelled to accept goods to sell on the market because of delays in wage payments and lack of means of subsistence. Even though there are no official data on the subject, according to surveys carried out by trade unions, it is estimated that every fourth enterprise and virtually all agricultural enterprises, collective farms and state farms pay wages in the form of their own products or of goods acquired by barter. Moreover, families cannot always make personal use of the goods offered in lieu of money and are obliged to sell them on the market. The Committee would appreciate receiving up-to-date information on the phenomenon of "barterization" or "demonetization" of the national economy and requests the Government to specify the measures taken or envisaged to ensure full conformity with the Convention in this respect.

Article 6. The Committee notes that there appears to be no provision in the Labour Code explicitly prohibiting employers from limiting in any manner the freedom of workers to dispose of their wages. It therefore requests the Government to specify how this principle of the Convention is implemented in national legislation.

Article 7. With respect to workers’ supply departments (ORS) still operating in some sectors of the economy (e.g. non-ferrous metallurgy, oil production, etc.), the Committee notes the Government’s statement that ORS no longer receive any state subsidy but take a certain percentage of profit and that no measures have been taken to ensure the sale of goods and services at reasonable prices acceptable to workers in such places. The Committee therefore requests the Government to take appropriate action to ensure that full effect is given to this provision of the Convention.

Article 10. The Committee notes that the Labour Code does not set an overall limit for authorized wage deductions to the extent necessary to safeguard the maintenance of the worker and his/her family. Nor seem there to exist any provisions in the Labour Code regulating the assignment of wages. The Committee therefore requests the Government to provide clarification in this regard. In addition, the Committee asks the Government to specify whether the Act of 1996 authorizing the tax inspectorate to attach the accounts of an enterprise barring it from paying wages until such time as the debt has been discharged is still in force, and if so, whether the possibility of the state tax authorities to seize funds of an enterprise virtually without limitation continues to cause delays in the payment of workers’ wages.

Article 11. While noting section 236 of the Labour Code, which provides for wage reserve funds to guarantee the payment of wages in the event of bankruptcy or insolvency of an employer, liquidation of an enterprise, or cessation of the business activities of an entrepreneur, the Committee requests the Government to supply more detailed information on the organization, management, operation and financing of those funds.

Article 12. While noting section 233(1) of the Labour Code which requires the payment of wages at regular intervals, the Committee requests the Government to supply detailed information on the application of this Article of the Convention in practice and to elaborate on the nature and scale of any ongoing problems of wage arrears that the national economy may be experiencing at present. The Committee would also appreciate receiving a copy of the Act on the timely payment of wages, pensions, benefits and other social assistance, to which reference is made in the Government’s last report.

Article 13, paragraph 2. The Committee requests the Government to specify the legal provision expressly prohibiting the payment of wages in taverns or similar establishments, shops or stores for the retail sale of merchandise and places of amusement except in the case of persons employed therein, as required under this Article of the Convention.

Article 15(b) and (c). The Committee notes section 457 of the Labour Code which establishes the employer’s liability for violation of the terms and conditions of payment of wages. It also notes that, under sections 461 and 462 of the Code, the supervision and control of the observance of the labour legislation is entrusted to the State Labour Inspection under the Ministry of Labour and to the state inspections at the oblast and city levels, assisted by public inspectors, trade unions and other elective bodies. The Committee requests the Government to provide more detailed information on the type of sanctions provided for in case of infringement of the legislation regarding wage protection, as well as on the powers and functions of the labour inspection services in wage-related matters.

Part V of the report form. While noting the statistical information provided by the Government on the number of labour complaints reported to the labour inspectorate in the first half of 2004 and the amount of wage arrears recovered through the intervention of state authorities, the Committee would be grateful if the Government would continue providing general information on the application of the Convention in practice, including, for instance, extracts from reports of the labour inspection services, statistics on the number of inspection visits carried out and the results obtained in matters covered by the Convention, as well as any other particulars which would facilitate the Committee’s task to supervise the observance of the standards set out in the Convention.