FOREIGN WORK PERMITS

The procedure for obtaining foreign work permits in Kazakhstan ("Work Permits") is intricate and cumbersome.

There are legislatively determined quotas for foreigners permitted to work in Kazakhstan which are distributed between oblasts (Kazakhstan provinces).

Violations of the rules for obtaining work permits entail negative consequences for both employer and expatriate.  Moreover, such violations may have a general adverse effect on business.  There have been instances when companies faced difficulties in expanding their presence in the country specifically because they could not obtain a sufficient number of Work Permits.

A Work Permit may be granted either to an employer or directly to an expatriate for any of the occupations included into the list of professionals permitted to independently seek employment in Kazakhstan.

Currently, Kazakhstan competent authorities issue the following two types of Work Permits:

1)    fee-based Work Permits; and

2)    Work Permits for intragroup secondees from World Trade Organisation member states.

1. Fee-based Work Permits

Work Permits are granted for four categories of foreign workers:

1^st category – chief executives and their deputies;

2^nd category – senior managers of structural subdivisions meeting the qualification requirements set out in the occupational skills guide for senior managers, professionals and other employees and standard job descriptions for senior managers, professionals and other workers;

3^rd category – skilled professionals meeting the qualification requirements set out in the occupational skills guide for senior managers, professionals and other employees and standard job descriptions for senior managers, professionals and other workers; and

4^th category – skilled workers meeting the qualification requirements set out in the unified salary and wage rates, occupations and skills guide for skilled workers, and standard job descriptions for skilled workers.

A company doing business in Kazakhstan has to ensure the following local content in its human resources:

1)  the number of the first-category and second-category foreign employees must not exceed 30% of the total number of the first-category and second-category employees; and

2)   the number of the third-category and fourth-category foreign employees must not exceed 10% of the total number of the third-category and fourth-category employees.

This requirement does not apply to the following entities and individuals:

1. small businesses;

2. government institutions and enterprises;

3. foreign nationals arriving to Kazakhstan for self-employment purposes;

4. foreign nationals obtaining permits within the quotas allocated to their respective home states with which the Republic of Kazakhstan has ratified international treaties on cooperation in the field of labour migration and social protection of migrant workers; and

5. branches and representative offices of foreign companies the headcount of which does not exceed 30 people.

Please see below the step-by-step process of Work Permit issuance:

Step One. The required documents are filed with the competent government authority which, within 7 business days, must review the documents and evaluate qualifications of engaged expatriates.

Step Two. The competent government authority decides whether to issue the Work Permit or to refuse the issuance thereof and notifies the employer of the adopted decision.

Step 3. Within 10 business days after the receipt of the aforementioned notice, the employer has to pay the fee at the following rates depending on the category of the engaged expatriate and the nature of the employer’s business:

##	Economic activity	Rate, monthly calculation index (MCI)
		First category foreign employees			Second category foreign employees	Third category foreign employees	Fourth category foreign employees
		1-year work permit	2-year work permit	3-year work permit
1	Agriculture, forestry and fishery	137	274	411	158	179	200
2	Mining and quarry operations	154	308	462	178	202	225
3	Processing	154	308	462	178	202	225
4	Power/gas/steam supply and air conditioning	137	274	411	158	179	200
5	Water supply; sewage and supervision over collection and disposal of waste	137	274	411	158	179	200
6	Construction	171	342	513	198	224	250
7	Wholesale and retail trade; cars and motorcycles repair and maintenance	154	308	462	178	202	225
8	Transportation and warehousing	137	274	411	158	179	200
9	Accommodation and meals	137	274	411	158	179	200
10	Information and telecommunications	137	274	411	158	179	200
11	Finance and insurance	137	274	411	158	179	200
12	Real estate operations	137	274	411	158	179	200
13	Professional, scientific and technical activities	137	274	411	158	179	200
14	Administrative and ancillary services	137	274	411	158	179	200
15	Mandatory social security	137	274	411	158	179	200
16	Education	137	274	411	158	179	200
17	Healthcare and social services	137	274	411	158	179	200
18	Arts, entertainment and recreation activities	137	274	411	158	179	200
19	Other services	154	308	462	178	202	225
20	Households engaging servants and producing goods and services for their own use	137	274	411	158	179	200
21	Exterritorial organisations and agencies	137	274	411	158	179	200

 

Step 4. The competent government authority issues the Work Permit.

The first category Work Permits may be issued for one, two or three years and may be extended for one, two or three years.  The second and third category Work Permits may be issued for 12 months and may be extended for 12 months maximum three times.

 

2.         Work Permits for Intragroup Secondees from World Trade Organisation Member States

Work Permits are granted for two categories:

1) managers; and

2) specialists (professionals).

For intragroup secondment purposes an employer must ensure that the number of foreign employees (managers and specialists) does not exceed fifty percent of the number of Kazakhstan employees of the same category.

The Work Permit issuance procedure for intragroup secondment comprises the following steps:

Step 1.  Vacancies are identified and checked against the Kazakhstan labour market supply through a candidate search on the domestic labour market.

Step 2.  The required documents are filed with the competent government authority which reviews the documents and evaluates the qualifications of engaged expatriates.

Step 3.  An employer applying for the Work Permit for an intragroup secondee shall assume one of the following special covenants (obligations):

•        professional training of Kazakhstan nationals in the occupation of the employed foreign national;
•        re-training of Kazakhstan nationals in the occupation of the employed foreign national;
•        professional development of Kazakhstan nationals; and
•        creation of new jobs for Kazakhstan nationals in the occupation of the employed foreign national.

Step 4.  The competent government authority decides whether to issue the Work Permit or to refuse the issuance thereof and notifies the employer of the adopted decision.

Step 5.  The competent government authority issues the Work Permit which is valid for a period specified in the relevant intragroup secondment agreement, but in any case not more than three years, and may be extended only once for twelve months.

Once a Work Permit is granted by the competent authority, it may not be transferred to other employers and will be valid only within the particular administrative and territorial unit for which it is granted.  Employers are allowed to send foreign workers on business trips to companies and organizations which are located in other administrative and territorial units of Kazakhstan for a period of maximum 90 calendar days (in total) within one calendar year.

A failure to comply with the foreign employment procedure may entail: for the employer's chief executive – administrative liability (fine) or criminal liability (in the event of repeated violations); for the employing company – administrative liability (fine); and for the foreign worker – administrative liability (fine and deportation).

If a foreign worker is deported, Kazakhstan migration authorities may deny new visas or entry to Kazakhstan for such worker in the future.

Violation of foreign employment legislation may also entail refusal to issue Work Permits in future.