LABOUR LAW

Employment Legislation

The Labour Code of the Republic of Kazakhstan of 23 November 2015 is the fundamental legislative act aimed to regulate all labour matters arising in the country.  The Kazakhstan legal framework also provides a number of other laws and acts for regulation of employment issues.

Labour (Employment) Contracts

Labour relations normally arise out of labour (employment) contracts which must be executed only in writing.  Currently, government is making strides towards digitizing labour contracting.

Labour (employment) contracts may not be entered into with foreign nationals or stateless persons temporarily staying in Kazakhstan until the employer or the foreign worker obtains: (i) a foreign employment permit issued by local executive authorities to the employer, or (ii) a professional attestation certificate issued by the Kazakhstan Ministry of Labour and Social Protection to the self-employed foreigner, or (iii) a labour immigration permit issued by internal affairs authorities.

According to law, labour (employment) contracts may be signed for any of the following terms:

1)    an indefinite term;

2)    a fixed term of at least one year which may be extended maximum twice for at least one year or for an indefinite period, except for small businesses who may sign labour (employment) contracts for any fixed term;

3)    a term required for the performance of a particular work;

4)     a term required for the replacement of a temporarily absent employee;

5)     a term required for the performance of seasonal work; or

6)     the validity period of a Work Permit or professional attestation certificate or labour immigration permit.

Labour (employment) contracts with chief executives of legal entities (i.e. general director, director, chairman of the board of directors, etc.) are signed by the owner of the employer’s corporate assets.  Such labour (employment) contracts, as opposed to labour (employment) contracts with other employees, may be terminated at any time at the discretion of the owner of the employer’s corporate assets or its authorized representative or its authorized body.

Employers may terminate labour (employment) contracts at their own discretion on any of the following grounds: liquidation (winding-up), staff reduction, production cutback, an employee’s being unfit for the position, employee’s misconduct, etc.  Employees, however, are permitted by law to unilaterally terminate employment relations only subject to at least 1-month written notice to the employer (a labour (employment) contract may provide for a longer notice period).  Nevertheless, a labour (employment) contract may provide for the employer’s right to terminate such contract by mutual consent of the parties (without the need to follow the statutory termination procedures) subject to the employee’s compensation at the rate determined by the labour (employment) contract.

Social partnership at the level of an organisation may be established in the form of a collective agreement providing for certain mutual labour obligations between the employees’ representatives and the employer.  The term of a collective agreement is determined by the parties thereto.

Working Hours and Rest Breaks

Working hours may be normal, reduced and part-time.  Normal working hours may not exceed 40 hours per week.

Part-time working hours are working hours that are less than the normal working hours, including part-time working day, part-time working week or contemporaneous reduction of the duration of daily work (work shifts) and reduction of the number of working days per working week.  

Generally, the standard working week for employees is a 5-day working week with 2 days off.  Organizations where a 5-day working week is impractical due to the nature of their business and working conditions apply a 6-day working week with 1 day off.  Besides, labour law provides for an option to apply work shifts, flexible working hours, record of cumulative working hours and rotations.  Unfortunately, the law does not explicitly regulate special work schedules thus giving rise to a lot of practical issues.

Employees are granted annual paid work and social leaves.  The main paid annual work leave may not be less than 24 calendar days.  Certain categories of employees may be granted a leave for a different term.  Besides, the following categories of employees may be granted an additional annual paid leave: (i) workers engaged in heavy-duty physical labour and work in harmful (highly harmful) and hazardous (highly hazardous) working conditions; and (ii) persons with 1^st and 2^nd grade disabilities (at least 6 calendar days).  The social leave (unpaid leave, study leave, pregnancy and maternity/paternity leave, adoption leave and unpaid leave to attend to a child up to the age of three years) releases the employees from work for a certain period for the purpose of creating favourable conditions for maternity and child care, part-time education and other social purposes.

Shift or Rotation Work

The shift or rotation method applies if the place of work is located at a remote distance from the employee’s place of residence.  When an employee is at the place of work, the employer provides the employee with transportation means to and from the place of work, accommodation and meals at the place of work, and other amenities.

Shift or rotation working hours are recorded by accumulative method for an accounting period (minimum 1 quarter and maximum 1 calendar year).  The duration of working time within an accounting period may not exceed the established limit.

In general, the duration of one shift may not exceed 15 calendar days.  However shifts may be extended:

§  subject to the employee’s written consent – up to 30 calendar days; and

§  for sea ship crew members – up to 120 calendar days.

Labour Compensation and Other Payments

The amount of labour compensation is determined on an individual basis depending on the qualification of the employee, the degree of work complexity, the scope and quality of work, as well as working conditions, but not less than the minimum wage determined by the Budget Law of the Republic of Kazakhstan for the relevant year.  As at 1 January 2021, the minimum wage is 42,500 tenge.  Wages and salaries are paid only in monetary form in the national currency of the Republic of Kazakhstan not later than the first day of the month following the accounting month.

In case of a temporary disability, an employee is paid a social allowance from the employer's funds.  The amount of the allowance is determined based on the average monthly pay of the employee.  The employer pays maternity and adoption leave subject to the relevant employment contract and/or collective agreement or the employer’s act, less social contributions due under the Kazakhstan law concerning obligatory social insurance.

Financial Liability

The employer is financially liable to the employee for: damages caused by illegal deprivation of the employee of the opportunity to work; and harm caused to life and/or health of the employee.

The employee is financially liable for direct real damage inflicted on the employer. 

The employer and employee may, by mutual consent, sign a non-compete agreement providing for the employee’s obligation not to undertake any actions which could cause damage to the employer.  Such non-compete agreement should provide for restrictions and conditions for acceptance thereof, as well as compensation payable during the effective period of the agreement.

Labour Dispute Settlement

Individual labour disputes are settled by grievance commissions and, if a grievance commission fails to settle a dispute or to enforce its ruling, by courts, except for small businesses and heads of corporate executive bodies labour disputes with whom may be referred directly to courts. 

Collective labour disputes are settled as follows:

1)    by the employer (association of employers);

2)    if the employer (association of employers) fails to settle a dispute, by a grievance committee;

3)    if a grievance committee fails to settle a dispute, by labour arbitration; and

4)    if labour arbitration fails to settle a dispute, by court.

Besides, the parties to a dispute may also settle the dispute through a mediator.  The institution of mediation is distinct from the reconciliation procedure and may be held contemporaneously.

Other Provisions

The employer is required to ensure safety and protection of employees’ labour, for which purpose Kazakhstan labour laws provides for compulsory insurance of employees against accidents at work, assessment of production facilities, setting up of an HSE service or appointment of a separate HSE specialist, or assignment of HSE duties to other specialists, etc.

Employers provide professional training, retraining and development for the employees or other persons with whom they do not have labour relations under a training contract.

Upon completion of professional training, retraining and development, the trainee is required to work for the employer for a term agreed upon by the parties in the training contract.  When a labour (employment) contract terminates earlier than the expiration date set out in the training contract, either at the discretion of the employee or at the discretion of the employer due to the employee's fault, the employee is required to reimburse the employer for the expenses incurred in connection with the employee’s training in proportion to the remaining work term.