Laws and Policies in Iceland

Employment Laws and Policies in Kazakhstan

Employment Contracts in Kazakhstan

Employment law in Kazakhstan is primarily governed by the Labor Code of the Republic of Kazakhstan (enacted 2015, as amended).

Contract Requirements

Employment contracts must be in written form for all employees.

Contracts must be concluded before employee starts work and include:

• Full names and addresses of employer and employee
• Job title and description of duties (должностная инструкция – job description often attached)
• Place of work (workplace address, or if remote/mobile indicated)
• Start date of employment
• Contract type (indefinite, fixed-term)
• Duration (if fixed-term contract)
• Probationary period (if applicable)
• Working hours and schedule
• Salary amount and payment procedure
• Annual leave entitlement
• Conditions for contract termination
• Social package/benefits (if applicable)
• Any other essential terms

Language:

• Contracts must be in Kazakh and/or Russian (both official languages)
• Bilingual contracts (Kazakh-Russian or with English translation) common in multinational companies
• Kazakh/Russian versions legally binding

Registration:

• Employment contracts do not require registration with state authorities (unlike some countries)
• Employer maintains records and provides copy to employee

Delivery:

• Two copies: one for employer, one for employee
• Both parties sign

Types of Contracts

1. Indefinite Employment Contracts (Бессрочный трудовой договор)

• Standard, open-ended employment relationship
• No predetermined end date
• Full statutory protections and benefits
• Most common contract type in Kazakhstan

2. Fixed-Term Employment Contracts (Срочный трудовой договор)

• Defined end date or completion of specific work/task
• Can only be used if work is temporary or time-limited in nature:
  • Replacing temporarily absent employee (maternity leave, sick leave, etc.)
  • Seasonal work
  • Project-based work with defined completion date
  • Urgent, one-time work
  • Work in organizations with temporary activities
  • Executive positions (top management)
• Maximum duration: Generally 5 years (some exceptions for specific categories)
• Renewal: Can be renewed, but:
  • If employee continues working after expiry without objection, contract automatically converts to indefinite
  • Repeated renewals without genuine temporary justification → deemed indefinite
• Cannot use fixed-term to evade indefinite contract obligations (courts scrutinize abuse)

3. Part-Time Employment Contracts (Неполное рабочее время)

• Less than standard full-time hours (typically <40 hours/week)
• Pro-rata salary and benefits
• Same rights and protections as full-time employees (proportional)

4. Remote Work Contracts (Дистанционная работа)

• Work performed outside employer’s premises (home-based, remote)
• Specific provisions in Labor Code (added 2020, expanded with COVID)
• Must specify remote work conditions, equipment, communication, working hours

5. Cumulative Contracts (Совместительство – Secondary Employment)

• Employee works part-time for another employer while maintaining primary employment
• Limited to 50% of normal working time in secondary role
• Specific rules and restrictions apply

Probation Period (Испытательный срок)

• Maximum duration:
  • General employees: 3 months
  • Senior management/executives: 6 months
  • Accounting/cashier positions: 1 month
• Must be clearly stated in written employment contract before start
• During probation:
  • Full salary and statutory benefits apply (social tax, insurance, etc.)
  • Notice period: 3 days for either party (shorter than standard)
  • Employer can terminate if employee fails probation (must provide written notice and reasons)
• After probation:
  • Automatically transitions to permanent employment (if indefinite contract)
  • Standard notice periods and protections apply

Note: Probation cannot be applied to:

• Pregnant women
• Women with children under 3 years old
• Disabled persons
• Young workers under 18
• University graduates in first year after graduation (in their field)

An EOR ensures all employment contracts comply with Kazakhstan Labor Code and mandatory provisions.

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Working Hours in Kazakhstan

Working time in Kazakhstan is regulated by the Labor Code.

Standard Working Hours

Statutory maximum:

• 40 hours per week (standard full-time)
• 8 hours per day (for 5-day work week)

Common practice:

• Monday-Friday work week (5 days)
• 9:00 AM – 6:00 PM typical office hours (with 1-hour lunch break)
• Saturday-Sunday: Weekend (days off)

Reduced hours for certain categories:

• Hazardous/harmful working conditions: 36 hours/week (6 hours/day)
• Workers aged 14-16: 24 hours/week
• Workers aged 16-18: 36 hours/week
• Disabled persons (Group I, II): 36 hours/week
• Teachers/educators: 18-30 hours/week (depending on position)

Pre-holiday/pre-weekend days:

• Working day before public holiday is reduced by 1 hour
• If pre-holiday day falls on weekend, preceding workday reduced

Rest Periods and Breaks

Lunch/meal break:

• 30 minutes to 2 hours (employer determines within this range, typically 1 hour)
• Unpaid
• Not counted as working time
• Employee free to leave premises

Daily rest:

• Minimum 12 consecutive hours rest between end of work and start of next shift

Weekly rest:

• Minimum 42 consecutive hours per week (typically Saturday-Sunday)
• Cannot work more than 6 consecutive days without weekly rest

Rest breaks during work:

• For certain categories (computer workers, drivers, etc.): Short paid breaks (10-15 min) as needed for health/safety

Overtime (Сверхурочная работа)

Overtime = hours beyond 40 hours/week or 8 hours/day.

Limits:

• Maximum 2 hours per day
• Maximum 120 hours per year (cumulative overtime)

When overtime permitted:

• Requires employee’s written consent (mandatory)
• Exceptions (consent not required):
  • Emergency situations (preventing disasters, accidents)
  • Urgent public/state needs
  • Completing work that could not be finished during regular hours (with risk of damage/loss if not completed)

Overtime compensation:

• Weekdays: 1.5× hourly rate for first 2 hours, 2× hourly rate for subsequent hours
• Weekends and public holidays: Minimum 2× hourly rate (or compensatory day off + single rate)
• By agreement: Can provide compensatory time off instead of pay (1.5 hours off for 1 hour overtime)

Calculation:

• Hourly rate = Monthly salary ÷ (average monthly hours: ~165-168)

Prohibition:

• Overtime not permitted for:
  • Pregnant women
  • Workers under 18
  • Disabled persons (unless they consent in writing and medical clearance obtained)

Night Work (Ночная работа)

Night time: 10 PM – 6 AM

Night work duration:

• Night shifts reduced by 1 hour (without corresponding salary reduction)
• Exception: If work is already on reduced hours schedule, or if shift reduction impossible (continuous production)

Night work compensation:

• At least 1.5× regular rate for hours worked during night time (or as specified in collective agreement)

Restrictions:

• Prohibited for pregnant women, workers under 18 (except specific artistic/creative work)
• Disabled persons, mothers with children under 3: Only with written consent and medical clearance

Weekend and Public Holiday Work

Weekend work:

• Requires employee’s written consent (except emergency situations)
• Compensation: Minimum 2× regular rate or compensatory day off + single rate (employee’s choice)

Public holiday work:

• Generally prohibited (except continuous production, essential services, emergencies)
• Requires employee consent
• Compensation: Minimum 2× regular rate or compensatory day off + single rate

Compensatory days off:

• If employee chooses time off instead of premium pay, must be granted within reasonable period (typically within next month)

Flexible Work Arrangements

Kazakhstan increasingly supports:

• Remote work (regulated in Labor Code since 2020, expanded post-COVID)
  • Must have specific remote work employment contract or agreement
  • Employer-provided equipment or compensation
  • Clear working hours and communication procedures
• Flexible schedules (flexible start/end times within core business hours)
• Part-time arrangements
• Shift work (common in manufacturing, mining, oil/gas)

Remote work specifics:

• Employer and employee agree on working hours, reporting, communication
• Employer responsible for equipment (or provides allowance)
• Same labor rights and protections as on-site employees

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Employee Leave in Kazakhstan

Kazakhstan Labor Code provides comprehensive statutory leave entitlements.

Annual Paid Leave (Ежегодный оплачиваемый отпуск)

Statutory minimum:

• 24 calendar days per year (includes weekends falling within leave period)
• Some sources calculate as working days (approximately 18-20 working days depending on calendar)

Calculation:

• Calendar days = includes weekends and holidays within the leave period
• Leave period minimum 2 consecutive weeks once per year (cannot split below this for main leave)

Accrual:

• Leave accrues after 6 months continuous service (first year)
• After first year, accrues throughout year (pro-rata)

Extended leave for certain categories:

• Teachers/educators: 42-56 calendar days
• Employees with irregular working hours: +3 calendar days
• Employees in hazardous/harmful conditions: +6 to +24 calendar days (depending on severity)
• Disabled persons: +6 calendar days
• Young workers under 18: +6 calendar days

Scheduling:

• Employer creates annual leave schedule (график отпусков) by January 15 each year
• Employee notified of leave dates 2 weeks in advance
• Can be changed by mutual agreement or employee’s request (family circumstances, health)

Carry-over:

• Unused leave can be carried forward to next year (by agreement)
• Must be taken within 12 months of becoming entitled (cannot indefinitely accumulate beyond reasonable period)

Cash payment:

• Cannot be paid in lieu during employment (must take leave, except for up to 7 days if needed for work reasons)
• Exception: Upon termination, all accrued unused leave paid out

Payment:

• Paid at average daily wage for preceding 12 months
• Must be paid at least 3 days before leave starts

Public Holidays (Праздничные дни)

Kazakhstan observes approximately 15 public holidays annually:

Fixed national holidays:

• New Year’s holidays: January 1-2
• Orthodox Christmas: January 7
• International Women’s Day: March 8
• Nauryz (Persian/Turkic New Year, spring equinox): March 21-23 (3 days)
• Unity of the People of Kazakhstan Day: May 1
• Defender of the Fatherland Day: May 7
• Victory Day (WWII): May 9
• Capital City Day: July 6 (Astana/Nur-Sultan)
• Constitution Day: August 30
• Republic Day: October 25
• Independence Day: December 16-17 (2 days)

Islamic holidays (variable dates, lunar calendar):

• Kurban Ait (Eid al-Adha, Feast of Sacrifice): 1 day

Note: If public holiday falls on weekend, following Monday typically becomes day off.

Entitlements:

• Public holidays are non-working paid days (in addition to annual leave)
• If employee required to work on public holiday: Minimum 2× regular rate or compensatory day off + single rate

Sick Leave (Временная нетрудоспособность)

Statutory sick leave:

Duration:

• Technically unlimited (as long as medically certified), but:
  • Social Health Insurance Fund (ФСМС) covers sick pay for limited period (see payment below)
  • After extended illness, employer may terminate for medical reasons (with medical commission confirmation)

Medical certificates:

• Required from day 1 of sick leave
• Medical certificate (листок нетрудоспособности – sick leave certificate) from licensed doctor
• Submitted to employer upon return

Sick leave payment:

Paid by Social Health Insurance Fund (not employer directly):

• Employee receives 80% of average monthly income from Social Health Insurance Fund
• Duration covered:
  • Up to 4 months cumulative in any 12-month period (for general illness)
  • Up to 5 months for tuberculosis, some chronic diseases
  • Separate limits for work-related injuries/occupational diseases (longer coverage)

Calculation:

• Based on average income over preceding 12 months
• Capped at maximum insurable income (10 times minimum wage: ~500,000 KZT/month for 2024)

First 2 days:

• Some employers voluntarily pay 100% for first 2 days (not statutory requirement, but common practice)

Care for sick family member (child, etc.):

• Also covered by Social Health Insurance Fund (80%)
• Limited duration (varies by age of child: 10-14 days typically)

Employee obligations:

• Notify employer immediately of illness
• Provide medical certificate
• Submit claim to Social Health Insurance Fund (employer often assists with paperwork)

Maternity Leave (Отпуск по беременности и родам)

Statutory maternity leave:

Duration:

• 126 calendar days total (approximately 18 weeks)
  • 70 days before expected delivery date
  • 56 days after delivery
• If complicated delivery or multiple births: 140 calendar days total (70 before + 70 after)

Eligibility:

• All female employees entitled (no minimum service requirement for leave)

Maternity pay:

Social Allowance (Пособие по беременности и родам):

• Paid by State Social Insurance Fund (ГФСС) (not employer)
• 100% of average monthly income for preceding 12 months
• Capped at maximum insurable income (approximately 7 times minimum salary: ~420,000 KZT/month for 2024, but verify current year caps)
• Paid for entire maternity leave period (126 or 140 days)

Calculation:

• Based on average monthly income over preceding 12 months (from which social contributions were made)

Job protection:

• Employer cannot dismiss pregnant employee or mother on maternity leave (except company liquidation)
• Position must be held open (or suitable alternative offered)

Return to work:

• Right to return to same position
• Can request part-time or flexible schedule until child is 3 years old (employer should accommodate if possible)

Parental Leave for Childcare (Отпуск по уходу за ребенком)

Duration:

• Until child reaches 3 years old (unpaid leave after maternity leave ends)
• Can be taken by mother, father, or other family member (grandmother, etc.) actually caring for child

Parental allowance:

• Paid by State Social Insurance Fund for childcare:
  • First 12 months (until child is 1 year): Monthly allowance (~30-40% of average income, capped)
  • Months 12-18 (until child is 1.5 years): Reduced allowance
  • Specific amounts and calculations vary (tied to minimum wage multiples, average income)
• Lower than maternity benefit, but provides some income support

Job protection:

• Position reserved (or equivalent position)
• Cannot dismiss employee on parental leave
• Time counts toward seniority and annual leave accrual

Return to work:

• Employee can return earlier than 3 years (by notifying employer)
• Right to same or equivalent position

Paternity Leave (Отпуск отца)

Statutory paternity leave (introduced recently):

• 15 calendar days paid paternity leave
• Taken within first month after birth
• Paid by State Social Insurance Fund (similar to maternity benefit calculation)

Many employers offer additional unpaid paternity leave by policy (or employee can use annual leave).

Adoption Leave

Parents adopting child under 3 months old:

• Entitled to 56 calendar days paid adoption leave (from date of adoption)
• Paid by State Social Insurance Fund (similar to maternity benefit)

Subsequent childcare leave:

• Same as parental leave (until child is 3 years old)

Other Leave

Study leave (Учебный отпуск):

• Employees pursuing education entitled to paid study leave for exams, thesis defense
• Duration varies by education level (typically 10-30 days per year for exams, plus additional for thesis)
• Paid at average wage
• Requires proof of enrollment

Unpaid leave (Отпуск без сохранения заработной платы):

• By mutual agreement for personal reasons
• Certain categories have right to unpaid leave:
  • Pensioners: up to 14 calendar days/year
  • Parents with children under 18: up to 14 calendar days/year
  • Disabled persons: up to 30 calendar days/year
  • Marriage of employee: up to 3 days
  • Death of close relative: up to 3 days

Military reserve training:

• Employees called for military reserve training/exercises entitled to leave (paid by state, employer releases)

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Employee Benefits in Kazakhstan

Mandatory Statutory Benefits

1. Social Tax (Социальный налог – СН)

Social Tax funds pension, social insurance, and healthcare systems.

Social Tax Rate (2024):

• Employer pays: 9.5% of employee’s monthly income
• Employee pays: 0% (no employee contribution to Social Tax itself)

Calculation:

• Based on gross monthly salary
• No cap (calculated on full gross, unlike some countries with ceilings)

Example (Monthly salary 500,000 KZT):

• Employer Social Tax: 500,000 × 9.5% = 47,500 KZT/month

What Social Tax funds:

• General budget (redistributed to pension fund, social insurance fund, healthcare)

2. Mandatory Pension Contributions (Обязательные пенсионные взносы – ОПВ)

Kazakhstan has funded pension system (individual pension accounts).

Pension Contribution Rate (2024):

• Employee contribution: 10% of monthly income
• Employer contribution: 5% of employee’s monthly income

Total pension contributions: 15% (10% employee + 5% employer)

Calculation:

• Employee contribution: Withheld from gross salary
• Employer contribution: Added to labor cost

Caps:

• Maximum monthly contribution base: 50 times minimum wage
  • Minimum wage 2024: ~70,000 KZT/month
  • Maximum base: 50 × 70,000 = 3,500,000 KZT/month
  • Contributions capped at this amount if salary exceeds

Example (Monthly salary 500,000 KZT):

• Employee pension contribution: 500,000 × 10% = 50,000 KZT (withheld from salary)
• Employer pension contribution: 500,000 × 5% = 25,000 KZT (employer pays)
• Total monthly pension: 75,000 KZT

Pension accounts:

• Contributions deposited into individual pension accounts (Unified Accumulative Pension Fund – ЕНПФ)
• Employee owns account, invested, grows over career
• Withdrawable at retirement age (currently 63 for men, 61.5 for women, gradually increasing)

3. Social Insurance Contributions (Социальное страхование)

Mandatory Social Insurance covers temporary disability, maternity, unemployment, loss of breadwinner.

Social Insurance Contribution Rate (2024):

• Employer contribution: 3.5% of employee’s monthly income
• Employee contribution: 0% (no employee contribution)

Calculation:

• Based on gross monthly salary
• Cap: Maximum 10 times minimum wage (~700,000 KZT/month for 2024)
  • Contributions capped at this amount if salary exceeds

Example (Monthly salary 500,000 KZT):

• Employer social insurance: 500,000 × 3.5% = 17,500 KZT/month

What Social Insurance covers:

• Sick leave benefits (80% income up to 4 months via Social Health Insurance Fund)
• Maternity benefits (100% income for 126-140 days)
• Parental allowances (childcare until 3 years)
• Unemployment benefits
• Loss of breadwinner benefits

4. Individual Income Tax (IIT – Индивидуальный подоходный налог – ИПН)

Kazakhstan uses simple flat-rate income tax (one of lowest globally).

Individual Income Tax Rate (2024):

• 10% flat rate on all employment income (no progressive brackets)

Tax deductions (before applying 10%):

• Mandatory Pension Contribution (ОПВ): Employee’s 10% pension contribution is deductible from gross income before calculating IIT
• Optional Voluntary Pension Contributions (ДПВ): Also deductible (subject to limits)

Calculation:

• Gross salary – ОПВ (10%) = Taxable income
• Taxable income × 10% = IIT

Example (Monthly salary 500,000 KZT):

• Gross: 500,000 KZT
• Less ОПВ (10%): -50,000 KZT
• Taxable income: 450,000 KZT
• IIT (10%): 450,000 × 10% = 45,000 KZT
• Net salary: 500,000 – 50,000 (ОПВ) – 45,000 (IIT) = 405,000 KZT

Additional tax reliefs (specific categories):

• Certain income types may have deductions or exemptions (check current tax code)

5. Minimum Wage (Минимальная заработная плата – МЗП)

National Minimum Monthly Wage (2024):

• 70,000 KZT/month (approximate; verify current year as adjusted annually)

Note: Minimum wage is quite low relative to market salaries in cities like Almaty, Astana (typical professional salaries 200,000-800,000+ KZT/month).

Enforcement:

• Employers must pay at least minimum wage
• Underpayment violations subject to fines

Employer Costs Summary

Total employer statutory costs on top of gross salary:

• Social Tax: 9.5% of gross
• Employer Pension Contribution: 5% of gross
• Social Insurance Contribution: 3.5% of gross
• Total employer statutory cost: 18% on top of gross salary

Example (Employee gross salary 500,000 KZT/month):

• Social Tax: 47,500 KZT
• Employer Pension: 25,000 KZT
• Social Insurance: 17,500 KZT
• Total employer cost: 590,000 KZT/month

Employee deductions from gross:

• Employee Pension Contribution: 10%
• Individual Income Tax: 10% of (gross – pension contribution)
• Total employee deductions: ~19% of gross

Net salary: ~81% of gross

Common Additional Benefits Provided by Employers

To attract and retain talent, especially in competitive sectors (IT, oil/gas, finance), Kazakh employers often offer:

Health & Wellness:

• Voluntary Health Insurance (VHI – ДМС) – very common (covers employee, sometimes family)
  • Complements mandatory social health insurance
  • Provides access to private clinics, better services
• Life insurance
• Accident insurance
• Sports/gym memberships

Financial:

• Performance bonuses (annual, quarterly, monthly – very common)
• 13th-month salary (end-of-year bonus – some employers provide voluntarily)
• Long-service awards (bonuses for tenure milestones)

Transportation:

• Transportation allowance or company shuttle (especially in industrial zones, oil/gas remote sites)
• Company car (senior management, sales roles)
• Fuel/mileage allowance

Meals:

• Meal allowance or subsidized cafeteria (common in large companies, industrial sites)

Professional Development:

• Training and certification programs (especially IT – AWS, Microsoft, Oracle; oil/gas – HSE certifications)
• Tuition reimbursement (MBAs, degrees)
• Conference attendance
• Language training (English, Russian for non-native speakers)

Work-Life Balance:

• Additional annual leave (26-30 calendar days vs. 24 statutory)
• Flexible work arrangements (remote, hybrid)

Housing:

• Housing allowance (for employees relocated to remote regions – oil/gas, mining)
• Company housing (dormitories, apartments for remote site workers)

Family:

• Childcare allowances (some companies provide subsidies)
• Education allowances (for employees’ children)

Other:

• Mobile phone or communication allowance
• Employee assistance programs (EAP) (emerging in larger companies)
• Social events and team building (corporate New Year celebrations very popular)

An EOR ensures all mandatory statutory contributions (Social Tax, pension, social insurance, IIT) are calculated accurately, and competitive market-standard benefits can be included.

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Payroll & Tax in Kazakhstan

Payroll Currency

• All salaries paid in Kazakhstani Tenge (KZT / ₸)

Payroll Cycle

• Twice monthly (bi-monthly) payroll most common:
  • Advance payment: Mid-month (15th-20th) – typically 40-50% of monthly salary
  • Final payment: End of month (last business day or 1st-5th of next month) – remainder
• OR Monthly payroll (some companies, especially multinationals)
• Payment by bank transfer (direct deposit) universal

Payslips:

• Must be provided (расчетный листок – payslip)
• Shows gross, deductions (ОПВ, IIT), employer contributions (for transparency), net

Personal Income Tax

See detailed IIT rates in Benefits section above.

Summary:

• 10% flat rate on employment income (after deducting ОПВ pension contribution)
• One of world’s simplest, lowest income tax systems

Payroll Deductions Summary

From employee gross salary:

• Mandatory Pension Contribution (ОПВ): 10% of gross
• Individual Income Tax (IIT/ИПН): 10% of (gross – ОПВ) = effectively ~9% of gross
• Total employee deductions: ~19% of gross

Net salary: ~81% of gross

Employer Costs Summary

See detailed breakdown in Benefits section above.

Total employer statutory cost: ~18% on top of gross

• Social Tax: 9.5%
• Employer Pension: 5%
• Social Insurance: 3.5%

Employer Payroll Responsibilities

Kazakh employers must:

Monthly/Bi-monthly obligations:

• Calculate and withhold Employee Pension Contribution (ОПВ) (10%)
• Calculate and withhold Individual Income Tax (IIT/ИПН) (10% of taxable income)
• Calculate and pay Employer Pension Contribution (5%)
• Calculate and pay Social Tax (9.5%)
• Calculate and pay Social Insurance Contribution (3.5%)
• Remit Employee ОПВ to Unified Accumulative Pension Fund (ЕНПФ) by 25th of following month
• Remit Employer ОПВ to ЕНПФ by 25th of following month
• Remit IIT to tax authorities by 25th of following month
• Remit Social Tax to tax authorities by 25th of following month
• Remit Social Insurance to State Social Insurance Fund by 25th of following month
• Issue payslips to employees

Quarterly/Annual obligations:

• File quarterly tax reports (Form 910.00 – payroll tax declaration)
• File annual individual income tax declarations (Form 200.00) for employees (if required)
• Provide employees with annual income certificates (справка о доходах – Form 270.00)
• Reconcile annual contributions

Ongoing:

• Maintain payroll records for 5 years minimum
• Register employees for tax purposes (ИИН – Individual Identification Number)
• Register employees with pension fund, social insurance
• Notify terminations
• Accurate tracking of leave, sick leave, deductions

Tax authorities:

• Committee of State Revenues (КГД) under Ministry of Finance (formerly Tax Committee)
• Electronic filing mandatory (via egov.kz Taxpayer’s Cabinet or специalized бухгалтерское ПО – accounting software)

An EOR manages all payroll calculations, tax withholdings, pension/social insurance remittances, tax authority filings, and compliance reporting for Kazakhstan.

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Employment Laws & Compliance in Kazakhstan

Key Compliance Areas

1. Written Employment Contracts

• Mandatory for all employees
• Must be in Kazakh and/or Russian
• Concluded before work starts
• Copy to employee

2. Employment Equality and Non-Discrimination

Kazakhstan Labor Code and Constitution prohibit discrimination, though enforcement evolving.

Protected characteristics:

• Origin, social, property status
• Sex/gender
• Race, ethnicity, nationality
• Language
• Attitude toward religion
• Convictions (political opinions)
• Place of residence
• Age (with exceptions for lawful age requirements)
• Disability

Equal pay:

• Equal pay for equal work mandated (gender pay gap improving but exists in practice)

Discrimination prohibited in:

• Hiring
• Pay and benefits
• Training, promotion
• Dismissal

Specific protections:

• Pregnant women and mothers (cannot dismiss, see maternity section)
• Young workers under 18 (special working conditions, prohibitions on hazardous work, night work, overtime)
• Disabled persons (reasonable accommodations, quota employment for large employers)

3. Labor Inspections and Compliance

• State Labor Inspectorate (Государственная инспекция труда) conducts inspections
• Checks compliance with Labor Code (contracts, wages, hours, safety, etc.)
• Can issue orders, fines for violations

4. Tax and Social Contribution Compliance

• Must remit all taxes and contributions by 25th of following month
• Electronic filing mandatory
• Penalties for late payment, underreporting

5. Social Health Insurance Registration

• All employees must be registered with Social Health Insurance Fund (ФСМС)
• Enables access to sick leave, maternity benefits
• Employer registers employees

6. Minimum Wage and Wage Protection

• Must pay at least minimum wage (70,000 KZT/month for 2024)
• Salaries must be paid timely (bi-monthly or monthly)
• Delays in salary payment: Administrative violations, fines, employee can suspend work after 15 days delay

7. Working Time, Overtime, Rest

• Comply with 40-hour work week
• Overtime limits (2 hours/day, 120 hours/year)
• Employee consent required for overtime (except emergencies)
• Proper compensation (1.5-2× rate)
• Weekly rest (42 hours minimum)

8. Leave Entitlements

• Provide statutory annual leave (24 calendar days minimum)
• Maternity leave (126-140 days with state benefits)
• Sick leave (certified, state benefits)
• Paternity leave (15 days)
• Public holidays

9. Health and Safety (Охрана труда)

Labor Code and specific regulations:

• Employers must ensure safe working environment
• Risk assessments (especially oil/gas, mining, construction, manufacturing)
• Safety training (all employees, especially hazardous work)
• Personal protective equipment (PPE) (provide free, mandatory use)
• Medical examinations (pre-employment, periodic for hazardous work)
• Accident reporting (to State Labor Inspectorate, Social Insurance Fund)
• Emergency preparedness (evacuation plans, drills)

Industries with heightened requirements:

• Oil and gas: HSSE (Health, Safety, Security, Environment) management systems
• Mining: Specific mining safety regulations
• Construction: On-site safety measures

Violations:

• Administrative fines
• Work stoppage orders
• Criminal liability for serious violations causing injury/death

10. Data Protection and Privacy

Kazakhstan has data protection law (Law “On Personal Data and Its Protection”):

• Personal data must be processed lawfully, fairly
• Consent required (employment context: contract is legal basis)
• Data security measures mandatory
• Employee rights (access, correction, deletion where applicable)
• Cross-border data transfer restrictions (registration required for transfers outside Kazakhstan in some cases)

Data localization:

• Some data (especially personal data of Kazakhstan citizens) may need to be stored on servers in Kazakhstan (sector-dependent, especially financial, telecom)

11. Trade Unions and Collective Agreements

Labor Code allows:

• Freedom of association (right to form and join trade unions)
• Collective bargaining
• Strikes (under specific conditions, mediation procedures required)

Practice:

• Trade unions exist, more common in:
  • Legacy Soviet-era industries (mining, heavy industry, oil/gas to some extent)
  • Public sector
• Less common in IT, services, new economy sectors
• Collective agreements can set terms above statutory minimums (wages, benefits, working conditions)

Tripartite cooperation:

• Government, employers’ associations, trade unions negotiate national and sectoral agreements

Termination & Notice Periods

Notice Period Requirements

Statutory minimum notice periods (Labor Code):

Employer-initiated termination:

• 1 month notice (standard for indefinite contracts)

Employee-initiated resignation:

• 1 month notice (standard)
• Can be reduced by mutual agreement

Exceptions:

• Probation period: 3 days notice (either party)
• Fixed-term contract expiry: No notice required (contract ends on expiry date)
• Summary dismissal (serious misconduct): Immediate, no notice

During notice:

• Employee continues working, receives full salary
• Employer can release employee earlier (paying for notice period)

Example:

• Employee resigns: Submits written resignation, works 1 month notice
• Employer dismisses for redundancy: Provides 1 month written notice, pays 1 month severance (see below)

Grounds for Termination

Employer can terminate for:

1. Mutual Agreement (Соглашение сторон):

• Both parties agree to terminate (any terms negotiated)

2. Expiry of Fixed-Term Contract:

• Contract ends on specified date (no notice, no severance unless contract provides)

3. Employee Reaching Pension Age:

• If employee reaches official pension age and begins receiving pension
• Must provide 1 month notice and severance

4. Redundancy/Liquidation (Сокращение штата, ликвидация):

• Position eliminated due to reorganization, business closure, economic reasons
• Must provide 1 month notice and 1 month severance pay
• Preferential retention rights (higher qualifications, performance, families with dependents, sole breadwinners, disabled, etc.)

5. Employee Incompetence/Poor Performance:

• Insufficient qualifications or repeated failure to perform duties
• Requires prior documented warnings, opportunity to improve
• 1 month notice

6. Serious Misconduct (Дисциплинарный проступок):

• Gross misconduct allowing summary dismissal (immediate, no notice, no severance):
  • Absence without permission (прогул – 3+ hours or full shift)
  • Appearing at work intoxicated (alcohol, drugs)
  • Theft, damage to employer’s property
  • Disclosure of confidential information
  • Serious violation of safety rules
• Requires investigation, employee explanation, written order
• Employee can challenge in court

7. Medical Incapacity:

• Prolonged illness preventing work (after exhausting sick leave, typically 4+ months)
• Requires medical commission confirmation
• 1 month notice and severance

8. Multiple Disciplinary Violations:

• Repeated violations within 1 year (after prior disciplinary sanctions)
• 1 month notice

9. Loss of Trust (Утрата доверия):

• For positions involving material/financial responsibility (cashiers, accountants, warehouse managers)
• If employee commits act undermining trust (but not criminal)
• 1 month notice

10. Other Statutory Grounds:

• Various specific grounds in Labor Code (restore previously dismissed employee to position, etc.)

Unlawful/Prohibited dismissals:

• Cannot dismiss:
  • Pregnant women, mothers with children under 3 (except company liquidation or serious misconduct)
  • Employees on sick leave, annual leave (except company liquidation or contract expiry)
  • Single parents with children under 14 or disabled children under 18 (strict limitations)
• Discriminatory dismissals
• Retaliation for asserting labor rights, union activity

Severance Pay (Выходное пособие)

Statutory severance:

Amount:

• 1 average monthly salary (if employed 1+ months at time of termination)

When severance payable:

• Redundancy/position elimination
• Liquidation of organization
• Employer-initiated termination (except serious misconduct)
• Medical incapacity
• Conscription to military service
• Reinstatement of previous employee to position
• Employee reaching pension age (if employer initiates)

When severance NOT payable:

• Employee resignation (voluntary)
• Dismissal for serious misconduct (gross violations)
• Fixed-term contract expiry (unless contract specifies otherwise)
• Mutual agreement (unless agreed to pay)

Calculation:

• Based on average monthly wage over preceding 12 months (or period worked if less)
• Includes base salary and regular allowances/bonuses

Payment timing:

• Must be paid on last working day (along with final salary and accrued leave)

Note: Severance separate from notice period pay – both may be due.

Fair Procedures for Dismissal

Best practice (to avoid disputes):

For misconduct:

1. Investigation: Document violation (act, witnesses, evidence)
2. Request explanation: Give employee 2 days to provide written explanation (объяснительная записка)
3. Disciplinary commission: Review evidence and explanation (if company has commission)
4. Decision: Issue written dismissal order (приказ) with grounds, effective date
5. Notification: Provide employee with signed copy of order
6. Right to appeal: Employee can challenge in court within 1 month

For poor performance:

• Prior performance reviews, warnings (выговоры – reprimands)
• Opportunity to improve (improvement plan, training if needed)
• Documentation of failures
• Dismissal order

For redundancy:

• Genuine business need
• Notify employees 1 month in advance
• Apply preferential retention criteria fairly
• Offer alternative positions if available
• Severance payment
• Issue dismissal order

Dispute Resolution

If employment dispute arises:

1. Internal resolution:

• Attempt to resolve with employer directly
• Labor dispute commission (if exists in company – КТС, комиссия по трудовым спорам)

2. Court:

• District court (first instance for labor disputes)
• Employee files claim
• Time limit: Generally 3 months from when employee knew/should have known of violation (1 month for dismissal disputes)

Remedies for unlawful dismissal:

• Reinstatement to position
• Compensation:
  • Lost wages for forced absence period
  • Severance (if not paid)
  • Compensation for moral damages (possible)
• Change dismissal to lawful resignation (if employee prefers not to return)

Burden of proof:

• Employer must prove lawfulness of dismissal (grounds, procedure)

Immigration and Work Permits

Kazakhstan citizens:

• Unlimited right to work in Kazakhstan

Foreign nationals (иностранцы):

• Require work permit to work legally in Kazakhstan

Work permit types:

1. General Work Permit (Разрешение на привлечение иностранной рабочей силы):

• For foreign nationals employed by Kazakhstan company
• Employer must sponsor
• Quota system: Kazakhstan has annual quotas limiting foreign workers (by region, sector)
• Labor market test: Employer must prove no suitable Kazakhstan candidate available (advertise locally, demonstrate specialized skills needed)

Application process:

1. Employer applies to local migration office (Department of Migration Police, Министерство внутренних дел)
2. Provides: Employment contract, justification for foreign hire, employee’s qualifications/CV, proof of quota allocation
3. Approval issued (if quota available and justified)
4. Employee obtains work visa from Kazakhstan embassy/consulate abroad
5. Upon arrival: Employee registers, obtains work permit card (residence permit with work authorization)

Duration:

• Typically 1 year, renewable annually
• Tied to specific employer and position

Processing: 1-3 months (varies by region, quota availability)

2. Intra-Company Transfer:

• For employees of multinational companies transferring from foreign branch to Kazakhstan branch/subsidiary
• Requires minimum period with company abroad (typically 1 year)
• Exempt from quota in many cases (easier process)

3. Highly Qualified Specialist:

• For foreign specialists with advanced degrees, significant experience, high salaries (above certain threshold)
• Streamlined procedures, may be quota-exempt
• Designed to attract top talent

4. Astana International Financial Centre (AIFC) Work Authorization:

• AIFC (Astana financial hub) has separate visa regime (more liberal)
• Foreign nationals working for AIFC participants can obtain AIFC work authorization (simpler than general work permit)
• 72-hour visa-free entry for business visits

5. Investors and Business Owners:

• Foreign investors opening businesses in Kazakhstan can obtain residence permits
• Different procedures (investment thresholds, business plans)

Quota exemptions:

• Certain categories exempt from quotas:
  • Top management (directors, executives)
  • Highly qualified specialists (depending on definition)
  • Intra-company transfers
  • Teachers/professors at universities
  • Spouses of Kazakhstan citizens

Eurasian Economic Union (EAEU) citizens:

• Armenia, Belarus, Kyrgyzstan, Russia citizens have simplified work authorization:
  • Can enter Kazakhstan visa-free
  • Can work without work permit (only need to notify migration authorities within 30 days of employment start)
  • Significant advantage for hiring from these countries

Employer obligations:

• Apply for work permit on employee’s behalf
• Ensure employee has valid work permit and residence permit before commencing work
• Cannot employ foreign nationals without valid authorization (penalties: fines, deportation of employee, potential criminal liability)
• Report to migration authorities (employee registration, changes, terminations)

Residence permit (ВНЖ – Вид на жительство):

• Foreign workers also need residence permit (combined with work permit in work permit card)
• Renewed annually with work permit

Family members:

• Dependents of work permit holders can apply for residence permits (temporary residence)
• May be able to work (with separate work permit) or study

An EOR with Kazakhstan entity can sponsor and employ foreign workers, navigating work permit quotas, migration police procedures, and EAEU simplified authorization.