LANES | EMPLOYMENT LAW

LANES

Employment Law Legal Services

It all begins with people. Employment relationships in Kazakhstan call for clear arrangements, effective risk management, careful planning and the responsible handling of information.
LANES' employment law services include, but are not limited to:
  • Proper establishment and operation of a conciliation commission
  • Conducting negotiations and settlement discussions
  • Conducting internal investigations
  • Preparing employer documentation (policies, regulations, instructions and orders)
  • Drafting employment agreements
  • Conducting employment compliance audits
  • Advising on day-to-day workforce management and employment disputes
  • Developing long-term workforce management strategies
  • Liaising with the labour inspection authorities
  • Assistance with work visas, temporary residence permits, and employer permits to hire foreign workers.
Drawing on extensive practical experience, we deliver clear, effective and confidential solutions designed to protect your interests.
What to Consider When Managing Employment Matters in Kazakhstan?

Managing employees in Kazakhstan requires more than preparing employment agreements and complying with basic employment requirements. Labour legislation is subject to ongoing changes, while employment relations are becoming increasingly formalised and digitalised.

Particular attention should be given to the engagement of foreign employees, termination of employment, internal dispute resolution and the employer’s ability to demonstrate compliance with applicable requirements.

For this reason, an effective employment framework should:


  • reflect the company’s actual business and workforce structure;
  • be regularly reviewed to identify and address employment-related risks.

A properly structured employment process helps prevent disputes, reduce regulatory risks and ensure that employment decisions are properly supported and documented.


The key points to consider are set out below.

EMPLOYMENT STRUCTURE
Employment agreements, internal policies, job descriptions and other employment-related documents should correspond to the company’s actual operations and workforce structure. The employer should also ensure that employment processes are properly documented and that established rules are applied consistently.
All internal rules, policies and other employer’s acts must be properly communicated to employees in order to have legal effect. Otherwise, they may be treated merely as an information package without binding force.
FOREIGN EMPLOYEES & IMMIGRATION
Before engaging a foreign employee, it is necessary to determine their immigration status and whether a permit to attract foreign labour or any other documentation is required.
The applicable requirements depend on the employee’s nationality, position, qualifications, employer and any relevant exemptions. These matters should be assessed before the employment relationship begins and reviewed again if the employee’s position or status changes.
For example, in certain cases, a foreign chief executive may only require a visa authorising employment in Kazakhstan, without the need to obtain a separate permit to attract foreign labour.
TERMINATION OF EMPLOYMENT
Termination of employment, where it does not occur by mutual agreement, is always a complex process. It must therefore be carried out on a statutory ground and in strict compliance with the applicable procedures and time limits. Particular attention should always be given to the grounds for termination, required notices, payments and the proper execution of the employer’s act.
It should be noted that the existence of a lawful ground for termination of an employment agreement does not, in itself, eliminate the risk of a dispute.
EMPLOYMENT DISPUTES
Before taking action, the employer should assess the circumstances of the situation, available evidence, applicable employment documents and the employee’s potential claims.
Where appropriate, the dispute should first be addressed through the available internal procedures. Early legal assessment can help determine whether the matter can be resolved without litigation and reduce the risk of additional costs and escalation.
CONCILIATION COMMISSION
In most cases, conciliation commission has either not been established or has been established in violation of the applicable requirements regarding its composition and procedures.
The composition of the commission, its procedures, documentation and the process for reviewing individual labour disputes should be properly organised. An effective dispute resolution mechanism, combined with the proper execution of the employer’s acts, allows employment disputes to be resolved effectively.
LABOUR AUDIT & COMPLIANCE
A labour audit allows the company to review employment agreements, HR documentation, internal policies, working time arrangements, remuneration, leave, termination procedures, employment of foreign personnel and other aspects of labour law compliance.
The objective is not only to identify existing violations, but also to establish an effective employment compliance framework that reduces the risk of claims, adverse inspection findings and labour disputes.
ONGOING EMPLOYMENT SUPPORT
Compliance with labour legislation should be treated as an ongoing business process rather than a periodic exercise. Changes in legislation, workforce structure, management decisions and specific employment situations may require employment documents and procedures to be updated.
Regular legal support enables the company to make employment decisions consistently and on a well-founded basis, while reducing the risk of labour disputes and regulatory consequences.
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For the reason of latest geopolitical events and changes employing personnel in Kazakhstan has also evolved. The government takes protective actions to manage imigration flows similar to what is generally done for market protection by Customs Service. This brings restrictions that apply independently of the terms agreed between the parties to employment relations. Such should be assessed before recruitment begins or the workforce structure is changed.

  • Quotas and Local Content Ratios
    The engagement of foreign personnel is limited both by the annual quota for attracting foreign labour and by ratios requiring a defined proportion of Kazakhstan citizens among executives, heads of structural divisions, specialists and skilled workers. The ratios are calculated on the workforce as a whole, and outsourced foreign personnel providing services may not be exception. Structuring a management team without first accounting for and modelling these ratios frequently results in a permit being unavailable for a key role. The approved quotas are available for review by the employers.
    Timely and appropriate actions may ensure receipt of requred permit.
  • Restricted Work and Protected Categories
    Certain categories of employee — including minors, pregnant employees and employees with young children — are subject to specific protections regarding working conditions, working time and employment termination. Restrictions also apply to particular types of work. These requirements apply regardless of the employee's consent, and provisions of an employment agreement that worsen the statutory position are of no effect.
  • Anti-Corruption and the Quasi-Public Sector
    The recent changes to the law assume prohibitions and monitoring concerning hiring ex-government service employees. That entails the new approach applicable to HR procedures, including screening options. Generally an employer has the right to rely on information from employee or databases. However, these novelties must not be neglected in course of hiring process.
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THE ORDER OF ACTION

TERMINATING EMPLOYMENT THE RIGHT WAY

Termination of employment is a sensitive process that may have significant consequences for both the employee and the employer. As with contractual matters, we always recommend approaching termination decisions carefully and in strict compliance with the procedures established by the Labour Code of Kazakhstan. Subject to a limited number of exceptions, employment relationships in Kazakhstan are governed exclusively by the Labour Code, regardless of the jurisdiction in which the employer is incorporated.
Articles 49, 50, 52, 53 and 56 of the Labour Code establish the grounds and procedures for terminating employment. Failure to comply with the applicable procedure may result in the termination being declared unlawful.
Accordingly, a proper termination of employment should always be based on:

  1. The correct provision of the Labour Code as the legal ground for terminating the employment agreement;
  2. Strict and properly documented compliance with the procedure applicable to that ground;
  3. The employer having a duly constituted and functioning conciliation commission, including certified specialists.

For this reason, where employment is terminated at the employer’s initiative, the decision should be made with due regard to its broader strategic implications. In particular, an employee has an unconditional right to bring a claim before the courts. This is a constitutional right. Any termination decision should therefore take this possibility into account in order to minimise reputational, financial, operational and other risks.
Termination of a CEO’s employment is different, as a CEO is inherently more vulnerable to dismissal given their special fiduciary role within a company. This process involves corporate actions along with the appropriate HR paperwork.
Kazakhstan’s labour market is active and increasingly digitalised. Social media also plays a significant role, while information concerning employment practices can be verified, including by the state labour inspectorate.
A conciliation commission is mandatory and is now required for all branches and representative offices of foreign companies. Establishing a conciliation commission is a structured, step-by-step process involving the election of its members and the proper recording of its decisions.

We specialise in these matters and professionally prepare the necessary documentation, helping to minimise the risk of the termination being declared invalid or challenged.

Knowledge base

Frequently asked questions

A probation clause can only go into the contract when it is signed — it cannot be added later. It may not exceed three months, or six for heads of organisations and their deputies, chief accountants and their deputies, and heads of branches and representative offices. Days of actual absence do not count towards it, while the probation period itself counts towards length of service. The Code has no general list of people who cannot be placed on probation; the only express prohibition applies to seasonal work (Art. 36 of the Labour Code).

The list in Article 52 is closed — it cannot be extended by contract. The most commonly used grounds are liquidation, reduction of headcount or staff, a fall in production volumes, unsuitability for the post after an appraisal or on health grounds, absence without valid reason for three or more consecutive hours in one working day, being at work while intoxicated, theft at the workplace established by a court judgment or ruling, loss of trust in an employee handling money or goods, disclosure of information protected by law, and repeated failure to perform duties by someone who already has a sanction.

You must be given at least one month's written notice. The compensation for loss of work is one month's average wage; where the dismissal follows a fall in production volumes, notice is fifteen working days and the compensation is two months'. On top of that come the final settlement and compensation for every unused day of leave, payable no later than three working days after the contract ends. Employees within two years of pension age have extra protection: they cannot be made redundant without a positive decision of a parity commission (Arts. 53 and 131 of the Labour Code).

Wages must be paid at least once a month and no later than the first ten days of the following month. For every overdue calendar day the employer owes interest calculated on 1.25 times the National Bank's base rate as at the date the obligation is performed. The same interest applies if the three-day deadline for the final settlement on termination is missed. Beyond the interest, the employer bears liability under the laws of Kazakhstan (Art. 113 of the Labour Code).

The Code is explicit: a person may be admitted to work only after an employment contract has been concluded. If no contract is executed through the employer's fault, the employment relationship is deemed to have arisen from the day the person started work — with all the duties on leave, pay and guarantees that follow. A civil law contract therefore gives no protection where the features of employment are present, and the employer additionally bears liability under the laws (Art. 33 of the Labour Code).

Basic paid annual leave is twenty-four calendar days, unless a greater number is set by the Code, other legal acts, the employment or collective agreement, or an act of the employer. Public holidays falling within the leave do not count towards its duration. Additional paid leave is added to the basic entitlement. On termination, compensation for all unused days is paid on the basis of the average wage (Arts. 88, 90 and 96 of the Labour Code).

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