The Labour Code of the Republic of Kazakhstan (the “Labour Code”) underwent a number of amendments in 2026. Many of these changes are aimed at ensuring a balance between employees’ and employers’ rights in employment relationships. At the same time, the Labour Code promotes the resolution of disputes and disagreements within the organisation itself. This approach also helps reduce the burden on the courts by providing a mechanism for resolving employment disputes without court proceedings. To this end, the Labour Code generally provides for the establishment of a conciliation commission to resolve employment disputes.
Many organisations take a neutral approach to establishing a conciliation commission, believing that, in the absence of direct administrative fines specifically for failing to establish one, its creation can be postponed. However, a properly established commission offers several advantages, from compliance with legal requirements to reducing the organisation’s costs.
By its nature, the Commission is also intended to maintain a balance between the interests and rights of both parties to an employment contract. Its key features include:
- employee representatives are selected through an election process. This means that employees elect, from among their colleagues, those they trust to represent them on the Commission, following the applicable election procedure and voting process.
- equal representation of employees and the employer. This allows disputes to be considered more impartially and objectively, taking into account the positions of both parties.
- a bilateral agreement governing the establishment and operation of the Commission. In many cases, an organisation makes the mistake of drafting internal regulations on the conciliation commission and unilaterally approving them as binding on everyone within the organisation. The problem is that no agreement has been reached between the employees and the employer on the Commission’s operating procedures or on the process and conditions for considering disputes. Proper establishment of the Commission therefore requires, among other things, an agreement signed by the representatives of the employees and the employer. Only in this case does the agreement and the Commission itself have legal force and the authority to consider employment disputes. Accordingly, employment disputes and related matters are considered with due regard to the views of both parties to the employment relationship, rather than just one.
- both employees and the employer may apply to the Commission to resolve a dispute. It is therefore incorrect to assume that the Commission exists solely to consider complaints submitted by employees. The employer may also approach the Commission to address disputed matters arising from an employee’s acts or omissions.
Since the Commission operates on the basis of an agreement, contractual principles, including freedom of contract, apply to that agreement. This means that employees and the employer may include any terms that do not conflict with applicable law and that help ensure disputes are resolved objectively, efficiently and confidentially.
For example, the agreement may impose obligations on each party not to disclose details of a dispute, including financial, operational or other sensitive information, as well as other obligations concerning the outcome of the proceedings. However, it is important to note that such an agreement cannot exclude the right to bring a claim before a court. It may, however, regulate the extent to which the parties disclose information concerning the proceedings, including in situations where sensitive information has been presented or discussed in court, subject to applicable law and court procedures.
The above also means that the Commission’s decision should be drafted carefully, address the substance of the dispute and clearly set out the objective grounds for the decision. A well-reasoned decision may be relevant to the subsequent court proceedings if the dispute is ultimately brought before a court, although it does not determine the outcome of the case.
The financial rationale for establishing a Commission should also be considered. Its operation does not generally involve the same level of expense as court proceedings. Litigation may result in additional costs, including court fees where the claimant is not exempt from paying them, legal representation fees, and the organisation’s time and operational costs. The latter may include work disruptions or delays if employees are required to attend court as witnesses or to provide information needed for the court to consider the case.
Thus, a properly established conciliation commission with suitably qualified representatives can significantly simplify the resolution of disputes and help keep them within the organisation, while protecting its reputation both in the wider market and, in particular, in the labour market.
Finally, it is important to reiterate several key rules for establishing and operating a conciliation commission to ensure that its establishment and activities comply with applicable legal requirements:
- The Commission must be established on the basis of an agreement between the employees and the employer, rather than solely under internal regulations unilaterally approved by the employer.
- establishment of the Commission must be preceded by the election of employee representatives to represent employees in the Commission’s work.
- The Commission must comprise an equal number of representatives of the employees and the employer.
- the agreement governing the Commission’s operation must comply with the Labour Code and must not contain provisions that create uncertainty or disputes regarding the procedure or the outcomes of the Commission’s decisions.
- Commission members must receive training and regularly improve their professional knowledge and skills as frequent as once a year.
If your organisation needs to establish or revise a conciliation commission, conduct an audit of its existing arrangements, or organise training for its members, our law firm will be pleased to assist.