According to the laws of Kazakhstan and the provisions of international treaties to which the country is a party, foreigners can be employed in Kazakhstan. According to the laws of Kazakhstan, foreigners are divided into two categories: (i) temporary residence and (ii) permanent residence (i.e., foreigners with a residence permit). Without violating certain restrictions, these two categories of foreigners have the same rights and obligations as citizens of Kazakhstan. For example, a foreigner may not hold a ** position or any other position reserved for citizens of Kazakhstan. Except in certain special cases, foreign nationals are required to have a corresponding work permit or residence permit to work in Kazakhstan.
Work permits are usually obtained and issued by employers who want to attract foreigners. Work permits are issued by the local labour authorities and are based on the annual quota for foreign workers established by Kazakhstan**. In order to obtain a work permit, employers in Kazakhstan must comply with the following requirements, such as the ratio of local to foreign employees:
At least 70% of the employer's Category I and Category II employees(e.g. CEO, head of branch or representative office) must be a national of Kazakhstan.
Category 3 and 4 employees of the employer(e.g., managers, specialists, and other qualified personnel).at least 90%.Must be a national of Kazakhstan.
These rates do not apply to the following entities: Small businesses[1].
State-owned enterprises and state-owned companies.
Priority projects (e.g. China-Kazakhstan pipeline).
Underground users and their operators, contractors and subcontractors involved in the Karachaganak, North Caspian and Tianjiz projects.
The employment relationship in Kazakhstan arises on the basis of an employment agreement. Foreigners must have a valid work permit or residence permit to be eligible to enter into an employment agreement with a Kazakhstani employer to work in Kazakhstan.
The basis of the labor relationship is the employment agreement, which can be signed in writing or in electronic ** form certified by electronic digital signature.
The content of the employment agreement is governed by the Labor Code. The provisions of the Labor Code specify the characteristics of the employment relationship with the managers of the company, the categories of social protection of employees, the disabled, etc.
The duration of an employment agreement can be indefinite, a period of at least one year, the duration of a particular job, a replacement period for a temporarily absent employee, and the duration of a permit. For hiring foreign workers to sign an employment agreement, employees may face a probationary period of one (1) to six (6) months, depending on the employee's category.
According to the position and job responsibilities, the employer may separately sign a personal major liability agreement, a confidentiality commitment and a non-compete agreement with the employee. When hiring, it's important to introduce employees to the job description and the company's code of conduct. The basic grounds for terminating an employment agreement include: Mutual Consent Expiration of employment agreement Unilateral termination of contract by employer Unilateral termination of contract by employee Violation of employment agreement enforcement procedures (e.g. lack of a work permit) Termination of the contract on the grounds set out in the employment agreement with the head of the employer's executive agency.
The employment agreement may not be unilaterally terminated by the employer during the employee's temporary injury or illness or annual paid leave, unless the employer is in liquidation or the employee is unable to work for two consecutive months due to a temporary injury or illness. The head of the legal entity (e.g., the general manager) and the members of the management body may be unilaterally terminated by resolution of the owner, shareholder or authorized body of the legal entity.
When terminating an employment agreement, it is advisable to strictly follow all local termination procedures and enter into a termination agreement with the employee whose employment is terminated, especially if the employee is terminated by the employer for violating labor laws or employment agreements. In labor activities, the employer shall use the time card to record the working hours of the employee on a monthly basis.
The Labor Code provides for the following system of working hours for employees:
5 or 6 days a week;Remote work (combined remote work);Rotation work;Flexible working hours. Employees may not work more than 40 hours per week;For employees working in hazardous working conditions and people with disabilities, the working week is reduced to 36 hours.
The Labor Code also sets a ceiling on overtime hours.
The minimum duration of an employee's annual labor leave is 24 days (calendar days). In addition, the legislation provides for additional working leave for certain circumstances or for certain categories of employees. Employers shall provide women with a total of 126 days (natural days) of maternity leave. The above-mentioned leave is paid by the State. In addition, at the request of the employee (male or female), the employer shall provide unpaid leave to care for the child until he or she reaches the age of 3.
Salaries shall be paid on a monthly basis in the national currency of the Republic of Kazakhstan (tenge). The Labour Code sets out the requirements for the duration of the payment of wages. In addition to the basic salary, the employer should pay the employee additional payments and compensation, such as wages during temporary disability, overtime pay, holiday (weekend) work pay, night shift pay, redundancy and termination compensation. When calculating wages, the employer shall pay the following taxes (deductions): pension contribution - 10% personal income tax - 10% health insurance deduction - 4% health insurance contribution 2% social contribution - 35% social tax - 95% Profile**:
doing business in kazakhstan from grata international
employment of foreign nationals in kazakhstan from morgan lewis
Notes: 1] A small business is defined as a sole entrepreneur (i) that does not constitute a legal entity and has an average annual number of employees of no more than 50 people, and (ii) a legal entity that has an average annual number of employees of no more than 50 people and an average annual asset value of no more than 50 persons (no more than approximately $692,400).