Kazakhstan: Overview of Labor Law and Employment Policies

Overview of Employment Law

• Key Laws and Regulations:
  • Labor Code of the Republic of Kazakhstan
  • Law of the Republic of Kazakhstan on Social Insurance
  • Tax Code of the Republic of Kazakhstan
• Legal Characteristics: Kazakhstan's labor law aims to protect employees' rights, promote employment, and ensure social stability. The law regulates areas such as minimum wage, working hours, leave, social insurance, and termination procedures.

Employment Contract Requirements

• Contract Types:
  • Indefinite-term contracts
  • Fixed-term contracts (maximum one year, renewable twice)
• Contractual Terms:
  • Must include provisions on job description, remuneration, working hours, leave, social insurance, and termination procedures.
• Language and Currency: Contracts must be in Kazakh or Russian and denominated in Kazakhstani tenge (KZT).

Working Time Regulations

• Standard Working Hours: 40 hours per week
• Rest Days and Breaks: One rest day per week, 30-minute break after each working day

Leave Policies

• Annual Leave: 24 days
• Public Holidays: 12 days
• Special Leave:
  • Sick leave: 3 days per year, extendable to 6 days for serious illnesses
  • Maternity leave: 126 days (70 days before due date, 56 days after)
  • Paternity leave: No statutory provision
  • Parental leave: Unpaid leave to care for children under 3 years old

Employee Severance and Contract Termination

• Notice Period:
  • Employer: One month
  • Employee: One month
• Severance Pay: No statutory provision
• Protection Against Unfair Dismissal: Employees dismissed due to discrimination, trade union activities, or other protected reasons are entitled to compensation.

Tax Laws

• Personal Income Tax:

  • Salary Range	Tax Rate
    0 - 30,000	0%
    30,000 - 45,000	10%

• Social Insurance Contributions:
  • Employee: 3.5%
  • Employer: 17.5% (includes social insurance, medical insurance, social tax, and occupational pension)

Health Insurance

• Insurance Policy: Universal healthcare system, but patients may face co-payments.
• Coverage: Basic medical services, including hospitalization, outpatient care, and medications.

Compensation and Benefits

• Minimum Wage: 70,000 KZT/month
• Salary Structure: Base salary, bonuses, allowances, etc.

Work Permits and Visas

• Permit Requirement: Foreign nationals require work permits.
• Application Process: Apply through the Ministry of Foreign Affairs or consular offices of Kazakhstan.

Confidentiality and Non-Compete Clauses

• Enforceability: Enforceable, but must be reasonable and not unduly restrict employees from working in the same industry.
• Common Provisions: Confidentiality, non-compete, and non-solicitation clauses.

Training and Development

• Legal Requirements: Safety training, skills enhancement, etc.
• Government Support: Government-funded training programs and incentives.

Workplace Diversity and Inclusion

• Legal Requirements: Prohibits discrimination based on race, gender, religion, or other protected characteristics.
• Enforcement Measures: Government agencies responsible for investigating and resolving discrimination complaints.

Remote Work Policies

• Legal Framework: Supports remote work, but written agreement between employer and employee is required.
• Tax and Insurance Implications: Tax and social insurance implications of remote work depend on specific circumstances.

Key Website Addresses

• Ministry of Labor and Social Protection of the Republic of Kazakhstan: https://www.enbek.gov.kz/