Employment law in Kazakhstan
Employment law in Kazakhstan is governed primarily by the Labor Code of the Republic of Kazakhstan (2015) and various regulations that protect the rights of employees while also providing employers with flexibility in managing their workforce. Kazakhstan's employment laws aim to ensure fair treatment of workers, regulate working conditions, and create a balance between employee rights and employer interests.
Here’s an overview of the key aspects of employment law in Kazakhstan:
1. Employment Contracts
Types of Contracts:
Permanent Employment Contracts: These are the most common and are used for long-term employment. Employees under permanent contracts enjoy full labor rights and protections.
Fixed-Term Contracts: Fixed-term contracts are allowed for specific tasks or projects. However, if a fixed-term contract is repeatedly extended or continues for more than 5 years, it may be deemed a permanent contract.
Part-Time Employment: Part-time contracts are allowed, and part-time employees are entitled to the same rights as full-time employees, but the benefits are typically prorated according to the number of hours worked.
Temporary Contracts: Employers can hire workers for short-term or temporary work needs, especially during peak periods or for special projects.
Written Contracts: Employment contracts must be written in Kazakhstan. The contract should outline the job position, salary, work schedule, duration of the contract (if applicable), and other terms of employment.
2. Working Hours and Overtime
Standard Working Hours: The typical workweek in Kazakhstan is 40 hours, with employees usually working 8 hours per day, 5 days per week.
Overtime: Overtime is allowed, but it is regulated. Overtime should not exceed 4 hours per day or 120 hours per year. Employees working overtime are entitled to compensation at a rate of:
1.5 times the regular hourly rate for the first 2 hours of overtime.
2 times the regular hourly rate for overtime beyond that.
Rest Periods: Employees are entitled to at least 24 consecutive hours of rest every week. Additionally, employees who work more than 4 hours continuously must receive at least a 30-minute break.
3. Minimum Wage
Minimum Wage: Kazakhstan has a national minimum wage, which is set annually by the government. As of 2024, the minimum wage is around 42,500 KZT per month (approximately USD 90), but it varies depending on the region and industry. The minimum wage is typically adjusted annually to keep up with inflation and the cost of living.
4. Leave Entitlements
Annual Leave: Employees are entitled to 24 calendar days of paid annual leave after one year of service. This leave entitlement can be extended based on collective agreements or the employer’s policies.
Sick Leave: Employees are entitled to paid sick leave. For the first 3 days of illness, employees receive 100% of their salary, while the remaining sick leave days are covered by social security benefits from the state at a reduced rate.
Maternity Leave: Female employees are entitled to 70 calendar days of maternity leave before the birth and 56 calendar days after the birth, for a total of 126 days of paid maternity leave. The compensation is typically 100% of their average salary, paid by the state.
Paternity Leave: Fathers are entitled to 5 days of paid paternity leave following the birth of a child.
Parental Leave: Parents are entitled to unpaid parental leave until the child reaches the age of 3 years. During this time, they may receive a childcare allowance from the state, depending on eligibility.
5. Social Security and Benefits
Social Security System: Kazakhstan has a mandatory social insurance system, which includes pension insurance, medical insurance, and other social security benefits. Both employers and employees are required to contribute to the Unified Social Tax (UST).
Pensions: Employees contribute to the pension system, which provides income after retirement. Employers are also required to make contributions to the pension fund.
Healthcare: Kazakhstan has a compulsory health insurance system. Contributions are made to the Unified Health Insurance Fund, and the system provides employees with access to both public and private healthcare services.
6. Termination of Employment
Notice Period: Employees or employers wishing to terminate the employment contract must provide a notice period, which depends on the employee's length of service:
At least 1 month’s notice for employees with less than 1 year of service.
At least 2 months’ notice for employees with more than 1 year of service.
Severance Pay: Employees are entitled to severance pay if they are laid off due to redundancy or termination for economic reasons. Severance pay is typically 1 month’s salary but may be higher depending on the employee’s length of service and the circumstances of the termination.
Dismissal for Cause: Employees can be dismissed immediately for serious misconduct (e.g., theft, violence, dishonesty). In such cases, the employee is not entitled to severance pay or notice.
Redundancy: In the case of redundancy, employees are entitled to severance pay, and the employer must follow the procedure outlined in the labor code, which includes notifying employees and potentially offering other positions within the company.
7. Discrimination and Equal Treatment
Non-Discrimination: Kazakhstan’s labor law prohibits discrimination in employment based on factors such as gender, race, religion, disability, or other personal characteristics.
Equal Pay: Employees are entitled to equal pay for equal work, regardless of gender or other discriminatory factors.
8. Trade Unions and Collective Bargaining
Right to Unionize: Employees have the right to form or join trade unions, and unions in Kazakhstan play a role in negotiating collective agreements and protecting workers’ rights.
Collective Bargaining: Collective bargaining agreements (CBAs) may be negotiated at the sectoral or company level. These agreements may set additional rights for employees, such as higher wages, additional leave, or better working conditions.
9. Health and Safety
Workplace Safety: Employers are legally obligated to provide a safe working environment. The employer must ensure compliance with health and safety regulations, provide proper training, and equip employees with necessary protective gear.
Workplace Accidents: Employees who are injured at work are entitled to compensation through the social insurance system. This includes medical care, rehabilitation, and financial support while they are unable to work.
Occupational Health: Employees working in hazardous environments (e.g., in construction, mining, or manufacturing) are entitled to special protections, including regular health checks and access to medical support.
10. Labor Disputes and Legal Recourse
Labor Dispute Resolution: If disputes arise between employers and employees, they can seek resolution through the Labor Inspection Committee or the court system. Disputes can relate to issues such as wrongful termination, wage disputes, or violations of labor rights.
Labor Inspections: The government regularly conducts labor inspections to ensure compliance with labor laws and regulations. Employers found violating the law may face fines and penalties.
Arbitration and Mediation: In cases of disputes, mediation and arbitration services are available to help resolve conflicts before they escalate to litigation.
11. Child Labor and Protection of Minors
Child Labor: The employment of children under the age of 14 is strictly prohibited in Kazakhstan, except in certain light work situations approved by the government.
Adolescent Employment: Minors aged 14-18 can be employed, but only under specific conditions. They must not work in dangerous conditions or exceed certain working hours.
Summary of Key Worker Rights in Kazakhstan:
Employment Contracts: Contracts must be written, outlining job roles, salaries, and working hours.
Working Hours: 40-hour workweek with overtime compensation at higher rates.
Minimum Wage: National minimum wage set annually by the government.
Leave Entitlements: 24 days of paid annual leave, paid sick leave, maternity leave (126 days), and paternity leave (5 days).
Social Security: Contributions to pension and health insurance systems.
Termination: Notice periods, severance pay, and protections against unfair dismissal.
Non-Discrimination: Equal pay and protection from discrimination.
Unions: Right to join unions and participate in collective bargaining.
Health and Safety: Employer responsibility for workplace safety and injury compensation.
Labor Disputes: Disputes can be resolved through the Labor Inspection Committee, mediation, or the courts.
Kazakhstan's labor laws are designed to provide robust protections for employees while also allowing employers to operate with flexibility. The government has made efforts to align local laws with international labor standards, focusing on worker protection, fair wages, and workplace safety.
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