Hiring guide in Kazakhstan

What should I know about hiring in Kazakhstan?

Legal framework

Types of employment contracts

In Kazakhstan, employment contracts vary based on the nature of the work and the terms agreed upon by the employer and employee. The most common type is the permanent employment contract, which has no set end date. Termination of such contracts requires valid reasons, such as employee misconduct, redundancy, or mutual agreement.

Another type is the fixed-term employment contract. These contracts are established for a specific period, commonly used for seasonal work or project-based assignments, with a maximum duration of 5 years unless specified otherwise by law. If the contract expires but the employee continues working, it may automatically convert into a permanent contract. Repeated renewals can also lead to it being recognised as indefinite.

The temporary employment contract is designed for short-term work assignments, typically lasting less than 2 months. This type of contract is often used to cover the absences of permanent employees, such as during maternity leave or for completing short-duration projects.

Content of an employment contract

An employment contract must include several elements. First, it must clearly identify both parties, providing the employer’s name and business identification number as well as the employee’s name, surname, and personal identification number. It should also specify the job description, detailing the employee’s role, tasks, and the nature of the work. The workplace, indicating the physical location where the duties will be performed, must be included as well.

The contract must clarify the duration of employment, whether it is indefinite, fixed-term, or temporary. It should outline working hours and schedules, covering daily or weekly hours, shift patterns, and any conditions for overtime or flexible work. Additionally, it must detail compensation, including salary, benefits, bonuses, or allowances, along with payment methods and dates. Finally, the contract should define the conditions for termination by either party in line with the provisions of the Labour Code.

Download a free employment contract for Kazakhstan through Native Teams.

Oral, written or electronic employment contracts

Employment contracts must be in written form, as oral agreements aren’t legally binding in labour relations. These contracts must include the terms and conditions outlined in the Labour Code and must be signed by both the employer and the employee before the employee starts work.

Working hours

A standard workweek consists of 40 hours. Within this framework, various types of work schedules are permitted to meet the operational demands of different industries. The typical arrangement consists of an 8-hour workday from Monday to Friday, with 2 rest days, usually on the weekend. 

For industries requiring continuous operations, work may be organised into shifts, each lasting up to 12 hours, with mandatory rest periods between shifts. Flexible working arrangements are also an option, allowing employees to adjust their schedules as long as the total weekly hours don’t exceed 40. 

Additionally, part-time work is recognised, with employees working fewer than 40 hours per week receiving the same protections as full-time workers, though benefits are adjusted proportionally to the hours worked.

Night work

Night work is any work performed between 10:00 p.m. and 6:00 a.m. Employees assigned to night shifts are entitled to additional compensation, typically through an increased wage rate for hours worked during this period. Furthermore, night workers can only be required to exceed their standard shift length with appropriate rest.

Breaks and types of leaves

Employees are entitled to regular breaks during the workday. For shifts lasting 6 hours or more, a meal or rest break of at least 30 minutes and up to 2 hours must be provided. These breaks are excluded from the calculation of paid working hours.

Annual leave

In Kazakhstan, all employees are entitled to annual paid leave, a fundamental right designed to promote rest and recovery while protecting health and well-being. The minimum duration of annual leave is 24 calendar days, serving as the baseline for employees working under standard conditions. Workers engaged in hazardous, heavy, or dangerous jobs may be granted additional leave days to accommodate the demands of their roles.

Annual leave is calculated in calendar days, including weekends and holidays. However, if a public holiday occurs during the leave period, the leave is extended by the corresponding number of holidays. Employees become eligible for their full annual leave entitlement after 12 months of continuous service with the same employer. Partial leave may be granted after 6 months, depending on the employer’s discretion or the collective agreement terms.

Public holidays

National holidays, such as Independence Day on December 16, are marked by nationwide celebrations, during which work is prohibited except in essential sectors. State holidays, including New Year’s Day (January 1-2), International Women’s Day (March 8), and Victory Day (May 9), are officially recognised days of rest.

Employees required to work on public holidays are entitled to additional compensation. Alternatively, an employee may receive a substitute rest day. Public holidays falling within an employee’s annual leave don’t count against their leave entitlement, so the leave period should be extended accordingly. Additionally, when a public holiday coincides with a weekend, it’s generally shifted to the next workday to ensure employees benefit from a day off.

Salary

An employee’s salary generally consists of several components. The base salary is the fixed amount paid according to the employee’s job description, qualifications, and working conditions. In addition, employees may receive bonuses and incentives, such as performance-based pay or productivity bonuses. Compensation payments can also be included for working under specific conditions, such as hazardous environments, night shifts, or overtime.

Salaries must be paid at least once a month. Employees are entitled to receive their full payment on time, and if an employer delays payment, they must pay a penalty of 1.25% of the delayed amount for each day the payment is overdue.

To calculate the salary and taxes in Kazakhstan, click here.

Sick leave

Sick leave in Kazakhstan grants employees the right to take time off due to illness or injury. The law ensures that employees’ income is protected during periods of illness and outlines the conditions for receiving compensation.

To qualify for sick leave benefits, employees must provide a medical certificate from a licensed healthcare provider, confirming their inability to work and specifying the expected duration of their illness. Employees are entitled to sick pay, which may be provided by the employer or through social insurance, depending on the situation. 

For the first 3 days of illness, employers generally cover the sick pay based on the employee’s average salary. After this period, social insurance may contribute to sick leave payments through Kazakhstan’s Social Insurance Fund, particularly in cases of long-term or serious illnesses.

Parental leave

Maternity leave lasts 126 calendar days, with 70 days taken before childbirth and 56 days after. If there are complications during childbirth or in the case of multiple births, the postnatal leave is extended to 70 days. Maternity leave is paid, with compensation provided through the State Social Insurance Fund, based on the employee’s average wage. 

In addition, women may request up to 3 years of unpaid leave to care for the child. During this period, the employment contract remains in effect, and the employee has the right to return to work once the leave ends.

Paternity leave is granted to fathers for a duration determined by collective agreements or the employer’s internal policies. While the Labour Code doesn’t specify the length, it allows fathers to take time off immediately after the birth to support the mother and child. Employers are encouraged to offer paid paternity leave, though it isn’t required by law.

Employees who adopt a child or become legal guardians are entitled to parental leave under the same terms as biological parents. This includes leave during the first few months after adoption to bond with and care for the child.

Methods of employment termination

The Labour Code of Kazakhstan outlines several methods for terminating employment contracts, ensuring the protection of both employee and employer rights.

Termination can occur by mutual agreement, where both parties agree to end the contract. This process is straightforward but must be documented in writing and signed by both the employer and the employee.

Employees also have the right to terminate their contract by providing written notice to the employer at least 1 month in advance, although the employment contract may stipulate a longer notice period. In certain situations, such as the employer’s failure to meet the terms of the agreement (for example, not paying wages), employees can terminate the contract without prior notice.

Employers can terminate employment under specific circumstances, such as poor performance, organisational changes, or disciplinary violations. However, they must follow the procedures outlined in the Labour Code to ensure the dismissal is legally valid.

For fixed-term contracts, employment automatically ends when the contract period expires. Suppose the contract is for a specific task or to replace a temporarily absent employee. In that case, the contract terminates upon completing the task or returning the permanent employee.

Ordinary dismissal by employer

Employers have the legal right to initiate dismissal, but this must be based on valid reasons and carried out according to the procedures outlined in the Labour Code.

Dismissal grounds include poor performance, misconduct, redundancy due to company restructuring, or failure to meet job requirements. Gross violations, such as unapproved absenteeism, insubordination, or criminal activity, also justify dismissal.

Suppose an employer decides to reduce staff or dissolve the company. In that case, they may terminate employment contracts, provided they notify the employees and, if applicable, their representatives at least 1 month in advance.

Employers may also terminate employees who are deemed medically unfit to perform their job, but such a decision must be supported by a medical assessment and follow the appropriate legal procedures.

Notice period and challenging the dismissal

The Labour Code of Kazakhstan requires both parties to adhere to the notice period when terminating employment.

When an employer initiates termination based on redundancy or other valid reasons (excluding gross misconduct), they must provide the employee with at least 1 month’s written notice. In cases of immediate dismissal, such as for gross misconduct, the notice period can be waived. In these situations, the employer may offer compensation in lieu of notice, provided both parties agree.

Employees who wish to resign must give the employer at least 1 month’s written notice before leaving. The notice period may be shorter if both parties mutually agree or if the employee presents valid reasons, such as employer misconduct or health-related issues.

Rights and obligations of unemployed individuals

To qualify for unemployment benefits, individuals must be registered with the employment agency, actively seeking employment, and meet specific requirements related to their prior employment and the reason for job loss.

Unemployed individuals are required to actively look for work by attending interviews, checking in with employment agencies, and accepting suitable job offers.

They are also entitled to vocational training, retraining, and skills development programs provided by the state to enhance their employability.

Any changes in status, such as securing new employment or relocating to another region, must be reported to the employment agency.

In addition to unemployment benefits, individuals may also be eligible for other forms of social assistance, including housing subsidies or healthcare support.

Severance pay

Severance pay is mandatory compensation provided in certain circumstances.

Employees are entitled to 1 month’s average salary if the employer closes down, reduces its workforce, or breaches the employment agreement. If an employee is dismissed due to a decline in production, services, or the employer’s worsening financial conditions, they are entitled to 2 months’ average salary.

Employment contracts and collective bargaining agreements may stipulate higher severance payments. Some contracts may also allow employers to terminate employees without notice, with a predetermined severance package.

Probationary period

The Labor Code of the Republic of Kazakhstan allows for a probationary period to be included in an employment contract to evaluate an employee’s suitability for the role. The maximum length of the probationary period is 3 months for regular employees, but it can be extended to 6 months for managerial positions.

Intellectual property rights

There are no detailed provisions on intellectual property (IP) within the employer-employee relationship. However, similar to many other jurisdictions, it’s generally understood that intellectual property created by an employee during their work duties belongs to the employer. This aligns with the legal concept of “works for hire,” where creations produced during employment are typically considered the employer’s property.

Any invention, work, or creation developed in connection with an employee’s job responsibilities is generally regarded as the employer’s intellectual property. To avoid potential disputes over ownership, the employment contract may specifically address this matter.

Additionally, if an employee’s creation significantly benefits the employer, the employment contract or collective agreement may include provisions for extra compensation or recognition for the employee.

Confidentiality obligations also prevent employees from disclosing trade secrets or proprietary information they can access during their employment. Breaching these obligations may result in liability for damages or penalties under the Labour Code.

Employee data privacy

Employers must collect, process, and protect employees’ personal data in compliance with Kazakhstan’s personal data protection laws. Employers are responsible for ensuring that this data is handled securely and isn’t disclosed or used without the employee’s consent, except in cases allowed by law.

Employees have the right to be informed about the personal data being collected, the purposes for which it’s processed, and how it’ll be used. They may also request the correction or deletion of inaccurate or irrelevant data.

Prohibition of competition

A non-competition agreement between an employer and an employee imposes certain restrictions on the employee to prevent activities that could harm the employer’s interests.

This agreement is based on mutual consent between both parties and prevents the employee from engaging in activities that might cause financial or competitive damage to the employer. The employer may offer compensation during the restriction period, unless otherwise specified by law, ensuring the employee is fairly compensated for adhering to the non-compete terms.

The positions and responsibilities subject to non-competition agreements are determined by the employer and specified in the company’s internal documents.

Remote working policy

Remote work is a specific form of labour where the employee carries out their duties outside the employer’s premises, using information and communication technologies (ICT).

The employer must provide the necessary tools for remote work, including communication technologies. If the employee uses their own equipment, the employer is required to compensate them, as specified in an agreement.

Remote work follows a defined system for recording working hours, with the method of control specified in the employment contract. This is crucial for managing the workload and ensuring transparency in work arrangements.

Responsibilities within a remote work arrangement

Employees are responsible for completing their work using the designated tools and equipment, whether provided by the employer or, if agreed upon, using their own personal equipment. They must also maintain regular communication and meet the expectations related to work hours and deliverables as specified in the contract.

Employers are responsible for providing the necessary equipment or reimbursing the employee for any personal equipment used in the performance of their duties. Additionally, employers must establish clear expectations and mechanisms for tracking work hours and performance.

Health and safety at home

The Kazakhstan Labor Code outlines both the employee’s and employer’s responsibilities regarding health and safety, especially in remote work environments.

Employees have the right to a safe working environment, which includes an ergonomic setup and access to tools that do not pose health risks. Employers are required to provide necessary training and ensure that employees are fully aware of health and safety regulations, even when working remotely.

Employers must assess potential risks and take preventive measures to ensure employee safety, such as providing suitable equipment or financial assistance to reduce health risks. In some cases, remote employees may still need to undergo medical examinations, particularly if their tasks involve exposure to specific hazards, with periodic assessments conducted depending on the nature of their work.

What are the advantages of hiring employees from Kazakhstan vs other countries?

Salaries in Kazakhstan are generally lower compared to those in Western countries and some Eastern European nations. So it’s a great option if you want to hire skilled labour without straining your budget.

Positioned at the crossroads of Europe and Asia, Kazakhstan is also ideal for businesses seeking to operate or expand in Central Asia, Eastern Europe, or Western China. This is especially useful for businesses that use transportation services. 

Finally, Kazakh professionals often adapt well to various work cultures due to their experience working with international companies and exposure to diverse business practices.

Why use Native Teams for hiring in Kazakhstan?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximising your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.