With its wealth of natural resources, strategic location, and growing economy, Kazakhstan is becoming an attractive destination for businesses seeking to expand their global footprint. If you’re considering tapping into Kazakhstan’s talent pool, understanding the country’s labor laws is crucial. These laws establish a framework for employer-employee relationships, safeguarding workers’ rights while laying out expectations for businesses operating within the country.
This blog post offers a comprehensive overview of key aspects of labor laws in Kazakhstan and how they might affect your international expansion plans.
A Guide for Growing Your Team in Kazakhstan
Kazakhstan’s labor laws are primarily outlined in the Labor Code of the Republic of Kazakhstan. This key document addresses various aspects of employment, including contracts, working hours, pay, leave, termination, and more. It’s essential to familiarize yourself with this Labor Code.
In Kazakhstan, employment relationships must always be formalized through written contracts. These contracts specify essential terms such as job duties, compensation, work schedule, termination provisions, and any benefits provided. Additionally, unions represent a large share of the workforce in Kazakhstan. Employers may negotiate collective bargaining agreements (CBAs) with unions that outline working conditions, wages, and benefits for specific groups of workers.
Hiring in Kazakhstan
If you plan to hire foreign nationals in Kazakhstan, it’s vital to understand the work permit requirements. Foreign employees must obtain a work permit before starting their jobs, and employers typically play a significant role in the application process. Employers can establish probationary periods for new hires, with a maximum of three months, allowing for termination with limited notice if the employee’s performance is unsatisfactory. Importantly, labor law in Kazakhstan prohibits discrimination in employment based on factors including gender, race, ethnicity, religion, age, disability, or political affiliation.
Read More: Average Salary in Kazakhstan
Working Hours, Leave, and Compensation
The standard workweek in Kazakhstan is 40 hours, typically spread over five days (Monday to Friday). Overtime work regulations exist, requiring compensation at a higher rate and setting limitations on the amount of overtime that can be required. Employees are entitled to a minimum of 24 calendar days of paid annual leave, with the potential for more leave based on tenure and working conditions.
Kazakhstan also provides for various other types of leave, including maternity leave, parental leave, sick leave, and leave for educational purposes. Kazakhstan has a national minimum wage that is adjusted periodically, and employers must ensure compliance. Wages must be paid at least twice a month, and while not strictly mandatory, bonuses and additional benefits packages are common for attracting and retaining talent in Kazakhstan.
Termination of Employment
Kazakhstan’s Labor Code establishes specific grounds and procedures for terminating employment. This includes termination by mutual agreement, termination at the employee’s initiative (with appropriate notice), and termination at the employer’s initiative (allowed only under specific circumstances like redundancy, misconduct, or unsatisfactory performance). Employers must strictly follow procedural rules, and severance pay may apply depending on the circumstances of the termination.
Partnering with an Employer of Record (EOR)
Navigating Kazakhstan’s labor laws, payroll complexities, and local regulations can be challenging for businesses entering this market for the first time. An Employer of Record (EOR), like Truss, can streamline your expansion by ensuring compliance with labor laws, handling payroll and benefits administration, and providing ongoing HR support tailored to the local context.
Employer of Record VS Staffing Agency
Harness the Potential of Kazakhstan’s Talent Pool With Truss
Kazakhstan offers a dynamic workforce and exciting growth opportunities. By understanding the fundamentals of labor law in Kazakhstan and partnering with the right specialists, you can confidently hire, manage, and support a talented team in this Central Asian market. Let the experts handle the complexities while you focus on building your business!
