Kazakhstan

Employment

There are two types of employment contracts – fixed term and unlimited period of time. Employment contracts must be written.

Payroll

Monthly salary must be paid in full by the 10th of the following month.

HR & Labor

Full time employment is considered 40 hours per week. Employees working overtime can not exceed 12 hours within a month and 120 hours per year. Overtime is not less than 150% of the regular wages of the employee.

Immigration

Business visas are granted to foreign nationals visiting and staying in Kazakhstan on business (business trip, participation in business negotiations, symposiums, conferences, bids, contract negotiations, participation in expos and fairs, consulting and auditing services). Work visas are granted to foreign nationals travelling to Kazakhstan for work. Citizens of all countries, with the exception of Russia, Belarus, Armenia and Kyrgyzstan must obtain a Work permit before undertaking any gainful activities in Kazakhstan.
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In accordance with the Decree of the Government of the Republic of Kazakhstan dated June 26, 2015 №483 citizens of the United Kingdom, United States of America, Germany, France, Italy, Malaysia, Netherlands, United Arab Emirates, Switzerland, Spain, Belgium, Hungary, Monaco, Singapore, Australia, Norway, Sweden, Finland and Japan are exempt from visa requirements for visits up to 15 calendar days from the moment of crossing the state border between July 16, 2015 to December 31, 2017.

Minimum Wage

Minimum wage is 24,459 KZT per month.

Pension Fund

The employee contributes 10% to the pension fund (optional for foreign nationals).

Severance Payments

If the employer terminates the contract, he/she makes severance payments in connection with the loss of employee’s work in the amount of one average monthly salary if it was because of liquidation of a legal entity; reduction of staff or positions;
or on the initiative of the employee if the employer violates labor legislation of Kazakhstan. And in the amount of two average monthly salaries in case of reduction of volume of production, works and services, which caused deterioration of employer’s economic condition.

The employer may terminate the labor contract without meeting requirements of labor legislation, if his pays out severance payment (compensation) in the amount stipulated in the employment contract.

Advance Notice

Employer must give a one-month advance notice in writing unless otherwise provided in the employment contract.

Employee must give a one-month advance notice in writing unless otherwise provided in the employment contract.

Termination Procedure

The grounds for termination of the employment contract are:
1) cancellation of the employment contract by agreement between the parties;
2) expiry of the term of validity of the employment contract;
3) cancellation of the employment contract on the initiative of the employer;
4) transfer to another employer;
5) cancellation of the employment contract on the initiative of the employee;
6) circumstances beyond the will of the parties;
7) withdrawal by the employee from the labour relations;
8) transfer of the employee to an elected job (position) or his appointment to a position excluding the possibility of continuation of the labour relations;
8) violation of the terms and conditions for conclusion of the employment contract.

A party to an employment contract expressing the desire to cancel the employment contract by
agreement between the parties shall send a notification to this effect to the other party to the employment contract. The party that receives this notification shall, within a period of three working
days, notify the other party in writing of its decision.

On expiry of one-month notice period, the employee has the right to cease work, while the employer must issue to the employee the documents associated with his/her labor activities and any payments due thereto.

Sick Days

The initial sick leave period is 3 days, which can be extended for up to 60 days.
The sick leave compensation is limited to 34.035 KZT a month (paid by employer).

Public Holidays

There are 14 official holidays in 2016 (not paid).

Vacation Days

Employees receive 24 days or more paid vacation days, depending on the original employment contract.

Additional Information

Mobile and internet services, medical and life insurance, car expenses compensation, etc.
Quarterly and annual bonuses depending on results.

VAT

VAT is 12% standard rate.