Employ Candidates Compliantly in Kazakhstan

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  1. Overview: Kazakhstan
  2. Global HR Compliance
  3. Global PEO and Payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. Employee: Which Is Better?
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Global HR Compliance in Kazakhstan

If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Kazakhstan Guide below will help you understand the nuances of labor legislation in the country.

There are two main reasons for companies hiring foreign workforce:

  • Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
  • Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.

After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.

If you need to hire foreign workforce in Kazakhstan so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.

With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.

We are experts in global workforce employment in Kazakhstan, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Kazakhstan.

See the guide below for a general overview of labor rules and regulations in Kazakhstan. Or contact us if you need to employ workers in Kazakhstan or would like to get more details.

Hiring and Firing Workforce in Kazakhstan Guide

Labor relations in Kazakhstan are regulated by the regulatory legal instruments, an individual employment contract and a collective labor agreement. Under these regulatory instruments, teenagers who are not up to 16 years cannot be allowed to conclude a contract except with the written consent of their parent, guardian or tutor, and with the condition that they will only perform certain works allowed by the labor law.

The labor law of Kazakhstan is applicable to all employers and employees in the country. The basic element of employment relationship as contained in the law are as follows:

Employment Contracts
Employment contract may be concluded: 1) for an indefinite period; 2) for a specific period of not less than one year: for the time required to fulfil a specific job; for the time required to replace an absent employee; for the time required to fulfil seasonal work. In the event of repeat conclusion of an employment contract with an employee that previously concluded a contract for a specific period of not less than one year, including in the event of prolongation of an employment contract, it shall be deemed to have been concluded for an indefinite period. A contract of employment must specify, necessary details of the employer and the employee, job details, including the location of the workplace, employee’s position and duties, employer-employee’s obligations, commencement date, working time, remuneration package, means of payment and lastly the conditions and procedures of terminating or amending the contract. A contract of employment must be concluded in writing.

Minimum statutory employment rights

Hours of work
Employees customarily work 5 days a week on an 8-hour basis per day and a 40-hour basis per week. Employees are entitled to have 2 days off for every working week.

Probation period
The trial period for employees in non-management positions cannot stretch more than 3 months. Only top management employees can be legally placed on probation for up to 6 months.

Annual leave
Employers are required to allow their employees to take days off in each of these 12 public holidays: New Year (1st & 2nd of Jan), Orthodox Christmas, International Women’s Day, Nauryz, Unity Day, Defender’s Day, Victory Day, Astana Day, Constitution Day, Kurban-Ait, First President’s Day, and Independence Day (16th & 17th Dec).

In addition to that, employees have the right to 24 calendar days (or more if the collective bargaining agreement allows for that) of paid annual leave each year. Employees with disabilities and those who have high-risky jobs are entitled to extra 15 days paid leave each year.

Parental leave
Maternity leave commences 70 calendar days prior to expected childbirth and ends 56 calendar days after childbirth (70 days in the case of multiple births or post-birth complications). Leave for adoption of a newborn children is provided to one of the parents on the day of adoption and for 56 days after childbirth. During maternity leave or leave for adopting a newborn child, a woman (parent) receives social parental pay from the government, and the employer is required to make up the difference between maternity pay and the employee’s average net compensation if such obligation is provided in the employment contract or collective bargaining agreement.

Leave for taking care of children under three years old is provided to one of the child’s parents and is not paid by the employer. Adoptive parents (for newborns) are eligible to get 8 weeks of maternity paid leave.

Sick leave
Employees have the right to sick leave and sick pay. Sick leave must be supported by a medical certificate issued by a licensed doctor. Sick leave cannot be longer than two months. The level of sick pay is determined on the basis of the employee’s average daily income multiplied by the number of working days during which the employee was on a sick leave.

Employees are permitted to work overtime so long as they do not work more than 2 hours overtime per day, 12 hours per month or 120 hours per calendar year. Overtime work shall not be permitted for: 1) pregnant women; 2) employees under the age of eighteen years. Employees may be engaged to do overtime work only with their written consent. Employers are obligated to compensate for overtime, including works performed during the night hours at the rate of 150 percent of the normal salary. This rate must be increased to 200 percent if the works were done at the weekend or on holiday.

State minimum salary
The national minimum wage in Kazakhstan is 24,459 tenge (KZT) ($67) per month (2017). Though this payment is commonly made on a-ones-per-month basis, it can also be made in part within the work month, as permitted by the collective agreement.

Employment termination
An employer or the employee has the right to terminate an employment contract provided it’s done on legal grounds. Upon a contract termination, the party initiating the process is required to notify the other party at least one month prior the due date. Coming from the employer, he will be required to compensate the employee with an amount that is equivalent to his one month salary if the termination is by reason of liquidation or cut downs. An employer is obligated to compensate the dismissed employee with an equivalent of 3 months’ salary if it is confirmed that he gave the employee a false and misleading information about the conditions of employment and with an equivalent of one year salary if the termination was done without advance notice or legitimate reason(s). Employers are also obligated to pay the employee for any unused annual vacations at his contract termination. Termination of the employment contract shall not be permitted during a period of temporary disability of the employee (including maternity leave) and of leave.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Kazakhstan by providing you with an Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any requirement to set up a legal entity first or thereafter.

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