Kazakhstan: Proposed Amendments To The Labour Legislation Of The Republic Of Kazakhstan

On 7 October 2015 года Mazhilis of the Parliament of the Republic of Kazakhstan approved in the second round a draft of the new Labour Code of Kazakhstan (the "Draft Law"). In this note we cover the most important developments into the labour legislation of Kazakhstan to be accepted after approval of the Draft Law by the Parliament and its signing by the President of Kazakhstan.

The proposed amendments into the labour legislation of Kazakhstan are aimed to improve the employer's position in crisis.

The main amendments:

1. The list of grounds for dismissal of an employee at the request of the employer has been extended. The new grounds will comprise, inter alia, decline in the volume of production, works and services worsening financial position of the employer, reaching a retirement age, absence of the employee for over one month due to unknown reasons for the employer.

2. The employer has been granted with a right to define at its own discretion a size of compensation for overtime work, work on public holidays and days off, night work. In the meantime, all that types of work shall be paid at a rate of at least 125% of the daily (hourly) rate (currently, such rate is equal to 150%). In addition to this, the Draft Law introduces granting leave hours for overtime work if it is setout by an employment  agreement or another agreement between the employer and the employee.

3. Another development is an opportunity to have a non-compete arrangement prohibiting to the employee any activity, which can cause damage to the employer.

4. The Draft Law provides for a right of the employer to renew a fixed-term employment agreement for a specific term , whereas currently renewal of such contracts leads to indefinite term of the agreement. However, the Draft Law sets out a limit for such renewal of not more than two.

Generally, the Draft Law is designed to protect and enhance of the employer's rights in the current economic conditions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.