Entering the Kazakhstan market? Our Employer of Record services simplify your expansion into Kazakhstan. We help manage payroll, compliance, and HR so you can hire quickly without opening a local entity.
Kazakhstan
Entering the Kazakhstan market? Our Employer of Record services simplify your expansion into Kazakhstan. We help manage payroll, compliance, and HR so you can hire quickly without opening a local entity.
Fixed-term contracts are suitable for specific projects or temporary positions. These contracts typically last between 3 months and 1 year. However, there is an exception for small businesses with less than 100 workers. Renewals are possible, but with limitations. The Labour Code allows for a max of 2 extensions after the initial fixed-term period, with each extension lasting at least 1 year, except for small businesses.
Kazakhstan recognizes 18 days of paid annual leave. If holiday falls on a weekend, it is observed on the following weekday.
In Kazakhstan, employees are entitled to a minimum of 24 calendar days of paid vacation, as stipulated by the Labor Code. This does not include official holidays. Workers must not fail to use vacation for 2 years in a row.
The classification of workers as employees or independent contractors is of utmost importance. This classification affects employment rights, social security contributions, and tax obligations for both employers and workers.
Probationary period is generally 3 months for most workers, some exceptions apply for specialized executive roles. If a fixed-term employment contract is only for 3 months, the probationary period is reduced to just 14 days.
Sick leave is paid based on the employee’s average daily earnings multiplied by the number of sick days. It is paid by the employer. There is a limit on the benefits which equals to a maximum of 25 MCI for 1 month.
A normal workweek is 40 hours, 8 hours a day. Certain categories of workers, such as those aged 16-17, workers with disabilities, and those performing manual or hazardous labor, are subject to reduced workweek limits and may not work more than 36 hours in a week.
Workers overtime work hours shall not exceed 2 hours per day, and 1 hour for workers engaged in heavy work. The maximum overtime hours shall not exceed 12 hours per month and 120 hours per year. Overtime is paid at least 1.5 times the regular pay.
Bonuses are not mandatory and are usually paid at the company's discretion.
The termination in Kazakhstan can occur through resignation, mutual agreement, or dismissal. At least 1 month's written notice is required for company-initiated termination, unless a fixed-term contract ends naturally. There must be cause for the dismissal of a worker.
The workers have the right to terminate the employment contract on their own initiative by notifying the company at least 1 month in advance. Resignation notice must be in writing.
Companies contribute 10% of a worker's gross salary (capped at 4,250,000 KZT) to a mandatory pension fund, providing retirement benefits.
Typical statutory benefits include sick pay, vacation, maternity leave, and mandatory insurance (pension, health).
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