Expected amendments to labor legislation in Kazakhstan

Kazakhstan stands on the verge of implementing a fundamentally new model of labor relations, combining the support of entrepreneurship and the interests of employees.

Thus, the newly developed Concept of the Draft Law ‘On amendments to certain legislative acts of the Republic of Kazakhstan on labor matters’ provides a whole range of changes into labor legislation. Among them the following most interesting amendments can be distinguished:

• Employers and employees will have the opportunity to conclude employment contract and keep employment record book in electronic form that will be registered in the unified labor accounting information system.

Employer will be subject to obligation to provide information to unified labor accounting information system on employment contract, amendments introduced to it, information about termination of employment contract, as well as other information necessary for employment contract conclusion. Employees will be entitled to obtain information from that information system on their work activities (including previous works), employment contract, and amendments introduced to it, as well as other information on their work activities.

The employer will bear administrative liability in case of failure to provide the information on employment contract to unified labor accounting information system for registration.

The implementation of unified labor accounting information system will make it easier for employees and employers to confirm the work experience and qualification of employee as well as ensure the safety of data and obtainment of reliable information about the work activity of employee.

• It is proposed to introduce unified information system on social and labor fields (UIS SLF), by means of which employers will submit reports on the employer’s measures taken for observation of labor rights of employees, as well as, production facilities’ attestation results on compliance with labor conditions.
• The activity of private employment agencies will fall under the legislative regulation. Private agencies will have the legitimate opportunity to provide their services of labor mediation to both employees and business. It is supposed that individuals and legal entities, as well as branches of foreign legal entities that comply with qualification requirements and pass accreditation procedure will be able to provide the services of private agencies. Applicants will receive a guarantee that provision and search of work by private agencies will not mean referrals for replacement of employees participating in the strikes, replacement of employees who have refused to work, or performing work in idle times.
• Labor legislation shifts to zero tolerance of physical conflicts at the workplace, violent acts of colleagues against each other. Employer will be able to terminate the employment contract with employee who intentionally caused harm to health or committed violent acts at the place of work. However, in order to exclude the possibility of abuse of the employer’s rights, such actions must be established by bodies of inquiry, investigation or by the court.
• Another new ground for termination of employment contract at the employer’s initiative proposed in the Draft Law is the employee’s use of his position in return for receiving material benefits for himself or others (commercial bribery) against the interests of the employer.
• It also provides the possibility for employer to require employees performing work on rotational basis to comply with terms of stay or work both at production facilities and in shift camps after work.
• For late payment of wages, the employer will be liable for payment of penalty calculated on the basis of the 1.25-fold official refinancing rate of the National Bank of the Republic of Kazakhstan on the day of fulfillment of the obligations to pay wages (currently, the penalty is calculated on the basis of the refinancing rate) .
• Amendments to regulatory of employment of the corporate secretary and employees of the internal audit service will be introduced. These categories of employees will fall under features provided for the regulation of the work of the head and other members of the collegial body of the legal entity due to the fact that the corporate secretary and employees of the internal audit service are appointed and their powers are terminated by the decision of the board of directors of the joint-stock company.
• The vast mandate of the “Atameken” National Chamber of Entrepreneurs of the Republic of Kazakhstan in the social and labor fields is to be excluded. “Atameken” NCE is excluded from the Republican Tripartite Commission for Social Partnership and from the regional commissions.
• For small business entities and heads of the executive body of legal entity, the time frame for applying to court for dispute resolution will be specified and differentiated for reasons of labor disputes.

We keep abreast of the development and adoption of the Draft Law, the introduction of abovementioned and other amendments to the regulation of labor relations.