Employment Relations with an Expatriate Employee

Main legislations governing employment relations in the Republic of Kazakhstan are the Labor Code of the Republic of Kazakhstan and the Civil Code of the Republic of Kazakhstan and a number of other statutory instruments based on the areas of activity of the parties. For example, statutory instruments regulating employment relations between RK residents and non-residents of RK, such as the Law of RK “On Employment”, the Law of RK “On Migration”, “Terms and conditions for the issuance of employment permits to foreign nationals, and permits to employers to engage foreign nationals”, approved by the RK Government of 13.01.2012, № 45.

Along with this, in terms of salary payment, as well as payment of taxes and other obligatory payments to the budget in relation to employment relations between employer who is an RK resident and a foreign employee, the relations are governed by the Tax Code of the Republic of Kazakhstan.

On the issue of employment of foreign nationals, the main provisions are as follows.

State employment policy is aimed at providing equal opportunities to the citizens of the Republic of Kazakhstan, foreigners and stateless persons permanently residing in the Republic of Kazakhstan; free choice of occupation and profession, fair and favorable working conditions, social protection against unemployment, ensuring productive employment, reducing unemployment, creation of job, including protection of the domestic labor market by establishment of quotas for employment of foreign nationals.

Also, in order to protect the domestic labor market the Government of the Republic of Kazakhstan annually establishes quotas for employment of foreign nationals to exercise occupation in the territory of the Republic of Kazakhstan.

The central executive body allocates quotas within the limits and following the procedure established by the Government of the Republic of Kazakhstan for the employment of foreign nationals to exercise occupation in the territory of the Republic of Kazakhstan, between regions, and the cities of Astana and Almaty.

Local executive bodies on the territory of a relevant administrative-territorial unit issue permits to employers to engage foreign workers, and employment permits to foreign nationals, except persons determined by the Government of the Republic of Kazakhstan, to exercise occupation within the quota allocated to the central executive body, and they also suspended and revoke such permits.

Level of education (professional training) and practical experience (period of service) of foreign employees engaged for employment in the territory of the Republic of Kazakhstan must meet the qualification requirements for professions and managing positions, specialists and office workers in accordance with the job evaluation manual of professions and occupations and job evaluation manual for office worker positions.

Thus, a partnership that hires foreign nationals must obtain the appropriate license, which grants it the right to engage foreign labor in Kazakhstan with an appendix attached specifying the employed individuals by name.

According to the requirements of Quota Regulations for the employment of foreign nationals in the Republic of Kazakhstan and the Rules and conditions for the issuance of employment permits to foreign workers and permits to employers to engage foreign nationals, approved by the Government Decree of 13.01.2012 № 45, it takes one to three months to obtain an employment permit for foreign nationals. In order to obtain foreign nationals employment permit, the relevant documents must be submitted for each employee separately.

In accordance with the requirements of the Labor Code of the Republic of Kazakhstan, it is not allowed to enter into employment contracts with foreign nationals who are temporarily staying in the territory of the Republic of Kazakhstan, before a foreign nationals employment permit is obtained from a local executive body, or before a guest worker obtains a permit issued by internal affairs bodies in the manner prescribed by the Ministry of Internal Affairs of the Republic of Kazakhstan.

Also, in terms of employment contract it should be noted that on the basis of the requirements of Article 29 of the Labor Code of the Republic of Kazakhstan, employment contract with foreign employees is executed for the period of issuance of a permit to engage foreign labor by a local executive body, or employment authorization to a foreign national, or employment permit issued by interior affairs agency to a guest worker.   

If local executive authorities revoke the permit to engage foreign labor, the employment contract shall be deemed terminated, due to circumstances beyond the parties' control.

Visa documents. A foreign national, when entering the territory of the Republic of Kazakhstan, must have visa documents obtained in advance. Event though Republic of Kazakhstan has a visa-free travel agreement with a number of countries. Thus, in accordance with the Government Decree of the Republic of Kazakhstan dated May 23, 2005 № 494 “On mutual visa-free travel of citizens of the Republic of Kazakhstan and the Russian Federation”, Russian Federation citizens can cross the Kazakh-Russian state border using the passport of the citizen of the Russian Federation, identifying the Russian national outside Russian Federation, official, diplomatic passport, seafarer’s ID (if there is a crew list or an extract therefrom), and laissez-passer to the Russian Federation under mutual visa-free travel regime.

Immigrants who are temporarily staying in the Republic of Kazakhstan shall not be permitted to work without the appropriate permits issued by an authorized body.

According to Article 43-1 of the Law “On Migration”, guest workers must meet the following requirements:

1) be citizens of countries with which the Republic of Kazakhstan has signed an agreement on visa-free entry and stay, providing for a stay in the Republic of Kazakhstan without a visa for a period of at least three months;

2) beoflegalage;

3) present evidence of their solvency required to leave the territory of the Republic of Kazakhstan upon expiration of employment authorization granted to the guest worker;

4) present a proof of presence or absence of a criminal record;

5) present a medical certificate confirming absence of diseases, preventing employment in their chosen field;

6) havehealthinsurance.

In accordance with the Law “On Migration”, entry into the territory of the Republic of Kazakhstan for employment purposes, is one of the main types of immigration.

In general, immigrants who come for employment purposes are divided into the following categories:

1) guest workers are immigrants who came or are engaged by employers in order to work in the territory of the Republic of Kazakhstan;

2) business immigrants are immigrants who came for the purpose of doing business under the laws of the Republic of Kazakhstan;

3) seasonal foreign employees are immigrants, engaged by employers for seasonal work, which due to climatic or other natural conditions is carried out during a certain period (season), but not more than one year;

If an individual receives employment authorization to work in the territory of the Republic of Kazakhstan, tax authorities of Kazakhstan provide them with an Individual Taxpayer Identification Number (ITIN), based on which the foreign national receives a payroll card at any second-tier bank of the Republic of Kazakhstan.

Thus, this article only highlights some of the main points of employment and work of foreigners in the Republic of Kazakhstan, while other matters depend on each individual case. The criteria that may be important in matters related to registration of employment relations are a non-resident country, the agreement between the Republic of Kazakhstan and the non-resident country, a foreign worker’s occupation, length of stay, nature of work and other conditions.