InfoHub Logo

Kazakhstan's Parliament has approved crucial amendments to the Labor Code, introducing a significant shift in how employment relationships are recognized. The new legislation explicitly prohibits the use of civil law contracts (CLCs) as a substitute for formal employment agreements, aiming to safeguard workers' rights and ensure employers fulfill their social obligations.

Protecting Employee Rights

These amendments are designed to prevent employers from exploiting loopholes by classifying workers under CLCs. Previously, many individuals worked fixed hours, received regular wages, and operated within company structures, yet were denied the benefits and protections afforded by formal employment. This often left them without crucial social security, including maternity leave benefits or child-rearing allowances.

Experts in labor law emphasize that the primary goal of these changes is to provide robust protection for employees. The new rules aim to ensure that individuals engaged in de facto employment relationships are recognized as such, regardless of the contract's designation.

Strengthening Social Protections

The revised Labor Code also introduces enhanced protections for vulnerable employee groups. A key provision now prohibits dismissals initiated by the employer for single parents raising children under the age of 14. This measure significantly bolsters the social safety net for these individuals.

Furthermore, the amendments clarify liability in workplace accidents. A new norm stipulates that a worker's degree of fault in such incidents will not exceed 25%, ensuring a fairer distribution of responsibility and support for injured employees.

Tax experts also note that the previous practice of using CLCs often resulted in lower tax and contribution payments for employers compared to standard employment contracts. The legislative changes are expected to level the playing field and ensure compliance with labor laws.