Navigating Termination and Notice Periods in Kazakhstan

In Kazakhstan, the termination of employment relationships and the associated notice periods are governed by the Labor Code and relevant collective agreements. All terminations must be executed in writing, using the same language as the original employment contract. The documentation should be clear, dated, specify the notice period, and include signatures from both parties. Generally, either party can terminate the contract without needing to justify the decision, provided they adhere to the stipulated notice periods. Failure to comply with legal and contractual obligations can expose employers to significant legal risks.

Legal Grounds for Terminating Employment Contracts

The Labor Code of Kazakhstan, specifically Article 49, outlines several permissible grounds for terminating an employment contract. These include:

Mutual agreement between the employer and the employee.
Expiration of a fixed-term contract.
Unilateral termination by the employer.
Employee transfer to another employer.
Unilateral termination by the employee.
Other agreements reached voluntarily by the parties.
Employee's voluntary refusal to continue the employment relationship.
Employee transfer to a position or profession incompatible with continuing the relationship, as per Kazakh law.
Violation of contract terms by the employee.

Valid Grounds for Employer-Initiated Termination

Article 52 of the Labor Code details circumstances under which an employer can lawfully terminate a contract. These are broadly categorized into two groups:

Employer-related reasons: Such as cessation of business activities, staff reductions, deteriorating economic conditions, or organizational restructuring.
Employee-related reasons: Including incompetence, failure to meet professional qualification standards, prolonged absence, health issues, disciplinary breaches, submission of false information, or causing material damage to the employer.

Understanding Notice Periods

The notice period is the timeframe between the delivery of the termination notice and the actual end of employment. Both employers and employees have the right to cancel the contract, typically requiring advance notification. The standard statutory notice period in Kazakhstan is one month. However, individual employment contracts or collective bargaining agreements may stipulate longer periods.

Severance Pay Obligations

Employees dismissed due to employer liquidation, staff reductions, or the employer's breach of contract terms are entitled to severance pay. The compensation is generally equivalent to one month's average salary. If the dismissal results from a reduction in production or services due to the employer's economic difficulties, the severance pay increases to two months' average salary. It is crucial to note that employment contracts or collective agreements might mandate higher compensation amounts. All final payments, including wages for hours worked, compensation for unused vacation, and severance pay, must be settled within three working days following the termination date.

Best Practices for a Compliant Termination Process

To mitigate legal risks, employers must follow a structured termination process. For instance, a multinational company restructuring its operations in Almaty must carefully document the business rationale for redundancies. Key steps include:

Establishing a Legal Basis: Ensure the termination reason is explicitly listed in the Labor Code.
Issuing Written Notice: Provide the employee with a formal, written notice within the legal timeframe, clearly stating the reason and effective date.
Formal Employer Decision: Draft an official decision document citing the specific article of the Labor Code and notify the employee within three working days of termination.
Meticulous Documentation: Maintain comprehensive records, including the notice, employer decision, supporting evidence (e.g., performance reviews, medical reports), and proof of delivery.
Final Settlement: Calculate and disburse all outstanding payments on the employee's last day.
Providing Employment Records: Return the work record book or provide a certificate of employment detailing the period of service and reason for termination.
Notifying Authorities: In cases of mass layoffs, employers may be required to inform local employment authorities in advance.
Disciplinary Dismissals: For terminations based on employee fault, conduct a thorough investigation, obtain a written explanation from the employee, and issue a disciplinary warning prior to dismissal.

Companies like SailGlobal specialize in providing expert guidance to ensure these complex procedures are handled correctly, helping businesses avoid costly disputes and maintain compliance with Kazakh labor laws.

Kazakhstan Employment Termination: Notice Periods & Legal Guide