This Client Update includes amendments to the legislation of the Republic of Kazakhstan in March 2012.
The legal acts introduced in March 2012, concern both public and private interests. Among them there are some which may attract your attention and affect your business in Kazakhstan in a certain way.
We would like to draw your attention to the following regulatory legal acts:
1) LAW OF THE REPUBLIC OF KAZAKHSTAN № 566-IV DATED 17 FEBRUARY 2012 «ON INTRODUCTION OF AMENDMENTS TO THE LABOR CODE OF THE REPUBLIC OF KAZAKHSTAN»
Law of RoK on introduction of amendments to the Labor Code of RoK was published on 1 March 2012.
Law is directed to improvement of legal regulation of employment relationships taking into account international work standards as well as rising of existed forms and methods of social partnership and provision of employees’ rights. The Code is added by norms of National qualifications system, by provisions on procedure of positions overlapping (extension of service zone) and performance of temporarily absent employee’s duties as well as by provisions on regulatory considerations of employee’s work, involved in distance work. One of the additions is making amendments to the employment contract upon change of parties’ bank details and addresses. As well as a reason of employer-initiated termination of the employment contract is added by the following – refusal from passing of medical examination for establishment of the fact of substance use, provoking of alcoholic, narcotic and drug abuse intoxication, confirmed by the relevant act. The Law entered into force from 13 March 2012.
2) RESOLUTION OF THE REPUBLIC OF KAZAKHSTAN № 45 “RULES AND CONDITIONS OF PERMISSION ISSUANCE TO THE FOREIGN WORKER ON EMPLOYMENT AND TO EMPLOYERS ON ENGAGEMENT OF FOREIGN LABOUR”
According to proposed changes the new notions such as «business – immigrant», «guarantee fee» (for providing of guarantee of employee’s departure outside the Republic of Kazakhstan after termination of permission), «program on increasing of personnel of Kazakhstani content», «the list of persons for individual employment», «staff strength of employees», «country of origin», «corporate transfer» are introduced. Permission issuance to the foreign worker on employment (individual employment) as well as the system of temporary transfer of foreigner or stateless person from foreign legal entity to its branch, subsidiary, representative or affiliate, established in the territory of the Republic of Kazakhstan (corporate transfer) is provided for by the Rules. In accordance with Rules, the staying period of foreigners or stateless persons in the trip with business goals is increased from 60 till 120 calendar days within one calendar year with a right to stay in Kazakhstan without obtaining of permission if business visa is available. Issuance of permissions to employers on engagement of foreign labour by the authorized body is carried out upon maintenance of the following proportions:
1) from 1st January 2012 the number of citizens of the Republic of Kazakhstan is to be not less than 70% of staff strength of the employees relating to first and second categories;
2) from 1st January 2012 the number of citizens of the Republic of Kazakhstan is to be not less than 90% of staff strength of the employees relating to third and fourth categories. Special condition, according to which employers, receiving permissions on engagement of foreign labour were obliged to replace foreign workers to Kazakhstani workers – is excluded in accordance with the Rules. In Rules the percent of staff numbers of employees – citizens of Kazakhstan is increased upon engagement of foreign labour of first and second category from 50% till 70%. Exact validity period and extension of permissions for four categories of the employees are defined by the Rules:
1) For first category of employees – till three years with a right of yearly extension to twelve months, but not more than 2 times;
2) For second and third category – on 12 months with a right of extension to 12 months not more than two times;
3) For fourth category as well as seasonal foreign employees – on 12 months without right of extension;
4) Within corporate transfer – for a period of transfer, indicated in the letter and (or) corporate transfer agreement but not more than three years with extension one time for the period not more than one working year. This Resolution entered into force on 11 March 2012.
1) LAW OF THE REPUBLIC OF KAZAKHSTAN №524-IV DATED 28 DECEMBER 2011 «ON INTRODUCTION OF AMENDMENTS TO CERTAIN LEGISLATIVE ACTS OF THE REPUBLIC OF KAZAKHSTAN ON BANKING REGULATIONS AND FINANCIAL INSTITUTIONS IN A PART OF RISK MINIMIZATIONS»
Amendments are made by the Law to civil, civil procedural, criminal, administrative and tax legislation as well as to many laws of RoK, affecting the activity of legal entities, established both as joint stock companies (banks, insurance companies, pension funds, brokers) and as limited liability partnerships and noncommercial organizations. Totally 35 legislative acts of RoK are changed.
2) RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN № 292 DATED 12 MARCH 2009 «ON APPROVAL OF THE LIST OF OFFICIALLY RECOGNIZED INFORMATION SOURCE ON MARKET PRICES»
From 1 January 2012 are made amendments which amend the list of officially recognized information source by source “Argus” for oil, crude oil products, liquid gas and etc.
The Resolution is approved for the purposes of application of paragraph 2 of article 18 of Law of RoK dated 5 July 2008 «On transfer pricing».
Annual rates for provision of communication
In accordance with article 520 of Tax Code of RoK by resolution of the Government of RoK annual rates for provision of intercity and international communication as well as cell communication are decreased from 1, 24557% till 0, 9816%. The Resolution came into effect from 3 March 2012.
GENERAL BUSINESS ISSUES
RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN № 1570 DATED 21 DECEMBER 2011 «ON APPROVAL OF STANDARD DOCUMENTATION RULES AND DOCUMENTATION MANAGEMENT IN STATE BODIES AND NON-GOVERNMENTAL ORGANIZATIONS»
This Resolution approves standard documentation rules in noncommercial organizations. The resolution is nonbinding. The resolution entered into force on 31 March 2012.
Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek for a specific advice in relation to any questions. Please note that Kazakhstan and Turkmenistan are emerging economies and their legislation and legal systems are in constant development. Should you have any questions or would like to discuss subjects addressed in this Client Update please contact us.