Monthly Legal Alert: June 2024

SIGNUM regularly provides Legislative/Regulatory Alerts to keep Clients informed about important laws

and regulatory changes in the Republic of Kazakhstan (“RK”). This Alert covers recent developments introduced in June 2024 related to:

1. Recognition of Mopeds as Vehicles

Mopeds with an engine capacity of less than 50 cubic centimeters will now be classified as mechanical vehicles and are subject to state registration, requiring the acquisition of a state license plate. Consequently, moped drivers become full participants in road traffic. To operate mopeds, citizens will be required to:

• undergo mandatory vehicle registration with the authorized body;

• obtain a driver's license of category A1 (this category will be automatically assigned to drivers with categories A, B, and C, without the need for additional training);

• undergo annual technical inspections;

• arrange compulsory motor vehicle liability insurance.

In the process of finalizing the bill, risks associated with the large number of mopeds already imported into Kazakhstan were considered. To avoid an organizational collapse during registration, the new requirements for mopeds will come into effect six months after the law is signed. This period is given for the "legalization" of imported vehicles. 

Currently, the draft law is under consideration by the Senate.

2. Legislative Definition of "Conglomerate"

The Entrepreneurial Code has been supplemented with Article 172-1, which legislatively defines the term "conglomerate."¹ 

A conglomerate is understood to be a market entity (group of persons) occupying a dominant or monopolistic position in the relevant and adjacent commodity markets, excluding banking holdings, banks and their subsidiaries, as well as the single electricity purchaser and the balancing market settlement center. The state register of conglomerates will be maintained by the antimonopoly body.

Previously, the legislation did not establish the concept of "conglomerate," and in 2022, President Tokayev K.K. initiated its legislative definition in his address to the people of Kazakhstan.²

3. Reduced Document Retention Periods

An order³ as introduced amendments to the List of Standard Documents Generated in the Activities of State and Non-State Organizations, with specified retention periods⁴, ccording to which non-normative legal acts (orders and directives) of the organization's head must be stored:

1)     on the main (production) activities – permanently in both paper and electronic form;

2)     on personnel matters (recruitment (appointment, enrollment in education), dismissal (expulsion), transfer – 75 years in both paper and electronic form;

3)     on personnel matters (business trips, vacations, incentives, advanced training, imposition and removal of disciplinary penalties, certification, education, conferment of titles (ranks), change of surnames (patronymics), awards, remuneration, bonuses, benefits) – 5 years in electronic form.

Accordingly, the retention periods for non-normative legal acts (orders and directives) of the organization's head on the imposition and removal of disciplinary penalties, certification, education, conferment of titles (ranks), change of surnames (patronymics), awards, remuneration, bonuses, benefits were reduced from 75 years to 5 years.

4.        Reduced Correction Period for Submitted Statistical Data

In June 2024, amendments⁵ to the Law on State Statistics⁶ regarding the period for correcting statistical data came into force. 

According to the amendments, if inaccurate primary statistical data is identified, state statistical bodies will notify the respondent via the contact details provided in the previously submitted statistical forms (mobile phone number, email address) about the need to make corrections to the statistical forms containing the primary statistical data by resubmitting the statistical form or providing additional information confirming the accuracy of the submitted primary statistical data within 1 business day.

Previously, the correction period for submitted statistical data was 2 business days.

5.        Additional Grounds for Unpaid Leave

On June 16, 2024, amendments⁷ to the Labor Code aimed at supporting victims of domestic violence came into force.

According to the amendments, an employer is required to grant unpaid leave, for a period not exceeding 30 calendar days, to an employee staying in organizations that provide special social services to victims of domestic violence.

Only individuals who have suffered from domestic violence and are staying in organizations that provide special social services will have the right to this leave.

1. Law of the RK dated 6 April 2024 No. 71-VIII "On Amendments and Additions to Certain Legislative Acts of the RK on the Issues of Doing Business". Entered into force in part on 8 June 2024.
2. https://www.akorda.kz/ru/poslanie-glavy-gosudarstva-kasym-zhomarta-tokaeva-narodu-kazahstana-181130
3. Order of the Minister of Culture and Information of the RK dated 15 May 2024 No. 190-НҚ "On Amendments to the Order of the Acting Minister of Culture and Sports of the RK dated 29 September 2017 № 263 "On Approval of the List of Standard Documents Formed in the Activities of State and Non-state Organizations, with Indication of Retention Period". Entered into force on 1 June 2024.
4. Order of the Acting Minister of Culture and Sports of the RK dated 29 September 2017 No. 263 "On Approval of the List of Standard Documents Formed in the Activities of State and Non-state Organizations, with Indication of Retention Period".
5. Law of the RK dated 6 April 2024 No. 71-VIII "On Amendments and Additions to Certain Legislative Acts of the RK on the Issues of Doing Business". Entered into force in part on 8 June 2024.
6. Law of the RK dated 19 March 2010 No. 257-IV "On State Statistics".
7. Law of the RK dated 15 April 2024 No. 72-VIII "On Amendments and Additions to Certain Legislative Acts of the RK on Ensuring Women's Rights and Children's Safety". Entered into force in part on 16 June 2024.