Dentons

The Senate of the Republic of Kazakhstan has approved the Draft Law on amending the Labour Code on December 3, 2020, and its adoption is expected at the beginning of 2021.

Currently, Kazakh legislation does not regulate contract services for providing personnel (e.g. outstaffing). The Ministry of Labour and Social Protection has stated that the lack of regulation in this area led to numerous violations of the rights of the provided personnel. As a result, the legislative body decided to equalize the rights of the provided personnel with the rest of the company’s employees; in particular, on issues of equal payments, labor protection, the work and rest regime. The receiving company will be required to provide employees of the service provider with additional leaves and conduct a workplaces risk assessment.

The procedure for personnel provision services is established. The service provider enters into an agreement on personnel provision services and the receiving company “borrows” the employee for a fee. Such an employee does not become a full-time employee of the receiving company, but remains an employee of the service provider during the term of the agreement. 

These services may be provided only in the following cases:

  • for the duration of a certain work;
  • for the period of an absent employee’s replacement;
  • for seasonal and household jobs.

The employees of the service provider will be counted in the employees’ average annual number for the receiving company. Thus, when the receiving company uses such services, it will affect the receiving company in terms of determining the business entity’s size (small, medium, large).

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