KAZAKHSTAN – Upcoming Changes to the Work Permit Regime [UPDATED]
[UPDATE] The rules which took effect on 1 January 2017 differed slightly from those originally announced:
- The announced Kazakh language requirement for intra-company transfer work permit holders was cancelled.
- The Kazakh employer of an intra-company transferee will need to advertise the position for fifteen days (rather than thirty days as announced) prior to submission of the required documents.
- The new government fees for work permit issuance and extension do not apply to intra-company transfers.
Effective 1 January 2017, new rules for the issuance of work permits for Kazakhstan include the removal of the current labour market test for locally-hired applicants and the introduction of a state fee, among other changes.
An announced change to the exemption list whereby Category 1 employees (directors and executives) employed as heads of branches and representative offices of foreign entities in Kazakhstan would no longer be exempt from having to obtain a work permit, has been cancelled.
The changes to the work permit rules from 1 January 2017 include the following:
- The Kazakh employer will no longer need to apply to the Regional Department of Labour and Social Protection to verify whether there are specialists for this position on the local market, except for intra-company transfers.
- The Kazakh employer will no longer need to arrange a bank guarantee and deposit to cover the cost of repatriation.
- The Kazakh employer will no longer be required to carry out one of the “special conditions” (i.e. training or creating additional jobs for Kazakh nationals) except for intra-company transfers.
- Category 1 employees (e.g. directors, managers, heads of branches, etc.) will be able to apply an unlimited number of times to renew their work permit for another year.
- Category 2 and 3 employees (e.g. specialists and highly-qualified personnel) will be able to apply three times (rather than twice as currently) to renew their work permit for another year.
- The three-year maximum term for ICT Work Permit holders remains in place, and a new cap of one permissible extension for up to on additional year is introduced.
- The Kazakh employer of an intra-company transferee will need to advertise the position for fifteen days prior to submission of the required documents.
- The ratio of 70%:30% local to foreign employees in a company has been extended to Category 1 and Category 2 employees.
- For intra-company transfers, the ratio of 50%:50% local to foreign employees is applicable to Category 2 and Category 3 employees only.
- Nationals of the Eurasian Economic Union (i.e. Russia, Belorussia, Armenia and Kyrgyzstan) will be counted as Kazakh nationals for the purposes of the calculation of the ratio of local to foreign employees.
- For intra-company transfers, an assignment agreement between the home-country employer and the Kazakh host company must be submitted in addition to an employment contact with the home-country employer.
- New government fees for work permit issuance and extension will be introduced. The fee amount will vary depending on the type of economic activity of the employer and the category of the foreign national employee.
- The labour authorities will have seven business days (rather than fifteen as currently) to decide to issue or refuse a work permit.
- Companies hiring foreign nationals in Kazakhstan should plan for the new state fees and streamlined application process from 1 January 2017;
- Employers intending to send employees to Kazakhstan on an intra-company transfer basis should bear in mind the new requirements for local job advertisement and language skills.