World Monitor Magazine WM_KIOGE 2018_Web | Page 30

EXPERT OPINION
Employment of foreigners in
Kazakhstan – key issues for
foreign investors
Like in many countries, employers in Kazakhstan need to obtain a
permit to employ a foreign worker.
Almira Abraimova,
Senior Manager at People
Advisory Services,
Tax & Law Department,
EY Kazakhstan
Depending on the scheme of engaging foreign
labor, to protect domestic labor, Kazakhstan
has adopted different measures regarding em-
ployment arrangements with foreigners, which
include:
• regional and industry employment quotas.
• state duties or ne wly issued and extended
work permits.
• specific requirements for employers, such as
the creation of new jobs and training pro-
grams for local citizens in exchange for work
permits for foreign employees.
• qualification requirements for foreigners de-
pending on their occupation or role.
• employment ratios of foreign workers in a
company by level (so-called local content re-
quirement).
The local content requirement for staff often
becomes the most significant barrier for em-
ployers applying for permits.
According to the generally established proce-
dure (excluding intra-company transfers men-
tioned later), work permits are issued for the
following categories of foreign workers:
• Category 1 – CEOs and deputy CEOs of
companies
• Category 2 – Leaders of business divi-
sions/departments
• Category 3 – Professionals
• Category 4 – Qualified workers
Permits are generally granted subject to the
following conditions:
• Kazakhstani nationals should account for
at least 70% of all employees falling within
Categories 1 and 2.
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• Kazakhstani nationals should account for
at least 90% of all employees falling within
Categories 3 and 4.
There is, however, an exception to this rule
for foreign investors operating in Kazakhstan
through a branch or representative office that
employs up to thirty (30) workers.
Despite these measures, there is quite a bit of
flexibility in hiring foreign workers in Kazakh-
stan. Unlike many countries where employers
are required to sign employment contracts
with foreign nationals to hire them as local em-
ployees, Kazakhstan offers different options,
including the following:
• employing a foreigner directly as a local em-
ployee.
• transferring a foreigner to a local branch
office/representative office/subsidiaryfrom
the parent company established in a mem-
ber country of the World Trade Organization
(intra-copany transfers/ICT).
• engage foreign specialists through a service
contract with a foreign contractor not pres-
ent in Kazakhstan (including secondment
arrangements that are common around the
world).
In addition, there are opportunities for foreign
nationals, with highly sought-after qualifica-
tions in key industries, to come to Kazakhstan
on their own and take a local job. For that to
happen, they need a local certificate prov-
ing their qualifications are suitable to directly
engage in employment. To obtain such a cer-
tificate while abroad, a foreign worker should
apply to Kazakhstan’s foreign mission in their