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Kazakhstan: New Work Permit Rules Implemented

August 23, 2023

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Country / Territory

  • KazakhstanKazakhstan

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At a Glance

Kazakhstan has implemented new rules for work permits, with key changes including:

  • work permits can now be issued for multiple regions, subject to the approval of the relevant regional governments;
  • foreign-to-local worker ratios must now account for outsourced foreign employees providing services; and
  • employers no longer need to submit a labor market test for intra-corporate transferee work permits.

The situation

As of July 1, 2023, the Kazakhstan Labor Ministry has started applying new rules for work permits, with the changes increasing restrictions in certain areas, while relaxing limits in other areas.

A closer look

Change Details Impact
Multi-region work permits
  • Work permits can now be issued for working in multiple regions or cities in Kazakhstan. Previously, foreign nationals had to obtain separate work permits for each region in which they intended to work.
  • Multi-region permits are subject to the approval of each regional government, who impose foreign worker quotas as part of their assessment.
  • Applicants must pay a fee to each regional government to which the work permit will apply. Intra-corporate transferees are not subject to this additional fee (they do not have to pay any fee to any government authority).
  • The fee amounts depend upon the applicant’s role, their employer’s field of activity, and the regions applied for. Fees may vary from around KZT 400,000 (approximately EUR 805) to KZT 700,000 (approximately EUR 1,410) for a one-year permit per region.
  • Applicants must apply for multi-region work permits online.
  • Though this law is already in effect, applicants cannot currently submit multi-region work permit applications on the online portal due to technical issues (which are expected to be resolved by the end of 2023).

Employers in Kazakhstan will now be able to more effectively and efficiently allocate foreign employees to various projects and offices throughout Kazakhstan. This may reduce project and management costs.   

Stricter foreign worker quota rules
  • Outsourced foreign workers providing services (including intra-corporate transferees) are now included as part of calculating the foreign-to-local worker ratio.
  • Only representative or branch offices of foreign entities that employ 10 or fewer employees are exempt from foreign worker quotas. Previously, such entities could hire up to 30 employees before such quotas applied.
  • By reducing the number of foreign employees that an employer can hire, Kazakh employers now have less flexibility in talent acquisition.
  • Employers should consider auditing their current outsourcing arrangements to ensure they remain compliant with quota obligations following the rule change.
Elimination of labor market test for intra-corporate transferees
  • Employers seeking to hire an intra-corporate transferee no longer need to submit a labor market test to employment centers.
  • Previously, such reports were necessary, and intra-corporate transferee work permits could not be approved until at least 15 days had passed after submitting a labor market test.

By relaxing procedures regarding intra-corporate employee transfers, employers in Kazakhstan can now more effectively and efficiently allocate internal talent throughout their organization.

Renewal processing times

Work permit renewal decision timeframes have been reduced from three to two business days.

Employers will be able to more quickly confirm the continued availability of their foreign workers.

 

Background

  • Foreign-to-local worker ratio. An employer in Kazakhstan must ensure that at least 70% of their chief executives, deputies, and heads of structural divisions; and 90% of their specialists and skilled workers, are Kazakh nationals.
  • Protecting domestic labor markets. These changes are part of broader government efforts to safeguard the internal labor market. As part of these initiatives, foreign companies have been required to develop the talent of local workers and replace foreign workers with domestic equivalents.

Looking ahead

Following such significant changes, no further reforms to the Kazakh work permit regime are expected in the near future.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

Country / Territory

  • KazakhstanKazakhstan

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