Labour legislation amendments in Kazakhstan: E-HR system

LABOR LEGISLATION AMENDMENTS IN KAZAKHSTAN: E-HR SYSTEM

In Kazakhstan, the new amendments were made to the labor legislation by the Law of the Republic of Kazakhstan “On Amendments to Certain Legislative Acts of the Republic of Kazakhstan on Labor Issues” dated May 4, 2020 No. 321-VI ZRK (hereinafter—the Amendments). These new Amendments enter into force on the 16th of May, 2020.

One of the most notable amendments concerns the Unified Employment Agreements Recording System (hereinafter—the E-HR system), which was designed to automate the recording of employment agreements, labor activity, and the number of employees.

According to the Amendments, starting from May 16th, 2020, the companies will be required to enter to the E-HR system the information about the conclusion and termination of the employment agreements, and amendments to such agreements, containing information about (i) parties’ details; (ii) job title; (iii) job place; (iv) employment term; (v) employment start date; (vi) date and number of the employment agreement.

The companies and the employees will be able to obtain information from the E-HR system:

1. The companies will be able to obtain information about the labor activities of their applicants (with their prior consent) and employees. 2. The employees will be able to obtain information about their employment agreement, and labor activity.

However it is not yet clear how the whole process with the providing and receiving information from the E-HR system will be implemented. Since the Rules for providing and receiving employment agreement records from the E-HR system are currently being reviewed by the Kazakhstan Ministry of Labor.

Our recommendations

Our lawyers assume that the implementation of the E-HR system is related to tax and fiscal payments, and will be used during tax inspections. For this reason, it is important that the information provided to the E-HR system is accurate and precise.

Since the process of providing and receiving information from the E-HR system is not yet approved, we recommend the companies to use this time for reviewing and updating the existing employment agreements.

Synergy Partners lawyers could assist the companies in reviewing the employment documents for compliance with Kazakh labor law, considering the new Amendments.

This legal insight was prepared by Synergy Partners teams for tax and employment practices. Lawyers Ms. Symbat Tursyngali and Mr. Nurzhan Stamkulov were involved.