Legal Alert – May 2024

Dear readers,

Starting from January 1, 2024, the  Law "On Amendments and Additions to Certain Legislative Acts..." came into force, according to which Article 17 of the Labor Code of the Republic of Kazakhstan was supplemented with subparagraph 4-1), establishing that the local labor inspection authority controls the conclusion by the employer of an employee's compulsory accident insurance contract in the performance of their labor duties (official) duties.

In accordance with labor legislation, each employer is obliged to insure an employee against accidents in the performance of their labor (official) duties.

In this regard, we inform you that the local labor inspection authorities will carry out the following types of control over the conclusion by the employer of a compulsory employee insurance contract:

1. Preventive control without visiting the subject (object) of control – is carried out on the basis of information received about the compulsory insurance contract, based on the results of which a conclusion, recommendations are drawn up explaining the procedure for eliminating violations (if any)¹;
2. Preventive control with a visit to the subject of control – is carried out on the basis of semi-annual lists of preventive control with a visit to the subject of control² for compliance with the requirements set out in the checklists;
3. Unscheduled inspection – is carried out without prior notification to the subject of control in case of identification of the grounds for its conduct: control of the execution of orders to eliminate violations, appeals of individuals and legal entities for violations of legal requirements in the presence of convincing grounds and supporting evidence, etc.

To determine whether your organization is subject to inspection in the first half of 2024, check out the List of Preventive Control and Supervision.

At the same time, it should be noted that employers who carry out their activities in accordance with the law will not be subject to inspection.

Nevertheless, if your organization is subject to inspection by the labor inspection authorities, we draw your attention to the need to prepare for them. Violation of this requirement entails administrative liability under Part 2 of Article 230 of the Administrative Code of the Republic of Kazakhstan in the form of a fine in the amount of:

• 10 MCI (36,920 KZT) for individuals;
• 160 MCI (590,720 KZT) for officials, private notaries, private bailiffs, small businesses or non-profit organizations;
• 400 MCI (1,476,800 KZT) for medium-sized businesses;
• 1000 MCI (3,692,000 KZT) for large business entities.