The Ministry of Labor and Social Protection of Kazakhstan has proposed amendments to restrict the number of foreign executives in fully foreign-owned companies. Under the new rules, only a director and one deputy will be allowed to work without prior authorization from local authorities. This article explores the rationale behind these changes and their potential implications for businesses.
Key Changes
Currently, wholly foreign-owned companies may appoint an unlimited number of foreign managers without approval from local executive bodies (akimats). However, the proposed amendments will limit this exemption to just one director and one deputy. Any additional foreign hires will be subject to standard approval procedures.
The initiative seeks to address illegal labor migration, as some businesses have reportedly exploited the preferential system to employ foreign workers outside official quotas. The amendments align with government policy and are based on the Law on Population Migration.
Business Implications
Foreign-owned companies may now employ only two foreign executives without akimat approval.
Any additional foreign hires must follow standard procedures, including quota requirements.
Loopholes enabling labor migration under the guise of managerial positions will be closed.
The Ministry stresses that these changes are not anti-investment but rather aim to close legal loopholes, ensuring a balance between business needs and migration security.
Next Steps for Businesses
If your company is a foreign legal entity:
Review your leadership structure—ensure compliance if you employ more than two foreign executives.
Consider quotas when hiring additional foreign specialists.
Stay updated—the draft amendments are open for public discussion on the Open NPA portal until June 2, 2025.
Need Help Adapting to the Changes?
Acsour’s team is available to advise on the new requirements and assist with obtaining work permits for foreign employees. Submit a request, and we will develop a customized solution for your business.