The Majilis of the Parliament of Kazakhstan has approved in the first reading pivotal amendments that will compel employers to transfer employees from civil-law contracts (CLC) to full-fledged employment agreements. This is not merely a change in the form of the contract—it represents a complete transformation of HR and financial policy for thousands of companies utilizing such schemes. If your business engages freelancers or contractors under CLCs, the time for strategic preparation is running out.
Acsour experts have analyzed the draft law and are ready to help you navigate this transition without penalties, lawsuits, or reputational damage.
Why Does This Affect Every Second Employer
The new law leaves no loopholes: a CLC will be reclassified as an employment contract if at least one of three key criteria is present:
Qualification: the individual performs functions specific to a position or specialty listed in the company's staffing table.
Subordination: the contractor performs the work personally and adheres to internal labor regulations and direct instructions from a supervisor.
Systematic Payment: the individual receives regular remuneration—essentially a salary—rather than a one-time payment for a specific result.
As stated by First Vice Minister of Labor Askarbek Yertayev, the labor inspectorate is already monitoring over 300 CLCs through a unified digital system. After the law's adoption, non-compliance will result not in recommendations, but in official orders compelling the re-execution of all contracts.
Financial and Operational Implications for Business
Converting from a CLC to an employment contract is not simply a change of form. It triggers a cascade of obligations:
Cost Increase of 30–40%: accrual of paid vacation, sick leave, mandatory social contributions (OPV, OSMS, VOSMS), and taxes.
Legal Risks: retroactive recognition of an employment relationship leads to back assessments of contributions, fines, and employee lawsuits to restore their rights.
Reputational Damage: companies resisting the changes will be flagged by regulatory authorities as non-compliant employers.
We offer a comprehensive turnkey solution for transitioning to the new legal framework:
1. Express Audit of CLCs and HR Processes 2. Legalization Plan with Financial Modeling 3. HR Support for the Transition 4. Preventive Protection from Inspections
The amendments have already passed their first reading.
Submit a request for a comprehensive audit of your civil-law contracts. Our experts will prepare a personalized report with a risk assessment and a step-by-step transition roadmap. Legalize your business before it becomes mandatory.