Рекрутмент, Аутстаффинг, Тренинги

Working without an employment contract: employee and employer risks

In Kazakhstan, as in the rest of the world, there is informal employment – work without registration of labor relations.
Informal employment makes people disenfranchised: they are excluded from social, legal protection, and
health insurance systems, and do not have access to banking and other services
🔹 Labor relations arise between an employee and an employer
on the basis of an employment contract (clause 1 of article 21 of the labor code of the Republic of Kazakhstan). But, despite this,
the absence of a signed
employment contract between an employee and an employer remains a very common phenomenon. Often
abuse is allowed by small businesses:
retail, beauty salons, catering, but you can also find informal
employment in larger entities, in medium and large businesses, for
example, in the construction sector. Why is this still happening? 🔹
risk Penalties
Admission to work is possible only after the conclusion of an employment contract
(clause 3 of article 33 of the labor code of the Republic of Kazakhstan). This means that the employee must initially
receive an employment contract signed by the employer and only then can
they be allowed to work.
Admission by the employer to work of a person without entering into an employment contract
entails a fine (paragraph 1 of article 86 of the administrative Code of the Republic of Kazakhstan):
for officials-in the amount of 30 monthly calculation
indices (hereinafter-MCI);
for small businesses or non-profit
organizations – in the amount of 60 MCI;
for medium-sized businesses-in the amount of 80 MCI;
for large businesses – in the amount of 150 MCI.
For repeated violations within a year, the amount of fines increases.