IMPACT – MEDIUM

What is the change? Authorities have instituted new penalties for companies that fail to report a foreign national’s arrival in Kazakhstan in a timely manner.

What does the change mean? Effective immediately, companies that host foreign nationals and fail to provide notice to the Migration Police within three business days of the foreign national’s arrival will face fines ranging from 24,050 Kazakhstani tenge (about US$75) to 48,100 tenge, depending on the size of the company.

  • Implementation time frame: Immediate and ongoing.
  • Who is affected: Companies hosting foreign nationals in Kazakhstan, including those working in Kazakhstan (whether on local or foreign payroll) and those on business trips.
  • Business impact: Businesses that fail to provide timely notice will face the possibility of fines.

Background: The changes took effect Jan. 9 and mark a departure from previous policy, where the fines were applicable only when foreign nationals failed to register upon arrival (a separate process from notification), failed to obtain proper documentation allowing them to stay in Kazakhstan or failed to ensure the they left Kazakhstan on time.

Kazakhstan uses a metric called the “monthly calculated index,” or MCI, as the basis for levying fines. Currently, the MCI is set at 2,405 tenge. Under the new penalty scheme, small companies or individuals that fail to provide notice as required will be fined 10 times the MCI (24,050 tenge). Medium companies will be fined 15 times the MCI (36,075 tenge) and large companies will be fined 20 times the MCI (48,100 tenge).

BAL Analysis: Companies that host foreign nationals in Kazakhstan are encouraged to review internal procedures to make sure they regularly report the arrival of foreign nationals within three business days.

This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Companies in need of work permits for foreign workers in quota-subject job categories in 2018 should file their quota applications before Aug. 1.

What does the change mean? Companies should begin preparing their quota applications in order to meet the deadline.

  • Implementation time frame: Applications are being accepted and will continue to be accepted through July 31.
  • Visas/permits affected: Work permits. 
  • Who is affected: Companies seeking work permits for quota-subject foreign workers in 2018.
  • Business impact: Failure to file a quota application may prevent a company from being able to hire foreign workers.

Background: Filing a quota application is an annual requirement for companies that rely on foreign workers in job categories where quotas apply. Companies that do not file the applications cannot apply for work permits if quotas expire.

BAL Analysis: In addition to the mandatory quota application, employers are encouraged to file voluntary projections of their foreign labor needs for 2018 with the Department of Labor. This may allow them to receive priority consideration when additional quota numbers become available.

This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Kazakhstan has announced several amendments to changes in work permit procedures that took effect Jan. 1.

What does the change mean? The amendments affect companies applying for general work permits and intracompany transfer permits. Under the amendments, several of the changes introduced in January have been relaxed or canceledForeign nationals heading company branches and representative offices will remain exempt from having to obtain work permits.

  • Implementation time frame: Jan. 1.
  • Visas/permits affected: Work permits under the general scheme and under the intracompany transfer scheme.
  • Who is affected: Companies employing or assigning foreign nationals in Kazakhstan.
  • Impact on processing times: There is no change to the new processing time of seven business days, as implemented in January.

Background: In December, Kazakhstan announced several changes to work permit procedures, which took effect Jan. 1. Authorities have now made the following amendments to the changes:

Work permits

  • The list of occupations that are exempt from work permits has been released. As expected, primary heads of a local branch or representative office of a foreign company will remain exempt. Additionally, branch and representative offices of a foreign company are exempt from meeting foreign-to-local worker ratios if the number of employees is 30 or fewer.

Intra-corporate transfers (ICTs):

  • The government has confirmed a list of 21 economic sectors allowing ICTs.
  • Employers must conduct a search for local employees within at least 15 days of applying for a work permit. Work permit applications must be submitted no later than 60 days after the workforce demand is submitted.
  • Authorities have canceled a requirement that employment agencies publish workforce demands in print and on their websites.
  • Authorities have also canceled a requirement that employees demonstrate elementary Kazakh language abilities.

Other changes

  • Those applying for work permit extensions now have up to 30 days from expiration of their existing permit to apply for an extension.
  • Workers whose names or passport details have changed now have 30 business days to apply for reissuance of their work permit.
  • The government has canceled a rule requiring employers to notify authorities before foreign employees make business trips to other regions of Kazakhstan.
  • Another requirement has been canceled that required employers to obtain a written statement from employees that they will comply with Kazakh immigration and labor laws.

BAL Analysis: The amendments provide additional flexibility for employers and foreign nationals applying for work permits and ICT work permits.

This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Kazakhstan has implemented 30-day visa-free travel for nationals of 45 countries.

What does the change mean? The 45 designated countries represent an expanded list of nationals from the list reported in December following the government resolution.

  • Implementation time frame: Immediate. The law was implemented Jan. 1.
  • Visas/permits affected: Visa-free stays of up to 30 days.
  • Who is affected: Eligible nationals traveling to Kazakhstan for short-term business trips or tourism.
  • Impact on processing times: Eligible travelers will not need to apply for a visa at a consulate.
  • Business impact: The visa-free regime will ease business travel.

 
Background: Nationals of the following 45 countries are eligible for visa-free travel:

Australia  Denmark  Israel  Monaco  Slovenia
 Austria  Estonia  Italy       Netherlands  South Korea
 Belgium  Finland  Japan  New Zealand  Spain
 Bulgaria  France  Latvia  Norway  Sweden
 Canada  Germany  Lithuania  Poland  Switzerland
 Chile  Greece  Luxembourg  Portugal  Turkey
 Croatia  Hungary  Malaysia  Romania  UAE
 Cyprus  Iceland  Malta  Singapore  UK
 Czech Rep.  Ireland  Mexico  Slovakia  USA


BAL Analysis: 
The expansion of the visa free regime to 45 countries and for 30-day stays (up from 15 days) will eliminate visa processing for travelers making short trips, including those for business purposes. Business travelers staying longer than 30 days may, upon expiration of the visa-free period, apply in-country for a 30-day business visa (for a total stay of 60 days).

This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Kazakhstan has announced several changes to procedures for engaging foreign employees and assignees beginning Jan. 1.

What does the change mean? The changes affect work permits and intracompany transfers. In addition, the list of foreign nationals who are exempt from work permits is expected to be introduced by the end of the year. Foreign nationals heading company branches and representative offices are expected to remain exempt from having to obtain work permits.

  • Implementation time frame: Jan. 1.
  • Visas/permits affected: Work permits under the general scheme and under the intracompany transfer scheme.
  • Who is affected: Companies employing or assigning foreign nationals in Kazakhstan.
  • Impact on processing times: Processing time will be reduced to seven business days (from the current 15 days).
  • Next steps: Additional decrees are forthcoming that list foreign nationals eligible for exemptions from work permits and that list the industry sectors allowing intracompany transfers.

Key changes:

General work permits

  • Work permits for first-category workers (heads of companies and their deputies) will be valid for one year (instead of the current three years), but may be renewed an unlimited number of times.
  • Work permits for second-category (heads of departments and subdivisions) and  third-category workers (specialists such as engineers, managers, supervisors and others) may be extended up to three times (instead of two times under current rules).
  • For purposes of calculating the foreign-to-local worker ratios, nationals of Russia, Belarus, Kyrgyzstan and Armenia will no longer be counted as foreign workers.
  • Employers will no longer be required to conduct a search for local employees and will no longer need to fulfill special conditions before hiring foreign workers, such as training and hiring local workers. Additionally, employers will no longer be required to pay a banking deposit when applying for work permits.
  • New government fees apply to work permits based on the category and industry. See the table here.

Intracompany Transfer (ICT) permits 

  • Foreign-to-local ratios must be followed for foreign nationals assigned to Kazakhstan as ICTs. The number of managers must not exceed 50 percent of Kazakh managers, and specialists may not exceed 50 percent of Kazakh specialists. There is no limit on head managers.
  • An ICT agreement may be used to support the work permit application.
  • Two new requirements are slated to take effect, but are also expected to be repealed thereafter: Employers would be required to advertise for 30 days instead of 15 days for local candidates, and employees would be required to pass an elementary level Kazakh language test.
  • A list of about 21 industry sectors allowing ICTs is due to be released by the government before the end of the year. 

Processing changes

  • Work permits will be processed in seven business days (instead of the current 15 business days).
  • Work permits will be issued only for a single region or city. Business trips to other regions will be allowed for 90 day per calendar year (increased from the current 60-day limit).
  • Extensions of work permits must be filed no later than one month before the expiration date (instead of 20 days under the current rule).
  • Applicants requesting reissuance of a work permit due to a change in name or passport details must file within 20 business days from the change (instead of 10 business days under current rules), and reissuance due to company reorganization must be filed within 10 business days (instead of 10 calendar days under current rules).

BAL Analysis: The changes ease rules and provide for faster processing and greater flexibility for employers and foreign nationals applying for work permits and ICT work permits.

This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Beginning Jan. 1, Kazakhstan will allow nationals of 39 countries to travel visa-free for up to 30 days for business or tourism.

What does the change mean? Business and tourist travelers who are nationals of the 39 countries will not need to obtain a visa if conducting permitted business activities. Work activities are not permitted on a visa waiver.

  • Implementation time frame: Jan. 1.
  • Visas/permits affected: Tourist and business visas.
  • Who is affected: Nationals of the 39 countries indicated below.
  • Impact on processing times: Nationals of the designated countries holding valid passports will not need to apply for a visa at a consulate before travel. Passport registration is not required for travelers as long as they have received two stamps in their passport upon entry.
  • Business impact: The expanded visa-exemption policy will ease business travel and encourage investment.
  • Next steps: The government resolution is expected to be signed by the end of the year and take effect Jan. 1.

Background: The extension of the visa waiver is intended to promote investment, reduce red tape for short-term visitors and attract tourists during major conferences in Kazakhstan, such as Expo 2017, in the coming year.

Under the current policy, nationals of 19 countries are allowed visa-free stays of up to 15 days.

The list of 39 countries includes:

 Australia Finland Italy New Zealand Spain
Austria France Japan Norway Sweden
Belgium Germany Latvia Poland Switzerland
Canada Greece Luxembourg Portugal Turkey
Chile Hungary Malaysia Singapore United Arab Emirates
Czech Republic Iceland Mexico Slovakia United Kingdom
Denmark Ireland Monaco Slovenia USA
Estonia Israel Netherlands South Korea  

BAL Analysis: The change significantly expands the current visa-free regime and eliminates processing for stays of up to 30 days. Travelers are reminded that work is not allowed while on a visa waiver and that those intending to perform work activities must obtain a visa and work authorization.

This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Kazakhstan will introduce new government fees for employers seeking permission to hire foreign workers.

What does the change mean? The fees take effect Jan. 1 and vary depending on the industry and category of foreign worker.

  • Implementation time frame: Jan. 1.
  • Visas/permits affected: Work permits.
  • Who is affected: Employers in Kazakhstan applying for or renewing permission to hire foreign workers.
  • Business impact: The new government fees add a new cost that businesses need to budget for when engaging foreign labor.
  • Next steps: Beginning Jan. 1, the fees must be paid within 10 days of the issuance or extension of the permission to engage foreign workers.

Background: Employers seeking to recruit foreign workers will be subject to the following government fees based on the business sector and category of foreign worker. 

Business Activity 1st Category Company heads 2nd Category Department heads 3rd Category Specialists  (Engineers, managers, etc.) 4th Category Skilled workers (Technicians, mechanics, etc.)
Professional, science, engineering, information and communications, education, health care, finance, transportation, waste disposal, agriculture, utilities supply, arts, etc. 310,853 Kazakhstani Tenge

(about US$922)

358,402 KZT

(about US $1,064)

406,151 KZT

(about US $1,205)

453,800 KZT

(about US $1,347)

Mining, quarrying, wholesale and retail, auto repair  

349, 426 KZT

(about US $ 1,037)

 

403,882 KZT

(about US $1,198)

 

458,338 KZT

(about US$ 1,360)

 

510,525 KZT

(about US$ 1,515)

Construction  

387,999 KZT

(about US $1,151)

 

449,262 KZT

(about US $ 1,333)

 

508,256 KZT

(about US$1,508)

 

567,250 KZT

(about US$ 1,683)

Seasonal work 54,456 KZT

(about US$ 162)

 

BAL Analysis: Companies that employ foreign workers and that plan to seek permission to recruit foreign labor should budget for the new government fees.

This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Kazakhstan will impose new work permit fees beginning Jan. 1.

What does the change mean? Employers filing new and renewal work permit applications on behalf of foreign nationals will be subject to new fees based on the country’s monthly calculation index. Depending on the category of worker and the industry, fees may range from 310,853 to 567,250 tenges (between about US$916 and US$1,671).

  • Implementation time frame: The fees will be imposed Jan. 1.
  • Visas/permits affected:Work permits.
  • Who is affected: Employers filing work permit applications.
  • Business impact: Employers should take note of the new fees and figure the costs into their budgets.

Background: Work permits fees will vary depending on the category of worker and the industry.

Foreign nationals eligible for work permits are divided into four categories: first category employees (chief executives and deputy chief executives), second category employees (managers and department heads), third category employees (specialists who do not qualify as second category employees) and fourth category employees (all other qualified workers). Kazakhstan recently released the Jan. 1 work permit fees for workers across all four categories in more than 20 industries. In key industries, work permit fees will be determined as follows:

Industry Rates in Monthly Calculation Indexes
First Category Second Category Third Category Fourth Category
Agriculture, Forestry, Fishing

 

137 158 179 200
Mining, Quarrying (including the oil and gas sector) 154 178 202 225
Construction

 

171 198 224 250
Financial and Insurance Activity 137 158 179 200
Professional, Scientific and Engineering 137 158 179 200

The fees will be calculated by multiplying the Monthly Calculation Index, which will be 2,269 tenges in 2017, by the relevant multiplier in the chart above. Fees will apply to both new and renewal work permit applications, but not to intracompany transfers.

BAL Analysis: Businesses should prepare for new work permit fees beginning Jan. 1. Those with questions about how the fee structure works or what categories foreign workers should be placed in should contact their BAL professional.

This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Companies in need of work permits for foreign workers in job categories subject to quotas in 2017 should file their quota applications no later than Aug. 26.

What does the change mean? Companies should prepare their quota applications as soon as possible in order to meet the deadline.

  • Implementation time frame: Although Sept. 1 is the deadline set by legislation, in practice, authorities may accept applications only until Aug. 26.
  • Visas/permits affected: Work permits and work visas.
  • Who is affected: Companies seeking work permits for quota-subject foreign workers in 2017.
  • Business impact: Failure to file may prevent a company from being able to hire foreign workers.

Background: Filing a quota application is an annual requirement for companies that rely on foreign workers in job categories where quotas apply. Companies that do not file the applications cannot apply for work permits if quotas expire.

BAL Analysis: In addition to the mandatory quota application, employers are encouraged to file voluntary projections of their foreign labor needs for 2017 with the Department of Labor. This may allow them to receive priority consideration when additional quota numbers become available.

This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – LOW

What is the change? Kazakhstan no longer permits visa-free nationals to extend their stays past the permitted length of stay without leaving the country.

What does the change mean? Visa-free nationals intending to stay in Kazakhstan beyond the time period permitted for a visa-free stay must leave the country and enter again. The allowable duration of visa-free stays varies depending on nationality.

  • Implementation time frame: The change took effect Sept. 30.
  • Who is affected: Visa-free nationals intending to remain in Kazakhstan beyond the allowable duration of stay.
  • Impact on processing times: The change will add to the time it takes for visa-free nationals to remain in Kazakhstan in certain situations because they are no longer able to extend visa-free stays in-country.
  • Business impact: Foreign nationals conducting permitted business activities in Kazakhstan may have to leave the country and re-enter, depending on how long they wish to stay in Kazakhstan.

Background: Kazakhstan has visa-free travel arrangements with dozens of countries, including the United States, most European countries and most of the former Soviet republics. Prior to the recent change, visa-free nationals staying in Kazakhstan beyond the permitted length of stay could do so by requesting extensions in-country. Now, however, foreign nationals must leave and re-enter the country.

BAL Analysis: Though those affected by the change can leave Kazakhstan and re-enter on the same day and can do so without applying for a visa, the new rules nevertheless prolongs the process for remaining in Kazakhstan beyond the allowable duration of stay. Duration of stay provisions vary by nationality, and those with questions should contact their BAL attorney.

This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.