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IMPACT – MEDIUM
What is the change? Legal amendments taking effect this month will revise rules for foreign workers applying to work in multiple regions of the country, and remove certain obligations on companies that hire foreign managers and directors.
What does the change mean? Foreign employees will no longer be able to extend a work permit for one region of the country to another region, and must apply for new work permits for each new region; however, the exemption for business trips to a new region will be lengthened to 90 days. Also, companies hiring foreign managers and directors will no longer have to fulfill “special conditions” related to recruitment.
Background: Under the recent changes, a foreign worker must obtain a new work permit for each new region, but is exempt for business trips to the new region lasting no more than 90 days. Foreign workers holding existing work permits approved for two or more regions should be able to use them until they expire. Prior rules permitted companies to apply for an extension of an existing work permit to cover new territory, but allowed a shorter exemption period of 60 days per calendar year.
The authorities are also removing “special conditions” on companies hiring managers and directors (“first category” employees). Special conditions are additional obligations on employers, including requirements for training and hiring of local workers. However, quotas will still apply to this category, limiting managers and directors to 30 percent of a company’s workforce.
BAL Analysis: Companies operating in more than one region of Kazakhstan should plan for the new rules and the additional time for processing new work permits where required. Employers hiring foreign managers and directors will benefit from the elimination of extra recruitment obligations.
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.
What is the change? Companies seeking work permits for foreign workers in job categories subject to quotas in 2016 should file their quota applications before the end of August.
Background: Filing a quota application is an annual procedure for companies who rely on foreign workers in job categories covered by quotas. 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 2016 with the Department of Labor to receive priority consideration when additional quota numbers become available.
What is the change? Kazakhstan’s visa-exemption pilot program that was scheduled to expire July 15 has been extended until Dec. 31, 2017, and 10 countries have been added to the program.
What does the change mean? Nationals of 19 countries may travel visa-free to Kazakhstan for stays of up to 15 days.
Background: Under the one-year pilot program that began in July 2014, Kazakhstan unilaterally waived visas for nationals of 10 countries to ease travel and spur investment. Those countries are France, Germany, Italy, Japan, Malaysia, the Netherlands, South Korea, the U.K., the U.S. and the United Arab Emirates. (South Korea later signed a reciprocal agreement with Kazakhstan for 30-day visa-free travel and therefore is no longer under the pilot program.)
The government has decided to renew the program through 2017 and has added the following countries to the program beginning July 16: Australia, Belgium, Finland, Hungary, Monaco, Norway, Singapore, Spain, Sweden and Switzerland.
Under separate reciprocal agreements, nationals of several other countries, including Argentina, Chile, Brazil and Ecuador are visa-exempt for stays of 30 days.
BAL Analysis: The extension and expansion of the visa waiver program provides a convenience to business travelers on short trips. Citizens of the affected countries may travel with a valid passport and obtain entry at the border.
What is the change? Applications for hiring foreign nationals in job categories covered by the Kazakh quota system next year are due by Aug. 28.
What does the change mean? Employers who are seeking to hire foreign employees in those categories in 2015 must submit their quota requests by the deadline.
Background: Filing quota requests is a mandatory procedure for companies seeking to attract foreign employees; failure to do so means they cannot apply for work permits if quotas expire.
Employers may file voluntary reports to the Department of Labor projecting their needs for foreign workers in order to get priority consideration for additional quota positions that may be allocated once those numbers are known and released by the Ministry of Labor.
BAL Analysis: Companies should submit their quota requests as soon as possible and are encouraged to provide voluntary information on their projected needs because it may provide additional foreign-national hires.
What is the change? Kazakhstan has announced a one-year pilot program offering visa-free travel for citizens of 10 countries.
What does the change mean? Citizens of France, Germany, Italy, Japan, Malaysia, the Netherlands, South Korea, the United Arab Emirates, the United Kingdom and the United States will not be required to have visas for short stays in Kazakhstan.
Background: Kazakh President Nursultan Nazarbayev announced the unilateral removal of visas for the 10 countries in a speech to the Foreign Investors Council on June 12. The 10 countries were identified as those with already significant investments in Kazakhstan or that have the potential to be significant investors. All nationals from those countries with valid passports will be allowed to enter and travel through Kazakhstan multiple times for up to 15 days per visit. They may stay longer than 15 days by obtaining a business visa from the Ministry of Internal Affairs or an investor visa from the Ministry of Foreign Affairs.
BAL Analysis: The new regime will provide ease of entry and greater mobility for business travelers in Kazakhstan. The country is seeking to attract investment and create favorable travel conditions in advance of EXPO 2017, a large international exposition that it will host that year. In the coming weeks, the government is expected to release details on procedures for citizens of the 10 countries in the visa-free pilot program.