Labor Code

[Translated from Russian]

CODEOF THE REPUBLIC OF KAZAKHSTAN

LABOUR CODE OF THE REPUBLIC OF KAZAKHSTAN

GENERAL PART

SECTION 1. GENERAL PROVISIONS

Chapter 1. BASIC PROVISIONS

Article 1. Basic terms used in this Code

1. In this Code, the following terms are used:

1) civil service means professional activity of civil servants associated with the performance of job duties aimed at implementing the objectives and functions of public enterprises for operational management of public property, state institutions and at maintaining and ensuring functioning of government agencies;

2) civil servant means a person who holds a paid full-time position in a public enterprise for operational management of public property and state institutions in a manner established by legislation of the Republic of Kazakhstan, and who performs his/her job duties in order to implement the objectives and functions, and to maintain and ensure functioning, of government agencies;

3) minimum monthly wage means a guaranteed minimum amount of pay to an employee performing simple unskilled labour (least complex), provided that he/she fulfils labour standards (job duties) under normal conditions and upon normal duration of working time per month as specified in this Code;

4) special clothing means clothes, footwear, headgear, gloves, other things that are meant for protection of an employee from harmful and/or hazardous industrial factors;

5) heavy work means types of activities of an employee connected with lifting or moving of heavy loads by hand, or any other physical labour with energy consumption of more than 250 kcal/ hour;

6) shift work means work in two, or three, or four shifts during a day;

7) social partnership means a system of relations between employees (employee representatives), employers (employer representatives) and government agencies aimed at ensuring the reconciliation of their interests in regulating the labour relations and other labour related relations;

8) general, or industry (tariff), or regional agreement (the “agreement”) means a legal instrument that is concluded among the parties to the social partnership that determine the content and obligations of the parties in

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relation to setting working conditions, employment and social guarantees for employees at the republic, industry and regional levels;

9) downtime means a temporary suspension of work by reason of economic, technological, organisational or other production or natural cause;

10) qualification category (grade) means a level of requirements to the qualification of an employee reflecting the complexity of work performed;

11) conciliation commission means a body established by agreement between an employer and employees (their representatives) for the purpose of resolving a collective labour dispute by way of conciliation of parties;

12) conciliation procedures mean a consistent investigation of a collective labour dispute first by the conciliation commission, and failing conciliation, by the labour arbitration;

13) mediator means an individual or a legal entity engaged by parties to the labour relations to assist them in resolving the labour dispute;

14) vacation means release of an employee from work for a certain period of time in order to provide an employee with annual continuous rest, or for social purposes while preserving his/her employment (position) and average wage, as and when prescribed by this Code;

15) labour means an activity of a person aimed at the creation of material, cultural and other wealth required for life and to meet human and public needs;

16) compensation plan means a system of relations associated with ensuring by an employer of mandatory payment to an employee for his/her work in accordance with this Code and other laws and regulations of the Republic of Kazakhstan, and agreements, employment, collective agreements and employer regulations;

17) minimum wage standard (MWS) means a guaranteed minimum wage payable to an employee who is engaged in heavy work, work under harmful (extremely harmful) and hazardous conditions, and which includes minimum food package, minimum goods and services necessary for an employee who is exposed at work to harmful and/or hazardous industrial factors to revitalize and restore his/her energy;

18) work hygiene means a complex of sanitary and epidemiological measures and resources for health maintenance, prevention of adverse effect of work environment and workflow;

19) labour dispute means disagreements between an employee (employees) and employer (employers) in respect of the application of labour legislation of the Republic of Kazakhstan, compliance with, or change of, the terms of agreements, employment and/or collective agreements, and employer regulations;

20) employment agency means assistance to the population in obtaining employment provided by the authorised employment agency, or a private employment agency;

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21) labour conditions means payment conditions, work measurement, working and rest hours, multi-employment, expansion of working area, performance of duties of a temporarily absent employee, health and safety, technical, industrial and living conditions, and also other working conditions as may be agreed between the parties;

22) authorised government labour agency means a government agency of the Republic of Kazakhstan charged with the authority to pursue the government policy in the area of labour relations in accordance with the legislation of the Republic of Kazakhstan;

23) territorial divisions of the authorised government labour agency means structural divisions of the authorised labour agency that exercises authorities in the area of labour relations within a relevant administrative and territorial unit in accordance with legislation of the Republic of Kazakhstan;

24) labour relations mean relations between an employee and employer arising in connection with the performance of rights and obligations specified in labour legislation, employment or collective agreement;

25) labour related relations mean relations that are formed in connection with the organisation and management of labour, employment, employee occupational training, retraining and professional development, social partnership, entering into collective agreements, employee (employee representatives) participation in establishing labour conditions to the extent specified herein, resolution of labour disputes and control over the compliance with labour legislation of the Republic of Kazakhstan;

26) labour safety means the state of employee safety warranted by a complex of measures that eliminate exposure of employees to harmful and/or hazardous industrial factors in the course of their labour activities;

27) safe labour conditions mean the conformity of the work process and working environment with health and safety requirements in performing by an employee of his/her job duties;

28) health and safety monitoring means a system of observations over the state of health and safety at operations, and also health and safety assessment and forecast;

29) health and safety standards mean ergonomic, sanitary and epidemiological, psychophysical and other requirements to ensure normal labour conditions;

30) job duties mean obligations of an employee and employer as stated in laws and regulations of the Republic of Kazakhstan, employer regulations, employment and collective agreements;

31) duration of employment means time in calendar terms spent by an employee while performing his/ her job duties;

32) labour discipline means proper fulfilment by an employer and employee of their respective obligations in accordance with laws and regulations of the Republic of Kazakhstan, agreements, labour and collective agreements, employer regulations and foundation documents;

33) internal labour policy means a policy regulating relations in respect of labour management of employees and employer;

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34) labour arbitration means an ad hoc body formed by the parties to a labour dispute from among authorised persons for resolving such labour dispute upon the conciliation commission had failed to reach an agreement;

35) occupational health means a system to ensure life and health safety of employees in the course of their labour activities that comprise legal, social and economic, organisational and technical, sanitary and epidemiological, medical care, rehabilitative and other measures and resources;

36) public health inspector means an employee representative who performs public control over health and safety compliance;

37) work measurement means the process of establishing the labour input (time) that a certain work (manufacture of a product unit) would take by employees under defined management and technical conditions, and setting labour standards on the basis thereof;

38) safe labour conditions mean labour conditions created by an employer under which the exposure of an employee to harmful and/or hazardous industrial factors is absent or do not exceed safety standards;

39) employment agreement means a written agreement between an employee and employer under which the employee agrees to perform personally certain work (job function), comply with internal labour policy, and the employer agrees to provide the employee with certain work under agreed job function, to ensure labour conditions specified in this Code, laws and regulations of the Republic of Kazakhstan, collective agreement, and employer regulations, and to pay wage to the employee in time and in full;

40) strike means a cessation of work, either full or partial, that is designed to compel an employer to meet social, economic and professional demands in a collective labour dispute with such employer;

41) wage means a remuneration for work, which depends on employee qualification, complexity, quantity, quality and conditions of job performed, and also includes compensatory and stimulation payments;

42) personal protective gear means gear designed to protect an employee from exposure to harmful and/or hazardous industrial factors, including special clothing;

43) employer means an individual or legal entity with which an employee has labour relations;

44) employer representatives mean individuals and/or legal entities that, under the foundation documents or proxy, are authorised to represent the employer or group of employers;

45) employer regulations mean orders, instructions, directives, regulations, and rules of conduct adopted by an employer;

46) employment assistance means a complex of organisational, economic and legal steps to facilitate employment of the population;

47) work place means a place of permanent or temporary location of an employee in connection with his/her performance of job duties in the course of his/her labour activities;

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48) work rating means attributing work to a certain category of complexity in accordance with the Uniform Wage-Rates and Skills Handbook, Skills Handbook for Managers, Specialists and Other Employees, wage-rates and skills characteristics of worker’s occupations and model skills characteristics of positions of managers, specialists and other employees;

49) working time means time during which an employee performs his/her job duties under the employer regulations and employment agreement, and also other periods of time which are referred by this Code to the working time;

50) record of cumulative hours worked means recording of hours worked by summing up hours worked over a defined period of time set by an employer, which may not exceed one year;

51) harmful (extremely harmful) labour conditions mean labour conditions under which the exposure to certain industrial factors results in performance impairment or disease of an employee, or in adverse impact on the health of such employee descendants;

52) harmful industrial factor means an industrial factor the exposure to which may cause a disease or performance impairment of an employee and/or an adverse impact on the health of such employee descendants;

53) occupational disease means a chronic or acute disease of an employee caused by exposure of such employee to harmful industrial factors in connection with his/her performing of his/her job duties;

54) guarantees mean resources, methods and conditions which allow exercising by employees of extrinsic rights in the area of social and labour relations;

55) safety standards mean qualitative and quantitative figures characterising industrial welfare, production and work process from the viewpoint of ensuring management, technical, sanitary and hygiene, biological and other standards, rules, procedures and criteria designed at conservation of life and health while performing labour activities;

56) hazardous labour conditions mean labour conditions under which the exposure to certain industrial or irremovable natural factors will cause, if health and safety requirements are not complied with, injury, occupational disease, sudden health deterioration or poisoning of an employee, leading to a loss of ability to work, either temporary or permanent, occupational disease or death;

57) hazardous industrial factor means an industrial factor the exposure to which may result in temporary or permanent disability (industrial injury or occupational disease) or death of an employee;

58) multi-employment means performance by an employee of any other regular work under an employment agreement when he/she is off-duty at his/ her principal job;

59) employee means an individual who has labour relations with an employer and who directly performs work under an employment agreement;

60) employee representatives mean bodies of trade unions, their associations and/or other individuals and/or legal entities designated by employees;

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61) holidays mean days of national and public holidays in the Republic of Kazakhstan;

62) base wage means a relatively constant portion of the wage which includes pay by wage rates, salaries attached to a position, piece-work rates and payments of permanent nature provided for by labour legislation, industry, collective and/or employment agreements;

63) work accident means an impact on an employee of a harmful and/or hazardous industrial factor when performing job duties or employer assignments, which result in a work injury, sudden health deterioration or poisoning of an employee, leading to a loss of ability to work, either temporary or permanent, occupational disease or death;

64) production equipment means plants, mechanisms, devices, apparatuses and other technical devices necessary for work or manufacturing process;

65) work injury means a damage to health suffered by an employee while performing his/her job duties and which have resulted in a loss of ability to work;

66) production necessity means performance of work in order to prevent or liquidate a natural disaster or accident, or liquidate promptly any consequences thereof, or to prevent accidents, downtime, loss of, or damage to, the property and other emergencies, and also to substitute for absent employee;

67) certification of industrial facilities by labour conditions means an activity for evaluating industrial facilities, shops, divisions, work places in order to determine the state of safety, health hazard, heaviness and intensity of work thereat, work hygiene, and to ascertain whether the working environment meets health and safety standards;

68) industrial sanitation means a system of sanitary, hygiene and organisational measures and technical means that help prevent or minimise impact of harmful industrial factors on employees;

69) compensatory payments means monetary payments connected with working under specific working hours and labour conditions, loss of employment, reimbursement to employees of their costs and expenses incurred by employees while performing their job or other duties under laws of the Republic of Kazakhstan;

70) tariff system means a variety of a compensation system, which provides for setting differential wages on the basis of wage rates (salary) and tariff scales;

71) tariff scale means the whole of wage grades and tariff multipliers providing for differentiation on grounds of complexity of work performed and professional qualification of an employee;

72) wage grade means a degree of work complexity and qualification level indicator that are required to perform a certain work;

73) wage rate (salary) means a fixed size of payment to an employee for his fulfilment of labour standards (job duties) of a certain complexity (qualification) per unit of time;

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74) disciplinary action means a measure of disciplinary punishment of an employee imposed by an employer for a disciplinary offence committed by such employee;

75) disciplinary offence means a violation by an employee of labour discipline, and wrongful guilty failure to perform, or improper performance of, job duties;

76) rest time means time during which an employee is free from performing his/her job duties, which he/she can use in his/her discretion;

77) collective protective equipment means technical means designed to protect simultaneously two or more employees from harmful and/or hazardous industrial factors;

78) collective agreement means a legal instrument in the form of an agreement in writing between a group of employees and employer, which regulates social and labour relations in any entity;

79) overtime work means work performed by an employee, on the initiative of the employer, outside designated working hours;

80) notice means a written application(s) given by an employee or employer or otherwise (by courier, mail, fax or email);

81) business trip means assignment of an employee, by order of an employer, for a certain period of time to perform his/her job duties outside his/her permanent work place, or for training, retraining or professional development to any other locality.

2. Other special terms and definitions used by labour legislation of the Republic of Kazakhstan have meanings as stated in the relevant articles of this Code.

Article 2. Labour legislation of the Republic of Kazakhstan

1. The labour legislation of the Republic of Kazakhstan is based on the Constitution of the Republic of Kazakhstan and consists of this Code and other laws and regulations of the Republic of Kazakhstan.

2. No provisions governing labour relations, social partnership relations or occupational health shall be included into other laws of the Republic of Kazakhstan, unless otherwise provided by this Code.

3. If a treaty ratified by the Republic of Kazakhstan stipulates other rules than those set forth herein, then the rules of the treaty shall apply. Treaties ratified by the Republic of Kazakhstan shall directly apply to labour relations, except when a treaty requires for a law to be promulgated.

Article 3. Objective and purposes of the labour legislation of the Republic of Kazakhstan

1. The objective of the labour legislation of the Republic of Kazakhstan is the legal regulation of labour relations and any other labour-related relations, which is intended to protect the rights and interests of parties to labour relations and to provide for minimum guarantees of employment-related rights and freedoms.

2. The purposes of the labour legislation of the Republic of Kazakhstan include the creation of required legal environment intended to reach a balance of interests of

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the parties to labour relations, economic growth, and productivity enhancement and human welfare.

Article 4. Principles of the labour legislation of the Republic of Kazakhstan

The following shall be the principles of the labour legislation of the Republic of Kazakhstan:

1) no restriction of human and civil rights in the area of employment;

2) freedom of labour;

3) no discrimination, unfree labour or the worst forms of child labour;

4) a secured right to labour conditions that comply with safety and hygiene requirements;

5) precedence of the life and health of an employee over the work results;

6) a secured right to fair compensation for labour in the amount of at least being equal to the minimum wage;

7) a secured right to rest;

8) equality of employees’ rights and opportunities;

9) a secured right of employees and employers to associate with a view to protecting their respective rights and interests;

10) social partnership;

11) state regulation of the matters of health and safety; and

12) a secured right of employee representatives to exercise public control over the compliance with the labour legislation of the Republic of Kazakhstan.

Article 5. No restriction of labour rights

No one may be restricted in labour rights, except as otherwise provided by this Code and other laws of the Republic of Kazakhstan.

Article 6. Freedom of labour

Everyone shall have the right to pursue a freely chosen occupation or to freely accept an occupation without any discrimination or compulsion whatsoever, to use his/her ability to work, and to choose a profession or form of activity.

Article 7. No labour discrimination

1. Everyone shall enjoy equal opportunities in the exercise of his/her labour rights and freedoms.

2. No person shall, because of his/her sex, age, disfigurements, race, ethnicity, language, property, social or official status, place of residence, religious or political opinions, family line, social class, or affiliation to certain social associations, be subjected to any discrimination in the exercise of his/her labour rights.

3. Differences, exceptions, preferences or restrictions, which are based on specific requirements to a particular occupation or conditioned upon the special care of the State about persons in need for higher social and legal protection level, shall not constitute discrimination.

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4. Persons believing that they have been subjected to discrimination in the area of employment may seek protection in courts or other authorities in accordance with the laws of the Republic of Kazakhstan.

Article 8. Prohibition of unfree labour

Unfree labour shall be prohibited.

Unfree labour shall mean any work or services, which are demanded to be performed by a person under a threat of any punishment or which have not been offered by such person voluntarily, unless such work:

is required under the laws of the Republic of Kazakhstan on compulsory military service;

is part of customary civil duties of individuals under the laws of the Republic of Kazakhstan;

is required from a person pursuant to a final court sentence, provided that the work shall be performed under the supervision and monitoring of state agencies and that such person shall not be placed or transferred under orders of individuals and/or legal entities;

is required in the context of an emergency situation or war; or

is performed by members of a collective for the direct benefit of such collective, and which may hence be considered as a customary civil duty of members of such collective, provided that the members or representatives thereof may express their opinion as to the advisability of such work.

Article 9. Application of this Code

1. This Code shall govern:

1) labour relations;

2) labour-related relations;

3) social partnership relations; and

4) relations arising out of health and safety.

2. Unless otherwise stipulated by treaties ratified by the Republic of Kazakhstan, this Code shall apply to:

1) employees, including employees of organisations located within the territory of the Republic of Kazakhstan, and whose assets, ownership interests or shares are owned by foreign individuals or legal entities; and

2) employers, including organisations located within the territory of the Republic of Kazakhstan, whose assets, ownership interests or shares are owned by foreign individuals or legal entities.

3. The specifics of legal regulation of certain categories of employees shall be determined by this Code and other laws of the Republic of Kazakhstan.

4. No law of the Republic of Kazakhstan may impair any of the rights, freedoms or guarantees provided by this Code.

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Article 10. Employment agreements, agreements between the parties to a social partnership, collective agreements, and employer regulations in the area of labour

1. Labour relations and any other labour-related relations shall be governed by an employment agreement, employer regulations, agreement, and collective agreement.

2. Provisions of agreements between the parties to a social partnership, collective agreements, employment agreements, or employer regulations worsening the condition of employees as stipulated by the labour legislation of the Republic of Kazakhstan shall be deemed void.

3. No agreements, collective agreements or employment agreements may be amended by either party thereto in its sole discretion.

Article 11. Employer regulations

1. An employer shall issue regulations to the extent of the powers vested in it by this Code, other laws and regulations, employment agreement, agreements, and collective agreement.

2. In the events provided for in this Code or collective agreement, the employer may issue regulations that are subject to the approval by, or take into account the opinion of, employee representatives.

3. Employer regulations worsening the condition of employees as stipulated by the labour legislation of the Republic of Kazakhstan, collective agreement, agreements, or those issued not in compliance with paragraph 2 of this Article shall be deemed void.

Article 12. Taking into account the opinion, or obtaining the approval, of employee representatives when issuing employer regulations

1. In the instances provided for in this Code, agreements, and collective agreements, an employer shall issue regulations that shall take into account the opinion of, or must be approved by, employee representatives.

2. Before issuing regulations, the employer shall submit draft regulations and the grounds therefor to a commission formed under Article 266 of this Code.

3. The commission shall be allowed no more than three working days to discuss the draft employer regulations of the date of submission thereof.

4. A resolution taken by the commission shall be in the form of a protocol stating the approval/disapproval of the draft employer regulations by the employee representatives, and their suggestions, if any.

5. If the employee representatives disapprove or suggest improving the draft employer regulations, the employer:

1) if approved so, shall issue regulations incorporating the suggestions made by the employee representatives; or

2) if disapproved, may either undertake further consultations with the employee representatives or issue regulations as initially suggested by the employer.

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6. If no approval is obtained on draft employer regulations which require employee representatives’ approval hereunder, a protocol shall be drawn up to reflect the differences which have arisen, and the employer may thereafter issue such regulations.

7. If the employer issues its regulations without taking into account the suggestions in whole or in part, employee representatives may commence labour dispute proceedings in accordance with this Code.

8. In the event that the regulations issued by the employer contain any provisions violating or impairing any of the rights or guarantees granted to the employees by this Code, employment agreement, collective agreements, or agreements, such regulations may be appealed against with the relevant state labour inspectorate of the authorised government labour agency or with a court.

Article 13. Calculating terms established by this Code

1. Any term established by this Code, employment or collective agreement, or agreements shall be determined by a calendar date, or the expiry of a period of time, which may be expressed in years, months, weeks or days. Such term may also be determined by reference to an event which should occur.

2. In the instances stipulated by this Code, a term shall be expressed in working days.

3. A term determined by a period of time shall commence running on the next day after the calendar date on which the event determining its commencement occurred.

4. Terms expressed in years, months or weeks shall expire on the corresponding dates of the last year, month or week. If a term expressed in months expires in a month which does not have a corresponding date, then the term shall expire on the last day of such month. A term expressed in calendar weeks or days shall also include non-working days.

5. If the last day of a term falls on a non-working day, then the expiry day of the term shall be the first working day immediately following such day, unless otherwise stipulated by this Code.

Article 14. Liability for a breach of the labour legislation of the Republic of Kazakhstan

Persons in breach of the labour legislation of the Republic of Kazakhstan shall be liable in accordance with laws of the Republic of Kazakhstan.

Chapter 2. COMPETENCE OF GOVERNMENT AGENCIES IN THE AREA OF REGULATION OF LABOUR RELATIONS

Article 15. Competence of the Government of the Republic of Kazakhstan in the area of regulation of labour relations

The Government of the Republic of Kazakhstan shall:

1) develop principal directions and ensure the implementation of the state policy in the area of labour, health and safety;

2) organise the development and implementation of governmental programs in the area of health and safety;

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3) introduce the procedure for organising and carrying out the governmental control in the area of health and safety;

4) determine the procedure for reporting and for keeping state statistics in the area of health and safety;

5) introduce the procedure for employment of foreign labour;

6) determine amounts of social allowances, the procedure whereby such allowances shall be granted and paid;

7) approve a list of types of diseases, for which a period of temporary disability exceeding two months may be established;

8) determine the uniform procedure for calculating the average wage;

9) approve the Model Regulations on Compensation and Bonuses of Executives in National Companies and Joint-Stock Companies the Controlling Stakes in which are Owned by the State;

10) determine the procedure for entering the civil service and holding competitions for filling vacancies of civil servants;

11) determine a list of positions of civil servants;

12) conclude a general agreement with national associations of employers and national associations of employees;

13) determine the procedure for the enactment of laws and regulations governing health and safety by relevant authorised agencies;

14) approve the plan of compensation of employees of organisations funded out of the State budget;

15) determine the general requirements to the occupational training, retraining and professional development of staff in organisations;

16) approve multiplying industry ratios to be determined by industry agreements; and

17) form commissions to investigate group accidents, if more than five persons have died.

Article 16. Competence of the authorised government labour agency in the area of regulation of labour relations

The authorised government labour agency shall:

1) implement the state policy in the area of labour, labour safety, and occupational health;

2) enact laws and regulations of the Republic of Kazakhstan which establish general requirements to health and safety in all areas of activities;

3) organise the government control over the compliance with the labour legislation of the Republic of Kazakhstan and the requirements as to health and safety;

4) coordinate the activities of government agencies as to the development of technical regulations governing health and safety;

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5) coordinate and ensure cooperation in the area of health and safety with other government agencies, and also with employee and employer representatives;

6) determine the format, and procedure for maintenance and safekeeping of labour books;

7) establish the procedure for change or revision of labour model rules and standards;

8) establish the procedure for the submission, consideration and approval of labour standards in organisations, with respect to services/goods/work whereof the governmental regulation of tariffs/prices/duty rates is to be introduced;

9) establish the procedure for the submission, consideration and approval of parameters of the systems of compensation of employees in organisations, with respect to services/goods/work whereof the governmental regulation of tariffs/prices/duty rates is to be introduced;

10) register industry agreements and regional agreements to be executed on the oblast, city of national significance, or capital city level;

11) carry on training and certification of state labour inspectors;

12) monitor the timely and impartial conduct of investigations of work accidents in accordance with the legislation of the Republic of Kazakhstan;

13) cooperate internationally in the area of regulation of labour relations;

14) develop programs of health and safety research;

15) develop and approve the procedure and rates of allocation of milk, healthful and dietary meals, working clothes, safety footwear and other individual protection equipment to employees, and also establish the procedure for the provision of employees with group protection equipment, sanitary and welfare facilities at the employer’s expense;

16) determine the procedure for the development, revision, approval and use of guides and qualifications;

17) consider and approve model qualifications for positions of managers, professionals, and other employees of organisations engaged in various types of business;

18) establish the procedure for approval of labour model rules and standards by authorised government agencies for appropriate areas of activities;

19) subject to approval by the authorised government agency for health protection, determine a list of jobs which may not be performed by employees under eighteen years of age, and weight-carrying limits for employees under eighteen years of age;

20) subject to approval by the authorised government agency for health protection, determine a list of jobs which may not be performed by women, and weight-lifting and weight-carrying limits for women;

21) determine a list of operations, workshops, occupations and positions, a list of heavy work, or work under harmful (extremely harmful) and/or hazardous labour conditions;

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22) organise monitoring and risk assessment in the area of health and safety;

23) establish a procedure for mandatory regular certification of production facilities by labour conditions; and

24) approve Model Regulations on the Security and Occupational Health Service in an Organisation.

Article 17. Competence of territorial divisions of the authorised government labour agency in the area of regulation of labour relations

Territorial divisions of the authorised government labour agency shall:

1) exercise state control over the compliance with the labour legislation of the Republic of Kazakhstan and requirements to health and safety;

2) monitor collective agreements presented by employers;

3) analyze causes of industrial injuries, occupational diseases, occupational poisoning, and develop suggestions as to the prevention thereof;

4) investigate work accidents in accordance with the legislation of the Republic of Kazakhstan;

5) test the knowledge of executive employees and persons responsible for the health and safety compliance by employers in accordance with rules to be approved by the authorised government labour agency;

6) be members of acceptance committees for the commissioning of production facilities;

7) cooperate with employee and employer authorised representatives on the improvement of standards of health and safety; and

8) consider applications of employees, employers and representatives thereof regarding health and safety.

Article 18. Competence of local executive agencies in the area of regulation of labour relations

Local executive agencies shall:

1) issue permits to employ foreign nationals to work in the territory of their respective political units;

2) subject to approval by the local representative agency, determine a list of positions of professionals in health protection, social security, education, culture and sports, working in auls (rural areas);

3) register industrial and regional agreement concluded at the city or district level;

4) give their consents to strikes within organisations supporting the life of the population (public transportation, and organisations supplying water, electric and thermal power);

5) execute regional/oblast/city/district agreements with regional associations of employers and regional associations of employees;

6) consider and approve worktime standards and parameters of the systems of compensation of employees in organisations, with respect to

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services/goods/work whereof the governmental regulation of tariffs/prices/duty rates to be introduced in the procedure established by the authorised government labour agency; and

7) set employment quotas for different categories of population determined by the laws of the Republic of Kazakhstan.

Chapter 3. PARTIES TO LABOUR RELATIONS. GROUNDS ON WHICH LABOUR RELATIONS ARISE

Article 19. Parties to labour relations

1. The parties to labour relations shall be an employer and employee. The head of a branch or representative office of a foreign legal entity shall exercise all employer powers and perform all employer obligations on behalf of such legal entity.

2. Individuals and legal entities shall act for employees or employers to the extent of powers vested in them under laws and regulations, court judgments, foundations documents or powers of attorney.

Article 20. Grounds on which labour relations arise

1. Labour relations shall arise as between the employee and employer based on an employment agreement to be concluded hereunder, unless otherwise provided for by laws of the Republic of Kazakhstan.

2. In the instances and following the procedures established by laws of the Republic of Kazakhstan, foundation documents, or employer regulations, conclusion of an employment agreement may be preceded by the following procedures:

1) appointment/election to the position;

2) appointment in the course of a competition for filling the respective vacancy;

3) appointment to the position or approval of the appointment;

4) referring to work by agencies authorised by law within an existing quota; or

5) issuance of a court judgment ordering to conclude an employment agreement.

Article 21. Conclusion of an employment agreement with individuals referred within an existing quota

1. Local executive agencies shall establish quotas for employment of categories of population determined by laws of the Republic of Kazakhstan.

2. Employers shall, within an existing quota, conclude employment agreements with persons referred to them, provided that their qualifications meet the employer’s requirements.

Article 22. Basic rights and responsibilities of employees

1. An employee shall have the right:

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1) to enter into, amend, and terminate the individual employment agreement in the procedure and subject to the terms and conditions established by this Code;

2) to demand from the employer to comply with the employment or collective agreement;

3) to health and safety;

4) to be provided with complete and reliable information on the labour conditions and occupational health measures;

5) to timely and full payments of wage in accordance with the employment and collective agreements;

6) to get paid for downtime in accordance with this Code;

7) to rest, including annual vacation with pay;

8) to associations, including to form trade unions or other associations, and also to membership in such associations, with a view to representation and protection of his/her labour rights, unless otherwise provided for by laws of the Republic of Kazakhstan;

9) to participate, through his/her representatives, in collective negotiations and in drafting a collective agreement, and also to review the concluded collective agreement;

10) to occupational training, retraining and professional development in accordance with this Code;

11) to indemnification against harm to his/her health inflicted in connection with his/her performance of work duties;

12) to mandatory social insurance in the events stipulated by laws of the Republic of Kazakhstan;

13) to guarantees and compensations;

14) to have his/her rights and lawful interests protected by any means not conflicting with law;

15) to equal pay for equal work without any discrimination whatsoever;

16) at his/her sole discretion, to refer any labour disputes to a conciliation commission or court;

17) to a work place equipped in accordance with the health and safety requirements;

18) to be provided with individual and group protection equipment and special clothing in accordance with the requirements in the legislation of the Republic of Kazakhstan governing health and safety, and also in the employment and collective agreements;

19) to refuse to perform any work if a situation has arisen which jeopardises his/her health or life, having notified accordingly his/her direct supervisor or employer representative;

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20) to preserve his/her the average wage for periods of suspended operations of his/her organisation due to its failure to comply with the health and safety requirements;

21) to request the authorised labour agency or its territorial divisions to inspect the health and safety conditions at the work place, and also to participate by proxy in the inspection and consideration of matters related to the improvement of labour conditions, health and safety;

22) to appeal acts/omissions of the employer in the area of health and safety;

23) to receive remuneration for his/her labour in accordance with the qualification and complexity of his/her work, with the volume and quality of the work performed, and also with the labour conditions;

24) to participate in the management of an organisation in the manner provided for by this Code, other laws of the Republic of Kazakhstan, and the collective agreement; and

25) to have his/her individual and collective labour disputes resolved, including the right to strike, in accordance with this Code and other laws of the Republic of Kazakhstan.

2. An employee must:

1) perform his/her work duties in accordance with the individual and collective agreements, and employer regulations;

2) observe the labour discipline;

3) comply with the health and safety requirements, fire safety rules, and industrial sanitation rules at his/her work place;

4) treat employer’s and employees’ property with care;

5) inform the employer of any situation, which jeopardises the human life or health, safe condition of the employer’s or employees’ property, and also of any downtime which has occurred;

6) not disclose any information constituting state secrets, or official, commercial or other secrets protected by law, which has become known to him/her in connection with the performance of his/her work duties; and

7) to the extent provided by this Code, indemnify the employer for any harm caused to it.

3. An employee shall have other rights and responsibilities hereunder.

Article 23. Basic rights and obligations of employers

1. An employer shall have the right:

1) to choose freely when hiring new employees;

2) to amend and terminate employment agreements with employees in the procedure and on the grounds established by this Code;

3) to issue employer regulations to the extent of its authority.

Regulations regarding changes in labour conditions shall be issued only in accordance with Article 48 of this Code;

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4) to form and join associations with the aim of representing and defending its rights and interests;

5) to demand that its employees fulfil the terms and conditions of the employment and collective agreements, internal labour policy, and other employer regulations;

6) to provide incentives to employees, to impose disciplinary sanctions and to hold them materially liable in the events and procedure provided for by this Code;

7) to indemnification against harm caused by an employee during the performance of his/her work duties;

8) to apply to court seeking protection of its labour-related rights or lawful interests;

9) to establish a probation period for employees; and

10) to compensation of its costs associated with an employee’s training, provided this is stipulated by the provisions of the relevant employment agreement.

2. An employer must:

1) comply with the requirements of the labour legislation of the Republic of Kazakhstan, agreements, collective agreement, employment agreement, and its employer regulations;

2) when hiring, enter into employment agreements with employees in accordance with the procedure and requirements provided for by this Code;

3) exercise internal control over health and safety;

4) assign the work to an employee as stipulated by the relevant employment agreement;

5) pay to employees in full and in time wages and other payments stipulated by laws and regulations of the Republic of Kazakhstan, employment agreement, collective agreements, and employer regulations;

6) familiarise the employee with the employer regulations and collective agreement;

7) provide employee representatives with complete and reliable information as may be required to carry out collective negotiations, enter into collective agreements, and to monitor the performance thereof;

8) consider suggestions made by employee representatives, hold collective negotiations, and enter into a collective agreement in the procedure established by this Code;

9) provide labour conditions to employees in accordance with the labour legislation of the Republic of Kazakhstan, employment and collective agreements;

10) at its own expense, provide employees with equipment, tools, technical documentation, and other facilities as may be required for the performance of work duties;

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11) comply with orders of state labour inspectors;

12) suspend operations, which, if continued, would jeopardise employees’ and other persons’ life or health;

13) carry out mandatory social security of employees;

14) maintain insurance against civil liability for causing harm to employee’s life or health during the performance by the latter of his/her work duties;

15) grant annual vacations with pay to its employees;

16) ensure safe keeping and submit to the state archive documents confirming employees’ labour activity and information on money deducted towards their pension security;

17) warn employees of harmful (extremely harmful) and/or hazardous labour conditions and the possibility of occupational disease;

18) take measures to prevent risks at work places and in production processes, carry out preventive actions subject to production, scientific, and technical progress;

19) keep accurate work time records including overtime work, harmful (extremely harmful), hazardous labour conditions, and heavy physical labour performed by each employee;

20) ensure that its employees receive occupational training, retraining and professional development upgrading in accordance with this Code;

21) in accordance with the legislation of the Republic of Kazakhstan, indemnify employees for harm caused to their life or health;

22) provide officials of the authorised labour agency and territorial divisions of the authorised government labour agency, employee representatives, public health inspectors with free access for the inspection of labour safety, labour conditions and occupational health in organisations, of the compliance with the health and safety legislation of the Republic of Kazakhstan, and also for investigation of work accidents and occupational diseases; and

23) when hiring an employee, demand documents required to enter into an employment agreement in accordance with Article 31 of this Code.

3. An employer shall have other rights and responsibilities hereunder.

SPECIAL PART

SECTION 2. LABOUR RELATIONS

Chapter 4. EMPLOYMENT AGREEMENT

Article 24. The subject matter of an employment agreement

Under an employment agreement, the employee shall perform work (labour function), which requires appropriate qualification, for the remuneration, and shall abide by the internal labour policy, while the employer shall ensure the labour conditions, pay to the employee the wage and other payments as provided for by the labour legislation of the

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Republic of Kazakhstan, employment agreement, collective agreement, agreement of the parties in full and in time.

Article 25. Guarantees of equality of the rights and opportunities when concluding an employment agreement

1. There shall be prohibited to violate the equality of the rights and opportunities when concluding an employment agreement.

2. Pregnancy or children younger than three years, minority or disability shall not restrict the right to conclude an employment agreement, except as may be otherwise prescribed in this Code.

At request of persons of the categories referred to in the paragraph of this clause above, an employer must explain in writing the reason for refusal.

3. If it is established that the rights and opportunities have been violated when concluding an employment agreement, the employer shall be held liable in accordance with laws of the Republic of Kazakhstan.

Article 26. Restrictions on conclusion of the employment agreement

No employment agreement shall be concluded:

1) with respect to the work, which the person is prohibited to perform due to his/her state of health, based on the medical certificate;

2) with persons under eighteen years of age with respect of a heavy work, or work connected with harmful (extremely harmful) and/or hazardous labour conditions, and with respect to position and jobs, which imply full material liability of the employee for failure to ensure the safety of the property and other valuables of the employer;

3) with individuals who have no right to occupy certain position or perform certain activity y reason of a final court judgment;

4) with foreigners or stateless individuals, who temporarily stay in the Republic of Kazakhstan, until and unless the permit of the local executive body is obtained for the employment of foreign labour in the procedure established by the Government of the Republic of Kazakhstan, or in breach of the limitations and exceptions established by laws of the Republic of Kazakhstan.

Article 27. Difference of an employment agreement from any other types of agreements

The distinctive features of an employment agreement from any other types of agreements are that it must meet one of the following conditions:

1) performance by an employee of work (labour function) requiring a specific qualification, or on speciality, occupation or position;

2) personal performance of the obligations in compliance with the internal labour policy;

3) getting by an employee of the wage for his/her labour.

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Article 28. Contents of an employment agreement

1. An employment agreement shall contain:

1) details of the parties:

surname, name and patronymic (if indicated in the identity document) of the employer, where the employer is a natural person, the address of his/her permanent residence, description, number and date of issue of his/her identity document, and taxpayer registration number;

full name of the employer, where the employer is a legal entity, and its location, number and date of its state registration, and taxpayer registration number;

surname, name and patronymic (if indicated in the identity document) of the employee, description, number and date of issue of his/her identity document, individual identification number, taxpayer registration number, and social individual code;

2) work on a particular speciality, qualification or position (labour function);

3) place where the work will be performed;

4) term of the employment agreement;

5) employment commencement date;

6) working time and rest time schedule;

7) amount and terms of payment of the wage;

8) characteristics of the labour conditions, guarantees and benefits if the work is performed under heavy and/or harmful (extremely harmful) or hazardous conditions;

9) rights and obligations of the employee;

10) rights and obligations of the employer;

11) amendment and termination of the employment agreement;

12) guarantees and compensatory payments, and procedure of their payments;

13) terms of insurance;

14) liability of the parties;

15) date of conclusion and file number of the agreement.

2. By agreement between the parties, other terms and conditions that do not contradict the laws of the Republic of Kazakhstan may also be included in the employment agreement.

3. The provisions of the employment agreement that worsen the position of the employees as compared with the labour legislation of the Republic of Kazakhstan shall be deemed invalid.

Article 29. Term of an employment agreement

1. An employment agreement may be concluded:

1) for an indefinite period of time;

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2) for a definite period of time which must be at least one year, except as set out otherwise in Article 29.1.3-29.1.5.

In the event that an employment agreement is renewed with an employee, with whom the employment agreement has been concluded for a definite period of time of at least one year, including extension of the employment agreement, the employment agreement shall be deemed concluded for an indefinite period of time.

It is prohibited to conclude an employment agreement for a definite period of time so as to evade providing guarantees and compensations as established for employees who conclude an employment agreement for an indefinite period of time.

If upon expiration of the term of the employment agreement, none of the parties requires the termination of labour relations within 24 hours, the employment agreement shall be deemed concluded for an indefinite period of time;

3) for a period of performance of a certain work;

4) for a period of replacement of a temporarily absent employee;

5) for a period of performance of a seasonal work.

2. An employment agreement with a person for a position of the head of the executive body of the employer which is a legal entity shall be concluded for a term established in the foundation documents of the employer or by the agreement of the parties. The provisions of Article 29.3 shall not apply to such agreements.

3. If the term is not fixed in the employment agreement, then the employment agreement shall be deemed concluded for an indefinite period of time.

Article 30. Minimum age reaching which a person may conclude an employment agreement

1. An employment agreement may be concluded with persons who have reached the sixteen years of age.

2. With written consent of one of the parents, tutor, guardian or adoptive parents, an employment agreement may be concluded with:

1) a person who has reached the age of fifteen, if he/she has graduated from the secondary school;

2) a student who has reached the age of fourteen to perform some work that is not harmful to his/her health and that does not interfere with the schooling process, in the time free from schooling;

3) an individual who has not reached the age of fourteen in organisations operating in the filming industry, theatres, theatrical and concert organisations, and circuses in order to participate in the creation and/or performance of some staging which is not harmful to his/her health and moral development subject to the conditions defined in sub-paragraph 2(2) of this Article.

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3. In the instances described in paragraph 2 of this Article, apart from a minor, the employment agreement should be signed by one of his/her parents, tutor, guardian or adoptive parent.

Article 31. Documents required for the conclusion of an employment agreement

1. The following documents are required for the conclusion of an employment agreement:

1) identity card and passport (birth certificate for the persons under sixteen years of age);

2) residence permit or identity card of the stateless person (for foreigners and stateless persons who permanently reside in the Republic of Kazakhstan);

3) document evidencing education, qualification, special knowledge or professional skills, if an employment agreement concerns work, which requires special knowledge, qualification and skills;

4) document evidencing the work experience (for those who have any work experience);

5) document of military registration (for those liable to military service and who is subject to call);

6) document of pre-admission medical certification (for those obliged to pass pre-admission examination in compliance with this Code and legislation of the Republic of Kazakhstan); and

7) copies of certificates of assignment of the taxpayer registration number and social individual code.

2. An employer shall have no right to demand any documents not listed under paragraph 1 above.

3. If an employer retains or temporarily keeps, with consent of the employee, the original documents in order to comply with the legally required procedures, the employer shall issue to the employee a written letter of commitment to return the documents.

Article 32. Procedure for conclusion, modification of and amendment to the employment agreement

1. An employment agreement shall be concluded in writing in, at least, duplicate and signed by the parties. Each of the employer and employee shall retain one original of the employment agreement. The receipt of an original of the employment agreement by the employee shall be confirmed in writing.

2. Any modifications of, or amendment to, the employment agreement, including in connection with the transfer to another job, shall be in writing and made in the manner defined in paragraph 1 of this Article.

Any proposals as to modification of the terms and conditions of the employment agreement shall be made in writing, and shall be considered by the other party within seven calendar days from the date of submission of such proposals.

3. An employment agreement with officials of the executive body of an organisation shall be concluded by the owner of the property of such organisation, or its

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authorised representative or body, in the procedure prescribed by the foundation documents of such organisation.

Article 33. Documentation of employment

1. The employment shall be documented by the employer regulations issued based on the concluded employment agreement.

2. The employer shall, within three days, familiarise the employee with the employer regulations. The employee shall signify that he/she is familiarised with the employer regulations by signing thereof.

3. At request of the employee, the employer shall provide the employee with a duly certified copy of such employer regulations.

4. When hiring, the employer shall brief the employee on the internal labour policy of the organisation, other employer regulations relating to the job (labour function) to be performed by the employee, and on the collective agreement.

Article 34. The documents confirming labour activity of the employer

To prove the employee’s working career, either of the following documents may be used:

1) labour book;

2) employment agreement (indicating the date and reason of its termination);

3) extracts from the employer regulations to confirm creation and termination of the labour relations by way of the conclusion and termination of the employment agreement;

4) extract from the payroll register;

5) employment history (information of the work experience and previous employments of the employee) signed by the employer and certified by the seal of the organisation, or by a notary; and

6) archive certificate containing information about employment history of the employee.

Article 35. Labour book

1. The labour book is a document that contains information about the employment history of the employee.

2. The form, procedure for maintenance and safekeeping of labour books shall be established by the authorised government labour agency.

3. The employer must enter into the labour book complete information about employment of the employee with this employer.

4. The entries in the labour book as to the reasons for termination of the employment agreement shall be made with reference to the provisions of this Code.

Article 36. Probation requirement under the employment agreement

1. An employment agreement may provide for the probation with a view to checking whether the employee’s qualification is adequate for the job assigned. In absence of the probation requirement under the employment agreement, the employee shall be deemed employed without any probation period.

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2. The probation period shall start from the effective date of the employment agreement.

3. The rules of this Code, terms and conditions of the employment agreement and the collective agreement shall apply to the employee for the duration of the probation.

4. The probation shall be included into the duration of employment, and may not be longer than three months. The probation shall not include the period when the employee was absent from his/her work place.

5. When employing the following categories of persons, no probation shall be required for:

persons who are employed through the competition to fill in a relevant position;

graduates of universities or vocational colleges who take employment by their specialty for the first time; and

disabled persons.

Article 37. Results of probation

1. If the result of the work of the employee during probation is not satisfactory, the employer shall have the right to terminate the employment agreement with such employee by giving a seven-calendar day prior written notice prior to the expiry of the probation, which shall indicate the reasons why the employee is deemed failed the probation.

2. If the term of probation has expired, and neither party requested termination of the employment agreement, the employee shall be deemed as having passed the probation.

3. If the employee is appointed by the employer to a higher position before the probation has expired, the employee shall be deemed as having passed the probation.

Article 38. Commencement of the employment agreement

1. The term of the employment agreement shall commence from the date of its signing by the parties, or from the date written therein.

2. The employee shall be actually admitted to perform the work only after the parties have signed the employment agreement.

3. In case there is no employment agreement and/or employment agreement has not been duly executed through the fault of the employer, the employer shall be held liable in the manner established by laws of the Republic of Kazakhstan. In such a case the labour relations shall be deemed as having arisen on the date when the employee took up work.

Article 39. Invalidity of the employment agreement

1. The employment agreement may be invalidated by court, if the employment agreement has been concluded:

1) under the influence of deception, force, threat;

2) without the intent to create actual or legal consequences (fictitious employment agreement);

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3) with a person who has been declared legally incapable;

4) with a person under fourteen years of age, except as otherwise permitted under sub-paragraph 2(3) of Article 30 of this Code; and

5) with a person under sixteen years of age, without written consent of one of his/her parents, tutor, guardian or adoptive parent;

2. The invalidation of the employment agreement through the fault of the employer shall not result in loss by the former employee of the right to receive payment for his/her work, compensatory payment for unused vacation days remaining from the annual vacation with pay, other payments and benefits.

3. The invalidation of the employment agreement through the fault of the employer or employee shall entail their liability under laws of the Republic of Kazakhstan.

4. The invalidity of certain terms of the employment agreement shall not cause the invalidity of the employment agreement as a whole.

Article 40. Prohibition to work not defined in the employment agreement

An employer shall have no right to demand that the employee perform work not defined in the employment agreement, unless otherwise prescribed under this Code and the laws of the Republic of Kazakhstan.

Article 41. Transfer of an employee to another job

1. The following actions shall constitute the transfer of an employee to another job:

1) change in work (labour function) performed by the employee, i.e. performance of work on other position, speciality, profession, qualification;

2) assignment of work, the performance of which entails changes to the labour conditions (size of wage, work and rest schedule, benefits and other conditions) as provided for in the employment agreement;

3) transfer to a separate structural subdivision of the employer; and

4) transfer to any other locality together with the employer;

2. Transfer of an employee to another job shall only be permitted with consent of the employee, and shall be documented by way of amendments to the employment agreement and issue of employer regulations, except as otherwise prescribed by this Code.

3. Transfer of the employee within the same employer to another work place, other structural subdivision of the same employer in the same locality, assignment of work at any other plant or equipment, unless such transfer or assignment result in the changes described in paragraph 1 of this Article, shall not be deemed to be the transfer to another job and shall not require consent of the employee.

Article 42. Redeployment of an employee to another locality together with the employer

1. An employer must notify the employee in writing no later than one month prior to the anticipated relocation of the employer to any other locality unless the employment agreement or collective agreement require longer period of notice.

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2. The employer shall make to the employee compensatory payments relating to the relocation of the employee to any other locality together with the employer, as specified in Article 153 of this Code.

3. In the event that the employee gives a written refusal to relocate to any other locality together with the employer, the employment agreement shall be terminated on the ground defined in sub-paragraph 1(1) of Article 59 of this Code.

Article 43. Temporary transfer to another job in case of production necessity

In case of production necessity, including temporary replacement of an absent employee, an employer shall have the right to transfer an employee, without his/her consent, to another job not defined in the employment agreement in the same organisation and in the same locality for a maximum of one month in a calendar year, which job shall not be against the medical advice for health reason, and the wage shall be payable for the job performed but such wage shall not be lower than the average wage for the previous job.

Article 44. Temporary transfer to another job in case of downtime

1. In case of downtime an employer shall have the right to transfer an employee without his/her consent but with due account of his/her speciality and qualification, to any other job, which job shall not be against the medical advice for health reason, for a maximum of one month in a calendar year.

2. In case of downtime the employee shall be paid for the work performed, and at least two thirds of his/her wage for the previous job.

If the employee refuses in writing to continue his employment due to the change in the labour conditions, the employment agreement with the employee shall be terminated on the ground defined in sub-paragraph 1(2) of Article 59 of this Code.

Article 45. Temporary reassignment to another job for health reasons

1. An employee may be temporarily reassigned to any other lighter job, for health reasons, for a period of time stated in the medical certificate. By agreement of the parties, the employee may be paid the same rate of wages, which he/she would have otherwise received if he/she continued in his/her previous job.

2. In case of damage, occupational disease or other injury to health suffered by an employee as a result of performance of his/her job duties, an employer must reassign such employee to a lighter job or release his/her from job until he/she recover or is declared incapable to work, and pay damages according to the civil laws and regulations of the Republic of Kazakhstan, and in compliance with the terms and conditions of the employment agreement and collective agreement.

3. If the employee, who, in connection with the performance of his/her job duties, suffered damage, occupational disease or other injury to health which does not relate to the production, refuses in writing to be reassigned to another job, the employment agreement with such employee shall be terminated on the ground as specified in Article 59.1.4 of this Code.

Article 46. Restriction on the transfer of an employee to another job

It is not allowed to transfer the employee to another job, which job is against medical advice for health reason evidenced by a medical certificate.

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Article 47. Transfer of an employee to another work place. Change in the title of position (job)

1. No consent of the employee shall be required to transfer to any other work place or any other structural subdivision in the same locality, or assignment to operate any other plant or equipment within the function in the position, speciality, profession, qualification as implied by the employment agreement, except to the extent that the work in other structural subdivision, or at another work place, and with other plant or equipment encompasses other labour conditions.

2. The change in the title of the position (job) of the employee, structural subdivision, change in the structure of management, which does not entail for the employee any change in the labour conditions and/or terms and conditions of the employment agreement, may be made by the employer without consent of the employee.

Article 48. Change in the labour conditions

1. To the extent changes occur in respect of the work organisation, including upon reorganisation and/or decrease of employer’s scope of work, the labour conditions of the employee may be changed if he/she continues to work in the same position, speciality or profession of respective qualification as provided for by his/her employment agreement.

In case of change of the labour conditions, appropriate changes and amendments shall be introduced to the employment agreement and/or collective agreement.

2. The employer shall give the employee and/or his/her representatives a no less than one-month prior notice of the intended change in the labour conditions, unless a longer notice period is required by the employment agreement or collective agreement.

If the employee does not agree to continue working under new conditions, the employer shall offer the employee in writing any other work, if any, suitable to his/her qualification and state of health, and in absence of such work the employer shall offer the employee the vacant lower-level or lower-pay work, which the employee may carry out, considering his/her qualification and state of health.

3. If the employee refuses in writing to continue working by reason of changed labour conditions, his/her employment agreement shall be terminated on the ground as stated in sub-paragraph 1(2) of Article 59 of this Code

4. Should the circumstances described in paragraph 1 of this Article 48 result in reduction of the staff or the number of staff, the employer may introduce a part-time work with a view to preserving jobs, and subject to the opinion of the employee representatives.

The cancellation of the part-time regime, which may entail the reduction in the staff or the number of staff, shall be made by the employer subject to the opinion of the employee representatives.

Article 49. Labour relations in case of change in the name, departmental affiliation, change of owner of the assets, or reorganisation, of the employer

In the event of any change in the name, departmental affiliation, change of owner of the assets, or reorganisation, of the employer, the labour relations with employees shall remain unchanged.

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Article 50. Suspension from work

1. To the extent permitted by laws of the Republic of Kazakhstan, the employer must suspend the employee from his/her work based on the resolutions of competent government authorities.

2. In addition to paragraph 1 of this Article, the employer must suspend the employee from work if the employee:

1) appears at work in a condition of alcoholic, narcotic, toxic or other type of intoxication (or any similar condition), or uses the intoxicating substances during a working day;

2) failed to pass the examination in safety and labour protection rules;

3) neglects the use of required personal protective gear and/or collective protective equipment provided by the employer;

4) failed to pass the medical examination, or pre-shift examination, where such examinations are obligatory in accordance with laws and regulations of the Republic of Kazakhstan; and

5) his/her actions or omission to act may result in emergency, violation of the rules of occupational heath, fire safety or transportation safety.

3. For a period of suspension of the employee from work, the employee shall not be paid any wage or allowance for temporary disability, except for the maternity benefits.

4. The employee shall be suspended from work until the reasons for suspension have been identified and/or remedied.

5. The employee shall be paid the wage in case he/she has been suspended from work illegally.

Article 51. Grounds for the termination of an employment agreement

An employment agreement may be terminated on the following grounds:

1) termination by agreement of the parties;

2) expiry of the term of the employment agreement;

3) termination on the initiative of the employer;

4) termination on the initiative of the employee;

5) due to circumstances beyond the parties’ control;

6) refusal of the employee to continue the labour relations;

7) transfer of the employee to the elected post (position) or his/her appointment to the office, which prevent from continuing the labour relations, except as otherwise provided for by laws of the Republic of Kazakhstan;

8) breach of the terms and conditions of the employment agreement; and

9) the grounds stated in the employment agreement concluded with the head of the executive body of the employer.

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Article 52. Termination of the employment agreement by agreement of the parties

1. The employment agreement may be terminated by agreement of the parties.

2. A party to the employment agreement wishing to terminate the employment agreement shall send an appropriate notice to the other party.

3. The recipient party shall, within three working days, notify the other party in writing of its decision in respect thereof.

4. The date of termination of the employment agreement by agreement of the parties shall be determined by agreement between the employer and employee.

5. With consent of the employee, the employment agreement may provide that the employer shall have the right to terminate the employment agreement otherwise than in accordance with the requirements set out in paragraph 2 of this Article 52, in which case the employer shall pay compensatory payment in the amount of no less that the average annual wage.

Article 53. Termination of the employment agreement upon expiry of its term

1. The employment agreement concluded for a definite period of time shall be terminated due to the expiry of its term.

2. The last day of the employee’s work term as stated in the employment agreement shall be the date of expiry of the employment agreement concluded for a definite period of time.

3. The day when the work is completed shall be the date of expiry of the term of the employment agreement concluded for a term of performance of certain work.

4. The day when the employee, whose work place (position) is preserved, returns to work shall be the date of expiry of the employment agreement concluded for a time of replacement of a temporarily absent employee.

5. If, upon expiry of the employment agreement, the labour relations continue effectively, and neither of the parties demand termination of the labour relations, the term of the employment agreement shall be deemed extended for an indefinite period of time.

Article 54. Grounds for termination of the employment agreement on the employer's initiative

1. An employment agreement may be terminated on the employer's initiative in the following cases:

1) liquidation of the employer being a legal entity or termination of the activity by the employer being a natural person;

2) reduction in the number of employees or staff;

3) unfitness of the employee to the occupied position or performed work due to inadequate qualification;

4) unfitness of the employee to the occupied position or performed work for health reasons precluding him/her from continuing the work;

5) unsatisfactory result of work during probation;

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6) absence of the employee at work place without a valid excuse for more than three consecutive hours in one working day (shift);

7) appearance at work in a condition of alcoholic, narcotic, toxic or other type of intoxication (or similar conditions), including the cases of taking during a working day of the substances causing alcoholic, narcotic, toxic or other type of intoxication (or similar conditions);

8) violation by the employee of the rules of occupational heath, fire rules, traffic and transportation rules or regulations which has caused or could have caused serious consequences, including accidents and injury;

9) stealing (including petty stealing) by the employee at work place of other people property, intentional destruction of, or damage, to such property, which fact has been established by the final sentence or final judgment of the court;

10) commitment of any guilty actions or omission to act by the employee, who serves commodity or monetary values, if such an act or omission to act results in loss of trust in the employee by the employer;

11) commitment by the employee who performs any education functions of an amoral offence which is inconsistent with continuation of such work;

12) disclosure by the employee of any information which constitutes the state secret and other legally protected secrets that have became known to him/her in connection with performance of his/her job duties;

13) repeated failure by the employee to perform or improper performance of his/her duties without good reasons, following the issue of a written warning by the employer;

14) in case the employee has been denied an access to the state secrets to the extent prescribed by laws of the Republic of Kazakhstan;

15) in case the employee submitted to the employer knowingly misleading documents or information when concluding the employment agreement, if the genuine documents or information could have constituted a ground to reject the conclusion of the employment agreement;

16) breach by the head of the executive body of the employer, his/her deputy or head of a subdivision of the employer of the job duties, which breach has caused material damage to the employer;

17) failure by the employee to appear at work for more than two months in a row due to temporary sickness or incapacity, except for maternity leave and diseases which are on the list of diseases approved by the Government of the Republic of Kazakhstan, for which a longer term of rehabilitation of the ability to work or disability has been established;

The job (position) of the employee who has lost the ability to work due to injury at work or occupational disease shall be preserved until he/she recovers his/her ability to work, or disability is established; and

18) commitment by the employee of a corruption breach of law, which by judgment of the court, excludes the possibility to continue working.

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2. For certain categories of employees this Code provides for additional grounds for termination of employment agreement on the initiative of the employer.

Article 55. Restrictions on the possibility to terminate the employment agreement on the employer's initiative

It shall not be allowed to terminate the employment agreement on the initiative of the employer during the period of temporary disability and annual vacation with pay of the employee, except as otherwise provided for in Article 54.1.1 of this Code.

Article 56. The procedure for termination of the employment agreement on the employer's initiative

1. On the grounds defined in Articles 54.1.1 and 54.1.2 of this Code the employer must give to the employee a one month prior written notice of termination of the employment agreement, unless the employment agreement or collective agreement provide for a longer period of notice. With written consent of the employee, the employment agreement may be terminated prior to the expiration of the notice period.

2. The employment agreement concluded with employees who are members of the trade union shall be terminated on the grounds as stated in Articles 54.1.2 and 54.1.3, and the employment agreement shall be terminated in accordance with Article 59.1.2 of this Code only subject to the well-reasoned opinion of the trade union existing at the employer organisation, and in the procedure provided for in the collective agreement.

3. If the employment agreement is terminated in accordance with Article 54.1.4 of this Code due to unfitness of the employee to the position occupied or work performed for health reasons precluding him/her from continuing the work, such unfitness shall be proved by the medical examination certificate issued in the procedure established by laws of the Republic of Kazakhstan.

4. The termination of the employment agreement on the grounds stated in Articles 54.1.6-54.1.13, 54.1.16 of this Code shall be subject to the proper application of the disciplinary action procedure defined by Article 73 hereof, and in accordance with the requirements under Article 74 of this Code.

5. When dissolving the employment agreement on the grounds stated in Article 54.1.4.2 of this Code, the employer shall first take steps to transfer the employee to another job, should the employee agree to such transfer.

6. If the employment agreement is terminated in accordance with Articles 54.1.2-54.1.4 of this Code due to unfitness of the employee to the position occupied or work performed by reason of his/her inadequate qualification, such lack of qualification shall be proved by the opinion of the personnel review commission, which shall include the employee representative as its member, unless otherwise prescribed by laws of the Republic of Kazakhstan.

The procedure for, terms of, and frequency of the performance evaluation of employees shall be defined by the collective agreement, and or by the employer regulations where there is no collective agreement.

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Article 57. Grounds for termination of the employment agreement on the employee's initiative

1. An employee may terminate the employment agreement on his/her initiative, having delivered to the employer a no less that a one-month prior written notice, unless otherwise required in accordance with Article 57.4.

2. By agreement between the employer and employee, the employment agreement may be terminated prior to the expiration of the notice period referred to in paragraph 1 above.

3. The employee shall notify the employer in writing of termination of the employment agreement on the date stated in the letter of resignation, if the employment agreement is terminated due to impossibility to continue with the work.

4. The employee shall have the right to notify the employer in writing of the breach by the employer of the terms and conditions of the employment agreement. Should, upon a seven-day period of time, the breach of the terms and conditions of the employment agreement stays remains, the employee shall may terminate the employment agreement, by at least a three-day prior written notice to the employer.

5. During the notice period referred to in this Article the employee shall have the right to withdraw his/her letter of resignation.

6. Upon expiration of the notice period prescribed in this Article, the employee may stop working, and the employer shall be obliged to give out to the employee the documents relating to his/her work together with the money due.

7. For certain categories of employees this Code provides for a special procedure for termination of the employment agreement on the employee initiative.

Article 58. Termination of the employment agreement due to circumstances beyond the parties’ control

1. An employment agreement shall be terminated due to the following circumstances beyond the parties’ control:

1) where the employee is called to the military service no later than within three days upon presentation of a relevant document by the employee;

2) upon a court sentence convicting the employee or the employer being a natural person having become effect so as to make the continuation of the previous employment impossible;

3) in case of death or declaration of the employee or employer, if the employer is a natural person, by the court dead or missing;

4) in case the court finds the employee incapable or practically incapable of, as a result of which he/she is unable to continue the previous work; and

5) in case of reinstatement of the employee who performed such job before.

2. The date of termination of the employment agreement on the grounds as stated in Articles 58.1.2-58.1.4 of this Code shall be the date of the court judgment or sentence coming into legal force, or the date of death.

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Article 59. Termination of the employment agreement for refusal of the employee to continue the labour relations

1. An employment agreement shall be terminated for refusal of the employee to continue the labour relations in case of:

1) refusal of the employee to relocate to any other locality together with the employer;

2) refusal of the employee to continue employment due to change in the labour conditions;

3) refusal of the employee to continue employment due to reorganisation of the employer being a legal entity; and

4) refusal of the employee to be transferred to any other job where he/she, while performing his/her job duties, acquires an injury, occupation disease or other harm to health not associated with the production process.

2. The employment agreement shall be terminated only if the refusal of the employee to continue the labour relations has been executed in writing.

3. It shall not be permitted to terminate the labour relations during the period of temporary disability of the employee (including during the maternity leave) and vacation.

Article 60. Termination of the employment agreement for transfer or nomination of the employee to an elective post (position)

An employment agreement shall be terminated in the event that the employee is transferred or nominated to the elective post (position), if the laws of the Republic of Kazakhstan do not allow the persons who occupy such positions to take other paid positions.

The basis for such termination shall be a notice from the employee to the employer or statement about nomination of the employee to such post (position).

Article 61. Termination of the employment agreement for breach of the requirements to conclusion of the employment agreement

1. An employment agreement shall be terminated for breach of the requirements to conclusion of the employment agreement, if such breach precludes from continuing the labour relations in case of:

1) the employment agreement has been concluded for performance of the job, which is against the medical advice for health reason based of the medical examination certificate;

2) the employment agreement has been concluded for performance of the job in violation of the valid sentence or judgment, which prohibits a person to occupy certain positions or perform certain activities;

3) the employment agreement has been concluded with a foreigner or a stateless person without having first obtained in due procedure a work permit entitling it to employ foreigners and stateless persons, and in violation of the limitations or exceptions established by laws of the Republic of Kazakhstan; and

4) in other cases set out in laws of the Republic of Kazakhstan.

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2. The employment agreement shall be terminated on the grounds as stated in Articles 61.1.1-61.1.2 only if it is impossible to transfer the employee with his/her consent to any other job the employer has, in regards to performance of which there are no limitations. With consent of the employee to be transferred to any other job, an employment agreement shall be concluded.

3. On the termination of the employment agreement under Articles 61.1.1, 61.1.3, the employer shall pay to the employee a compensatory payment in the amount of the average wage for three (3) months.

Article 62. Documentation of termination of the employment agreement

1. The termination of the employment agreement shall be documented by an employer regulation, except for the termination of the employment agreement by reason of death (declaration by the court as dead or missing) of the employer being a natural person, and termination of the employment agreement with household workers.

2. The employer regulations must state the reason for the termination of the employment agreement, in accordance with this Code.

3. The date of termination of the employment agreement shall be the last day of work, except as otherwise prescribed by this Code.

4. A copy of the employer regulations with regard to the termination of the employment agreement shall be provided or sent to the employee by a registered letter within three days.

Article 63. Issue of the labour book and documents relating to the labour activity

1. On the day of termination of the employment agreement the employer must give out to the employee his/her labour book or any other document evidencing his/her employment.

2. At request of the employee (including the former one), the employer must, within five working days from the date of request, issue a certificate indicating the speciality (qualification, position), period of work and the amount of wage, a letter of recommendation containing information about qualification of the employee and his/her attitude towards the work, as well as other documents prescribed by this Code.

3. In case of liquidation or bankruptcy of the employer that is a legal entity, termination of the activities of the employee who is a natural person, the employer must issue to the employee a duly executed certificate in respect of the amount of debt (if any) due to the employee with regards to the wage and other payments.

Chapter 5. PROTECTION OF PERSONAL DATA OF THE EMPLOYEE

Article 64. Personal data of an employee and their processing

Personal data of an employee is the information about the employee required at the moment of creation, continuation and termination of the labour relations.

Processing of personal data of the employee means receipt, safekeeping and transfer of the personal data of the employee.

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Article 65. Requirements to processing of personal data of the employee

When processing personal information of an employee, the employer must observe the following requirements:

1) personal data of an employee shall be processed with the purpose of ensuring the compliance with laws and other regulations, assisting the employees in getting an employment, training and promotion, and ensuring personal security of employees;

2) the scope and contents of the processed personal data of employees shall be determined in accordance with the Constitution of the Republic of Kazakhstan, this Code and other laws of the Republic of Kazakhstan;

3) personal data is provided by the employee personally;

4) an employer shall have no right to demand from an employee any information regarding his/her political, religious and other opinions and private life;

5) an employer shall have no right to demand from the employee any information regarding his/her membership or activity in social associations, including trade unions;

6) when taking decisions affecting the interests of an employee, an employer shall have no right to rely on the personal data of such employee obtained as a result of the automated processing or by electronic means; and

7) personal data of an employee shall be protected by the employer in the manner prescribed by laws of the Republic of Kazakhstan.

Article 66. Safekeeping of personal data of employees

The personal data safekeeping procedure in an organisation shall be defined by the employer subject to the requirements set out in laws and regulations of the Republic of Kazakhstan.

The employer regulations that define the procedure for safekeeping of personal data of employees shall be made readily available to an employee for examination.

Article 67. Transfer of personal data of an employee

1. When transferring personal data of an employee, the employer shall observe the following requirements:

1) not to disclose personal data of an employee to any third party without written consent of the employee;

2) grant access to personal data of employees to specially designated persons only. However, such designated persons shall have the right to receive only that personal data of the employee which he/she needs to perform certain functions, and must keep such personal data confidential; and

3) transfer personal data of the employee within the organisation in accordance with the employer regulations, which must be made known to the employee.

2. Persons to whom personal data of the employee has been disclosed must use such personal data solely for the purpose it was disclosed for, and shall have no right to

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transfer such information to any third parties, except as otherwise prescribed by laws of the Republic of Kazakhstan.

Article 68. Rights of an employee to protection of his/her personal data kept with the employer

With a view to ensuring the protection of personal data kept with the employer, employees shall have the right:

1) to be granted free of charge access to their own personal data, including the right to receive copies of the records containing personal data of the employee, except as may be prescribed otherwise by laws of the Republic of Kazakhstan;

2) to have incorrect or incomplete personal data and information processed in a breach of the requirements of this Code corrected or removed;

3) require that the employer should notify the persons who were provided with incorrect or incomplete personal data of the employee, of all and any corrections made in such data; and

4) appeal in court against the actions (omission to act) by the employer while processing his/her personal data.

Chapter 6. INTERNAL LABOUR POLICY. LABOUR DISCIPLINE

Article 69. Internal labour policy rules

1. An employer shall approve the internal labour policy rules upon agreement with the employee representative.

2. The internal labour policy rules shall establish the working time and rest time for employees, conditions for ensuring labour discipline, and other matters concerning the regulation of the labour relations.

3. For certain categories of employees the internal labour policy shall be regulated by the charter and regulations approved in the procedure established by laws of the Republic of Kazakhstan.

4. The internal labour policy rules are binding on the employer and employees.

Article 70. Labour discipline

Labour discipline shall be ensured by the employer by way of creation of necessary organisational and economic conditions for individual and collective labour, conscientious attitude of employees to their job, use of conviction, incentives for the conscientious work, and application of disciplinary actions for disciplinary offences committed by employees.

Article 71. Incentives

1. An employer may apply various forms of performance-based incentives to employees.

2. The forms of incentives and their application shall be defined by laws of the Republic of Kazakhstan, employer regulations, employment agreement, and collective agreement.

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Article 72. Disciplinary actions

1. For a disciplinary offence committed by an employee the employer may apply the following disciplinary actions:

1) reproof;

2) reprimand;

3) severe reprimand; and

4) termination of the employment agreement on the initiative of the employer subject to this Code.

2. It shall not be allowed to apply any disciplinary actions not defined in this Code and any other laws of the Republic of Kazakhstan.

Article 73. Application and appeals of disciplinary actions

1. A disciplinary action shall be applied by an employer by issuing the employer regulations.

2. Before the disciplinary action is applied, an employer must request from the employee an explanatory statement in writing. Refusal of an employee to give written explanations may not be an obstacle to the application of a disciplinary action. In case the employee refuses to give an explanatory statement in writing, an appropriate statement shall be executed.

3. When deciding on which disciplinary action to apply, the employer shall take into consideration the substance, nature and seriousness of the disciplinary offence, circumstances of the offence, preceding and subsequent behaviour of the employee, and his/her attitude to the work.

4. Only one disciplinary action may be applied to an employee for each of his/her disciplinary offence.

5. The employer regulations in respect of the application of a disciplinary action may not be issued when:

1) an employee is temporarily incapable;

2) an employee is on leave from work for a term of performance of state or public duties;

3) an employee is on vacation; and

4) an employee is on business trip.

6. The employer regulations concerning application of the disciplinary action shall be made known to the employee, who is subject to the disciplinary action, within three working days after the date of its issue, which fact the employee shall signify by his/her signature. Where the employee refuses to signify that he/she has read the employer regulations by signing, an appropriate note shall be indicated on the employer regulations concerning application of the disciplinary action. Where it is impossible to deliver the employer regulations concerning application of the disciplinary action to the employee personally, the employer must send such regulations to the employee by a registered letter with confirmation receipt.

7. Any disciplinary action may be appealed by the employee in accordance with the procedure defined in this Code.

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Article 74. Terms, within which a disciplinary action is to be applied

1. A disciplinary action shall be imposed on the employee immediately after the disciplinary offence has been discovered, but not later than one month after the date of its discovery, except as otherwise prescribed under Article 73.2 of this Code and other laws of the Republic of Kazakhstan.

2. A disciplinary action may not be applied six months after the date of the disciplinary offence, and in certain circumstances specified by laws of the Republic of Kazakhstan, or where a disciplinary offence is discovered as a result of the audit or check of the financial or economic activities of the employer the disciplinary action shall not be applied on expiry of one year after the date of the disciplinary offence. The above terms shall not include the time of the criminal proceedings.

3. Running of the term of application of the disciplinary action shall be suspended for the time of absence of the employee from work by reason of temporary disability, leave from work for performance of state or public duties, and length of vacation or business trip.

Article 75. Duration of disciplinary actions

1. The duration of a disciplinary action may not exceed six months from the day it was imposed, except as otherwise provided under Article 72.1.4 of this Code. If, within this period of time, the employee is not subjected to a new sanction, he/she shall be deemed clear of the disciplinary action.

2. The employer that applied a disciplinary action may remove such disciplinary action earlier, in its sole discretion, at request of the employee or his/her immediate supervisor, or at request of the employee representative.

Chapter 7. WORKING TIME

Article 76. Working time

1. The working time may be of standard duration, reduced duration and part-time.

2. The working time shall also include setting-up or winding up works (obtaining a job order, materials, tools, getting acquainted with equipment, reading documents, preparation and cleaning-up the work place, delivery of finished product, etc.), breaks allowed by the production process, labour management, labour regulations, labour protection, time of presence or waiting for work at the work place where the employee cannot freely dispose of his/her time at his/her own discretion, duty on holidays and days off, duty at home, and other periods of time as determined in the employment agreement, collective agreement, employer regulations or laws and regulations of the Republic of Kazakhstan.

Article 77. Standard duration of the working time

1. The standard duration of the working time should not exceed 40 hours per week.

2. Employment agreements and collective agreements may provide for a shorter working time, which shall be paid as for the standard duration of the working time.

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Article 78. Shorter working time for certain categories of employees

1. A shorter working time shall be established for employees under eighteen years of age, in accordance with Article 181 of this Code.

2. A shorter working time shall be established for employees engaged in heavy work and work under harmful (extremely harmful) working conditions, in accordance with Article 202 of this Code.

3. A shorter working time shall be established for the disabled persons of the first and second disability groups, in accordance with Article 224 of this Code.

4. Employment agreements and collective agreements may allow the working time shorter than that mentioned in paragraphs 1-3 above.

5. In the event shorter working time is established, employees shall be paid remuneration for work in accordance with this Code.

Article 79. Part-time work

Part-time work shall mean the working time less in duration than the standard duration established by this Code, including:

part-time working day, i.e. reduction of the standard duration of daily work (shift);

part-time working week, i.e. reduction in the number of working days in a working week; and

simultaneous reduction of the standard duration of daily work (shift) and reduction in the number of working days in a working week.

Article 80. Working conditions for part-time work

1. By agreement of the parties the employment agreement may provide for a part-time work.

2. The part-time work may be established for a definite or indefinite period of time.

3. The part-time work shall not affect the duration of the employee’s annual vacation with pay as established by this Code, employment agreement, collective agreements, and agreements.

Article 81. Types of working week

1. Employees shall work a five-day working week, and have two days-off. With a five-day working week the duration of daily work (shift) shall be determined by employer regulations, considering the specific nature of the work and subject to the prescribed duration of the working week.

2. In organisations where the nature of operations and labour conditions make the introduction of a five-day working week unreasonable, a six-day working week with one day-off shall apply.

3. A five-day or six-day working week shall be established by the employer in accordance with the terms and conditions of the employment and/or collective agreement.

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Article 82. Duration of daily work (shift)

1. For a five-day working week the duration of the daily work (shift) may not exceed eight hours were the standard week duration is forty hours, seven hours twelve minutes where the standard week duration is thirty-six hours, and five hours where the standard week duration is twenty-four hours.

2. For a six-day working week the duration of the daily work (shift) may not exceed seven hours where the standard week duration is forty hours, six hours where the standard week duration is thirty-six hours, and four hours where the standard week duration is twenty-four hours.

3. The duration of the daily work (shift), the time daily work (shift) begins and ends, break schedule shall be established in the internal labour policy of the employer, employment agreement and collective agreement subject to the duration of the working week.

4. A different duration of the daily work (shift) may be established for creative specialists working for professional organisations of art, culture and leisure, employees of mass media, sportsmen and coaches, in accordance with the labour legislation of the Republic of Kazakhstan, employer regulations, employment agreement or collective agreement.

Article 83. Division of daily work (shift) into parts

1. The daily work (shift) may be divided into parts:

1) at jobs with irregular intensity of work; and

2) on the initiative of an employee, where he/she has social, domestic or other personal needs.

2. Where the daily work (shift) is divided into parts, the total duration of the working time shall not exceed the prescribed maximum duration of the working time (shift).

3. Types of jobs where the daily work (shift) is divided into parts, number and duration of intervals during work, and types and amount of compensatory payments paid to employees for work under such conditions shall be determined by the employment agreement or collective agreement.

Article 84. Work in shifts

1. Work in shifts may be introduced where duration of the production process or production regime of the employer exceeds the maximum duration of the daily work.

2. In case of work in shifts the duration of the shift, transfer of an employee from one shift to another shall be established based on the shift schedule approved by the employer upon agreement with the employee representative.

3. A shift schedule shall be notified to the employees at least one month prior to its introduction.

4. It is not allowed to engage the employee for work during two shifts in a row.

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Article 85. Flexible working time

1. In order to combine the social and personal needs of the employees with the production needs, a flexible working time may be introduced for employees.

2. The flexible working time provides for:

1) fixed working time;

2) flexible (variable) working time, within which the employee may perform his/her job duties at his/her own discretion; and

3) record period.

3. The record period shall mean, for the purpose of the flexible working time, the period, during which the average established duration of working time for the given category of employees must be complied.

4. The record period for the purpose of the flexible working time may not be more than one month.

5. The duration of the daily work (shift) and/or weekly work under the flexible working time regime may not be more or less than the standard daily and/or weekly duration of the working time.

6. The duration of the fixed working time, flexible (variable) working time, and record period for the purpose of the flexible working time regime shall be established by the employment agreement, collective agreement.

Article 86. Record of cumulative hours worked

1. The record of cumulative hours worked shall be applied under the continuous-running production, shops, sections and for certain types of operations, where the conditions of the production (work) do not allow to observe the daily or weekly duration of the working time established for the given category of employees.

2. The record period for the purpose of the record of cumulative hours worked shall be the period, during which the average established daily and/or weekly duration of the working time for the given category of employees shall be complied with.

3. The record period for the purpose of the record of cumulative hours worked shall be any calendar period but not more than one year, or the term of performance of a given work.

4. When the record of the cumulative hours worked is maintained, the duration of rest time of the employee between the end of work and its start the next working day (shift).

5. The recorded work with the cumulative hours worked, and the categories of employees who are allowed to keep the record of the cumulative hours worked shall be determined in the employment agreement and collective agreement, or in the employer regulations, subject to the opinion of the employee representatives.

6. No application of the record of the cumulative hours worked shall be permitted in cases referred to in Articles 183, 190, and 225 of this Code.

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Article 87. Night work

1. The night is deemed to include time between 10.00 pm and 6.00 am.

2. The employees may be engaged in the night work subject to the restrictions referred to in this Code.

Article 88. Restrictions on overtime

1. No overtime work shall be allowed for:

1) pregnant women; and

2) employees under eighteen years of age.

2. An employee shall be engaged in any overtime work only with his/her consent, except as otherwise provided for under Article 90 hereof.

Article 89. Maximum duration of overtime

1. Overtime work shall not exceed for each employee two hours, and one hour for those engaged in heavy work and work under harmful (extremely harmful) and/or hazardous conditions of labour, in any calendar day.

2. The total duration of overtime work shall not exceed twelve hours per month and one hundred and twenty hours per year.

3. The restriction on the maximum amount of overtime work shall not apply in cases referred to in Article 90.1 of this Code.

Article 90. Exceptional cases when overtime work may be allowed without consent of employees

Overtime work shall be allowed without consent of an employee in the following exceptional cases:

1) to perform works necessary for the defence of the country as well as for preventing emergency situations or natural calamities, industrial accidents or immediate response to their consequences;

2) to remove any other circumstances interfering with proper functioning of water, gas, heat and power supply systems, and other life support systems;

3) to continue work in case of absence of the shift employee where the work cannot be interrupted, provided that prompt steps are taken to replace him/her by other employee.

Article 91. Keeping record of working time

1. An employer must keep the record of the working time actually worked by an employee.

2. Recorded shall be actual working time which may include the time worked and unworked by the employee.

3. The recorded worked time shall include the actually worked time and other periods of time, which are deemed to be the working time. Overtime work, work in the night time, on days-off, holidays, and days on business trips shall be recorded separately.

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4. The recorded unworked time shall include the paid and unpaid time, and loss of working time through the fault of the employee and/or employer.

5. The record of the working time shall be maintained in the documents determined by the employer.

6. Where the working time of the employee includes any works performed off the work place, or where the exact time of work performance may not be recorded by the employer, such periods shall be entered in the records of working time as completion of the scope of work established by the employment agreement.

Chapter 8. REST TIME

Article 92. Types of rest time

There shall be the following types of rest time:

1) breaks during the working day (working shift) – rest and meal break; inter-shift breaks and special breaks;

2) daily rest (in between the shifts);

3) days off (weekly uninterrupted rest);

4) holidays; and

5) vacations.

Article 93. Rest and meal breaks

1. During the daily work (working shift), an employee must be given one rest and meal break for at least half an hour.

2. Rest and meal break shall be no earlier than three hours prior to, and no later than four hours after the start of daily work (working shift), except as provided in paragraph 3 of this Article.

3. Rest and meal break can be established later than three hours after the beginning of daily work (working shift) in the event of flexible record of cumulative working time where the duration of the daily work (working shifts) is eight hours.

4. The time for the rest and meal break and the duration thereof shall be fixed by the internal labour policy and collective agreements.

5. The duration of the rest and meal break shall not be included in the working time. At works where due to the production conditions no breaks can be allowed, an employer must provide an employee with the opportunity to have rest and meal during the working time in a specially equipped place. The list of such works, procedure and place for rest and meal shall be established by collective agreements or employer regulations issued upon agreement with the employee’s representatives.

Article 94. Inter-shift breaks and special breaks

1. At certain jobs, employees shall be granted the inter-shift breaks necessitated by the technology and organisation of production and labour, which breaks shall be included in the working time. Types of such jobs, duration and procedure for the

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provision of such breaks shall be established in the collective agreements or the employer regulations adopted upon agreement with the employee representatives.

2. Employees working in the cold season in the open air or in unheated premises, as well as those engaged in loading and unloading operations, shall be granted the breaks to warm up and have rest, and such breaks shall be included in the working time. The employer must arrange for the premises to be equipped so as to provide heat and rest for employees.

3. Working women who have children under the age of eighteen months shall be given additional breaks for feeding a child, apart from the rest and meal breaks, as required by Article 118 hereof.

Article 95. Duration of daily (inter-shift) break

The hours of the daily (inter-shift) rest of an employee between the end of work and beginning of work the next day (working shift) shall not be less than twelve hours.

Article 96. Days off

1. Employees shall be given weekly days off.

2. If it is a five-day working week, an employee shall be given two days off a week, and if it is a six-day work week, one day off.

3. Sunday shall be the common day off for a five-day and six-day week. For a five-day week, the second day off shall be established by the employer regulations or a shift schedule. Both days off shall be granted in succession, unless otherwise established by the collective and employment agreements.

4. The first day of Kurban-Ait, which is celebrated by the Islamic calendar, and January 7, the Orthodox Christmas, shall be the days off.

5. Employees (group of employees), who are engaged in the continuous productions or such production where the operation cannot be stopped on weekends due to the industrial conditions or the need to provide permanent continuous services to the public, shall be granted the days off in turn on any day of the week in accordance with the approved employer regulations adopted upon agreement with the employees representatives.

6. An employee, who is on business trip, shall have the days off in accordance with the internal labour policy of an employer to whom such employee was seconded.

Article 97. Work on days off and holidays

1. Work on days off and holydays on the initiative of an employer shall only be caused with written consent of an employee, except as otherwise provided in Article 98 hereof.

2. Work on days off and holidays on the initiative of an employee shall be permitted by the authorisation of an employer.

3. In the event of work on days off and holidays, an employee shall be given another day off or payment in such amount as specified in Article 128 hereof, at employee’s option.

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Article 98. Exceptions for work on days off and holidays without consent of employee

Work on days off and holidays without consent of an employee shall be caused in the following cases:

1) to prevent emergencies, natural calamities or industrial accidents or to ensure immediate response to the consequences thereof;

2) to prevent and investigate accidents, destruction of, or damage to the property;

3) to perform urgent, unforeseen works on the prompt performance of which further normal functioning of the organisation or its separate units depends.

Article 99. Documentation of employee engagement to work on days off and holidays

The employee engagement to work on days off and holidays shall be documented as the employer regulations.

Article 100. Types of vacations

1. Employees shall be granted the following types of vacation:

1) annual vacation with pay; and

2) social leave.

2. The annual vacation with pay is meant to provide rest for an employee, and the time for readaptation to work, strengthening of health and other personal needs of an employee, and shall be granted for a certain number of calendar days while preserving the employment (position) and the average wage of an employee.

3. The social leave means release of an employee from work for a certain period of time to provide favourable conditions for motherhood, child care, in-service training and for other social purposes.

4. Employees shall be granted the following types of social vacations:

1) vacation without pay;

2) study leave; and

3) maternity leave and adoption leave (for those who adopted a newborn child).

Article 101. Duration of annual vacation with pay

The annual vacation with pay to be granted to an employee shall be twenty four calendar days, unless more days are envisaged by other laws and regulations, employment and collective agreements and employer regulations.

Article 102. Additional annual vacation with pay

1. Additional annual vacation with pay shall be granted to:

1) employees engaged in heavy works, and work under harmful (extremely harmful) and/or dangerous labour conditions, where the vacation shall be at least six calendar days;

2) to disabled persons of the first and second disability group, where the vacation shall be at least fifteen calendar days.

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2. The laws of the Republic of Kazakhstan may provide for additional annual vacation to other categories of employees and minimum duration thereof.

3. Employment and collective agreements may stipulate additional annual vacation with pay as an incentive for a long-term continuous employment, performance of important, complex and urgent works and works of other nature.

Article 103. Calculation of duration of annual vacation with pay

1. Duration of the annual vacation with pay shall be calculated in calendar days exclusive of any holidays falling on the period of vacation and irrespective of applicable regimes and work schedules.

2. When calculating the total duration of annual vacation with pay, any additional annual vacations shall be added to the main annual vacations. However, the total duration of the annual vacation has no maximum limit.

Article 104. Calculation of the time in employment which entitles to annual vacation

The time in employment which entitles to the annual vacation includes:

1) actually time worked;

2) period when an employee was not actually working but his/her employment (position) and wage, in full or in part, was preserved;

3) period when an employee was not actually working due to the temporary disability; and

4) period when an employee was not actually working prior to the reinstatement in a job.

Article 105. Procedure for granting annual vacation with pay

1. The annual vacation with pay shall be granted to an employee for the first and the subsequent years of employment at any time of the year of employment upon agreement of the parties.

2. The details of procedure for granting annual vacation with pay to the employees working in shifts is set out in Article 213 hereof.

3. The annual vacation with pay may be divided into two parts upon agreement between an employee and employer.

4. The annual vacation with pay may be postponed, extended, and interrupted in such cases and in such procedure as set out in Articles 108 and 109 hereof, subject to provisions of Article 108.3 hereof.

5. The annual vacation shall be paid no later than three calendar days prior to the commencement of such vacation.

Article 106. Determination of the period for granting annual vacation with pay

The year of employment includes twelve months beginning with the date the employment began.

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Article 107. Order of priority of granting annual vacation with pay

1. The order of priority of granting annual vacation with pay to the employees shall be determined in accordance with employment and collective agreements, and vacation schedule to be approved by an employer subject to the opinion of employees.

2. In the event of changes in the vacation schedule due to the production needs, an employer shall notify an employee at least two weeks in advance of the vacation commencement.

Article 108. Cases and procedure for postponement or extension of annual vacation with pay

1. The annual vacation with pay may be postponed or extended, in full or in part, in the following cases:

temporary disability of an employee, pregnancy and maternity leave;

performance by an employee of state duties during the annual vacation with pay, should the leave from work be envisaged for such purposes by law.

2. The annual vacation with pay (or part thereof) may not be extended or postponed unless with written consent of an employee or at his/her request. The vacation postponed upon agreement of the parties may be added to the vacation for the next year or granted separately at any other time at the request of an employee.

3. No failure to grant the vacation during two consecutive years shall be made.

Article 109. Call back from annual vacation with pay

1. The annual vacation with pay may not be interrupted by an employer unless with written consent of an employee. Refusal of an employee from such offer of an employer shall not be deemed a violation of the labour discipline.

2. The part of annual vacation with pay which was not used due to the call back shall be granted to an employee at any time in the current year or in the subsequent year, upon the agreement of the parties to the employment agreement, or added to the annual vacation with pay for a subsequent year of employment.

3. Where an employee is called back from the annual vacation with pay, such employee, instead of being granted the unused part of the vacation at any other time, upon the agreement between an employee and employer, may be given the compensatory payments for the days of the unused part of the annual vacation with pay.

4. No employees under the age of eighteen, pregnant women and employees engaged in heavy works, and works under harmful (extremely harmful) and dangerous labour conditions shall be called back from the annual vacation with pay.

Article 110. Compensatory payment for unused annual vacation with pay upon the termination of the employment agreement

When terminating the employment agreement, an employee, who did not use the annual vacation(s) with pay, in full or in part, shall be given the compensatory payment for the unused days of the annual vacation(s) with pay.

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Article 111. Vacation without pay

1. An employee may be granted vacation without pay upon the agreement of the parties to the employment agreement.

2. The duration of vacation without pay shall be established upon the agreement between an employee and employer.

3. An employer must grant vacation without pay at the written request of an employee for up to five calendar days in the following cases:

1) marriage registration;

2) childbirth;

3) death of close relatives; and

4) any other cases stipulated in the employment and collective agreements.

Article 112. Study leave

1. Employees who study in the educational institutions shall be granted a study leave to be able to prepare for, and pass tests and exams, perform laboratory works, and prepare graduation papers (project) and defend them.

2. Payment for study leave shall be determined in accordance with the employment and collective agreements.

Article 113. Maternity leave and adoption leave

1. Pregnant women, women who delivered a child (children), and women (men) who adopted a newborn child (children) shall be granted the following types of maternity leave:

1) pregnancy and maternity leave with pay;

2) leave for employees who adopted a newborn child (children) with pay; and

3) child care leave until the child becomes three years old without pay;

2. The maternity leave and leave for those who adopt a newborn child (children) shall be granted on the terms set out in Articles 192-195 hereof.

3. The procedure for calculation of the average wage to pay for the maternity leave and leave for women (men) who adopted a newborn child (children) shall be determined in accordance with Article 136 hereof.

Article 114. Documentation of vacation

The granting, postponement, and extension of vacation or call back from the same shall be registered in the employer regulations.

Chapter 9. WORK MEASUREMENT

Article 115. State guarantees of work measurement

The state guarantees of work measurement include the flowing:

model labour rules and standards;

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provision by the government agencies of elaboration of reasonable model rules and standards of labour;

control over the provision by employers of elaboration, introduction and review of the labour standards.

Article 116. Labour standards

1. Labour standards (production, time and service standards) shall be the measure for labour input and shall be established for an employee of the relevant qualification in accordance with the technical and technological level achieved and level of production and labour management.

2. Production standards for employees under the eighteen years of age shall be established in accordance with Article 182 hereof.

3. Where there is time-based payment for separate categories of employees, some standard tasks may be established. An employer may establish service standards or standards of labour force to perform certain functions or scope of work.

Article 117. Elaboration and introduction of new labour standards and substitution and review of the current labour standards

1. Elaboration and introduction of new labour standards and substitution and review of the current labour standards shall be provided by an employer upon consultation with the employee representatives, subject to the model labour rules and standards.

2. Model rules and standards of labour shall be approved by the duly authorised government labour agencies.

3. Substitution and review of the model labour rules and standards shall be performed by agencies which approved such rules and standards, in the procedure prescribed by the authorised government labour agency.

4. Labour standards shall be substituted as and when there is certification and simplification of work places, introduction of new machines and technologies, administrative and technical measures which provide for the growth of the labour efficiency.

Achievement of the high level of product manufacture (service rendering) by separate employees on account of application of new methods of work and improvement of work places the initiative of employees shall not be the ground for revision of the earlier established labour standards.

5. An employer shall notify employees of introduction of new labour standards at least one month in advance.

Article 118. Requirements to labour standard elaboration

When elaborating the labour standards, the following shall be envisaged:

1) quality of labour standards and their close connection with the required labour input;

2) establishment of the same labour standards for similar jobs to be performed under similar managerial and engineering conditions;

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3) progressiveness of the labour standards based on the achievements in science and engineering;

4) labour standards covering such types of work for which the labour standards are acceptable and reasonable; and

5) technical (scientific) reasonableness of the labour standards.

Article 119. Details of labour standard regulation

The procedure for presentation, review and approval of the labour standards in an organisation, the service (goods and works) of which are subjected to the state regulation of tariffs (price, charge rate), shall be established by the authorised government labour agency.

Chapter 10. REMUNERATION

Article 120. State guarantees of compensation to employees

State guarantees in respect of remuneration payment to employees shall include the following:

minimum monthly wage;

minimum hourly rate to be determined in accordance with Article 122 hereof;

minimum wage standards;

overtime pay;

pay for holiday and day off work;

pay for night work;

limitation of deductions from wages;

state control over the timely and full payment of wages and implementation of the state guarantees of remuneration to employees; and

procedure and deadlines for payment of wages.

Article 121. Amount of wage

1. The amount of monthly wage of an employee shall be established on a case-by-case basis depending on the employee qualification, and complexity, quantity and quality of the work to be performed and labour conditions.

2. The monthly wage of an employee, who has worked the standard hours established for this particular period and fulfilled labour standards (job duties), shall not be less then minimum monthly wage prescribed by law of the Republic of Kazakhstan.

Article 122. Determination of minimum wage

1. The minimum monthly wage, which is established each year by the Law of the Republic of Kazakhstan “On Republican Budget” for the relevant fiscal year, shall not be less than living wage and shall not include any additional payments and benefits, compensation, social benefits, bonuses and other incentive payments, and shall be paid proportionately to the time worked.

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2. The minimum wage standards shall be determined on the basis of the minimum monthly wage prescribed by the Law of the Republic of Kazakhstan “On Republican Budget” for the relevant fiscal year and industrial multiplying factors determined by the industrial agreement and approved by the Government of the Republic of Kazakhstan.

3. The minimum hourly rate of an employee who has fulfilled his/her job duties (labour standards) shall not be less than minimum monthly wage divided by the average number of work hours as per the balance of working time for the relevant calendar year.

4. The minimum monthly wage or monthly wage rate of an employee of the first category specified by the terms of the employment and collective agreements and/or employer regulations shall not be less than minimum monthly wage fixed by the Law of the Republic of Kazakhstan “On Republican Budget” for the relevant fiscal year, no less than minimum wage standard if the employees are engaged in heavy works and works under harmful (extremely harmful) labour conditions.

Article 123. Hourly rate

Terms of employment and collective agreements and/or employer regulations may specify the hourly rate for the work actually performed in case of the part-time working day or partially busy working day, as well as for works of temporary or one-time nature.

Article 124. Wage indexation

The wage increase includes the wage indexation to be made by an employer in the procedure prescribed by agreements, collective agreement or employer regulations based on the level of inflation set for the relevant period by laws and regulations of the Republic of Kazakhstan.

Article 125. Organisation of remuneration

1. Qualification requirements to employees and complexity of certain types of work shall be established on the basis of the Uniform Wage-Rates and Qualification Handbook for blue-collar jobs, wage-rate and qualification characteristics of blue-collar jobs, on Qualification Handbook for executive positions, specialists and other employees, and standard qualification characteristics of executive positions, specialists and other employees.

2. Qualification of jobs according to a certain level of complexity and assigning of qualification categories to employees shall be based upon the Uniform Wage-Rates and Qualification Handbook for blue-collar jobs and Qualification Handbook for executive positions, specialists and other employees, wage-rate and qualification characteristics of blue-collar jobs and standard qualification characteristic of executive positions, specialists and other employees.

3. Elaboration, review, approbation, approval and use of handbooks, wage-rate and qualification characteristics of blue-collar jobs specified in paragraph 1 of this Article shall be determined by the authorised government labour agency. Standard qualification characteristics of executive positions, specialists and other employees of establishments in various economic activities shall be elaborated and approved by the authorised government agencies in the relevant area of activity upon consultation with the authorised government labour agency.

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Article 126. Remuneration system

1. The work of an employee shall be remunerated on the basis of time-rate, piece-rate and other remuneration systems. Remuneration may be paid for the individual and/or collective results of work.

The remuneration system may be formed on the basis of tariff, non-tariff or mixed system.

The tariff remuneration system includes the wage rate (salary), tariff scale and tariff coefficients.

Non-tariff remuneration system is based on the shared distribution of funds designated for remuneration depending on the criteria and principles of evaluation of professional skills of employees and their contributions to the final result.

The mixed remuneration system may contain elements of both tariff and non-tariff remuneration system.

2. To stimulate the interest of employees in the increase of the production efficiency and quality of works performed, an employer may introduce the bonus plan and other forms of incentives.

3. The remuneration and incentive system shall be determined in accordance with collective agreement, employment agreement and/or employer regulations.

4. The remuneration system must provide for a share of the base wage (in relation to the constant component of wage) of at least 75 per cent in the average monthly wage, exclusive of one-time incentive payments.

5. The remuneration system for the employees of establishments funded by the state budget and account (budget) of the National Bank of the Republic of Kazakhstan shall be determined by laws and regulations of the Republic of Kazakhstan.

6. The wage conditions and bonus payment for executive employees of national companies and joint-stock companies, the majority shareholdings of which are owned by the State, shall be determined on the basis of the Model Regulations approved by the Government of the Republic of Kazakhstan.

7. The procedure for review and approval of the parameters of remuneration system for employees of any organisations, to the services (goods and works) of which the state regulation of tariffs (prices, charge rates) apply, shall be established by the authorised government labour agency.

8. The wage conditions determined under the employment and collective agreements, agreements and employer regulations shall not be worse than the conditions defined herein and other laws and regulations of the Republic of Kazakhstan.

Article 127. Overtime pay

With the hourly rate pay, the overtime work shall be paid at a rate at least one-half times of the regular rate. With the piece-rate pay, the overtime shall be paid in the amount of at least fifty per cent of the fixed wage rate (official salary) of an employee.

Article 128. Pay for holiday and day off work

Pay for holiday and day off work shall be at least double the daily (hourly) wage rate of an employee.

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Article 129. Pay for night work

Pay for each hour of night work shall be at least one-half times the daily (hourly) wage-rate of an employee.

Article 130. Pay for works of various qualifications

Where an employee performs works of various qualifications, the remuneration shall be based on the work requiring higher qualification.

Where an employee of high qualification is instructed to perform works rated at a lower qualification due to the nature of the production, the remuneration shall be based on the qualification (grade) assigned to such employee.

Article 131. Pay for work in several positions (extension of service area) and performance of duties of a temporary absent employee

1. Employees, who, along with their key job specified in the employment agreement, perform, in the same organisation, additional work attributed to another position or duties of a temporary absent employee without being released from their key job, shall be entitled to additional pay.

2. The amount of additional pay for the work in several positions (extension of service area) or performance of duties of a temporary absent employee shall be established by an employer upon agreement with an employee.

Article 132. Pay during mastering new productions (products)

The collective agreement and/or employment agreement may provide that an employee will preserve his/her previous wage for a period of mastering new production (products).

Article 133. Pay for downtime

1. Procedure and terms of pay for downtime caused through the fault of an employer shall be determined in the employment and collective agreements and established in the amount of at least fifty per cent of the average wage of an employee.

2. No pay shall be made for the downtime caused through the fault of an employee.

Article 134. Procedure and terms of payment of wage

1. The wage shall be paid in cash in the national currency of the Republic of Kazakhstan at least once a month and no later than the first decade of the following month. The date of payment of wage shall be stipulated in the employment and collective agreements.

2. When paying the wage, an employer must notify each employee in writing of the wage components accrued for the relevant period, the amount of, and grounds for deductions made, including information on deductions and compulsory pension contributions transferred, and the total sum of money due.

3. Where the day of wage payment coincides with days off or holidays, the pay shall be made the day preceding such holidays and days off.

4. Where the payment of wage and other payments associated with the termination of the employment agreement with an employee are delayed through the fault of an employer, the employer shall pay to an employee its debt together with a penalty. The amount of penalty shall be calculated on the basis of the refinance rate of the

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National Bank of the Republic of Kazakhstan set on the day of fulfilling the obligations as to wage payment, and shall be charged for each calendar day of delay beginning from the day following the day when the payment was due and until the day of payment.

5. When the employment agreement is terminated, the money owed to an employee by an employer shall be paid no later than three working days after the agreement termination.

Article 135. Place of payment of wage

The wage shall be paid to employees at the place of their work unless otherwise provided for in the employment and collective agreements.

Article 136. Calculation of average wage of employee

1. Calculation of the average wage of an employee working five-day and six-day working week shall be made for the time actually worked based on the average daily (hourly) earning for the relevant period, subject to the fixed additional payments and befits, bonuses and other incentive payments of constant nature as prescribed by the remuneration system.

2. When calculating the average wage, the accounting period shall constitute twelve calendar months preceding the event to which the relevant pay is related under this Code. For employees who were in the employment for less than twelve calendar months, the average wage shall be determined for the time actually worked.

3. For any determinations of average wage set out herein, a single procedure for calculation thereof is established by the Government of the Republic of Kazakhstan.

4. A collective agreement may stipulate other periods to be used for the average wage calculation, unless it deteriorates the position of an employee.

Article 137. Deductions from wage

1. Deductions from the wage of an employee shall be made by court order and in the instances provided by laws of the Republic of Kazakhstan.

2. Deductions from the wage of an employee in repayment of his/her debt to the organisation which employs such employee, can also be made pursuant to the employer regulations with written consent of an employee.

3. Total amount of monthly deductions cannot exceed fifty per cent of the wage payable to an employee.

Article 138. Payment of wage not received due to death of employee

The wage not received by an employee due to his/her death shall be paid in the procedure set out in the civil legislation of the Republic of Kazakhstan.

Chapter 11. OCCUPATIONAL TRAINING, RETRAINING AND PROFESSIONAL DEVELOPMENT

Article 139. Terms used in this Article

The following terms are used in this Article:

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1) training agreement means a written agreement between an employer and trainee regarding the terms of occupational training, retraining and professional development;

2) occupational training means a form of occupational training aimed at the individual development in order to get new or modified skills as may be required for the performance of a certain type of work;

3) retraining means a form of occupational training enabling an employee to master another profession or specialty; and

4) professional development means a form of occupational training enabling an employee to maintain, enhance, and improve the earlier gained professional knowledge and skills

Article 140. Rights and obligations of employer in relation to training, retraining and professional development

1. The need for, and scope of occupational training, retraining and professional development shall be determined by an employer by reference to the functioning and development of the organisation.

2. An employer shall provide occupational training, retraining and professional development for employees and other persons who have no labour relations with the employer (the “trainee”):

1) on-site; and

2) in the educational institutions offering educational programmes of elementary, secondary, higher and post graduate professional education.

3. An employer must create for employees engaged in occupational training, retraining and professional development the conditions suitable for combining work and training as prescribed by this Code, agreements, and collective and employment agreements.

Article 141. Occupational training, retraining and professional development in the educational institutions by secondment of employer

1. Trainees shall be seconded by an employer to the educational institutions for occupational training, retraining and professional development at the expense of the employer or other funds not prohibited by laws of the Republic of Kazakhstan in accordance with the training agreement.

2. Agreement, collective and/or employment agreements may stipulate benefits and compensatory payments associated with training.

Article 142. On-site occupational training, retraining and professional development of employees

1. On-site occupational training, retraining and professional development of employees shall be carried out by an employer.

2. An employer shall determine the forms of occupational training, retraining and professional development.

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3. General requirements to the on-site occupational training, retraining and professional development of personnel shall be determined by the Government of the Republic of Kazakhstan.

Article 143. Rights and obligations of employees with regard to occupational training, retraining and professional development

1. Employees shall have the rights to occupational training, retraining and professional development, including mastering of new professions and specialty.

2. Employees engaged in occupational training, retraining and professional development can be granted a leave from work upon agreement with an employer, or perform part-time work.

3. Employees engaged in occupational training, retraining and professional development shall enjoy the guarantees stipulated in this Code, and collective and employment agreements.

4. Upon completion of occupational training, retraining and professional development, a trainee must work for an employer for such period of time as agreed by the parties under the training agreement.

5. In the event that the employment agreement is terminated prior to the date established in the training agreement, on the initiative of an employee, or on the initiative of an employer through the fault of an employee, such employee shall repay to an employer all and any costs associated with his/her training in proportion to the unworked period of time.

Article 144. Contents of a training agreement

1. A training agreement shall include:

1) indication of certain profession and qualification to be gained by a trainee;

2) rights and obligations of an employer and trainee;

3) period of training and period of employment with an employer after the training is completed;

4) guarantees and compensatory payments associated with the training; and

5) responsibility of the parties.

2. A training agreement may include other terms agreed by the parties.

Chapter 12. EMPLOYMENT

Article 145. State guarantees of employment

The State shall give the following employment guarantees to citizens:

1) protection from any forms of discrimination and provision of equal opportunities for acquiring profession and job;

2) occupational training, retraining, professional development and organisation of public works for the unemployed;

3) promotion of small-scale business and entrepreneurship development;

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4) assistance with employment through the authorised employment agency and private employment agencies;

5) provision of professionally oriented services and information of vacancies;

6) orientation of occupational training system towards specialists in demand on the labour market;

7) interregional re-distribution of labour in accordance with the government programmes;

8) elaboration and implementation of measures for identification and legalisation of labour relations;

9) provision in investment contracts for investor obligations to carry out occupational training, create new jobs and preserve existing jobs;

10) creation of conditions for the development of on-site occupation training, retraining and professional development;

11) cooperation of the authorised employment agencies with employers; and

12) provision of conditions for employment of persons from target groups.

Article 146. Employment rights of citizens

Citizens shall have the right to:

1) free choice of occupation and profession by direct contact with employers and by means of employment mediation of the authorised employment agency or private employment agency assisting with the employment of the population;

2) independent search for a job and employment, including abroad;

3) consultations and information provided by the authorised employment agencies and private employment agencies; and

4) participation in public works.

Article 147. Employment rights and obligations of employer

1. An employer shall have the right to:

1) perform recruitment; and

2) receive true, complete and current information on the status of labour market and opportunity for occupational training from the authorised employment agencies;

2. The employer must provide the authorised employment agency with the following information:

forthcoming redundancy of employees due to the liquidation or redundancy by the organisation, at least one month before the redundancy;

regarding the need to employ personnel and results of interview with individuals sent by the authorised employment agency, within five working days.

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Article 148. Employment agency

The employment agency shall be carried out by the authorised employment agency or a private employment agency by way of:

1) advising individuals of the employment opportunities, and advising employers of the opportunity to employ labour force;

2) assisting individuals with their job choice;

3) providing individuals with a reference addressed to an employer how has a vacancy;

4) creating a database of labour market;

5) accounting and registering applications;

6) providing services in the professional orientation; and

7) cooperating with employers with regard to employment on the basis of agreements.

Chapter13. GUARANTEES AND COMPENSATORY PAYMENTS

Article 149. Guarantees for employees performing state or public duties

1. An employer shall grant employees leave from their job duties for a period of their engagement in state and public duties in the instances as prescribed by laws of the Republic of Kazakhstan, in which case the employment (position) of such employees shall be preserved.

2. The wage for the performance of state and public duties shall be paid to an employee at the place of performance of such duties, which wage shall be no less than the average wage payable at the place of his/her base employment.

3. An employee who has served the obligatory military service shall have the right of priority to be employed by the same organisation where he had worked prior to the call to military service.

Article 150. Guarantees for employees sent for medical examination

An employee shall reserve his/her employment (position) and average wage for the duration of a regular medical examination at the expense of an employer, when such examination is compulsory in accordance with this Code or collective agreement.

Article 151. Guarantees for employees who are blood donors

Employees who are blood donors shall preserve their employment (position) and average wage for a period of medical examination and blood donation.

Article 152. Guarantees and compensatory payments for employees sent on business trips

1. The employment (position) and wage shall be preserved for a period of business trip.

2. Employees sent on business trips shall be paid:

1) per diem for calendar days spent on business trip, including the travel time;

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2) travel expenses to and from the point of destination; and

3) cost of accommodation;

3. Terms and period of business trips of employees shall be defined in employment and collective agreements or employer regulations.

4. Employees shall be sent on business trips subject to the limitations prescribed under Articles 183, 187 and 226 hereof.

Article 153. Guarantees and compensatory payments when employee is relocated to another locality together with employer

1. When an employee is relocated for work to another locality together with an employer, an employer must reimburse an employee for the costs associated with:

1) travel of an employee and his/her family members; and

2) transportation of property of an employee and his/her family members.

2. Procedure for, and amount of compensatory payments stipulated in paragraph 1 of this Article shall be determined in employment and collective agreements or employer regulations.

Article 154. Guarantees for employees working in areas of ecological catastrophe and radiation risk

Guarantees for employees working in areas of ecological catastrophe and radiation risk shall be established by laws of the Republic of Kazakhstan.

Article 155. Compensatory payments for use by employees of their personal property to the benefit of employer

Where an employee uses his/her personal property to the benefit of an employer and with consent of the latter, an employer shall make compensatory payment for such use, depreciation (amortization) of instruments, personal transport vehicle and other technical facilities, as well as operational costs thereof as agreed by the parties.

Article 156. Compensatory payments to employees who perform work while travelling or whose work is associated with travelling or business trips within serviced sites

1. Employees, who perform work while travelling or whose work is associated with travelling or business trips within the serviced sites, shall be paid compensatory payments for each day of being away from the permanent residence, in the procedure specified in agreements, collective and employment agreements and/or employer regulations.

2. Where employees are not travelling during all working days in a month, the payment shall be made proportionately to the actual days of travelling to the place of work (work performance) and back.

3. Compensatory payments shall be made irrespectively of the work-rest regime of the establishment.

4. Compensatory payments shall not be accounted for when calculating the average wage of employees of the organisation.

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Article 157. Severance pay due to loss of work

1. An employer shall make severance pay due to loss of work in the amount of the average wage for a month in the following cases:

1) where the employment agreement is terminated on the initiative of an employer in case of liquidation of an employer that is a legal entity or termination of the operation by an employer that is a natural person;

2) where the employment agreement is terminated on the initiative of an employer in case of redundancy.

2. An employer shall make severance pay to an employee due to loss of work in the amount of the average wage for three months where the employment agreement is terminated on the initiative of an employee by reason of the employer providing inadequate information of the labour conditions when an employment agreement was concluded or the employer violating the labour legislation of the Republic of Kazakhstan, employment and collective agreements.

3. The employment and collective agreements may provide for larger amount of severance pay due to loss of work.

Article 158. Procedure and terms of payment of field provision

1 The field provision shall be paid to the employees employed by exploration, surveying, and prospecting organisations for the period of work performance in the field:

1) outside the permanent residence with no daily return to the permanent residence;

2) outside the permanent residence but with daily return to the base camp of the employer which does not constitute his/her permanent residence; and

3) outside the permanent residence upon work in shifts.

2 The field provision shall be paid for all calendar days of stay in the field.

3 Employees shall not be paid the field provision for the period of being away on an annual vacation with pay.

4 Where an employee leaves the field camp for the purpose of business trip, the payment of field provision to such employee shall be stopped and expenses associated with the business trip shall be reimbursed in accordance with this Code.

5 The amount of field provision shall not be taken into account upon the calculation of the average wage of employees.

6 The procedure and terms of payment, the amount of field provision, and work time record in the field shall be specified in the agreements, collective and employment agreements and approved by employer regulations.

7 When working in the field, the field provision for days off shall be paid to an employee depending on where the employee spends such days off (on site, where field work is performed, or in the base camp, outside the place of work performance). Such procedure may be applied irrespective of the form of labour organisation and work-rest regime.

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Article 159. Payment of social allowances to employees at the expense of employer

1. An employer must pay, at its own expense, the following social allowances to employees: allowance for temporary disability, maternity pay, and for the vacation granted to women (men) who adopted newborn children.

2. The ground for the payment of temporary disability allowance shall be the disability certificate issued in the procedure established by laws of the Republic of Kazakhstan.

3. Temporary disability allowance shall be paid to employees to cover the period starting from the first day of disability to the day of rehabilitation or assigning a disablement, based on the average wage calculated in accordance with laws of the Republic of Kazakhstan.

4. The amount of social allowances and procedure for assessment and payment thereof shall be established by the Government of the Republic of Kazakhstan. Employers may introduce additional payments to employees on top of the amount of social allowance prescribed by laws of the Republic of Kazakhstan.

Chapter 14. FINANCIAL LIABILITY OF THE PARTIES TO EMPLOYMENT AGREEMENT

Article 160. Obligations of either party to employment agreement to indemnify against damages

1. A party to the employment agreement which caused damage to another party shall indemnify against such damage in accordance with this Code and other laws of the Republic of Kazakhstan.

2. Employment and collective agreements may specify in details the financial liability of an employee and employer.

3. Termination of the employment agreement after the damage caused shall not result in the release of a party to the employment agreement from the financial liability to indemnify the other party against such damage.

Article 161. Causes that give rise to financial liability for damages of parties to employment agreement

1. A party to the employment agreement shall be hold liable for damages suffered by another party to the employment agreement if such damage was caused as a result of guilty unlawful conduct (acts or omissions) and causal relation between the guilty unlawful conduct and the damage caused, unless otherwise provided by this Code and other laws of the Republic of Kazakhstan.

2. An employer shall be liable to an employee for:

1) damage caused by unlawful deprivation of an employee of the opportunity to work at his/her work place;

2) damage caused to the property of an employee; and

3) injury or death of an employee;

3. An employee shall be liable to an employer for:

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1) damage arising in connection with loss or damage to the property of an employer; and

2) damage caused through acts (omissions) of an employee.

4. An employer and employee shall bear mutual liability for damages in any other cases defined in the collective and employment agreements.

Article 162. Financial liability of employer for damages caused to employee by unlawful deprivation of the opportunity to work

1. An employer must compensate an employee for the wage and other payments due to the employee which were not paid to his/her due to unlawful reassignment to another job, denial of access to the work place, unilateral amendments to the employment agreement, suspension from job duties and unfair termination of the employment agreement.

2. The employment and collective agreements and employer regulations agreed with the employee representatives may establish additional circumstances upon which the employer must indemnify an employee against damage caused by unlawful deprivation of an employee of the opportunity to work.

Article 163. Financial liability of employer for damage caused to property of employee

An employer who caused damage to the property of an employee must indemnify such employee against such damage in full, pursuant to the employment and collective agreements.

Article 164. Financial liability of employer for injury or death of employee

1. An employer must indemnify an employee against damage caused by injury or death of the employee during the performance by such employee of his/her job duties, in such amount as provided by the civil legislation of the Republic of Kazakhstan.

2. The damage under paragraph 1 of this Article shall be indemnified in full if the employee has no insurance compensation. Where there is insurance compensation, an employer must reimburse the employee the difference between the amount of insurance and the actual amount of damage.

3. The procedure for indemnification by an employer against the damage arising in connection with injury or death of employees shall be defined by laws of the Republic of Kazakhstan.

Article 165. Financial liability of employee for damage caused to employer

1. An employee shall be held liable for damage caused to an employer in such events and such amounts as stipulated herein.

2. An employee must indemnify the employer only against direct actual damage caused to the employer.

3. An employee shall not be held liable for damage caused to an employer if the damage was suffered due to force majeure circumstances or emergency, justifiable defense and failure of an employer to ensure proper conditions for security of the property handed over to the employee.

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4. An employee shall not be made liable for the damage, which may be construed as normal operational and commercial risk.

5. An employer must create such conditions for an employee which are necessary for normal work and safekeeping of the property entrusted to the employee’s care.

6. The direct actual damage means the actual diminution or deterioration of the employer’s property (including third party property located at the employer’s premises and for the safety of which an employer is liable) and the need for an employer to incur costs or extra payments to acquire or restore the property.

Article 166. Limitation of financial liability of employee

An employee shall bear financial liability within the limits of his/her average monthly wage except as otherwise provided herein.

Article 167. Full financial liability of employee for damage caused to employer

An employee shall bear full financial liability for damage caused to an employer in the following cases:

1) failure to ensure safekeeping of the property and other valuables handed over to such employee under the written agreement for assumption of full financial liability;

2) failure to ensure safekeeping of the accountable property and other valuables received by an employee under a one-time document;

3) damage caused under the influence of alcoholic, drug or toxic (or similar) intoxication;

4) shortage, intentional destruction of, or damage to materials, semi-finished products, articles (products), including while manufacturing them, and instruments, gages, special clothes and other items given by an employer to the employee for use; and

5) damage caused by unlawful actions of the employee proved in the procedure established by laws of the Republic of Kazakhstan.

Article 168. Agreements on full individual and collective (joint) financial liability

1. An employee, who is in the position or performs works associated with storing, processing, sale (dispatch), transportation, utilisation or other use during manufacture of the property and valuables handed over to him/her, and an employer shall conclude an agreement in writing in relation to full individual financial liability of an employee for the failure to secure the property and other valuables handed over to him/her.

2. Employees, who are jointly engaged in the works associated with storing, processing, sale (dispatch), transportation, utilisation or other use during manufacture of the property and valuables handed over to them, when the financial liability for damage of each employee cannot be distinguished, and an employer shall conclude an agreement in writing in relation to full collective (joint) financial liability of employees for the failure to secure the property and other valuables handed over to them.

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3. Agreements on full individual and collective (joint) financial liability may be concluded both when concluding an employment agreement and as an addendum to the employment agreement.

4. The list of positions and works taken and performed by the employees with whom agreements on full individual and collective (joint) financial liability for the failure to secure the property and other valuables handed over to them may be concluded, as well as a model agreement on full financial liability shall be approved by the collective agreement (if any) or employer regulations.

Article 169. Procedure for indemnity against damage caused by parties to employment agreement

A party to the employment which caused damage to another party shall indemnify such party against such damage in such amount as prescribed by this Code and laws of the Republic of Kazakhstan, under a court judgment or voluntarily.

Chapter 15. SETTLEMENT OF INDIVIDUAL LABOUR DISPUTES

Article 170. Bodies for labour dispute examination

1. Individual labour disputes shall be examined by conciliation commissions and/or courts.

2. Individual labour disputes shall be examined by a conciliation commission upon the application of a party to the labour dispute.

3. Parties to the employment agreement may, at their own discretion, refer directly to court for the settlement of an individual labour dispute.

Article 171. Formation of conciliation commission and its operation

1. The conciliation commission shall be formed of the equal number of representatives of employer and employee on a fifty-fifty basis.

2. Number of members of the conciliation commission, procedure for its operation and term of authorities of the conciliation commission shall be established by the agreement between an employer and employees at the general meeting (conference) of employees.

3. Members of the conciliation commission representing employees shall be elected by the general meeting (conference) of employees. Members of the conciliation commission representing an employer shall be appointed by employer regulations. Members of the conciliation commission shall elect a chairman and secretary by the majority of votes among themselves at the first organisational meeting.

4. The conciliation commission shall examine a labour dispute within seven days from the day of filing an application.

5. Following the examination, the conciliation commission shall take decision which shall be issued to an applicant no later than three business days after taking such decision.

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Article 172. Time frame for referral to bodies for individual labour dispute examination

The following time frame shall be established for referral to the bodies for individual labour dispute examination:

1) three months after delivery of a copy of an employer certificate of employment agreement termination, in case of disputes regarding reinstatement in employment; and

2) one year after an employee or employer became or must have become aware of the violation of their right, in case of any other labour dispute.

Article 173. Competence of conciliation commission in relation to labour dispute

The conciliation commission is a body for examination of labour disputes arising in organisations, except for the disputes for which this Code and other laws of the Republic of Kazakhstan establish another procedure for examination.

Labour dispute shall be examined by the conciliation commission when an employee fails to resolve disagreement independently or through his/her representative by way of direct negotiations with an employer.

Article 174. Procedure for labour dispute examination by conciliation commission

An application received by the conciliation commission shall be registered with this commission.

The conciliation commission must examine the labour dispute within seven calendar days after the filing of an application.

The dispute shall be examined in the presence of an applicant or his/her authorised representative. The dispute shall not be examined in the absence of an employee or his/her representative unless at the written request of an employee. If an employee or his/her representative fails to appear at the meeting of this commission, the examination of labour dispute shall be adjourned. In the event of a repeated failure of an employee or his/her representative to appear without good reason, the conciliation commission may resolve to strike off this dispute from consideration which shall not deprive an employee from re-filing an application for examination of the labour dispute within the period established herein.

The conciliation commission shall have the right to call witnesses and invite specialists to the meeting. Upon request of the commission, the head of an organisation must provide the requested documents within the established period of time.

A meeting of the conciliation commission shall be deemed quorate when at least half of the members representing employees and at least half of the members representing an employer are present at the meeting.

Minutes of the meeting of the conciliation commission shall be taken and signed by the commission chairman or his/her deputy.

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Article 175. Procedure for passing resolution of conciliation commission and contents of resolution

The conciliation commission shall pass its resolutions by a simple majority of votes of the commission members present at the meeting. Voting shall be held by secret ballot upon the request of an applicant or one of the members of the commission.

A resolution of the conciliation commission shall specify:

name of organisation (subdivision), surname, name, patronymic name, position, profession or qualification an employee who applied to the commission:

date of application and dispute examination, nature of dispute;

surname, name and patronymic of commission members and other persons who were present at the meeting;

merits of the resolution and its substantiation (with the reference to a law and other laws and regulations); and

voting results.

Properly notarised copies of the resolution of the conciliation commission shall be delivered to an employer and the head of the organisation within three days after passing the resolution.

Article 176. Enforcement of resolution of the conciliation commission

Resolution of the conciliation commission shall be executed within the period established by the commission.

In the event of failure to execute resolution of the conciliation commission within the established period of time, an employee or employer shall have the right to submit the labour dispute to court.

Article 177. Reinstatement of employee in employment by the body for examination of individual labour dispute

1. In the event of unjust termination of the employment agreement or unlawful reassignment to another job, relocation to another work place, change of labour conditions, and suspension from work, the body examining an individual labour dispute shall pass a resolution on reinstatement of an employee in his/her previous employment except as otherwise provided in paragraph 3 of this Article.

2. An employee, who has been reinstated in his previous employment, shall be paid an average wage for the entire time of involuntary absence from work (suspension from work) or the difference in the wage for the time of performance of a lower paid job, but in any event for no more than six months.

3. Upon application of an employee, the body examining an individual labour dispute may pass only a resolution awarding the payment to an employee of the wage in such amount as specified in paragraph 2 of this Article.

4. The resolution of the body for examination of an individual dispute regarding the reinstatement of an employee in the previous employment shall be executed immediately. If an employer delays with execution of the resolution on reinstatement of the employee in employment, the body for examination of an

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individual dispute shall pass a resolution on payment to an employee of the average wage or difference in the wage for the time of delay with the resolution execution.

SECTION 3. REGULATION OF LABOUR OF PARTICULAR CATEGORIES OF EMPLOYEES

Chapter 16. REGULATION OF LABOUR OF EMPLOYEES UNDER THE AGE OF EIGHTEEN

Article 178. Labour rights of employees under the age of eighteen

Employees under the age of eighteen shall have the same rights as the adults, and shall enjoy additional guarantees established herein with regard to labour relations and with regard to labour safety, working time, rest time and other labour conditions.

Article 179. Types of jobs the performance of which by employees under the age of eighteen is prohibited

1. No employees under the age of eighteen shall be allowed to perform heavy works, works under harmful (extremely harmful) and/or dangerous labour conditions and such works the performance of which might cause damage to health and moral development of such employees (gambling business, work in night clubs, production, transportation and sale of alcoholic beverages, tobacco products, narcotic drugs, psychotropic substance and precursors).

2. Employees under the age of eighteen shall not be allowed to carry and move heavy things the weight of which exceeds the maximum standards established for such employees.

3. The list of jobs the performance of which is prohibited by employees under the age of eighteen and maximum standards for carrying and movement of heavy things by employees under the age of eighteen shall be determined by the authorised government labour agency upon consultation with the authorised government health agency.

Article 180. Compulsory medical examination of employees under the age of eighteen

Employment agreements with employees under the age of eighteen shall be made only upon compulsory preliminary medical examination. Thereafter, employees shall pass compulsory medical examination until they are eighteen years of age.

Article 181. Duration of working time for employees under the age of eighteen

For employees under the age of eighteen, shorter work time shall be established:

1) for employees at the age of fourteen to sixteen, no more than 24 hours in a week;

2) for employees at the age of sixteen to eighteen, no more than 36 hours in a week;

3) for those studying in educational institutions and combining study with work during the school year, at the age of fourteen to sixteen, 2.5 hours a day, and at the age of sixteen to eighteen, 3.5 hours a day.

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Article 182. Remuneration and performance standards for employees under the age of eighteen

1. Employees under the age of eighteen shall be paid remuneration for labour subject to the shorter duration of work.

2. Performance standards for employees under the age of eighteen shall be established based on the general performance standards for employees in proportion to the duration of working time as set out in Article 181 hereof.

3. For employees under the age of eighteen employed after graduation from general educational and educational institutions of basic vocational education and those who had on-site occupational training, lower performance standards may be established.

4. An employer may pay additional payments to the employees under the age of eighteen up to the level of remuneration payable to employees working full duration of daily work.

Article 183. Details of work-rest regime for employees under the age of eighteen

No employees under the age of eighteen shall be engaged in night work, overtime work, the work with the record of cumulative working time, or instructed to go on a business trip, or to do work in shifts, or be called back from his/her annual vacation with pay.

Article 184. Restrictions on financial liability of employees under the age of eighteen

No agreement on full financial liability shall be concluded with employees under the age of eighteen.

Chapter 17. REGULATION OF LABOUR OF WOMEN AND OTHER PERSONS WITH FAMILY DUTIES

Article 185. Restrictions on termination of employment agreement by employer

1. No termination by employer of employment agreement with pregnant women, women who have children under the age of three, single mothers raising a child under the age of fourteen (disabled child under the age of eighteen) and other persons raising children without a mother, shall be allowed, except as otherwise provided in sub-paragraphs 1), 3) – 18) of Article 145.1 hereof.

2. Where a woman submits a medical certificate on her twelve or more week pregnancy on the day of expiry of the employment agreement, an employer must extend the term of the agreement upon her written request until the day of expiration of the child care leave until the child becomes three years old.

Article 186. Jobs for which engagement of women is prohibited

1. No women shall be used at heavy works, works under harmful (extremely harmful) and/or dangerous labour conditions.

2. Women shall be prohibited to lift and move by hand the weights exceeding the maximum standards established for women.

3. The list of jobs where engagement of women is prohibited and maximum standards for lifting and movement of weights by hand by women shall be established by the

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authorised government labour agency upon consultation with the authorised government health agency.

Article 187. Details of work-rest regime for women and other persons with family duties

1. An employer may not engage pregnant women in night work, during days off and holidays, overtime work, or instruct them to go on business trip, or call them back from the annual vacation with pay.

2. An employer may not engage in night work, overtime work, or instruct to go on business trip, or perform any shift work, without consent in writing, the following persons:

1) women who have children under the age of seven and other persons raising children under the age of seven without a mother; and

2) employees taking care of sick family members or raising disabled children, where children under the age of three, disabled children or sick family members are in need of constant care, which fact is evidenced by a medical report.

Article 188. Breaks for feeding a child

1. Apart from the rest and meal breaks, inter-shift and special breaks, women who have children under the age of one and a half, fathers (adopters) nursing children under the age of one an a half without a mother, shall be granted additional breaks for feeding a child (children) at least every three hours during a work day, the duration of which shall be as follows:

1) each break of at least thirty minutes, for those who have one child; and

2) each break of at least one hour, for those who have two or more children.

2. The break for feeding a child (children), upon the request of an employee as set out in paragraph 1 of this Article, shall be added to the rest and meal break or the cumulative breaks shall be granted in the beginning or at the end of the working day (shift).

3. The breaks for feeding a child (children) shall be included in the working time. The average wage for women (fathers, adopters) shall be preserved for the time of such breaks.

Article 189. Establishment of part-time work for women and other persons with family duties

At the request in writing of a pregnant woman, woman who has a child (children) under the age of three, father, adopter raising children under the age of three without a mother and employees who provide care to a sick family member in accordance with the medical report, an employer shall provide such persons with a part-time work.

Article 190. Restrictions on application of record of cumulative working time for pregnant women

No record of cumulative working time shall be applied to pregnant women if the duration of the work day (shift) exceeds eight hours.

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Article 191. Temporary reassignment of pregnant women to another job

An employer must, on the basis of an appropriate medical report, reassign a pregnant woman to another job which does not pose harmful and/or dangerous impact, with the preservation of her average wage.

Article 192. Guarantees for women when establishing the order of priority of granting annual vacation with pay

Prior to the maternity leave or directly after it, or upon expiration of the childcare leave, a woman, at her own wish, shall be granted the annual vacation with pay.

Article 193. Maternity leave with pay

1. Women shall be granted maternity leave with pay for seventy calendar days prior to the childbirth and fifty-six (or seventy in the event of complicated childbirth or birth of two or more children) calendar days after the childbirth, unless otherwise provided by laws of the Republic of Kazakhstan.

2. Vacation computation shall be made in summary and the vacation shall be granted to a woman in full, irrespective of the number of days actually used before the childbirth and the duration of employment with an employer.

Article 194. Vacation with pay to employees who adopted newborn children

Employees who adopted a newborn child (children) shall be granted (one of the parents) the vacation with pay for a period beginning from the day of adoption and until the expiration of fifty-six days from the birth of the child.

Article 195. Childcare leave without pay

1. An employer must grant an employee the childcare leave without pay until the child becomes three years old:

1) to mother or father of the child, at the option of parents;

2) to a parent who is raising the child alone;

3) to a grandmother, grandfather, other relative or a foster parent who is actually raising the child; and

4) to an employee who adopted a newborn child (children).

2. The childcare leave without pay until the child becomes three years old may be used in full or in parts on the basis of an application of an employee indicated in paragraph 1 of this Article and at his/her own option.

3. For the duration of the childcare leave without pay until the child becomes three years old, the employment (position) shall be preserved.

4. The duration of the childcare leave without pay until the child becomes three years old shall be accounted for in the general duration of employment and in the duration of employment by certain specialty, unless otherwise provided by laws of the Republic of Kazakhstan.

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Chapter 18. REGULATION OF LABOUR OF EMPLOYEES ENGAGED IN SECONDARY JOB

Article 196. Employment agreement for secondary job

1. An employer shall have the right to conclude an employment agreement for secondary job both with the employer with whom such employee has already labour relations (at the place of the base employment) and several employers.

2. Employment agreement for secondary job must specify that this is a secondary job.

Article 197. Additional documents required for conclusion of employment agreement for secondary job

To conclude an employment agreement for secondary job with another employer, apart from the documents specified in Article 31 hereof, an employee shall provide a statement of the nature and labour conditions at the place of base employment (work place, position, labour conditions).

Article 198. Duration of working time of secondary job

The cumulative duration of daily work at the place of base employment and secondary job must not exceed the standard duration of daily working prescribed by Article 82 hereof by more than 4 hours.

Article 199. Annual vacation with pay in secondary job

1. Employees working under the employment agreement for secondary job shall be granted annual vacation with pay at the same time as vacation at their base employment.

2. Where the duration of the annual vacation with pay under the employment agreement for secondary job is less than the duration of the vacation granted in another employment, an employer, upon request of an employee holding a secondary job, shall grant the vacation without pay for the days, covering the difference in the vacations.

Article 200. Restrictions on conclusion of employment agreement for secondary job

No employment agreement for secondary job shall be made with employees under the age of eighteen and employees engaged in heavy works, works under harmful (extremely harmful) and/or dangerous labour conditions.

Article 201. Additional grounds for termination of employment agreement for secondary job by employer

In addition to the grounds provided by Article 54 hereof, an employment agreement for secondary job may be terminated by an employer, in the event that the employment agreement is concluded with an employee for whom such job will be the base employment.

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Chapter 19. REGULATION OF LABOUR OF EMPLOYEES ENGAGED IN HEAVY WORKS, WORKS UNDER HARMFUL (EXTREMELY HARMFUL) AND/OR DANGEROUS LABOUR CONDITIONS

Article 202. Shorter duration of working time for employees engaged in heavy works, works under harmful (extremely harmful) and/or dangerous labour conditions

1. For employees engaged in heavy works, works under harmful (extremely harmful) and/or dangerous labour conditions, the shorter duration of working time of no more than 36 hours in a week shall be established.

2. The list of operations, shops, professions and positions and the list of heavy works, works under harmful (extremely harmful) and/or dangerous labour conditions, the performance of which entitles to a shorter duration of working time shall be established by the authorised government labour agency upon consultation with the authorised government health agency.

Article 203. Additional annual vacation with pay

Additional annual vacations with pay shall be granted to employees working at operations, shops, professions and positions included in the list and list of heavy works, works under harmful (extremely harmful) and/or dangerous labour conditions, the performance of which entitles employees to additional annual vacation with pay. Duration of such type of vacation and terms of its provision shall be established by the authorised government labour agency upon consultation with the authorised government health agency.

Article 204. Remuneration for employees engaged in heavy works, works under harmful (extremely harmful) and dangerous labour conditions

Remuneration to employees engaged in heavy works, works under harmful (extremely harmful) and dangerous labour conditions shall be established in a higher amount as compared to the remuneration to employees engaged in works under normal labour conditions, by way of establishing raised official salary (rates) or additional payments, but in any case no less than those established by the legislation of the Republic of Kazakhstan, industrial agreements or collective agreements based on the minimum standards of compensation.

The list of operations, shops, professions and positions and list of heavy works, works under harmful (extremely harmful) and/or dangerous labour conditions shall be established by the authorised government labour agency upon consultation with the authorised government health agency.

The terms of remunerations established herein shall apply to employees who are found by the results of work place certification, to work under heavy, harmful (extremely harmful) and dangerous labour conditions.

Article 205. Provision of healthy and safe labour conditions

Employees shall be provided, at the expense of an employer, with special clothes, special footwear and other personal protective equipment, cleaning and sterilizing agents, milk, and healthful and dietary meals in accordance with the labour conditions and in the amounts no less than the standards established by the authorised government labour agency.

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Chapter 20. REGULATION OF LABOUR OF EMPLOYEES ENGAGED IN SEASONAL WORK

Article 206. Seasonal work

Seasonal works include the works which, due to the climate or other natural conditions, shall be performed during a certain period (season) but for no more than one year.

Article 207. Peculiarities of conclusion of employment agreement with seasonal workers

1. An employment agreement must specify that it is concluded for seasonal works and identify the particular period of their performance.

2. When concluding an employment agreement for seasonal works, no probation period for the purpose of checking whether an employee is fit for work shall be established.

Article 208. Additional grounds for termination of employment agreement with employees engaged in seasonal works by employer

Apart from the grounds referred to in Article 54 hereof, an employment agreement with the employees engaged in seasonal works may be terminated by an employer in the following cases:

1) suspension of works for over two weeks due to the production reasons; and

2) absence of an employee from work during one month by reason of his/her temporary disability.

Article 209. Peculiarities of termination of employment agreement with employees engaged in seasonal works

1. An employee engaged in seasonal works shall have the right to terminate the employment agreement, on his/her own initiative, in writing upon a seven calendar day notice to an employer.

2. An employer must give written notice to an employee engaged in seasonal works regarding the forthcoming termination of the employment agreement on the grounds referred to in sub-paragraphs 1) and 2) of Article 54.1 hereof within seven calendar days in advance.

3. When terminating the employment agreement with an employee engaged in seasonal works, an employer shall make compensatory payment for the unused vacation in proportion to the time actually worked.

4. When terminating the employment agreement with an employee engaged in seasonal works by reason of the liquidation of the organisation or redundancy of work force or personnel, the severance pay shall be paid in the amount of two week average wage.

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Chapter 21. REGULATION OF LABOUR OF EMPLOYEES WORKING IN SHIFTS

Article 210. Details of shift work

1. Shift work is a special form of labour process outside the permanent residence of employees when no daily return of employees to their places of permanent residence can be ensured.

2. An employer must provide employees engaged in shift works, while they are at the production facilities, with accommodation for life activities, transportation to and from the place of work, and conditions for work performance and inter-shift rest.

An employer shall provide an employee with such conditions of his/her stay at the production facilities as prescribed by the employment and collective agreements.

Article 211. Restrictions on shift works

No employees under the age of eighteen, pregnant women, and disabled persons of first and second disability group shall be allowed to perform shift work. Other employees may be engaged in shift works if such works is not against medical advice for health reasons.

Article 212. Shift duration

1. The shift period includes the time of work performance on site and time of inter-shift rest.

2. The duration of shift cannot exceed thirty calendar days.

Article 213. Record of working time and rest time when performing shift work

1. For the shift work, the record of working time shall be cumulative for a month, quarter or any other longer period, but for no more than one year.

2. The accounting period shall cover working time, rest time, time for travel from the location of an employer or collecting point to the place of work and back. The total duration of working time for an accounting period shall not exceed the standards established herein.

3. No annual vacation with pay shall be granted in parts during the inter-shift rest.

4. An employer must keep records of working time and rest time of each employee working in shifts for each month and for the entire accounting period.

Chapter 22. REGULATION OF HOUSE WORKERS’ LABOUR

Article 214. Peculiarities of conclusion and termination of employment agreement with house workers

1. House workers are the workers performing household work (services) for employers who are natural persons.

2. An employer shall issue no employer regulations and no entries in the labour book on hiring or termination of labour relations with a house worker.

3. The labour activity of a house worker shall be evidenced by an employment agreement.

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4. Written notice period for termination of the employment agreement with a house worker, as well as the circumstances and amounts of compensatory payments due to loss of work shall be specified in the employment agreement.

Article 215. Work-rest regime for house workers

1. Standard hours of working time and rest time established herein shall apply to house workers.

2. The work regime, procedure for granting days off, annual vacation with pay, and engagement in overtime work, night work, and work during on off and holidays shall be specified for a house worker in the employment agreement.

Article 216. Procedure for application and cancellation of disciplinary action

The procedure for application and cancellation of disciplinary actions with regard to a house worker shall be defined in the employment agreement.

Article 217. Settlement of individual labour disputes

Individual labour disputes between a house worker and employer shall be settled by mutual agreement of the parties and/or in court.

Article 218. Termination of employment agreement with house worker

An employment agreement with a house worker shall be terminated on the grounds provided for in the employment agreement.

Chapter 23. REGULATION OF OUTWORKERS’ LABOUR

1. Outworkers are the persons who conclude employment agreement with an employer for the performance of outwork by their own efforts with their own materials and with the use of their own equipment, instruments and devices or with the equipment, instruments and devices provided by an employer, or acquired at the employer’s expense.

2. The outwork performance by an employee may be established both while concluding an employment agreement or during the term of employment agreement by way of relevant amendments thereto.

Article 220. Labour conditions for outworkers

1. The outwork may only be performed when such work is not against medical advice for health reasons and when work safety requirements can be met during the performance of such work.

2. An employment agreement for outwork must contain provisions in relation to:

1) work performance with the use of equipment, materials, tools and devices owned by an employee or given by an employer or acquired at the expense of an employer;

2) procedure for, and period of provision of raw materials, materials and semi-finished products to an employee which are necessary for work performance;

3) procedure and period of finished product pickup; and

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4) compensatory and other payments to an employee.

Article 221. Work-rest regime of an outworker, health and safety issues

The work-rest regime, peculiarities of control by an employer over the observance of the working time regime by an employee, health and safety compliance by an outworker shall be set out in the employment agreement.

Chapter 24. REGULATION OF THE DISABLED'S LABOUR

Article 222. Exercise by the disabled of the right to labour

1. The disabled shall have the right to enter into employment agreements with employers under common labour conditions or at the specialised organisations that use the disabled's labour, taking into consideration their individual rehabilitation programmes.

2. It shall be prohibited to deny entering into an employment agreement, transfer the disabled to other work, changing labour conditions by reason that the person is disabled, unless an opinion of the authorised government agency in the area of public social protection specifies that his/her state of health impedes the performance of job duties or threatens his health and/or labour safety of other persons.

Article 223. Labour conditions of disabled employees

1. The conditions of work measurement, compensation plan and occupational health, working regime, procedure for the combining of professions (positions), technical, sanitation, hygiene, production-welfare conditions, and also other conditions of the employment, collective agreements agreed by the parties must not impair the position or restrict the rights of the disabled employees as compared to other employees.

2. It shall be prohibited to use the disabled's labour at heavy work, work under harmful (extremely harmful) labour conditions.

3. Working disabled persons may be granted additional guarantees established by this Code, agreements, employer regulations, and also by employment, collective agreements.

4. Medical report on application of part-time work, reduced workload and other labour conditions of the working disabled persons shall be binding upon employers.

Article 224. Reduced duration of working time of disabled employees

1. A reduced duration of working time, not to exceed 36 hours per week, shall be established for the employees having the first and second disability group.

2. The duration of daily work (working shift) of the employees having the first and second disability group may not exceed seven hours.

Article 225. Restricted use of the record of cumulative hours worked for disabled employees

1. It shall not be allowed to apply the record of cumulative hours worked to the employees having the first and second disability group.

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2. No record of cumulative hours worked may be established for the employees having the third disability group, if such regime is disallowed for them for medical reasons.

Article 226. Limitation of disabled employees' night work, overtime work, work on days off and holidays, business trips

The disabled employees' night work, overtime work, work on days off and holidays, business trips shall be allowed only with their written consent, if such work is not disallowed for them for medical reasons.

Article 227. Provision of annual vacation with pay to disabled employees

Annual vacation with pay shall be provided to disabled employees in accordance with the vacation schedule approved by the employer as agreed upon with them.

Article 228. Provision of additional annual vacation with pay to disabled employees

Additional annual vacation with pay shall be provided to disabled employees simultaneously with the annual vacation with pay or, at wish of the disabled employee, at any other time during a year.

Chapter 25. REGULATION OF CIVIL SERVANTS' LABOUR

Article 229. Entry into civil service

1. Entry into civil service shall be by way of appointment or by competition.

2. Competitions shall be arranged and conducted by government institutions or state enterprises that have vacancies.

3. The procedure for the entry into civil service and conducting of competitions for vacancies of civil servants shall be determined by the Government of the Republic of Kazakhstan.

4. The employment for civil service shall be by way of conclusion of an employment agreement and issuing an employer regulation.

Article 230. List of the positions of civil servants

The list of positions of civil servants shall be determined by the Government of the Republic of Kazakhstan.

Article 231. Civil service-related restrictions

Civil servants shall have no right to:

1) use for out-of-office purposes any logistics, finance and information supplies, other state property and official information;

2) participate in any activities hindering the normal operation of the civil service and the performance of official duties;

3) use official position for any purposes not related to civil service; and

4) disclose any data which became known to them in connection with civil service and which constitute state secrets, official secrets and other secrets protected by law.

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Article 232. Transfer of civil servants for work to other government institutions (state enterprise)

A civil servant may, at his written application, be transferred for work to another government institution (state enterprise) as agreed upon between the managers of relevant organisations.

Article 233. Performance evaluation of civil servants

For the purpose of determining the professional or qualification level, business qualities, civil servants shall pass performance evaluation.

The procedure for, and conditions of, such performance evaluation of civil servants shall be determined by the authorised government agency in the relevant area of activities.

Article 234. Promotion at civil service

1. The promotion of civil servants at service shall be by way of appointment to a higher-level position.

2. The preferential right for promotion at civil service shall be exercised by those civil servants who have high qualification and working experience, and constantly improve their professional, qualification level.

Article 235. Professional development and retraining of civil servants

1. Civil servants may be sent to the relevant educational organisations in order to enhance their professional knowledge and skills, acquire professions and specialties.

2. Training, retraining, internship, including scientific internship, shall be at the expense of the seconding organisation if a civil servant is engaged in on-site job (work) training.

During the training of civil servants, the positions held, guarantees and compensatory payments shall be reserved with them.

3. Civil servants who are engaged in professional development or retraining in a specialty corresponding to the activity profile of the specific civil service shall be provided with paid study leave.

Article 236. Incentives to civil servants

For conscientious performance of official duties, high quality of work, including work of particular complexity and urgency, for initiative, creativity and other achievements in their work, civil servants may be incentivised by:

1) promotion at civil service;

2) monetary reward; and

3) expression of gratitude.

A collective agreement may provide for other incentive measures.

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Article 237. Guarantees and compensatory payments to civil servants when relocating for work to other localities

When relocating for work together with the government institution (state enterprise) to other localities (other settlements) according to the existing administrative territorial division, civil servants shall be paid:

the cost of travel to the place of work of the civil servant himself and the members of his family (unless the government institution (state enterprise) provides the relevant means of transport);

expenses for the transportation of property;

per diem expenses for each day of travel;

lump-sum allowance in the amount of six-fold position salary of the position held; and

wage for the days spent to prepare for the travel and settle at the new place of residence, but no more than six days, and also for the time spent on the way.

Article 238. Remuneration of civil servants

1. The remuneration system for civil servants employed at the expense of the state budget shall be determined by the Government of the Republic of Kazakhstan.

2. Healthcare, social welfare, education and culture civil servants who work in 'aul' (rural) areas shall, at the decision of the local representative bodies and for the account of budgetary funds, be paid the position salaries and wage rates increased by no less than twenty five per cent as compared to the salaries and rates of civil servants who are engaged in those types of activities in urban conditions, unless otherwise established by laws of the Republic of Kazakhstan.

3. The list of the positions in healthcare, social welfare, education, culture and sports in the 'aul' (rural) areas shall be determined by the local executive body as agreed upon with the local representative body.

Article 239. Vacations to civil servants

1. Civil servants funded for the account of the state budget shall be provided with annual vacations with pay of no less than thirty calendar days with the payment of a health rehabilitation allowance in the amount of position salary. The health rehabilitation allowance shall be paid to civil servants once in a calendar year.

For individual categories of civil servants, the laws of the Republic of Kazakhstan may establish a longer duration of annual vacation with pay.

2. Civil servants who pass training at higher educational institutions shall be provided, as agreed with the employer, with paid educational vacations for the periods of passing examinations, preparing and defending a diploma project (work), passing final examinations.

Article 240. Additional grounds for termination of employment agreements with civil servants

1. Apart from the grounds for the termination of employment agreements with employees established by this Code, an additional ground for the termination of

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employment agreements with civil servants shall be the reaching by them of the pension age established by law of the Republic of Kazakhstan.

2. Employment agreements with employees who reached the pension age, though have high professional and qualification level, may be extended on the annual basis by the managers of the government institutions (state enterprises) subject to the consideration of their performance.

Chapter 26. REGULATION OF THE LABOUR OF EMPLOYEES OF SMALL-SCALE BUSINESSES

Article 241. Small-scale business to which the specifics of the regulation of labour relations apply

The specifics of the regulation of labour set out in this Chapter shall apply to small-scale business entities with the annual average number of employees not exceeding 25 people.

Article 242. Term of employment agreements for small-scale business

Small-scale business entities may enter into employment agreements with employees for a definite period of time without the restriction stipulated by Article 29.1.2 of this Code.

Article 243. Rules of internal labour policy of small-scale business entities

Small-scale business entities shall approve the rules of internal labour policy independently.

Article 244. Working regime

Small-scale business entities shall have the right to establish the working regime that provides for work on days-off and holidays in accordance with a schedule to be approved by the employer, and for use of a record of cumulative hours worked or division of working days into parts in compliance with the general requirements on the duration of working time.

Article 245. Remuneration

The conditions of the employee remuneration of small-scale entities shall be established or varied by the employer and communicated to employees at the time of execution of employment agreements, or no later than one month prior to their approval. When approving the conditions of remuneration for work, the employer shall have no right to unilaterally vary any conditions of the employment agreement.

Article 246. Participation of small-scale business entities in social partnership

The effect of the agreements shall extend to the labour relations involving small entrepreneurship entities in the event that the employers and employees have united into the relevant organisations for negotiating and signing such agreements.

Article 247. Specifics of the health and safety management at small-scale business entities

Occupational health and safety issues at small-scale business entities may be arranged on a contractual basis with natural persons or legal entities.

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Chapter 27. REGULATION OF THE LABOUR OF HEADS AND MEMBERS OF THE COLLECTIVE EXECUTIVE BODIES OF LEGAL ENTITIES

Article 248. Legal basis for the regulation of the labour of heads of executive bodies of legal entities

The labour relations with a head of executive bodies of legal entities shall be in accordance with this Code, laws of the Republic of Kazakhstan, foundation documents and employment agreement.

Article 249. Entering into employment agreements with heads of executive bodies of legal entities

Employment agreements with heads of executive bodies of legal entities shall be entered into by the owners of the legal entities' property or by a person (body) authorised thereby or by the authorised bodies of the legal entities for a period established by laws of the Republic of Kazakhstan, foundation documents or agreement of the parties.

The laws of the Republic of Kazakhstan or foundation documents may establish additional procedures precedent to the entering into employment agreements with the heads of executive bodies of legal entities.

Article 250. Multi-employer work of heads of executive bodies of legal entities

A head of the executive body of a legal entity may hold paid positions with other organisations with the permission of the authorised body of the legal entity or the owner of the property of legal entity or a person (body) authorised thereby.

Article 251. Financial liability of heads of executive bodies of legal entities

A head of the executive body of a legal entity shall bear financial liability for damage caused by him/her to the legal entity in accordance with the procedure established by this Code or other laws of the Republic of Kazakhstan.

Article 252. Additional grounds for termination of employment agreements with heads of executive bodies of legal entities

Apart from the grounds provided by this Code, an additional ground for the termination of employment agreement with heads of executive bodies of legal entities shall be the decision of the owner of the property of a legal entity or persons (bodies) authorised by the owner or the authorised bodies of the legal entities to terminate labour relations earlier.

In the event of termination of an employment agreement with the head of the executive body of a legal entity before the expiry of his/her term of office, he/she shall be paid a severance pay for the early termination of the employment agreement in the amount determined by the employment agreement.

Article 253. Early termination of employment agreement by head of the executive body of legal entity

A head of the executive body of a legal entity shall have the right to early terminate the employment agreement by no less than two-month prior notice in writing to the owner of the property of the legal entity or a person (body) authorised by the owner or an authorised body of the legal entity.

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Article 254. Regulation of the labour of members of the collective executive bodies of legal entities

The specifics of the regulation of the labour of heads of executive bodies established by this Chapter shall apply to other members of the collective executive bodies of legal entities, unless otherwise established by laws of the Republic of Kazakhstan or foundation documents.

Chapter 28. REGULATION OF THE LABOUR OF GOVERNMENT SERVANTS, MEMBERS OF THE PARLIAMENT AND MASLIKHATS, JUDGES OF THE REPUBLIC OF KAZAKHSTAN, MILITARY SERVANTS AND EMPLOYEES OF LAW ENFORCEMENT AGENCIES

Article 255. Regulation of the labour of government servants, members of the parliament and maslikhats and judges of the Republic of Kazakhstan

The labour of government servants, members of the Parliament and maslikhats, judges of the Republic of Kazakhstan shall be regulated by this Code subject to the specifics provided by laws of the Republic of Kazakhstan and other laws and regulations of the Republic of Kazakhstan, establishing special conditions and procedure for the entry into, process and termination of service, special labour conditions, remuneration plan, and also additional incentives, privileges or restrictions.

Article 256. Military servants and employees of law enforcement agencies

1. Military servants shall include the persons who serve in the Military Forces of the Republic of Kazakhstan, national security agencies, national guards, internal troops, military investigation agencies and military police, Safeguard Service of the President of the Republic of Kazakhstan, management bodies and units of civil defence of the central executive agency of the Republic of Kazakhstan on emergency situations and military prosecution agencies.

2. Employees of law enforcement agencies shall comprise the persons serving at the agencies of internal affairs, criminal-execution system, finance police, state fire fighting service, customs agencies, and prosecution agencies of the Republic of Kazakhstan, which carry out law enforcement activities in accordance with laws of the Republic of Kazakhstan.

Article 257. Regulation of the labour of military servants and employees of law enforcement agencies

The labour of military servants and employees of law enforcement agencies shall be regulated by this Code subject to the specifics, provided by special laws of the Republic of Kazakhstan and other laws and regulations of the Republic of Kazakhstan establishing special conditions and procedure for the entry into, process and termination of service, special labour conditions, remuneration plan, and also additional incentives, privileges or restrictions.

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SECTION 4. SOCIAL PARTNERSHIP AND COLLECTIVE LABOUR RELATIONS

Chapter 29. SOCIAL PARTNERSHIP IN THE AREA OF LABOUR

Article 258. Objectives of social partnership

Social partnership in the Republic of Kazakhstan shall be aimed at the achievement of the following objectives:

1) creation of an effective mechanism to regulate social, labour relations and related economic relations;

2) promotion of social stability and social consensus on the basis of impartial consideration of the interests of all layers of society;

3) promotion of the guarantees of the employees' rights in the area of labour, implementation of their social protection;

4) promotion of the process of consultations and negotiations among the parties to social partnership at all levels;

5) promotion of the resolution of collective labour disputes; and

6) preparation of proposals concerning the implementation of the state policy in the area of social-labour relations.

Article 259. Fundamental principles of social partnership

The fundamental principles of social partnership shall be:

1) full authority of the representatives of the parties;

2) equality of the rights of the parties;

3) freedom of the choice of the matters to be discussed;

4) voluntariness of the assumption of obligations;

5) respect for the interests of the parties;

6) binding effect of collective agreements, agreements;

7) liability of the parties, their representatives for any non-performance, through their fault, of the assumed obligations under the agreement;

8) promotion by the state for the strengthening and development of social partnership; and

9) transparency of the decisions made.

Article 260. Social partnership bodies

Social partnership shall be implemented in the form of the interaction of the parties by means of the following social partnership bodies:

1) at the national level — by the national tripartite commission on social partnership and regulation of social and labour relations (the “national commission”);

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2) at the industry level — by the industry commissions on social partnership and regulation of social and labour relations (the “industry commission”);

3) at the regional (oblast, town, rayon) level — by oblast, town, rayon commissions on social partnership and regulation of social and labour relations (the “regional commission”); and

4) at the level of organisations — in the form of agreements or collective agreements establishing specific mutual obligations in the area of labour among the employee and employer representatives, and, in case of organisations with foreign interest, — by the residents of the Republic of Kazakhstan on the basis of international treaties (agreements) and legislation of the Republic of Kazakhstan.

Article 261. Forms of social partnership

Social partnership shall be carried out in the following forms:

collective bargaining on the drafting and execution of collective agreements, agreements;

mutual consultations (negotiations) on the matters concerning the regulation of labour relations and other labour related relations, ensuring of guarantees of employees' rights in the area of labour and improvement of the labour legislation of the Republic of Kazakhstan; and

participation of employee and employer representatives in the pre-trial resolution of labour disputes.

Article 262. Parties to social partnership

Parties to social partnership shall be the State represented by the relevant executive agencies, employees and employers in the person of their representatives authorised in accordance with the established procedure.

Article 263. Arrangement of social partnership at the national level

1. The national commission shall be a continuing body for the ensuring of the reconciliation of the interests of the parties to social partnership through consultations and negotiations, which shall be documented in the form of the relevant decisions.

2. The participants to the national commission shall be the authorised representatives of the Government of the Republic of Kazakhstan, national employee associations and national employer associations.

3. The authorised representatives of the national employee association shall be the associations, which have business units (branches and representative offices) in the territory of more than one half of the oblasts of the Republic of Kazakhstan, and cities of national significance.

4. The authorised representatives of national employer association shall be the representatives of the national union (association) of the union of private entities, the national small-scale business association, the national industry association of private entities.

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The representation of the specified unions (associations) shall be pro rata to the number of the member national public associations.

Article 264. Arrangement of social partnership at the industry level

1. An industry commission shall be a continuing body designed to reconcile the interests of the parties to social partnership through consultations and negotiations, which shall be documented in the form of the relevant decisions. For the purpose of this Code, the list of industries shall be established by the national commission.

2. The participants to the industry commissions shall be the authorised representatives of the authorised government agencies in the relevant areas of activity, the employer and employee representatives.

3. The authorised representatives of industry employee associations shall be the industry trade unions, which have business units (branches and representative offices) in the territory of oblasts, and cities of national significance.

4. The authorised employer representatives shall be the representatives of industry organisations.

Article 265. Arrangement of social partnership at the regional level

1. A regional commission shall be a continuing body designed to reconcile the interests of the parties to social partnership through consultations and negotiations, which shall be documented in the form of relevant agreements and decisions.

2. The participants to the regional commissions shall be the relevant authorised representatives of the local executive agencies, the employer and employee representatives.

3. The authorised representatives of regional employee associations shall be the associations of trade unions at the oblast, town and rayon levels.

4. The authorised employer representatives at the regional level shall be: at the oblast level — oblast associations of private business entities, oblast associations on small entrepreneurship; and

at town, rayon levels — the town, rayon small-scale business associations.

Article 266. Regulation of social-labour relations at the level of an organisation

1. For the ensuring of the regulation of social-labour relations, collective bargaining and drafting and execution of collective agreements, discussion of the drafts of the employer regulations, which, in accordance with this Code, shall come into force, subject to, or as agreed upon with, the employee representatives, and also for the arrangement of control over the performance of the collective agreements, the commissions shall be formed on the basis of the equality of rights, at the decision of the parties from amongst the parties' representatives vested with the necessary authority.

2. An employer shall, in accordance with conditions of the collective agreement, create the conditions for the activity of the trade union at the organisation.

3. As agreed by the parties, and subject to written applications from the employees, who are members of the trade union, the employer may withhold monthly trade

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union membership fees from the wages of employees and transfer them to the account of the trade union.

Article 267. Principles and procedure for the formation of the continuing national, industry, regional commissions

1. The continuing national, industry, regional commissions shall be formed on the basis of the following principles:

1) binding effect of the requirement that the representatives of the executive power agencies, the employer and employee representatives shall participate in the activity of the commissions;

2) full authority of the parties;

3) parity representation;

4) equality of the rights of the parties; and

5) mutual liability of the parties.

2. The personal membership of the participants to the commissions shall be formed by each party to social partnership independently.

Article 268. Principal goal and objectives of the national, industry, regional commissions

1. The principal goal of the commissions shall be to regulate social and labour relations and reconcile the interests of the parties to the social partnership.

2. The principal objectives of the commissions shall be to:

1) reconcile the positions of the parties to social partnership on the main lines of social and economic policy;

2) prepare and execute agreements;

3) work out, reconcile and approve the arrangements for the implementation of the agreements; and

4) conduct consultations and prepare recommendations on the matters concerning ratification and application of international labour standards.

3. The commissions shall operate in accordance with the regulations and plans of work approved by them. The meetings of the commissions shall be held at least twice a year.

Article 269. Principal rights of the national, industry and regional commissions

The national, industry and regional commissions shall have the right to:

1) consider at their meetings the problems of pursuing the consistent policy in the area of social and labour relations;

2) reconcile the interests of executive bodies, employer and employee associations in the course of the drafting and implementation of agreements, and execution of the commission's decisions;

3) inquire from the executive bodies, employers and/or employee representatives the information on the agreements made or to be made for the regulation of social and labour relations;

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4) maintain control over the performance of their decisions and, in case of the responsible persons' failure to perform them, to deliver information to the relevant party to social partnership containing the proposals for the remediation of the violations detected and the inflicting of liability upon the persons who are guilty of the failure to comply with the provisions of the agreement;

5) inquire and receive from executive bodies any information on the social status necessary for the collective bargaining and drafting of agreements, arrangement of control over the performance of the specified agreements;

6) bring proposals pertaining to the drafting of laws and regulations in the area of social and labour relations for consideration by the authorised government agencies;

7) set up working groups with the involvement of scientists and specialists;

8) invite the officers of executive agencies, public associations and also independent experts to the meetings of the commission;

9) adopt joint agreements and decisions, which shall be binding upon executive agencies, employer and employee associations to be considered and performed within the term established by the commission; and

10) participate in international, national, interregional meetings, conferences, congresses, seminars on the matters of social and labour relations and social partnership in accordance with the procedure agreed with the arrangers of the specified events.

Article 270. Powers of employee representatives

1. The employee representatives shall have the right to:

1) represent and defend the social-labour rights and interests of employees;

2) conduct collective bargaining with the employer on the drafting and execution of agreements, collective agreements, receive necessary information on the labour relations matters for these purposes;

3) participate in the resolution of the problems of social and economic development provided for in the agreements or collective agreements;

4) maintain public control in accordance with the procedure established by this Code;

5) interact with state inspectors of the authorised government labour agency in relation to any violations of the labour legislation;

6) in accordance with agreements and collective agreements, visit work places for research and taking measures to ensure normal labour conditions;

7) participate in the work of advisory bodies involved in the drafting and consideration of draft legislative acts, programmes related to labour relations and social and economic matters;

8) participate in the settlement of labour disputes between the employee and the employer in accordance with the procedure established by this Code; and

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9) conduct meetings, demonstrations, rallies, pickets, in accordance with the procedure provided by the legislation of the Republic of Kazakhstan.

2. Employers shall not be allowed to impede the exercise of the powers by the employee representatives.

Chapter 30. PROCEDURE FOR THE ENTERING INTO AGREEMENTS BY THE PARTIES TO SOCIAL PARTNERSHIP

Article 271. Right to conduct negotiations concerning the drafting of agreements

1. Any of the parties to social partnership shall have the right to initiate negotiations for the drafting, contents, execution, amendments and supplements to the agreements.

2. If there are several representatives authorised by employees and employers at the national, industry, regional levels, each of them shall be given the right to negotiate on behalf of the employees and employers represented by them.

Article 272. Procedure for negotiation, drafting of, and entering into, agreements

1. The parties who received from another party written proposals to commence negotiations, shall be obliged to consider them and proceed to negotiations within ten calendar days.

If any controversies among the parties in relation to any provision of an industry agreement remain during three months following the commencement of the negotiations, the parties shall be obliged to sign the industry agreement on the agreed terms with the simultaneous execution of a controversy protocol.

2. The procedure for the negotiation, timing for the drafting of, and entering into, the agreements, and also the procedure for the amending, supplementing of, and adhesion to, the agreements shall be approved by the commissions.

3. The agreements shall become effective upon the signing by the parties or upon the dates stipulated in the agreements. All annexes to the agreements shall be their integral parts and shall have equal legal force.

4. The term of agreements shall be established as agreed among the parties or until another agreement is adopted, but it must not exceed three years.

5. In those cases where the effect of several agreements simultaneously extends to employees, the most employee-favourable conditions of the agreements shall apply.

6. General, industry, regional agreements shall be signed by the representatives of the parties to social partnership.

7. The industry, regional agreements signed by the parties, together with annexes thereto, shall be sent for a notification-type registration within a ten-day period.

Article 273. Procedure for the making of decisions by the republic's, industry, regional commissions

1. Decisions of the commissions shall be made only on the basis of consensus reached by all of the parties to the negotiations and shall be documented as the relevant agreements.

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2. If the parties failed to reach a consensus in the course of negotiations, a protocol shall be prepared, which shall specify the finally worded proposals of the parties on the elimination of controversies and on the time of resuming the negotiations.

3. The procedure for the making of decisions and arrangement of work shall be developed and approved by the commissions.

Article 274. Coordinators of the commissions

Coordinators of the national, industry and regional commissions shall be appointed by a joint decision of the parties. Coordinators of the commissions shall:

1) not interfere with the activities of the parties;

2) invite for participation in the work of the commissions: the representatives of employer and employee associations, representatives of executive power agencies which are not the members of the commissions, and also scientists and specialists, representatives of other organisations;

3) ensures the work of the commissions and working groups, keeping of minutes, drafting of decisions and control over performance of the decisions.

Article 275. Parties to agreements; types of agreements

1. A General Agreement among the Government of the Republic of Kazakhstan, the national employer associations and the national employee associations shall be entered into at the national level.

2. Industry agreements among between the relevant executive bodies, fully authorised employer and employee representatives shall be entered into at the industry level.

3. Regional (oblast, town, rayon) agreements among the local executive agencies and fully authorised employer and employee representatives shall be entered into at the regional level.

Article 276. Contents of Agreements

1. The agreements must contain the provisions concerning:

1) effective term;

2) procedure for control over the performance;

3) procedure for making amendments and supplements to the agreement; and

4) liability of the parties in case of the failure to perform assumed obligations.

2. The contents of the General Agreement shall be determined by the national commission, by reference to the drafts of the General Agreement submitted by all or any of the parties to the social partnership.

3. The contents of the industry and regional agreements shall be determined by industry and regional commissions on the basis of the drafts of the agreements submitted by all or any of the parties to the social partnership.

4. The agreements may contain the provisions concerning:

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1) remuneration plan, labour conditions and occupational health, regime of labour and rest. The amount of the minimum wage rate (salary) in particular industries shall be determined by the industry agreements;

2) mechanism for the regulation of remuneration plan, by reference to the level of prices and rate of inflation, minimum subsistence level and the achievement of the indices determined by the agreement;

3) compensatory payments;

4) employment support, occupational training and retraining of employees;

5) arrangement of healthcare of employees at work through the creation of favourable conditions for work and rest and maintenance of the appropriate environment;

6) measures for the promotion of healthy lifestyle;

7) special arrangements for the social protection of employees and members of their families;

8) measures for the protection of employees in case of temporary suspension of production;

9) prevention of conflicts and strikes, strengthening of labour discipline;

10) conditions for the performance of activity by the employee representatives;

11) other provisions on social-labour matters not contradicting the legislation; and

12) promotion of the social infrastructure development.

5. The industry agreements must contain the provisions concerning:

1) remuneration plan, labour conditions and occupational health, regime of labour and rest;

2) compensatory payments;

3) special arrangements for the social protection of employees;

4) mechanism for the regulation of the remuneration plan, by reference to the rate of inflation, minimum subsistence level and the achievement of the indices determined by the agreement; and

5) establishment of multiplying ratios for a particular industry.

6. Any provisions of the agreements deteriorating the position of the employees in comparison with the labour legislation of the Republic of Kazakhstan shall be held invalid.

Article 277. Registration of agreements

1. The registration of the industry and regional agreements entered into at the oblast level shall be conducted by the authorised government labour agency.

2. The registration of the industry and regional agreements entered into at the town, rayon level shall be conducted by the local executive agencies.

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Article 278. Effect of the agreements

1. Agreements shall apply to the relevant executive agencies, employees and employers that have authorised the relevant representatives of the parties to draft and execute those agreements on their behalf in the course of negotiations.

2. The agreements shall be effective in respect of:

all employers that are the members of the employer associations which entered into a particular agreement. The termination of membership in an employer association shall not release the employer from the duty to perform any agreement entered into during the membership period. The employer who entered into an employer association during the term of any agreement shall be obliged to comply with the undertakings provided by that agreement;

employers that adhered to the agreement after its execution.

3. Agreements shall also apply to organisations located in the territory of the Republic of Kazakhstan, whose owners of property, founders (participants) or shareholders are foreign natural persons or legal entities or organisations with foreign interest.

4. After the publication of the agreements, the authorised government labour agency at the national level; authorised government agencies in the relevant area of activities at the industry level; and local executive agencies at the regional levels shall have the right to propose the employer associations, employers, employee associations, who did not participate in the execution of the agreements to adhere to the agreement at the relevant level. The specified proposal shall be officially published.

If the employer associations, employers, employee associations failed, within 30 calendar days following the official publication of the proposal on the adherence to the agreement, to submit a written reasoned refusal to adhere thereto to the relevant executive agencies, the agreement shall be deemed to be applicable to them as of the day of the official publication of that proposal.

Article 279. Control over the performance of agreements

Control over the performance of agreements shall be maintained by the parties to social partnership.

Article 280. Liability for evasion from participation in negotiations

The evasion of the parties' representatives from the participation in negotiations on the entering into, amending of a social partnership agreement, or unlawful refusal to sign an agreed social partnership agreement, failure to provide information necessary for negotiating, and controlling over the compliance with the standards of, a social partnership agreement, as well as violation of, or failure to perform, its conditions shall inflict liability established by laws of the Republic of Kazakhstan.

Chapter 31. COLLECTIVE AGREEMENT

Article 281. Principles of collective bargaining

The principles of collective bargaining shall be:

the equality of the rights and respect for the interests of the parties;

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freedom of choice of the discussed matters contained in the collective agreement or agreements;

voluntariness of the assumption of obligations by the parties; and

compliance with the labour legislation of the Republic of Kazakhstan.

Article 282. Procedure for the collective bargaining, drafting of, and entering into, collective agreements

1. Any of the parties may initiate the drafting of a collective agreement.

A party which received a notice from the other party containing a proposal to commence negotiations on the entering into a collective agreement shall be obliged to consider it and to enter into negotiations in accordance with the procedure established by paragraph 2 of this Article within a ten-day period.

2. For the collective bargaining and drafting of a collective agreement, the parties shall form a commission on a parity basis. The number of members in the commission, personal membership, period of the drafting of, and entering into, the collective agreement shall be determined by agreement between the parties.

The employer shall provide for the conditions, as agreed among the parties, necessary for the drafting of, and entering into, the collective agreement.

Those employees who are not members of a trade union shall have the right to authorise both a trade union body and other representatives to represent their interests in the relations with the employer.

If there are several employee representatives in the organisation, they may form a sole representative body for the participation in the commission and for the execution of the collective agreement. Each of them shall be given the right for representation, as a member of the sole negotiating body, pro rata to the number of employees represented by them.

3. A draft collective agreement prepared by the commission shall be subject to obligatory discussion by the organisation's employees. The forms of discussion of the draft shall be determined by the employees themselves. The draft shall be elaborated by the commission taking into consideration the comments and proposals so received.

4. Upon the achievement of consensus by the parties, the collective agreement shall be made in no less than two originals and signed by the parties' representatives.

5. If any controversies between the parties on any provisions of a collective agreement remain during one month following the commencement of the collective bargaining, the parties shall be obliged to sign the collective agreement on the agreed terms with the simultaneous execution of a controversy protocol.

6. A collective agreement may be amended or supplemented subject only to the mutual agreement of the parties in accordance with the procedure established by this Article for the entry into such agreement.

7. The parties to the collective bargaining shall have no right to disclose any data obtained if such data constitutes state secrets, official secrets, commercial secrets or other secrets protected by law.

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8. The parties to the collective bargaining may be excused from the performance of their job duties for the time of the collective bargaining with the continued payment of average monthly wage. This period shall be included in their duration of employment.

9. The parties' representatives shall be obliged to submit, within a one-month period, the collective agreement signed by the parties to the relevant territorial division of the authorised government labour agency for monitoring.

10. The parties' representatives shall be obliged to inform employees, from time to time, on the progress of the implementation of the collective agreement.

Article 283. Parties to collective agreements

1. Parties to a collective agreement shall be employees and employer.

2. A collective agreement may be entered into both at organisations and at branches and representative offices.

Article 284. Contents and structure of collective agreements

1. The contents and structure of a collective agreement shall be determined by the parties. A collective agreement must contain the following provisions:

1) work measurement, forms, remuneration systems, wage rates and salaries, allowances and additional payments for employees, including those engaged in heavy work, work under harmful (extremely harmful) and/or hazardous labour conditions;

2) index-linking of remuneration plan, payment of benefits and compensatory payments, including additional compensations in case of accidents;

3) permissible difference between the maximum and minimum wages for particular professions, positions in the organisation;

4) fixing of inter-grade coefficients;

5) duration of working time and rest time, vacations;

6) creation of healthy and safe labour and welfare conditions, amounts of financing of safety and occupational health arrangements, healthcare enhancement, guarantees of medical insurance for employees and their families, environment protection; and

7) setting of inter-grade coefficients in the relevant industry.

2. Collective agreements may contain mutual undertakings of employees and employer on the following matters:

1) improvement of labour management and performance;

2) regulation of internal labour policy and labour discipline;

3) provision of employment, training, professional development, retraining and employment assistance to dismissed employees;

4) guarantees and incentives for the employees who combine work with education;

5) improvement of living and welfare conditions of employees;

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6) health rehabilitation, sanatorium-resort therapy and rest of employees;

7) procedure for the taking into consideration of a reasoned opinion of the organisation's trade union body when dissolving employment agreements with the employees who are members of the trade union;

8) guarantees for the employees elected as members of the trade union bodies;

9) conditions for the employee representatives' activity;

10) creation of proper conditions for the trade union's activity;

11) insurance of employees;

12) control over the performance of the collective agreement and procedure for making amendments and supplements thereto;

13) prevention of the termination of employment agreements by employer by reason of strikes;

14) liability of the employees and employer for damage caused by them;

15) liability of the parties to comply with the collective agreement;

16) voluntary professional pension contributions; and

17) other matters determined by the parties.

3. The collective agreements must not deteriorate the position of employees in comparison with the labour legislation, general, industry, regional agreements. Such provisions shall be held invalid.

Article 285. Term and application of collective agreements

1. A collective agreement shall be entered into for a term to be determined by the parties.

2. A collective agreement shall come into force upon its signing, unless otherwise provided therein, and shall be binding upon the parties thereto.

3. A collective agreement shall apply to the employer and employees on whose behalf the collective agreement was made, and the employees who have adhered thereto on the basis of an application in writing.

4. A collective agreement shall remain effective during reorganisations (consolidation, merger, split-up, spin-off, transformation) of the organisation.

5. In the event of change in the owner of the organisation's property, the collective agreement shall remain in effect for three months. During that period, the parties shall have the right to start negotiations for the entering into another collective agreement or preserving, amending and supplementing the current one.

6. In the event of liquidation or bankruptcy of the organisation, the collective agreement shall terminate upon the termination of employment agreements with all of the employees.

Article 286. Liability of the parties for the failure to perform collective agreement

The parties shall be liable for the failure to perform obligations provided by the collective agreement in accordance with the collective agreement and laws of the Republic of Kazakhstan.

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Article 287. Guarantees and compensations for the time of negotiations

Invited experts and specialists shall be paid under an appropriate engagement letter entered into with them by employers or employee representative bodies.

Members of employee representative bodies participating in the collective bargaining may not be dismissed by the employer during the period of such collective bargaining without consent of the relevant representative body (except in the cases of liquidation of the organisation).

Chapter 32. SETTLEMENT OF COLLECTIVE LABOUR DISPUTES

Article 288. Arising of collective labour disputes

1. A collective labour dispute shall be deemed arisen as of the date of written notice to the employer setting out the details of the claims of employees approved by the decision of the general meeting (conference), or the date of expiry of the period referred to in Article 290 of this Code, in case of failure by the employer, employer association to notify their decisions.

2. Collective labour disputes shall be settled by way of conciliation procedures and/or in court.

Article 289. Documentation and bringing employees' claims

1. Employee claims on the matters of the establishing and changing of labour conditions and remuneration plan, entering into, amending and performing of collective agreements and agreements between employees and employer, employer association, shall be formed and approved at the general meeting (conference) of employees subject to the presence of at least half of the total number of the organisation's employees by a majority vote of the participants of the meeting (conference).

2. Employee claims shall be set out in writing and delivered to the employer, employer associations within three calendar days following the general meeting (conference) of employees.

3. In the event that claims are brought by the employees of various employers, such claims may be represented by industry or regional associations of trade unions or other natural persons and/or legal entities authorised by employees.

4. An employer, employer association shall be obliged to refrain from any interference capable of impeding a meeting (conference) of employees for the formulation of claims.

Article 290. Consideration of employees' claims

The employer or employer association shall be obliged to consider the claims brought by employees no later than in seven calendar days of their receipt and shall take measures for their resolution; should such resolution be impossible, they shall communicate their decisions and proposals to the employees in writing within the stated period, identifying their representatives for further consideration of the arisen controversies.

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Article 291. Conciliation procedures

1. Any claims of employees that cannot be resolved in accordance with the procedure provided by Article 290 of this Code shall be referred to conciliation procedures.

Claims declined by the employer, employer association (their representatives) or claims partially met by them shall be initially considered before a conciliation commission, and if no agreement is reached before it, by labour arbitration.

2. The parties may refer to a mediator at any of the stages of a collective labour dispute. The mediation procedure shall be independent from the conciliation procedures before the conciliation commission, labour arbitration and may proceed concurrently with them.

Article 292. Conciliation commission

1. A conciliation commission shall be formed by the parties during three calendar days following the communication, or failure to communicate, their decision by the employer, employer association (their representatives) to employees (their representatives) or following the date of execution of a controversy protocol in the course of collective bargaining.

2. The conciliation commission shall be formed of the representatives of the parties to the collective labour dispute on a parity basis. A decision to form the conciliation commission shall be documented in the form of an employer regulation and decision of the employee representatives.

3. The conciliation commission shall consider the claims of employees (their representatives) within no more than seven calendar days following the date of its formation. The procedure for the consideration of claims by the conciliation commission and extension of the specified period for the consideration shall be carried out upon agreement of the parties and documented in the form of a protocol.

4. In the process of the conciliation procedures, the conciliation commission shall consult with employees (their representatives), employer, employer association (their representatives), government agencies and other persons concerned.

5. The commission shall make its decision on the basis of agreements of the parties executed in the form of a protocol to be signed by the parties' representatives, and shall be binding upon the parties.

6. If no agreement is reached before the conciliation commission, its work shall terminate, and a labour arbitration shall be formed to resolve the dispute.

Article 293. Labour arbitration

1. The labour arbitration shall be formed by the parties to a collective labour dispute within five calendar days following the date of termination of the work of the conciliation commission, with the participation of the members of the national, industry or regional commissions for the regulation of social-labour relations.

2. The number of members of labour arbitration, its personal membership, procedure for labour dispute consideration shall be determined upon agreement of the parties. The labour arbitration must consist of no less than five members. The members of the labour arbitration shall be the representatives of public associations, state labour inspector, specialists, experts and other persons.

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3. The chairman of the labour arbitration shall be elected by the parties from amongst the members of the arbitration.

4. A collective labour dispute shall be considered by labour arbitration with the obligatory participation of the representatives of the parties to the collective labour dispute, and, where necessary, also with the involvement of the representatives of other persons concerned.

5. The procedure for dispute consideration shall be determined by labour arbitration and communicated to the parties to the collective labour dispute.

6. The award of the labour arbitration shall be rendered no later than in seven calendar days following the date of its formation by a simple majority vote of the arbitration members. In case of the equality of votes of the labour arbitration's members, the chairman shall have the casting vote. An award must be reasoned and must be made in writing and signed by all members of the arbitration.

7. If no agreement is reached by the parties to a collective labour dispute before a conciliation commission in such organisations where the law prohibits or restricts strikes, it shall be obligatory that a labour arbitration be formed.

8. The award of the labour arbitration shall be binding upon the parties to a collective labour dispute.

Article 294. Consideration of collective labour disputes with the involvement of mediators

1. The procedure for the consideration of a collective labour dispute with the involvement of a mediator shall be determined by agreement of the parties to the collective labour dispute.

2. The parties shall nominate organisation and persons, who shall be independent from them, as mediators. The national, industry, regional commission on the regulation of social-labour relations may, with consent of the parties to the collective labour dispute, involve managers and employees of central and local executive agencies, associations and other public associations, employers, and also independent experts, in the work on the settlement of collective labour disputes.

In all cases where mediators are elected, written consents shall have been received from them for the mediation.

Article 295. Effect of the achievement of agreement by the parties to a collective labour dispute

1. Where an agreement is reached between the parties to a collective labour dispute for its resolution, with or without the involvement of a mediator, any pending conciliation procedures shall terminate, and the terms and conditions of the agreement between the parties shall be deemed to be the conditions of the dispute resolution.

The agreements reached by the parties to a collective labour dispute shall be documented in writing.

2. The fact that the parties reached an agreement on dispute resolution shall entail that a strike, if any, shall be called off.

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Article 296. Guarantees in connection with the resolution of collective labour disputes

The members of the conciliation commission shall be excused from their primary work for the time of their participation in the negotiations for the resolution of a collective labour dispute, with the continued payment of average wage.

The employee representatives, their associations participating in the resolution of a collective labour dispute may not, during the period of the resolution of the collective labour dispute, be subjected to disciplinary action, transferred to other work and their employment agreements may not be dissolved at the initiative of the employer without the prior consent of the body which has authorised them for the representation.

Article 297. Obligations of the parties and conciliation bodies to settle collective labour disputes

1. Neither of the parties shall have the right to elude from the participation in the conciliation procedures.

2. Any unsettled controversies in the collective labour dispute must be communicated to the parties in writing by the conciliation commission or labour arbitration.

3. If settlement of controversies of the parties to a collective labour dispute is impossible by reason of lack of authority of the employer representative, the employees' claims shall be submitted to the owners of property, founders (participants) or shareholders of organisations, including organisations located in the territory of the Republic of Kazakhstan, whose owners of property, are foreign natural persons or legal entities or organisations with foreign participation.

4. If the employees disagree with the results of the procedures specified in paragraphs 2, 3 of this Article, the employees shall have the right to use all other statutory methods of defending its interests up to a strike.

Article 298. Right to strikes

1. Employees may pass a decision to stage a strike, if the conciliation procedures did not result in the resolution of a collective labour dispute, and also in the cases where the employer evades from the conciliation procedures or fails to perform the agreement reached in the course of the resolution of a collective labour dispute.

2. The decision to stage a strike shall be passed at the meeting (conference) of employees (their representatives) subject to the presence of no less than a half of the total number of the organisation's employees, and shall be deemed passed if positively voted by no less than two thirds of the votes of the participants present at the meeting (conference).

3. A strike shall be led by a body (strike committee) authorised by the employees (their representatives). In the event that a strike is called by the employees (their representatives) of several employers with identical claims, it may be led by a joint body formed of the equal number of the representatives of those employees.

4. Participation in a strike shall be voluntary. Nobody may be forced to participate or surrender the participation in a strike.

5. Any persons who force employees to participate or surrender the participation in a strike shall be liable in accordance with the procedure established by laws of the Republic of Kazakhstan.

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Article 299. Announcement of the beginning of a strike

1. Employer, employer association (their representatives) must be notified in writing by the authorised body specified in Article 298.3 of this Code, of the beginning of a strike and its possible duration no later than in fifteen calendar days prior to its calling.

2. The decision to call a strike shall specify:

1) list of controversies of the parties, which form the grounds to conduct the strike;

2) date, place and time of the beginning of the strike, its duration and proposed number of participants;

3) name of the body leading the strike, details of the employee representatives authorised to participate in the conciliation procedures;

4) proposals concerning a minimum of necessary work (services) to be performed in the period of the strike.

Article 300. Authorities of the Bodies Leading the Strikes

1. A body leading the strike shall act within the rights provided to it by this Code and on the basis of the authority vested in it by the employees (their representatives).

2. A body leading the strike shall have the right to:

1) represent the interests of employees in the mutual relations with the employer, employer association (their representatives), government, trade-union, other legal entities and officials on the matters of the resolution of the advanced claims;

2) receive information on the matters affecting the employees' interests from the employer, employer associations (their representatives);

3) cover the progress of the consideration of the employees' claims in mass media;

4) engage specialists to give their opinions on the matters in dispute; and

5) suspend the strike with the consent of employees (their representatives).

3. For an earlier suspended strike to be resumed, no repeated consideration of the dispute by the conciliation commission, mediator or labour arbitration shall be required. Employer, employer association (their representatives) and the body for the settlement of labour disputes must be notified of the resumption of the strike no later than three working days in advance.

4. The authority of the body leading the strike shall terminate in the cases where the parties to the collective labour dispute have signed an agreement on its resolution, and also in the case where the strike is held unlawful.

5. In the course of exercising of its authority, the boding leading the strike shall have no right to make any decisions falling within the competence of the employer, government agencies and public associations.

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Article 301. Obligations of the parties to a collective labour dispute in the course of a strike

During the period when a strike is conducted, the parties to the collective labour dispute shall be obliged to continue the resolution of that dispute through conciliation procedures.

The employer, government agencies and the body leading the strike shall be obliged to take measures depending on them for the keeping of public order, safe custody of the organisation's property and employee safety, and also for the work of machinery and equipment the shutdown of which would constitute a direct threat to life and health of people, during the strike.

Article 302. Guarantees for employees in connection with strikes

1. The arrangement of, or participation in, strikes (except for the cases provided by Article 303.1 of this Code) may not be considered as a violation by employees of labour discipline and may not result in the application of any disciplinary actions provided by this Code.

2. During the time of the strike, the employee shall reserve his work place (position), entitlement to social insurance benefits, duration of employment, and also other rights arising from the labour relations shall be guaranteed for him.

The payment of wage shall not be continued for the time during the strike, unless the strike is staged in connection with the failure to pay, or delay in the payment of, the wages.

Article 303. Unlawful strikes

1. Strikes shall be deemed unlawful:

1) if they are called in the periods of martial or state of emergency or special measures in accordance with the legislation of the state of emergency; in the agencies and organisations of the Military Forces of the Republic of Kazakhstan, other military units and organisations in charge of the ensuring of the country's defence, security of the state, emergency-and-rescue, search-and-rescue, fire-fighting work, prevention or remediation of emergencies; in the law enforcement agencies; in the organisations that are hazardous industrial facilities, at the medical emergency and first-aid stations;

2) at the organisations of railway transport, civil aviation, healthcare, the organisations providing for the life activity of the population (public transport, supply of water, power, heat, communications), at the continuing production processes the suspension of which would cause severe and hazardous consequences in case of non-compliance with the conditions stated in paragraph 2 of this Article;

3) if called without reference to the timing, procedures and requirements provided by this Code;

4) in the cases where they create real threat to the life and health of people; and

5) in other cases provided laws of the Republic of Kazakhstan.

If there is one of the grounds specified in this section, a prosecutor shall have the right to suspend the strike until a court renders a relevant judgement.

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2. At the organisations of railway transport, civil aviation, healthcare, the organisations providing for the life activity of the population (public transport, supply of water, power, heat, communications), the strikes shall be staged subject to the continuation of the list and amount of the relevant services necessary for the population as determined on the basis of a prior agreement with the local executive agency.

At the continuing production processes, the strikes may be staged subject only to the ensuring of the failure-free operation of the primary equipment, mechanisms.

3. A judgement holding a strike unlawful shall be rendered by a court in accordance with the laws of the Republic of Kazakhstan.

4. A judgement holding a strike unlawfully shall be rendered by a court at the application filed by employer or prosecutor.

The court judgement shall be communicated to the employees through the body leading the strike, which shall be obliged to notify the participants of the strike on the court judgement immediately.

The legally effective court judgement holding a strike unlawful shall be enforced forthwith.

In the event that direct threat to life and health of people arises, the prosecutor or court shall have the right to suspend the strike before the relevant judgement is rendered.

5. The body leading the strike shall have the right to appeal against the court judgement in accordance with the procedure established by the laws of the Republic of Kazakhstan.

Article 304. Effect of the holding of a strike unlawful

Where a court holds a strike unlawful, the employer may discipline the employees who participated in arranging or staging the strike.

Article 305. Prohibition of lock-outs

In the process of settlement of a collective labour dispute, including a strike, it shall be prohibited to conduct a lock-out, i.e. terminate employment agreements with employees by the employer by reason of their participation in the collective labour dispute or strike.

SECTION 5. HEALTH AND SAFETY

Chapter 33. GOVERNMENTAL MANAGEMENT IN THE AREA OF HEALTH AND SAFETY

Article 306. Primary lines of governmental policy in the area of health and safety

The governmental policy in the area of health and safety shall be aimed at:

1) the drafting and enactment of laws and regulations of the Republic of Kazakhstan in the area of health and safety;

2) the preparation of state, industry (sector) and regional programmes in the area of health and safety;

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3) the creation and implementation of the economic incentive system for the activity on the development and improvement of conditions, health and safety, development and improvement of safe plant and technologies, manufacturing of the equipment and gears for occupational health, personal and collective protection of employees;

4) the maintenance of monitoring in the area of health and safety;

5) the undertaking of scientific researches on the problems of health and safety;

6) the establishing of a uniform procedure for the recording of work accidents and occupational diseases;

7) the state supervision and control over the compliance with the requirements of the legislation of the Republic of Kazakhstan in the area of health and safety;

8) the regulatory establishment of the procedure for public control over the observance of rights and lawful interests of employees in the area of health and safety at a particular organisation;

9) the protection of lawful interests of the employees who suffered from work accidents and occupational diseases, and also members of their families;

10) the establishment of the conditions of a compensation plan for heavy work and work under harmful (extremely harmful), hazardous labour conditions irremovable under the up-to-date technical level of production and labour management;

11) the extension of the advanced local and foreign experience of the work in the enhancement of the labour conditions and occupational health;

12) training and professional development by health and safety specialists;

13) the arrangement of state statistical reporting on the rates of injuries at work, occupational diseases;

14) the ensuring of the operation of the integrated information system in the area of health and safety; and

15) the international cooperation in the area of health and safety.

Article 307. Governmental management, control and supervision in the area of health and safety

The governmental management, control and supervision in the area of health and safety shall be carried out by the Government of the Republic of Kazakhstan, authorised government labour agency and other authorised government agencies in accordance with their terms of competence.

Article 308. Health and safety requirements

1. Health and safety requirements shall be established by laws and regulations of the Republic of Kazakhstan and must contain the rules, procedures and criteria intended for the preservation of life and health of employees in the process of their labour activity.

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2. Health and safety requirements shall be binding upon employers and employees in the course of their activity in the territory of the Republic of Kazakhstan.

Article 309. Risk monitoring and assessment in the area of occupational health and safety

For the purpose of a comprehensive assessment of labour conditions at work places, reduction of injuries at work and prevention of work accidents, the authorised government labour agency and its territorial divisions shall arrange for the monitoring and assessment of risks in the area of health and safety.

Chapter 34. GUARANTEES OF EMPLOYEES' RIGHTS IN THE AREA OF HEALTH AND SAFETY

Article 310. Guarantees of the Rights to Health and safety when Entering into Employment Agreements

1. The employment agreements must contain true characteristics of labour conditions, including harmful and/or hazardous industrial factors, specify guarantees, incentives and compensatory payments for the work is such conditions, as provided by the legislation of the Republic of Kazakhstan and collective agreements.

2. Employment agreements with employees engaged in heavy work, work under harmful (extremely harmful) and/or hazardous labour conditions, and also in underground work shall be entered into after the individual passes pre-employment medical examination and is certified to have no contraindications on the state of health in accordance with the requirements established by the laws and regulations of authorised government agency in the area of healthcare.

Article 311. Guarantees of the employees' rights to health and safety in the process of labour activity

1. Safe labour conditions at work places must meet the requirements of state standards, health and safety rules.

2. For the time of work suspension consequent upon violations by the employer of the health and safety requirements, an employee shall reserve his work place (position) and average wage.

3. The employee's refusal to perform any work in case of immediate hazard for his life and health or life and health of surrounding people shall not result in the infliction of disciplinary and/or material liability upon him.

4. In the event that the employer fails to provide the employee with personal protective gears and/or collective protective equipment, special clothing, the employee shall have the right to terminate the performance of the job duties, and the employer shall be obliged to pay for the downtime arising for this reason in the amount of average wage of the employee.

5. In the event of any harm to life and health of the employee when exercising his/her job duties, the compensation for harm caused to him shall be made in accordance with the procedure and on the conditions provided by this Code and the civil legislation of the Republic of Kazakhstan.

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Article 312. Obligatory medical examination of employees

1. The employer shall be obliged, at its own expense, to arrange for the periodic medical examinations and check-ups of employees engaged in heavy work, work under harmful (extremely harmful) and/or hazardous labour conditions in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

2. Employees engaged in the work associated with extreme hazard, machinery and mechanisms shall be obliged to undergo pre-shift medical certifications. The list of the professions requiring pre-shift medical certifications shall be determined by the authorised government agency in the area of healthcare.

Article 313. Training, briefing and checking the knowledge of employees in health and safety

1. The training, briefing and checking the knowledge of employees in health and safety shall be conducted by the employer at its own expense.

2. Procedure for, and the timing of, training, briefing and checking the knowledge of employees in health and safety shall be determined by the authorised government labour agency as agreed upon with other authorised government agencies of the relevant areas of activity.

3. It shall be obligatory that employed persons pass preliminary training arranged by the employer, with the subsequent obligatory checks of the knowledge in health and safety. Those employees, who failed to pass preliminary training and checks of their knowledge in health and safety shall not be allowed to work.

4. Managing employees and officers of industrial organisations responsible for health and safety issues, shall be obliged to pass training and checks of the knowledge in health and safety at professional development courses with the relevant educational institutions periodically, no less than once in three years.

Chapter 35. RIGHTS AND OBLIGATIONS OF EMPLOYEES AND EMPLOYERS IN THE AREA OF HEALTH AND SAFETY

Article 314. Rights of employees to health and safety

The employees shall have the right to:

1) the work places equipped in accordance with health and safety requirements;

2) the provision of sanitation-welfare premises, personal protective gears and collective protective equipment, special clothing in accordance with health and safety requirements, and also employment, collective agreements;

3) apply to the authorised government labour agency and its territorial divisions for the inspection of labour conditions and occupational health at their work places;

4) participate personally, or through their representatives, in the audit and consideration of the matters related to the enhancement of labour conditions, health and safety issues;

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5) refuse to perform any work in case there arises a situation threatening their health or life, with the giving of a notice to this effect to an immediate supervisor or employer in writing;

6) education and professional training as necessary to safely perform the job duties in accordance with the procedure established by the legislation of the Republic of Kazakhstan;

7) receive true information from the employer as regards the characteristics of their work places and territory of the organisations, state of labour conditions, health and safety, any existing danger to life and health, and also on the measures to protect the employees against the exposure to harmful (extremely harmful) and/or hazardous industrial factors;

8) receive average wage for the time of suspension of the organisation's work due to any incompliance with health and safety requirements; and

9) appeal against any wrongful acts of the employers in the area of health and safety.

Article 315. Obligations of employees in relation to health and safety

Employees shall be obliged to:

1) notify their immediate supervisor immediately on every accident that happened at work, symptoms of occupational disease (poisoning), and also on any situations endangering life and health of people;

2) pass obligatory periodical medical examinations and pre-shift medical certifications, and also medical certifications for being transferred to other work due to production necessity or in case that occupational disease symptoms appear;

3) apply and use for the purpose specified any personal protective gears and collective protective equipment provided by the employers;

4) carry out any therapeutic and recreation measures prescribed by medical institutions in case they are financed by the employers; and

5) comply with requirements to health and safety, rules and instructions, and also the requirements of employers to safety at work.

Article 316. Rights of employers in the area of health and safety

Employers shall have the right to:

1) incentivise employees to create favourable labour conditions at work places, proposals for technical improvement for the creation of safe labour conditions; and

2) take off the job and discipline the employees violating health and safety regulations in accordance with the procedure established by this Code.

Article 317. Obligations of employers in the area of health and safety

1. Employers shall be obliged to:

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1) take measures for the prevention of any risks at work places and technological processes through prophylactics, replacement of production equipment and technological processes for safer ones;

2) conduct education and training of employees on health and safety;

3) carry out administrative and technical measures on health and safety;

4) carry out briefing, provide documents on safety in industrial processes and work;

5) pass checks of the knowledge in health and safety and arrange for the checks of the knowledge of managers and specialists in accordance with the rules approved by the authorised government labour agency;

6) create necessary sanitation-hygiene conditions for employees, provide for the repair of special clothing and footwear of employees, supplies of preventive treatment agents, cleaning and anti-infective agents, first aid kits, milk, therapeutic and prophylactics meals in accordance with the standards established by the authorised government labour agency;

7) submit necessary information on the safety status, labour conditions and occupational health in the organisations to the authorised government labour agency and its territorial divisions, officials of the sanitation-epidemiological service agencies, employee representatives at their written request;

8) comply with the orders of state labour inspectors;

9) carry out registration, recording and analysis of work accidents and occupational diseases;

10) conduct, with the participation of employee representatives, periodical certification of industrial facilities in terms of labour conditions no less than once in five years, and also obligatory certification following reconstruction, modernisations, installation of new plant or technology in accordance with the rules approved by the authorised government labour agency;

11) ensure that work accidents be investigated in accordance with the procedure established by the legislation of the Republic of Kazakhstan;

12) maintain insurance of liability for harm to health and life of employees in the course of their performance of the job duties;

13) notify the relevant territorial divisions of the authorised government agency in the area of sanitation-epidemiological public welfare about the occurrences of acute poisoning;

14) provide for safe labour conditions;

15) conduct, at its own expense, obligatory, periodical (during the labour activity) medical examinations and pre-shift medical certifications of employees in the cases provided by the legislation of the Republic of Kazakhstan, and also in the cases of transfer to other work with the changing of labour conditions or in case that occupational disease symptoms appear; and

16) take immediate measures to prevent the evolution of a contingency situation and the impact of any injuring factors on other persons.

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2. Employment or collective agreements may provide for additional obligations of employers taking into consideration the specifics of operations and types of work, presence of extreme hazard sources.

Article 318. Financing of health and safety arrangements

Health and safety arrangements shall be financed at the expense of employers and from other sources not prohibited by the legislation of the Republic of Kazakhstan.

Employees shall not bear any expenses for these purposes.

The amounts of relevant proceeds shall be determined by a collective agreement.

Chapter 36. HEALTH AND SAFETY MANAGEMENT

Article 319. Enactment of laws and regulations in the area of health and safety

1. Laws and regulations in the area of health and safety shall establish organisational, technical, technological, sanitation-hygiene, biological, physical and other standards, rules, procedures and criteria intended to preserve life and health of the employees in the process of their labour activity.

2. Laws and regulations in the area of health and safety shall be enacted by the relevant authorised government agencies in accordance with the procedure established by the Government of the Republic of Kazakhstan.

3. The drafting and approval of health and safety regulations shall be carried out by an employer in accordance with the procedure approved by the authorised government labour agency.

Article 320. Health and safety requirements in the course of design, construction and operation of industrial facilities and production tools

1. It shall not be allowed to perform any design, construction and reconstruction of industrial buildings and structures, development and use of technologies, design engineering and manufacturing of machinery, mechanisms, equipment, which do not meet health and safety requirements.

2. Newly built or reconstructed industrial facilities, production tools or other types of products must not be accepted and commissioned if they do not meet health and safety requirements.

3. Industrial facilities shall be subject to obligatory periodical certifications in terms of labour conditions in accordance with the procedure established by the authorised government labour agency.

4. The acceptance of an industrial-purpose facility for operation shall be carried out by an acceptance commission with the obligatory participation of a state labour inspector.

Article 321. Safety requirements at work places

1. Buildings (structures), in which work places are located, must meet their functional purpose and health and safety requirements in terms of their construction.

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2. Work equipment must meet safety standards established for that type of equipment, bear appropriate warning marks and be fitted with fencing or protection devices to ensure safety of employees at work places.

3. Emergency ways and exits for the employees from the premises must be kept clear and lead to open air or safety zone.

4. Hazardous zones must be marked clearly. If work places are located within any hazardous zones, in which, because of the nature of the work, there is risk for the employees or risks of falling objects, such places must, wherever possible, be fitted with devices barring unauthorised access to those zones. Pedestrians and technological vehicles must move under safe conditions in the territories of organisations.

5. Employees must have their personal protective gears to perform work at hazardous industrial facilities (sites), including work at elevations, underground conditions, open chambers, at sea shelf and inland water bodies.

6. Temperature, daylight and artificial illumination, and also ventilation in the premises where work places are located must comply with safe labour conditions during the working time.

7. The employees shall be allowed to work under harmful labour conditions (suspended materials concentration, gas concentration and other factors) after the employer provides for safe labour conditions.

Chapter 37. INVESTIGATION AND RECORD OF ACCIDENTS AND OTHER INJURIES TO HEALTH OF EMPLOYEES RELATED TO THE LABOUR ACTIVITY

Article 322. General outline of the investigation and record of work accidents

1. The investigation and record in accordance with this Code shall be required in case of injuries to health of employees associated with their labour activity and resulted in the incapacity for work or death, and also:

1) persons who study at educational institutions which implement educational programmes of primary professional, postgraduate education, during their professional internship;

2) military servants involved in the performance of work not related to the military service duty;

3) persons involved in labour under a court sentence; and

4) staff of paramilitary emergency-and-rescue units, paramilitary security, members of voluntary teams for the remediation of the consequences of wrecks, natural disasters, for the saving of human life and property.

2. The investigation and record as work accidents shall be required for the work injuries and other injuries to health of employees associated with the performance of their job duties, or other actions performed at their own initiative in the interests of the employer, which resulted in incapacity for work or death, if they happened:

1) before the beginning or after the end of the working time in the course of preparing and bringing in order the work place, instruments of production, personal protective gears and other;

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2) during the working time, at the work place or during a business trip or in any other place where the employee was present due to the performance of the job duties or other duties related to the assignment given by the employer or the organisation's official;

3) as a result of the exposure to hazardous and/or harmful industrial factors;

4) during the working time on the way of the employee, whose activity involves travelling among serviced facilities, to the place of work assigned by the employer;

5) at the employer's transport in the course of the performance by the employee of the job duties;

6) at personal transport, subject to a written consent of the employer for the right to use it for business travel; and

7) during presence, at the direction of the employer, in the territory of the employee's organisation or other organisation, and also when protecting the employer's property or performing other actions at the employee's own initiative in the interests of the employer.

3. Injuries and other injuries to health of employees at work shall not be documented as work injuries, if it is objectively found in the course of their investigation that they occurred:

1) when the injured performed, at his own initiative, the work or other actions not included in the responsibility duties of the employee and not related to the interests of the employer, including in the period of inter-shift rest and meal break in case of work in shifts, and also under alcoholic, toxic or drug substances (analogues) intoxication;

2) as a result of the employee's intentional (wilful) causing of harm to the his own health or in the course of committing a criminal offence by the injured; and

3) due to a sudden deterioration in the injured health as provide by a medical report, which was not associated with the exposure to hazardous and/or harmful industrial factors.

4. The injured or eyewitnesses shall be obliged to notify the employer or the arranger of work on each accident immediately. The responsible officials of the healthcare organisations shall notify employers and territorial divisions of state labour inspectorate on each instance of primary requests for medical aid with injuries or other harm to health of employees at work, and also notify the government agency in the area of sanitation-epidemiological public welfare on the instances of acute occupational disease (poisoning).

5. The employer shall be liable to arrange for the investigation, documentation and registration of work accidents.

Article 323. Obligations of employers in case of work accidents

1. Employers shall:

1) arrange for the first-aid to the injured and, where necessary, his/her transportation to a healthcare organisation;

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2) take immediate measures to prevent the evolution of a contingency situation and the impact of injuring factors, which caused the accident, on other persons;

3) until the commencement of investigation, keep the scene at the place of the accident (state of equipment and mechanisms, instruments of labour) в in the same condition as at the time of the occurrence, provided that it does not threaten life and health of other persons, and discontinuation of the industrial process would not result in a wreck, and also take photographs of the work accident place;

4) immediately notify the injured's close relatives about the work accident and send a communication to the government agencies and organisations determined by this Code, other laws and regulations;

5) ensure that work accidents be investigated and recorded in accordance with this Chapter;

6) give access for the members of the commission on special investigation to the place of occurrence for the investigation of the work accident; and

7) register, record and analyse work accidents and occupational diseases.

2. An employer shall immediately, in the form established by the authorised government labour agency, notify of the work accident:

1) territorial divisions of the state labour inspectorate of the authorised government labour agency;

2) the local agencies on the prevention and remediation of emergencies in case of accidents which happened at hazardous industrial facilities;

3) the local government agency in the area of sanitation-epidemiological public welfare in case of occupational disease or poisoning occurrences;

4) employee representatives; and

5) the insurance organisation, with which the agreement for the general employer's insurance for harm to life and health of the employee is maintained.

In case of the occurrence of an accident requiring special investigation in accordance with this Chapter the employer shall be obliged to notify:

1) the law enforcement agency at the place where the accident occurred;

2) the authorised agencies of industrial and internal control and supervision.

3. In the course of investigation of a work accident, an employer shall, at its own expense, as required by the commission, ensure:

1) technical calculations, laboratory examinations, tests, other professional work and engagement of professionals for this purpose;

2) photographing of the place of occurrence and damaged facilities, preparing layouts, outlines, schemes;

3) the provision of transport, service premises, communication facilities, special clothing, special footwear and other personal protective gears necessary for the investigation to be conducted;

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4) the provision of the following:

documents describing the condition of the work place, presence of hazardous and/or harmful industrial factors (layouts, outlines, schemes, and, where necessary, photographs and video materials from the place of occurrence, etc.);

excerpts from the logbooks of the injured's health and safety briefings and knowledge check protocols, protocols of inquiry of accident eyewitnesses and officials, explanations of the injured, expert opinions of specialists;

results of laboratory examinations and tests;

medical report on the form and degree of the severity of injury caused to the health of the injured or the cause of his/her death, presence (absence) of any signs of alcohol, drug or toxic intoxication;

copies of documents confirming that the injured was provided with special clothing, special footwear and other personal protective gear;

excerpts from the ordinances issued previously at the specified plant (facility) by state labour inspectors and officials of the territorial state supervision agency (if the accident occurred at the organisation or facility within the jurisdiction of that agency), and also excerpts from the submissions of public health inspectors requesting to remedy any found violations of health and safety regulatory requirements; and

other documents, at the discretion of the commission, relevant to the consideration of the case.

Article 324. Procedure for investigation of work accidents

1. The investigation of work accidents, except for the occurrences requiring special investigation, shall be conducted by a commission to be formed under an employer regulation within twenty-four hours from the time of occurrence consisting of:

chairman who is the head of the organisation (industrial service) or his deputy;

members who are the health and safety manager and an employee representative.

The official who is directly responsible for labour safety at the relevant site where accident took place shall not be included in the commission in the course of investigation.

2. Special investigation shall be required for:

1) the accidents with severe or fatal outcome;

2) group accidents that occurred with two or more employees at the same time, irrespective of the degree of severity of the injuries caused; and

3) group accidents of acute poisoning.

3. A work accident occurred at the employer who is a natural person, shall be investigated with the participation of either employer, or his/her authorised representative, employee representative, occupational health specialist who may be engaged in the investigation of the accident on a contractual basis.

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4. In the event of an acute poisoning, the investigation by the commission shall be conducted with the participation of the representatives of the government agency in the area of sanitation-epidemiological public welfare.

5. A representative of the insurance organisation that has the relevant contractual relations with the employer or the injured shall have the right to participate in the work of the commission.

6. The period of investigation of an accident shall not exceed ten working days following the date of the formation of the commission.

7. The investigation of accidents occurred to the persons passing industrial internship, studying at the general education, professional schools and higher education institutions shall be conducted by a commission to be formed by the manager of the organisation, in whose territory the accident occurred, with the participation of the employer and a representative of the injured.

8. The investigation of an accident occurred with an employee of an organisation located or operating in the territory of other organisation, or with an employee, who was sent to other organisation for the performance of a production task (service or contractual duties), shall be conducted directly by the employer with the participation of the responsible representative of the organisation, on whose territory the accident occurred.

9. An accident occurred with an employee in the course of his/her secondary job shall be investigated and recorded by the employer, in whose territory or on whose assignment the work was performed.

10. The investigation of the accidents, which resulted from any wrecks of transportation vehicles, shall be conducted on the basis of the traffic police's investigation files.

The traffic police shall be obliged to provide the copies of the investigation files within five days following the traffic accident as required by the chairman of the accident investigation commission.

11. In each instance of the investigation of work accidents, the commission shall identify and inquire the eyewitnesses of the occurrence, the persons who committed violations of health and safety requirements, receive necessary information from the employer and, where possible, explanations from the injured.

12. Accidents, which were not notified to the employer in a timely manner or which resulted in the incapacity for work not instantaneously (irrespective of the period), shall be investigated upon application of the injured (his representative) or pursuant to an ordinance of a state labour inspector within ten days following the date of registration of the application, receipt of the ordinance.

13. On the basis of the collected documents and files, the commission shall substantiate the facts and causes of the accident, determine the connection of the accident with the production activity of the employer and, accordingly, whether the presence of the injured at the place of occurrence was attributed to his performance of the job duties, qualify the accident either as a work accident or as a non-work accident, identify the persons who committed the violations of health and safety requirements, and determine the measures to eliminate the causes and prevent the occurrence of work accidents.

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14. The conditions of work of the accident investigation commissions at sensitive facilities shall be determined, taking into account the specifics of access to, and presence at, those facilities.

15. Each work-related accident that resulted the employee (employees) incapacity for work in accordance with the medical report (recommendation) shall be documented as an accident certificate in the form established by the authorised labour agency, in the necessary number of originals (for each injured separately).

Any occurrences of poisoning confirmed in accordance with the established procedure by a healthcare organisation shall also be documented in the form of an accident certificate, regardless of whether or not they resulted in incapacity for work loss.

Article 325. Specifics of special investigation of work accidents

1. Special investigations of accidents shall be conducted by a commission to be formed by the territorial division of state labour inspectorate agency consisting of:

state labour inspector acting as the chairman; and

employer and employee representative acting as members.

2. Group accidents, in which two people died, shall be investigated by a commission headed by the chief state labour inspector of oblast, city of the republic's significance.

3. In case of accidents occurred at hazardous industrial facilities, a state inspector on the prevention and remediation of emergencies shall be included as a member of the commission.

In case of accidents occurred in the course of man-caused emergency situations, the chairman of the special investigation commission shall be the state inspector on the prevention and remediation of emergencies. In such case, the state labour inspector shall be a member of commission.

4. The investigation of group accidents, in which from three to five people died, shall be conducted by a commission to be formed by the authorised government labour agency, and in case of death of more than five people, the commission shall be formed by the Government of the Republic of Kazakhstan.

5. For the decision of the matters requiring an expert opinion, the chairman of the special investigation commission shall have the right to form expert sub-commissions from among the specialists of organisations, scientists and regulatory agencies.

6. The investigation of the accidents with the employees with severe or fatal outcome, group accidents and group acute poisoning occurrences shall be documented as a special investigation certificate in the form established by the authorised government labour agency.

7. It shall be flatly prohibited to conduct, without the consent of the chairman of the special investigation commission, any inquiries of the witnesses, eyewitnesses, and also any concurrent investigations of the accident by any one or by other commission in the days of the work of the officially appointed commission.

8. The completion of the search for the injured, missing person(s) as a result of an explosion, wrecks, destructions and other occurrences at the organisation's facilities

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shall be determined by the special investigation commission on the basis of an opinion issued by the manager of the emergency-and-rescue unit and professionals.

Article 326. Documentation of investigation files and work accident registration

1. An accident certificate shall be filled-out and signed by the managers of the health and safety service and the organisation's unit, and also by the organisation's employee representative, and shall be approved by employer and certified with the seal of the organisation.

2. In case of poisoning, an accident certificate shall also be signed by a representative of the government agency in the area of sanitation and epidemiological public welfare.

If the employer is a natural person, an accident certificate shall be filled-out and signed by the employer and certified by a notary.

3. The certificate must be documented in accordance with the investigation files.

If, in the course of investigating a work accident, the commission found that gross negligence was the cause of occurrence or enlargement of harm, the commission shall apply mixed liability of the parties and identify the degree of guilt of the employee and the employer as a percentage.

In the event that either of the members of accident investigation commission disagrees with the conclusions of the commission (the majority), he shall submit in writing his reasoned opinion for inclusion in the investigation files. He shall sign the special investigation certificate with a reservation 'see the dissenting opinion'.

4. No later than in three days following the completion of the investigation of each of the accidents, the employer shall be obliged to issue the injured or his attorney an accident certificate, one original of the certificate shall be sent to the insurance organisation that has the relevant contractual relations with the employer, and the other original shall be sent to the state labour inspectorate.

In case of a poisoning, a copy of the certificate shall also be delivered to the government agency in the area of sanitation-epidemiological public welfare.

5. In the event of disagreement with the result of the investigation or a delay in the documentation of the accident certificate the injured or his attorney, the organisation's employee representative shall have the right to apply to the employer in writing, and the employer shall be obliged to consider their application and make a decision on the merits within a ten-day period.

6. Any controversies on the matters of investigation, documentation and registration of accidents arising in the course of investigation among the employer, employee and state labour inspector or state inspector on the prevention and remediation of emergencies in case of occurrences happened at hazardous industrial facilities shall be considered by the relevant, according to the jurisdiction, superior chief state labour inspector and/or in a judicial procedure.

A decision of the superior chief state labour inspector on the matters of the accident investigation shall be documented as an opinion in the form established by the authorised government labour agency.

7. Copies of the files of the accident special investigation certificate shall be transferred by the employer to the government control agencies. In addition, within

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a seven-day period following the completion of the accident investigation, one copy of the files of the special investigation certificate shall be sent by the state labour inspector to the local agency of internal affairs, which shall, in accordance by the legislation, make the relevant decision and notify of the decision made no later than in twenty days.

8. Each accident documented as an accident certificate shall be entered into the logbook of work accidents and other harm to health at work and shall be included in the statistical report on the temporary incapacity for work and the rate of injuries at work, which shall be signed by the employer and submitted in accordance with the established procedure to the statistics agencies. The logbooks shall be kept in accordance with the form established by the authorised government labour agency.

9. On a monthly basis, the employer shall be obliged to submit information, pursuant to the accident certificates, pertaining to the accidents occurred at the organisation, with a cumulative total for the relevant period, to the territorial agencies of state labour inspectorate in accordance with the form established by the authorised agency on statistics.

10. Work accidents, which, with the lapse of time, passed in the category of severe accidents or accidents with fatal outcome, shall be notified by the employer or its representative to the relevant state labour inspectorate, and the insured accidents shall be notified to the executive body of the insurer (at the place of the insurant's registration).

11. The accident investigation files shall be stored at the organisation for a period of five years; in case of liquidation of the organisation, it shall be obligatory that the accident investigation files be surrendered to the state archive at the place of its business.

12. The work accident investigation files shall, along with the investigation certificate, contain:

1) information on the passing by the injured of the occupational health training and briefing, and pre-employment and periodical medical examinations;

2) inquiry protocols in the form established by the authorised government labour agency, and explanations of the occurrence eyewitnesses, and also officials responsible for the compliance with health and safety requirements;

3) layouts, schemes and photographs from the place of occurrence;

4) excerpts from instructions, policies, orders and other regulations governing the health and safety requirements, obligations and liability of officials to provide healthy and safe labour conditions at work, etc.;

5) medical report on the form and severity of harm caused to the health of the injured (cause of death);

6) the results of laboratory and other examinations, tests, expert examination, analysis, etc.;

7) the opinion (if any) of the chief state labour inspector;

8) information on the damage caused to the to employer's property;

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9) the employer's order to compensate the injured (family members) for the harm caused to his/her health and the inflicting of liability upon the officials who are guilty of accident; and

10) the list of enclosed documents.

13. The injured or an employee representative shall have the right to see all files of the accident investigation and make any necessary excerpts.

Article 327. Control over the correct, timely investigation and record of accidents

Control over the correct, timely investigation and record of accidents, and over the performance of arrangements for the elimination of the causes of such accidents shall be maintained by state labour inspectors within their competence by means of audits, consideration of complaints, applications, petitions of individuals and inspections of organisations. The audits carried out by state labour inspectors within the framework of work accident investigation and control over the performance of arrangements for the elimination of the causes of such accidents shall not be subject to registration and record in accordance with the legislation of the Republic of Kazakhstan on state legal statistics and special records.

SECTION 6. CONTROL OVER THE COMPLIANCE WITH THE LABOUR LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN

Chapter 38. GOVERNMENT CONTROL

Article 328. Government Control over the Compliance with the Labour Legislation of the Republic of Kazakhstan

1. Government control over the compliance by organisations with the labour legislation of the Republic of Kazakhstan shall be maintained by the state labour inspectors.

2. The state labour inspectors shall comprise:

1) the chief state labour inspector of the Republic of Kazakhstan — the manager of the state labour inspectorate of the authorised government labour agency of the Republic of Kazakhstan;

2) the chief state labour inspectors of the state labour inspectorate — the officials of the state labour inspectorate of the authorised government labour agency;

3) the chief state labour inspectors of oblast, city of national significance — the managers of the oblast, city of national significance territorial divisions of the state labour inspectorate of the authorised government labour agency;

4) the state labour inspectors — the officials of the oblast, city of national significance territorial division of the state labour inspectorate agency.

3. When performing their duties, the state labour inspectors shall be protected by law and shall be guided by the Constitution of the Republic of Kazakhstan, laws and other laws and regulations of the Republic of Kazakhstan.

4. Any persons impeding the state labour inspector in the performance of their duties shall bear liability in accordance with laws of the Republic of Kazakhstan.

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Article 329. Principles of activity and primary objectives of state labour inspectorate

The activity of the state labour inspectorate shall be carried out on the basis of the principles of respect, observation and protection of rights and freedoms of the employees, lawfulness, objectiveness, independence and openness.

The primary objectives of the state labour inspectorate shall be to:

ensure government control over the compliance by organisations with the labour legislation of the Republic of Kazakhstan;

ensure that rights and freedoms of employees, including the right to safe labour conditions, are observed and protected; and

consider petitions, applications and complaints of employees and employers on the matters involving the labour legislation of the Republic of Kazakhstan.

Article 330. Rights of state labour inspectors

When exercising government control over the compliance with the labour legislation of the Republic of Kazakhstan, the state labour inspectors shall have the right to:

1) without let or hindrance, visit organisations and enterprises for the purpose of audits of compliance with of the labour legislation;

2) request and receive documents, explanations, information necessary for the performance of the responsibilities imposed on them from the employers;

3) issue orders, opinions binding upon the employers, and also draw up protocols and resolutions on administrative violations, impose administrative sanctions;

4) provide explanations on the matters falling within their competence;

5) suspend (prohibit) the activity of organisations, individual plants, workshops, sites, work places and the operation of equipment, mechanisms if their incompliance with the requirements of the laws and regulations concerning health and safety are found, for a period of no more than three days, whereby it shall be obligatory to file a statement of claim to a court within the specified period;

6) prohibit the provision and use at work places of any special clothing, special footwear and other personal protective gears and collective protective equipment incompliant with the requirements established for them;

7) seize for analysis any samples of special clothing, used or handled materials and substances with a notice to this effect to the employer (his representative) and execution of a relevant certificate;

8) investigate, in accordance with the established procedure, any work accidents;

9) issue orders binding upon the employers, to taking off the work of any employees who have not passed training, briefing, knowledge checks in health and safety;

10) forward information, claims and other files on the facts of violations of the labour legislation of the Republic of Kazakhstan, employers' failure to

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comply with the directives of state labour inspectors, to the relevant law enforcement agencies and courts;

11) participate in the knowledge checks in health and safety stipulated by the requirements established by the authorised government labour agency;

12) conduct audits of the performance of special conditions determined when a permission to engage foreign labour force was issued;

13) maintain control over the completeness and accuracy of the employer's internal control over health and safety; and

14) exercise other rights provided by the legislation of the Republic of Kazakhstan.

Article 331. Obligations of state labour inspectors

The state labour inspectors shall be obliged to:

1) maintain control over the compliance with the labour legislation of the Republic of Kazakhstan;

2) perform audits, in a timely and quality manner, of the compliance with the labour legislation of the Republic of Kazakhstan;

3) notify employers (their representatives) on any found violations of the labour legislation for the purpose of taking measures to remedy them, make submissions requiring that liability be inflicted upon the guilty persons;

4) consider, in a timely manner, any petitions of employees and employers on the application of the labour legislation of the Republic of Kazakhstan;

5) detect causes and circumstances resulting in the violations of the labour legislation, provide recommendations for their elimination and reinstatement of infringed labour rights;

6) participate in the investigations of work accidents and occupational diseases;

7) collect, analyse and summarise the causes of the violations of the labour legislation, participate in the development and adoption of measures to implement the arrangements aimed at the enhancement of work for the prevention of the violations of the labour legislation of the Republic of Kazakhstan;

8) not to disclose any received data if such data constitute state secret, official, commercial secret or other secret protected by law, which became known to him in connection with the performance of the job duties;

9) raise awareness on the application of the labour legislation of the Republic of Kazakhstan; and

10) interact with individuals and employee representatives when exercising control in the area of health and safety.

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Article 332. Rights and obligations of employers in the course of control exercised by state labour inspectors

1. In the course of government control over the compliance with the labour legislation of the Republic of Kazakhstan, employers shall have the right to:

1) provide explanations to the state labour inspectors with regard to the audit reports;

2) withhold information and documents if they are not relevant to the subject of the conducted audit; and

3) appeal against the certificate on the results of the audit and actions (omissions) of the state labour inspectors in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

2. In the course of government control over the compliance with the labour legislation of the Republic of Kazakhstan, employers shall be obliged to:

1) give access for the state labour inspectors to visit the territory and premises of the audited facility without let or hindrance;

2) provide the state labour inspectors and the organisation's employee representatives, who carry out the audit, with documents (information) in hard copies and in electronic form, either originals or copies, for adducing to the audit reports, and also access to electronic databases (information systems) in accordance with the objectives and subject of audit;

3) accept for enforcement the directives of the state labour inspectors and make a relevant note confirming the receipt thereof on the duplicate of the certificate; and

4) submit, within due periods, the information concerning compliance with the directives of the state labour inspectors.

Article 333. Directives of state labour inspectors

1. Depending on the identified violations of the labour legislation of the Republic of Kazakhstan, state labour inspectors shall issue (execute) the following directives:

1) orders:

requiring to remedy the violations of the requirements of the labour legislation of the Republic of Kazakhstan;

requiring to carry out preventative work on health and safety at the industrial facilities and equipment, and also in industrial processes for the preclusion of injury-threatening and contingency situations;

prohibiting (suspending) the operation of individual plants, workshops, sites, work places and equipment, and the organisation's activity generally. In this regard, the certificate of the prohibition (suspension) of the organisation's activity shall be effective until a court judgement is issued;

2) protocol of administrative offence;

3) resolution on the termination of administrative proceedings; and

4) resolution on an administrative offence case.

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2. Directives of state labour inspectors shall constitute the legal penalising measures for the violations of the requirements of the labour legislation by employers and officials, as found (identified) in the course of audits. Directives shall be executed in two originals, one of which shall be handed over to the employer.

3. Directives of state labour inspectors shall be binding upon officials, natural persons and legal entities.

4. The forms of directives of state labour inspectors shall be approved by the authorised government labour agency.

Article 334. Audits of compliance with the labour legislation of the Republic of Kazakhstan; types, forms and timing of audits

1. Audits are divided into scheduled and unscheduled audits.

A scheduled audit is the audit scheduled by the authorised government labour agency or its territorial division and conducted subject to the time intervals established by the laws of the Republic of Kazakhstan relative to previous audits.

Scheduled audits may also be conducted comprehensively, jointly with other regulatory agencies and employee representatives on the matters of compliance with the labour legislation of the Republic of Kazakhstan.

2. Scheduled audits of a natural person or legal entity may be conducted no more often than once a year; scheduled audits of small-scale business entities may be conducted no more often than once in three years, unless otherwise provided by laws of the Republic of Kazakhstan.

3. Unscheduled audits shall be conducted where natural persons or legal entities, government agencies file petitions concerning the violations of the labour legislation of the Republic of Kazakhstan, and also where the state labour inspectors find any facts threatening the life and health of employees and requiring immediate remediation in health and safety, or where other information is received, supported by documents and other evidences, of the signs of such violations or evidences found in the course of investigations of the work accidents.

Anonymous petitions shall not serve as a ground for an unscheduled audit.

4. The duration of audits must not exceed ten calendar days. In exceptional cases, where special researches, tests, expert examinations are necessary, and also where the scope of audit if significant, the manager of the state labour inspectorate or its territorial division (or his alternate) may extend the duration of audit up to twenty calendar days for the legal entities that have no separate business units, and up to thirty calendar days for legal entities that have separate subdivisions.

Article 335. Procedure for appeals against decisions, actions (omissions) of state labour inspectors exercising government control

1. In the event of the infringement of rights or lawful interests of the employer in the course of government control, the employer shall have the right to appeal against the actions (omissions) of a state labour inspector to the authorised government labour agency, superior state inspector and/or court in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

2. Appeal proceedings shall not suspend the enforcement of the issued directives of state labour inspectors.

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Article 336. Interaction of state labour inspectorates with other government agencies and organisations

1. The state labour inspectorates shall carry out their activity in cooperation with other government regulatory agencies, employee representatives, public associations, other organisations.

2. The government agencies shall be obliged to provide assistance to the state labour inspectors to enable them to achieve the objectives concerning the control over the compliance with the labour legislation of the Republic of Kazakhstan.

Article 337. Liability of state labour inspectors in the course of government control

In the event of failure to perform, or improper performance of their duties, when exercising government control, and also in the event of other unlawful actions (omissions), state labour inspectors shall bear liability established by laws of the Republic of Kazakhstan.

Chapter 39. HEALTH AND SAFETY INTERNAL CONTROL

Article 338. Health and safety internal control

1. Internal control shall encompass monitoring over the status of labour conditions, operational analysis of the data of industrial control, assessment of risks and taking measures to eliminate any discovered incompliance with health and safety requirements.

2. The internal control over health and safety compliance shall be carried out by an employer for the purpose of compliance with the health and safety regulations at work places and taking prompt measures to eliminate any discovered violations.

Article 339. Mechanism of the health and safety internal control

1. For the purpose of the implementation of internal control over the health and safety compliance at industrial organisations with more than 50 employees, employers shall form a health and safety department. The health and safety department shall have a status of the primary operations services.

2. The model regulations on the health and safety department in organisations shall be approved by the authorised government labour agency.

3. Employers with up to 50 employees shall introduce a position of health and safety officer, taking into consideration the specifics of activity, or shall entrust any other specialist with the health and safety functions.

4. The directions given by the health and safety department or health and safety officer in respect of the health and safety compliance shall be binding upon all employees of the organisation.

Chapter 40. PUBLIC CONTROL OVER THE COMPLIANCE WITH THE LABOUR LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN

Article 340. Public control over the compliance by organisations with the labour legislation

1. Public control in the area of health and safety at organisations shall be conducted by the public health inspectors elected by the trade union committees of the

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organisations; if there are no trade unions, public health inspectors shall be elected by general meeting (conference) of employees.

2. The national, industry, regional employee associations shall exercise public control over the compliance with the labour legislation at organisations, provided that this is provided for by agreements and collective agreements.

Article 341. Rights of public health inspectors

Public health inspectors shall have the right to:

1) exercise the protection of the employees' rights to occupational health before the employers by means of public control over the compliance by the employers with laws and regulations concerning health and safety, agreements, collective agreements for the creation by the employer of normal labour conditions and safety methods at work places at organisations;

2) take part in the investigation of work accidents and in the comprehensive audits of health and safety conducted by state labour inspectors;

3) receive information and explanations, including in the written form, from the employers and other officials of the organisation as necessary for the performance of their functions;

4) carry out audits of compliance by employers with their obligations provided by agreements, collective agreements in relation to occupational health, and make proposals on the results of the audits to the officials to remedy the detected violations;

5) take part in the work of the commissions on the testing and acceptance of industrial facilities and production tools for operation;

6) take part in the drafting of laws and regulations concerning occupational health, and make proposals;

7) apply to the relevant government agencies with the claims seeking infliction of liability upon the employers and other officials of organisations, who are guilty of the violations of the legislation of the Republic of Kazakhstan concerning health and safety, the provisions of the agreements and collective agreements, as related to occupational health, concealment of work accidents and occupational diseases;

8) take part in the settlement of labour disputes related to changes in labour conditions, violations of the legislation of the Republic of Kazakhstan concerning health and safety, failure to perform obligations provided by the agreements and collective agreements, and also by employment agreements, as related to health and safety; and

9) file claims to courts, pursuant to the applications of employees seeking remedy of the employees for compensation of harm caused as a result of maim or other injury to health in connection with the performance of job duties, and in the other cases of impairment of the employees' rights to health and safety.

President of the Republic of Kazakhstan

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N. NAZARBAEV

Astana, Akorda, 15 May 2007 No. 251-III ZRK

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Labor Code

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