In December, the Senate of the Parliament of the Republic of Kazakhstan approved amendments and additions to the Labour Code relating to the regulation of personnel provision. Below, we discuss the key changes.
The legislator has introduced a number of new concepts concerning the assignment of personnel into the terminology of the Labour Code:
These definitions are also intended to distinguish the legal status of regular employees from that of assigned personnel.
We believe the legislator considered it essential to ensure the protection of employees’ rights when they are assigned under personnel provision services agreements. Accordingly, the amendments introduce the following requirements:
Furthermore, assigned employees are now entitled to refuse to perform work if a situation arises that poses a threat to their health or life, upon notifying their immediate supervisor or the employer’s representative (or the representative of the receiving party in cases of personnel provision).
At the same time, the sending party is prohibited from entering into personnel provision services agreements with a receiving party if the results of the attestation of production facilities concerning working conditions are not provided.
A new obligation has been established requiring the employer to remove employees of the sending party from work if they appear in a state of alcoholic, narcotic, or toxic intoxication.
In addition, employees of the sending party are required to undergo preventive medical examinations in accordance with the acts of the receiving party.
The amendments introduce a closed list of grounds permitting the assignment of employees of the sending party to a receiving party in the following cases:
Chapter 33 of the Civil Code has been supplemented with Article 687-1, under which, pursuant to a personnel provision services agreement, one party (the sending party) assigns its employee to perform work in the interests of, and under the management and control of, the other party (the receiving party).
Amendments have also been introduced to the Entrepreneurial Code and several other laws.
The changes entered into force on 31 December 2020.
The legislator has introduced a number of new concepts concerning the assignment of personnel into the terminology of the Labour Code:
- Personnel provision – the assignment of an employee by a sending party for the performance of labour functions in the interests of, and under the management and control of, the receiving party, pursuant to a personnel provision services agreement;
- Employees of the sending party – employees engaged on the basis of an employment contract concluded with the sending party in accordance with a personnel provision services agreement;
- Receiving party – an individual or legal entity, or sole proprietor (including peasant or farm enterprises) that engages employees of the sending party pursuant to a personnel provision services agreement;
- Acts of the receiving party – orders, directives, instructions, rules, regulations, shift schedules, and rotational work schedules issued by the receiving party in accordance with a personnel provision services agreement;
- Personnel provision – the assignment of an employee by the sending party to the receiving party under a personnel provision services agreement for the performance of labour functions in the interests of, and under the management and control of, the receiving party.
These definitions are also intended to distinguish the legal status of regular employees from that of assigned personnel.
We believe the legislator considered it essential to ensure the protection of employees’ rights when they are assigned under personnel provision services agreements. Accordingly, the amendments introduce the following requirements:
- prohibition of discrimination in remuneration with respect to employees of the sending party;
- entitlement to additional paid annual leave for employees of the sending party engaged in heavy work or work performed under harmful or dangerous working conditions;
- establishment of a procedure for determining increased official salaries or additional payments for employees of the sending party whose work is performed under heavy, harmful, or dangerous working conditions;
- reduced working hours for employees of the sending party engaged in heavy work or work with harmful or dangerous working conditions.
Furthermore, assigned employees are now entitled to refuse to perform work if a situation arises that poses a threat to their health or life, upon notifying their immediate supervisor or the employer’s representative (or the representative of the receiving party in cases of personnel provision).
At the same time, the sending party is prohibited from entering into personnel provision services agreements with a receiving party if the results of the attestation of production facilities concerning working conditions are not provided.
A new obligation has been established requiring the employer to remove employees of the sending party from work if they appear in a state of alcoholic, narcotic, or toxic intoxication.
In addition, employees of the sending party are required to undergo preventive medical examinations in accordance with the acts of the receiving party.
The amendments introduce a closed list of grounds permitting the assignment of employees of the sending party to a receiving party in the following cases:
- for performing work in a private household of an individual;
- for the duration of specific work;
- for the temporary replacement of an absent employee;
- for the duration of seasonal work.
Chapter 33 of the Civil Code has been supplemented with Article 687-1, under which, pursuant to a personnel provision services agreement, one party (the sending party) assigns its employee to perform work in the interests of, and under the management and control of, the other party (the receiving party).
Amendments have also been introduced to the Entrepreneurial Code and several other laws.
The changes entered into force on 31 December 2020.