Sayat Zholshy & Partners analyzed the anticipated novelties in labor legislation concerning the changes in work conditions
The Labor Code of Kazakhstan in its current edition establishes the procedure for changing the work conditions, but “strictly in accordance with the set of established rules”. Such rules are intended to limit the abuse of employees’ rights by the employer. Proposed new edition of Labor Code is drafted specifically for the coming times of "new normal" (lower economic growth and productivity growth) and, if adopted, will give employers much more freedom.
The draft Labor Code (the “Draft”) clarifies the list of grounds for changing the work conditions:
- reorganization of the company,
- changes in economic or technological conditions,
- changes in organization of labor, and/or
- reduction in scope of works and services performed by the company.
Besides, due to change of work conditions the employee may now have his/her position changed, which was not permitted before.
Moreover, amendments deal with temporary transfer to another job for operational reasons. The current Labor Code allows temporary transfer to another job for maximum of 1 month within a calendar year, while the Draft increases such period to 3 months.
Another important innovation concerns payments to an employee temporarily transferred to another location. Such employer will be getting compensation similar to that paid for business trips.
The maximum time limit for transfer to another job in case of downtime (1 month within a calendar year) is abolished. Therefore, the Draft permits transfers to another job for the total downtime period.
All the aforementioned amendments are aimed at allowing the employers to take unpopular measures, but keep the people occupied during the times of economic downturn and high unemployment risks.
Should you have any questions regarding labor law, please contact our Partner Dmitriy Chumakov.