The rules on severance pay in detail

Kazakhstani law does not contain the concept of severance pay. However, employees are entitled to certain compensation payments (not considered as severance payments) if the employment contract is terminated for the following reasons:

  • closure of the organisation;
  • redundancy;
  • a decrease in the productivity of the business, which has worsened the economic condition of the employer;
  • where an employee who previously did a job has been reinstated, meaning that another employee is being dismissed;
  • partial or total incapacity of an employee to work, as stated on a medical certificate;
  • refusal of an employee to continue working because of a breach the employment agreement by the employer;
  • in some other cases stipulated by law.

The amount of  compensation payments depends on the ground of termination and particular circumstances.

Employment contracts, internal policies of the employer or collective bargaining agreements (if any) may provide for the payment of additional amounts to employees, or for the making of higher payments. In addition, it is possible for employers to offer contractual redundancy schemes, but this is rare in practice.

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Author: Aequitas

Date: December 2019