Important changes were introduced to the Rules for establishing quota for the use of foreign labor in the Republic of Kazakhstan.

In accordance with the Resolution of the Government of the Republic of Kazakhstan No. 189 dated 13 April 2018 “On Amendments and Additions to the Decree No. 802 of the Government of the Republic of Kazakhstan dated December 15, 2016 “On Approval of the Rules for Establishing a Quota for the Use of Foreign Labor Force in the Republic of Kazakhstan and its Distribution between the regions of the Republic of Kazakhstan, Determining the lists of economic sectors in which an intra-corporate transfer is carried out, and Persons who can perform their labor activity without obtaining Permissions of local executive bodies for the use of foreign labor force, and Abolishment of certain decisions of the Government of the Republic of Kazakhstan” (hereinafter -“the RoK Government Decree # 189 dated 13 April 2018”).

In Appendix 2 to the Government Decree No 189 dated 13 April 2018, the list of persons who can perform their labor activity without obtaining permissions of local executive bodies for the use of foreign labor force, in addition to directors of branches or representative offices of foreign legal entities, specifies the directors of Kazakhstan-based legal entities and their deputies with a 100% foreign participation in their authorized capital.

In addition, it is not necessary to obtain a permission of local executive bodies to use foreign labor for persons working in the national managing holding on positions not lower than heads of structural units with higher education with certified documents according to the procedure established by the legislation of the Republic of Kazakhstan, as well as those employed as members of the board of directors of the national managing holding.

The RoK Government Decree №189 dated 13 April 2018 was put into effect on expiry of ten calendar days after its first official publication (published: Reference Control Bank of RoK Regulatory Legal Acts in electronic form, 17 April 2018; “Kazakhstanskaya Pravda” dated 23 April 2018, № 76 (28705); “Yegemen Qazaqstan” 23 April 2018, № 76 (29307).

Therefore, it should be kept in mind that, when foreigners are employed as directors and deputy directors of Kazakhstan-based legal entities (LLP, JSC) with a 100% foreign participation in their authorized capital, it is not necessary to obtain a foreign labor work permit in relation to such persons.