What Severance Pay Rules Must Employers Follow in Kazakhstan?

Which Employees Qualify for Severance Pay?

• Employees dismissed due to employer liquidation or staff reduction under the Labour Code generally qualify for severance.
• Employees terminated because their job is medically contraindicated and no suitable alternative is available are entitled to severance.
• Employees released due to the employer’s change of ownership or reorganization may qualify if the termination is initiated by the employer.
• Employees whose employment ends because the employer moves to another locality and they refuse relocation can be owed severance.
• Employees terminated on grounds related to the employer’s unlawful actions or reputational harm may be entitled to compensation-type severance.
• Employees on fixed-term contracts may qualify if the contract ends early at the employer’s initiative without the employee’s fault.

What Are the Legal Timelines for Paying Severance?

In Kazakhstan, severance must be paid on or before the employee’s last working day, together with final wages and compensation for unused annual leave. The Labour Code requires all final settlements to be made no later than three working days from the termination date if immediate payment is not possible. Your company should document the calculation, obtain written acknowledgment of receipt, and pay via traceable bank transfer. Where a dispute arises, courts and labor inspectors will look at the termination date and payment date to assess compliance. Building internal checklists for exit processing helps ensure you never miss these tight timelines.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly or on time in Kazakhstan, you risk financial, administrative, and reputational consequences. Labor inspectors can order back payment, apply fines, and may treat repeated non-compliance as an aggravated offense. Employees can also sue for unpaid severance, interest, and moral damages, and courts often interpret ambiguities in favor of the employee.

• Administrative fines may be imposed on both the legal entity and responsible officials.
• Labor inspectors can issue mandatory orders to correct violations and pay arrears.
• Courts can award interest on delayed payments and, in some cases, moral damages.
• Systemic or repeated breaches can trigger higher fines and closer regulatory scrutiny.

Does Outsourcing Employment via an EOR Change Severance Liability?

Using an Employer of Record (https://www.playroll.com/employer-of-record) in Kazakhstan does not remove the need to follow the Labour Code’s severance rules. Legally, the EOR is the formal employer and is responsible for calculating and paying severance, but your company typically bears the economic cost under the service agreement. If the EOR mishandles a termination, both the EOR and your company can face claims, especially if your team directed the decision. You should ensure your EOR has clear termination workflows, local legal expertise, and pre-approved severance templates. Aligning your internal approvals with the EOR’s processes reduces the risk of disputes and unexpected liabilities.

Be 100 Percent Compliant in Offering Severance with Playroll

Severance compliance in Kazakhstan starts with mapping each termination to the correct legal ground and confirming whether severance is due, and at what multiple of the average monthly wage. Playroll’s local experts help your team classify exits correctly, calculate average earnings under Kazakh rules, and factor in related payments like unused vacation and statutory notice. You get clear documentation for each termination so you can show inspectors and auditors exactly how amounts were determined.

Playroll also standardizes your workflows so every Kazakhstan termination follows the same compliant steps, from notice letters to payment timing and employee sign-off. With automated checklists, localized templates, and coordinated payment runs, your company reduces the risk of late or incomplete severance. That means fewer disputes, smoother offboarding, and a consistent employee experience across all your Kazakhstan hires.