Term of the Employment Contract (Article 30 of the Labor Code)

Upon expiration of the employment contract, the parties are entitled to extend it either for an indefinite period or for a definite term of at least one year.

If the employment contract expires and neither party notifies the other of termination on the last working day (shift), the contract is considered extended for the same duration as originally agreed, except for cases provided in paragraph 2 of Article 51 of the Labor Code.

A fixed-term employment contract may be extended no more than twice.

If employment relations continue, the contract is considered to have been concluded for an indefinite term.

On January 13, 2020, the director of the LLP issued Order No. 2 to hire K. as a part-time lawyer (0.5 position), which was recorded in the electronic employment record book. The defendant’s representative presented a copy of the order during the panel session.

On April 1, 2021, the plaintiff was transferred to a full-time lawyer position. An employment contract dated April 1, 2021, was concluded between the parties for a 12-month term.

On April 3, 2023, the plaintiff received a notification on termination of employment due to the expiration of the employment contract. April 1 and 2, 2023, were Saturday and Sunday.

On April 3, 2023, an order was issued terminating the contract dated April 1, 2021, due to expiration, with compensation for the period from January 13, 2023, to March 31, 2023. The plaintiff was made aware of the order on April 7, 2023.

The courts correctly recognized the dismissal order of April 3, 2023, as unlawful and revoked it, since the original contract was concluded on January 13, 2020. The defendant did not present the employment contract from January 13, 2020, but the case file includes an electronic employment record confirming employment from that date, and there is an order hiring the plaintiff as a part-time lawyer.

As the employment relationship continued without termination on January 13, 2021, the contract was automatically extended for the same term rather than converted to indefinite. Thus, based on the materials, the original contract was from January 13, 2020, to January 13, 2021 (inclusive). In the absence of termination notification, it was extended:

• First extension: to January 13, 2022 (inclusive)

• Second extension: to January 13, 2023 (inclusive)

In the absence of termination notice, the contract is deemed extended for an indefinite term under the contract terms without the need for an addendum.

Automatic extension of a fixed-term contract for the same term is permitted, except in cases under paragraph 2 of Article 51 and paragraph 1 of Article 96 of the Labor Code. To enable the employee to exercise the constitutional right to annual paid leave, paragraph 1 of Article 96 allows granting paid annual leave beyond the contract term, with termination occurring on the last day of such leave. Granting leave beyond the contract’s duration does not automatically extend the contract.

When concluding a fixed-term contract of at least one year, the contract must specify the start and end dates, with the possibility of two extensions. Delayed granting of annual leave can result in accumulated unused leave, which the employee may use upon contract termination to receive financial support for the leave.

According to paragraph 5 of Article 13 of the Labor Code, if the last day falls on a non-working day, the contract ends on the next working day, unless otherwise provided by the Labor Code. This exception applies in Article 96(1), where termination occurs on the last day of paid annual leave. Similarly, paragraph 2 of Article 51 obliges the employer to extend the contract for certain categories of employees until the end of maternity or parental leave.

Thus, the termination date of an employment contract, and the date of the termination order, shall be the last day of paid annual leave—even if it falls on a non-working day and no actual presence at work is required. The timesheet will reflect that day as leave under Article 79(2) of the Labor Code.

For example, a contract may be concluded to temporarily replace an absent employee. Under Article 51(4), the termination date is the day the primary employee returns to work or the date of termination of their employment. If the primary employee returns and the substitute has unused leave, the parties may agree to grant the leave instead of paying compensation, followed by termination.

Under Article 51(3), for contracts related to specific work completion, the contract ends upon completion of the work (i.e., the occurrence of an event). Upon work completion, the employer must terminate the contract, though the parties may agree to grant unused leave before termination. Employers are not at risk of the contract being deemed extended indefinitely under Article 96(1).

While annual leave may extend the contract period regardless of its term type, extension for pregnant women (12+ weeks) or employees with children under three years is only allowed if the original contract was for at least one year.

Pre-Trial Dispute Resolution

Practice under Article 159 of the Labor Code:

Article 148 of the Civil Procedure Code (CPC) requires information on pre-trial dispute resolution if mandated by law or contract. According to Article 159(1) of the Labor Code, individual labor disputes must be reviewed by conciliation commissions—except in disputes involving:

• Employers and workers of micro-enterprises

• Non-profits with fewer than 15 employees

• Domestic workers

• Sole executive bodies of legal entities

• Executive body members of legal entities

Pre-trial resolution is also not required for categories whose labor is governed by special laws and acts, including military personnel, law enforcement, and civil servants.

Jurisdiction

According to paragraph 5 of the Supreme Court Regulatory Decree No. 9 (October 6, 2017), claims from labor disputes must be filed under general CPC rules: at the location of the legal entity (defendant) or the employer's place of residence (if an individual).

Article 29(2) CPC states that a claim against a legal entity is filed where the entity is registered per its founding documents or the national business identification registry.

If the claim is filed at a branch/representative office, only legal entities can be defendants under Article 30(3) CPC.

Example: The Ust-Kamenogorsk City Court transferred a claim to the Interdistrict Civil Court of Astana, where the legal entity is registered (Astana, D. Konayev Street). The transfer was correct based on CPC rules.

Courts must also consider Article 19 of the Labor Code: the branch head of a foreign legal entity exercises all employer rights and duties. Employees may sue at the branch’s location if the branch head has representative authority.

Jurisdiction in Rehabilitation/Bankruptcy Cases

Under Article 35(8) CPC, cases arising during rehabilitation/bankruptcy, including disputes over transactions, property returns, or receivables, are reviewed by the judge who applied the procedure, except as per Article 31 CPC.

Example: A claim in Aktobe was returned due to an active rehabilitation procedure. However, the appellate court reversed the return, as the dispute stemmed from employment law and was not directly related to the rehabilitation.

Therefore, disputes such as reinstatement or wage recovery must be reviewed by courts of general jurisdiction. Article 35(8) CPC does not apply.

State Duty

Under Article 610(7) of the Tax Code, a state fee of 0.5 MCI is required for non-property claims.

Per Article 951(1) of the Civil Code, moral damage is a violation or deprivation of personal non-property rights.

Article 149 CPC requires that proof of state duty payment be attached to the claim.

However, under Article 616(1) of the Tax Code, plaintiffs are exempt from fees for claims involving wage recovery or other employment-related matters.

If the claim is granted, the court must recover the fee from the defendant per Article 117 CPC.

Courts sometimes wrongly accept claims without fees, contrary to Article 149(1)(2) CPC.

Example: In Almaty, a claim by A. against an LLP resulted in recovery of unpaid wages, penalties, moral damages, and representative fees. The LLP was also ordered to make pension and other mandatory contributions for June–August 2021.

Legal Framework

Applicable laws and acts:

• Constitution of the Republic of Kazakhstan

• Civil Code (General and Special Parts)

• Civil Procedure Code

• Labor Code (No. 414-V, dated November 23, 2015)

• Tax Code (No. 120-VI, dated December 25, 2017)

• Entrepreneurial Code (No. 375-V, dated October 29, 2015)

• Code on Public Health (No. 360-VI, dated July 7, 2020)

• Law on Trade Unions

• Law on Enforcement Proceedings and Status of Judicial Officers (April 2, 2010)

• Law on Notaries (July 14, 1997)

• Law on LLPs (April 22, 1998)

• Law on Joint-Stock Companies (May 13, 2003)

• Supreme Court Regulatory Decrees:

  • On labor disputes (October 6, 2017, No. 9)

  • On compensation for moral harm (November 27, 2015, No. 7)

  • On court decisions in civil cases (July 11, 2003, No. 5)

  • On court costs in civil cases (December 25, 2006, No. 9)

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