The employer is obliged to pay the employee wages and other bonus payments on time and in full

Home / Publications / The employer is obliged to pay the employee wages and other bonus payments on time and in full

27 March 2025

The employer is obliged to pay the employee wages and other bonus payments on time and in full

In accordance with subparagraph 5) of paragraph 2 of Article 23 of the Labor Code, the employer is obliged to pay the employee wages and other payments provided for by regulatory legal acts of the Republic of Kazakhstan, labor, collective agreements, and acts of the employer on time and in full.

The employer is obliged to pay bonuses to the plaintiff, since there were no grounds for excluding her from the list of persons subject to bonuses.

B. appealed to the court with a claim to the KSU for recovery of material damage and compensation for moral damage.

By the decision of the Petropavlovsk City Court No. 2 dated April 17, 2023, which was left unchanged by the decision of the Judicial Board for Civil Cases of the North Kazakhstan Regional Court dated July 5, 2023, the claim was denied.

The refusal to satisfy the claim was motivated by the courts of the first and appellate instances by the fact that awarding bonuses to employees of the Institution is the right of the employer. The employment contract concluded between the plaintiff and the defendant does not establish that bonuses are part of the employee's salary. At the time of awarding the Institution's staff, the plaintiff had an outstanding disciplinary penalty. The court decision referred to by the plaintiff entered into force on January 9, 2023, while the bonus orders were issued from October to December 2022.

By the decision of the Judicial Board for Civil Cases of the Supreme Court of the Republic of Kazakhstan dated February 14, 2024, the decision of the Petropavlovsk City Court No. 2 dated April 17, 2023, and the decision of the Judicial Board for Civil Cases of the North Kazakhstan Region Court dated July 5, 2023 in this case were canceled. A new decision has been made in this case.

B.'s claim to the Institution for recovery of material damage and compensation for moral damage was partially satisfied.

Material damage, compensation for moral damage, and court costs for the representative's assistance were recovered from the Institution in favor of B.

In the case, it was established that the plaintiff, by an order dated March 26, 2021, was hired at the Institution as the head of the legal support and human resources department, a lawyer.

By an order dated August 19, 2022, disciplinary action in the form of a remark was applied to the plaintiff for improper performance of work duties.

On August 27, 2022, B. filed a lawsuit against the defendant to cancel the order to impose a disciplinary penalty, the order to establish a commission and to recover compensation for moral damage.

By a court decision dated December 5, 2022, B.'s claim against the Institution was partially satisfied. The order of August 19, 2022 on the imposition of a disciplinary penalty in the form of a remark was declared illegal and canceled. The rest of the claim was denied.

The plaintiff was not included in the list of persons subject to bonuses in honor of the celebration of the Day of the Republic of Kazakhstan and Independence Day of the Republic of Kazakhstan due to the existing disciplinary action.

The plaintiff motivated her claims in the present case by the fact that at the time of issuing the award order, a judicial act had already been issued recognizing the disciplinary penalty order as illegal, the awards were given and timed to coincide with public holidays out of the existing budget savings, and not for any performance indicators or based on the results of the work done.

The remuneration system according to the provisions of Article 107 of the Labor Code is determined by the terms of labor, collective agreements and (or) acts of the employer.

In order to increase the interest of employees in increasing the efficiency of production and the quality of work performed, the employer may introduce bonus systems and other forms of labor incentives determined by the terms of the collective agreement and (or) acts of the employer.

In accordance with subparagraph 2) Paragraph 6 of the Resolution of the Government of the Republic of Kazakhstan dated December 31, 2015 No. 1193 "On the remuneration system for civil servants, employees of organizations maintained at the expense of the State budget, employees of state-owned enterprises" The heads of organizations have been given the right to set incentive allowances for the salaries of employees of organizations, to award bonuses and provide financial assistance by saving money., provided for the maintenance of the relevant state institution according to a financing plan in the absence of accounts payable, or according to a development plan approved for a state-owned enterprise by a public administration body in the absence of accounts payable, in accordance with the procedure established by an industry agreement, a collective agreement and (or) an act of the employer.

Clause 5.4 of the collective agreement of the Institution stipulates that the employer may award employees by saving budget funds provided for the maintenance of the Institution under the financing plan in the absence of accounts payable, for good performance, by the holidays.

The conditions of bonuses, the procedure for approving and paying bonuses are provided for by the Rules for Awarding bonuses, providing financial assistance and establishing allowances for official salaries of employees of the Republic of Kazakhstan bodies at the expense of the state budget, as well as the payment of bonuses to administrative civil servants, approved by Government Resolution No. 1127 of August 29, 2001.

Thus, subparagraph 6) of paragraph 3 of the Rules provides for bonuses in connection with anniversaries and holidays.

Employee bonuses are not awarded in accordance with paragraph 4 of the Rules.:

1) if he has not received a disciplinary sanction.;

2) who has worked in the relevant body for less than one month;

3) during the probation period.

There are no grounds provided by the Rules for exclusion from the list of awarded Bekenbayeva Zh.I., the order to impose disciplinary punishment in the form of a remark was declared illegal by a court decision that entered into force and was canceled.

Consequently, there were no grounds for excluding the plaintiff from the list of persons subject to bonuses.

Regarding the conclusion of the local courts that the issue of bonuses for employees of the institution is the right of the employer, this right has been implemented by him, orders on bonuses for employees have been issued.

Article 107 of the Labor Code stipulates that in order to enhance the interest of employees in increasing production efficiency and the quality of work performed, the employer may introduce bonus systems and other forms of labor incentives defined by the terms of the collective agreement and (or) acts of the employer. This provision of legislation gives employers the right to stimulate the work of their employees by setting various types of bonuses based on the profits from their activities.

The bonus is one of the types of incentive payments and represents cash payments for achieving certain results in work and stimulating their further increase. When setting various types of work incentives, it is important that employees are informed about the procedure, conditions and criteria for bonuses. In order to avoid conflicts in the team, it is important that bonuses cover all categories of personnel, for each of which its own criteria can be developed. It is recommended to pay bonuses for national and public holidays in the same amount to all employees of the organization, since they are not tied to performance indicators.

Thus, taking into account the role of bonuses and other types of financial incentives in increasing productivity and quality of work, when building a bonus system, establishing incentive payments and allowances, the organization must respect the principle of fair remuneration for work.

Compliance with the pre-trial dispute settlement procedure

The practice of applying the requirements of Article 159 of the Labor Code

Article 148 of the CPC contains a list of requirements for the form and content of the claim. According to Part 6 of paragraph 1 of Article 148 of the CPC, the application must contain information on compliance with the pre-trial procedure for contacting the defendant, if this is established by law or provided for by contract.

In accordance with paragraph 1 of Article 159 of the Labor Code, individual labor disputes are considered by conciliation commissions, with the exception of disputes arising between an employer and an employee of a microenterprise entity, a non-profit organization with no more than fifteen employees, a domestic worker, the sole executive body of a legal entity, the head of the executive body of a legal entity, as well as other members of the collegial executive body. a legal entity, and for unresolved issues or non–fulfillment of the decision of the conciliation commission - by the courts.

That is, in disputes arising between an employer and an employee of a microenterprise entity, a non-profit organization with no more than fifteen employees, a domestic worker, the sole executive body of a legal entity, the head of the executive body of a legal entity, as well as other members of the collegial executive body of a legal entity, compliance with the preliminary consideration of the dispute in the conciliation commission is not required.

The requirement to apply to the conciliation Commission also does not apply to certain categories of employees whose work is regulated by the Labor Code of the Republic of Kazakhstan with the specifics provided for by special laws and other regulatory legal acts of the Republic of Kazakhstan, including those in military service, employees of special state and law enforcement agencies, civil servants.

Jurisdiction

In accordance with paragraph 5 of the regulatory resolution of the Supreme Court of the Republic of Kazakhstan "On certain issues of the application of legislation by courts in the resolution of labor disputes" dated October 6, 2017 No. 9 (hereinafter referred to as NP), claims for disputes arising from labor relations are subject to filing with the court according to the general rules of civil procedure at the location of the defendant, a legal entity the person or place of residence of the employer of the individual acting as a defendant in the dispute.

According to Part 2 of Article 29 of the CPC, a claim against a legal entity is filed in court at the location of the legal entity according to the constituent documents and (or) the address entered in the National Register of Business Identification Numbers.

When lawsuits are filed at the location of a branch or representative office in accordance with the procedure provided for in part three of Article 30 of the CPC, only legal entities may be defendants.

Questions of jurisdiction in cases of the generalized category do not cause difficulties.

Thus, by the ruling of the Ust-Kamenogorsk City Court, the civil case on the claim of Zh. The claim for recovery of damages, payment for overtime, compensation for moral damage has been transferred to the jurisdiction of the inter-district Court for Civil Cases of Astana city for consideration on the merits.

The court's ruling is correct, since it has been established that the defendant is a legal entity located and registered at the address: Astana, D.Konaeva Street, claims for disputes arising from labor relations are subject to filing with the court according to the general rules of civil procedure at the defendant's location.

In addition, I consider it necessary to draw the attention of the courts to the requirements of article 19 of the Labor Code, according to which the head of a branch or representative office of a foreign legal entity exercises all rights and performs all duties of the employer on behalf of this legal entity. Consequently, an employee has the right to file a claim at the location of a branch of a foreign legal entity, having previously verified the rights of the head of the branch to represent the interests of the legal entity.

The issue of determining the jurisdiction of labor disputes in case of rehabilitation or bankruptcy of the employer.

Thus, by virtue of the provisions of Part 8 of Article 35 of the CPC, cases on disputes arising within the framework of rehabilitation and bankruptcy procedures, including the recognition of transactions concluded by the debtor or a person authorized by him, as invalid, on the return of the debtor's property, on the recovery of receivables from claims of a bankrupt or rehabilitation manager, are considered by the same judge, which have issued a decision on the application of a rehabilitation procedure or on declaring the debtor bankrupt, with the exception of dispute cases, the jurisdiction of which is established by Article 31 of the CPC.

By the ruling of the Aktobe City Court dated February 15, 2021, Zh.'s claim against LLP for the cancellation of orders on suspension from work, dismissal, reinstatement, recovery of wages for overtime, recovery of wages for forced absenteeism, recovery of penalties, moral damage was returned on the basis of subparagraph 2 of part 1 of Article 152 of the PC due to lack of jurisdiction. dispute to this court.

Returning the claim, the court pointed out that the decision of the Council of Ministers of the Aktobe region applied a rehabilitation procedure to the Partnership, and therefore, in accordance with part 8 of Article 35 of the CPC, the case is subject to consideration by the economic court.

Indeed, a rehabilitation procedure was applied to the Partnership by the decision of the Council of Ministers of the Aktobe region Court of October 14, 2016, which entered into force.

By virtue of the provisions of sub-paragraphs 5, 7 of Article 67 of the Law of the Republic of Kazakhstan "On Rehabilitation and Bankruptcy", the court in the rehabilitation procedure accepts cases on property disputes in which the debtor acts as a defendant, and also resolves disputes between participants in the rehabilitation procedure.

According to subparagraph 16) of paragraph 1 of Article 1 of the Labor Code, a labor dispute is a disagreement between an employee (employees) and an employer (employers), including those who previously had an employment relationship, on the application of labor legislation of the Republic of Kazakhstan, the fulfillment or amendment of the terms of agreements, labor and (or) collective agreements, acts of the employer.

It has been established that the dispute between the parties arises from an employment relationship, is based on the norms of labor legislation and the terms of employment contracts and is not related to the implementation of a rehabilitation procedure.

Since the court incorrectly applied the provisions of part 8 of Article 35 of the CPC, by the ruling of the judicial board of March 12, 2021, the court's ruling was canceled and the issue was referred to the court of first instance for reconsideration.

In cases where an employer is declared bankrupt or a rehabilitation procedure is applied, disputes arising from an employment relationship (about reinstatement at work, recovery of wages, etc.) are subject to consideration and resolution in courts of general jurisdiction, the provisions of Part 8 of Article 35 of the CPC do not apply to labor disputes.

State duty

According to the requirements of paragraph 7 of Article 610 of the Tax Code, the state duty is levied on non-property claims in the amount of 0.5 MCI.

Based on the requirements of paragraph 1 of Article 951 of the Civil Code, moral harm is a violation, diminution or deprivation of personal non–property benefits and rights of individuals.

According to the requirements of Article 149 of the CPC, a document confirming payment of the state fee is attached to the claim.

In accordance with subparagraph 1) of Article 616 of the Tax Code, plaintiffs are exempt from paying state duties in courts for claims for recovery of wages and other claims related to work.

In case of satisfaction of the claim, the court, in accordance with Article 117 of the CPC, is obliged to collect a state fee to the state revenue from the defendant, who is not exempt from its payment.

There are individual cases when courts, in violation of subparagraph 2) of part 1 of Article 149 of the CPC, accept claims for court proceedings without paying a state fee.

It follows from the case file that A. filed a lawsuit against the LLP to recover wages, compensation for downtime, penalties, and compensation for moral damage.

By the decision of the Zhetysu District Court of Almaty dated April 13, 2022, upheld by the decision of the Judicial Board for Civil Cases of the Almaty City Court, with LLP in favor of A. wage arrears, penalties, compensation for moral damage, and expenses related to the representative's assistance have been collected.

The LLP is responsible for making pension contributions and other mandatory payments for the period of A.'s employment from June 22, 2021 to August 2021.

Regulatory framework

The main regulatory legal acts to be applied in the consideration of cases of the generalized category are:

The Constitution of the Republic of Kazakhstan;

The Civil Code of the Republic of Kazakhstan (General part) dated December 27, 1994;

The Civil Code of the Republic of Kazakhstan (Special part) dated July 1, 1999 (hereinafter referred to as the CC);

Civil Procedure Code of the Republic of Kazakhstan dated October 31, 2015 No. 377- V (hereinafter – CPC);

The Labor Code of the Republic of Kazakhstan dated November 23, 2015 No. 414- V SAM (hereinafter referred to as the Labor Code);

On Taxes and other mandatory payments to the Budget (Tax Code) dated December 25, 2017 No. 120-VI SAM (hereinafter – NK);

Business Code of October 29, 2015 No. 375-V SAM;

The Code of the Republic of Kazakhstan dated July 7, 2020 No. 360-VI SAM "On the health of the people and the healthcare system";

The Law of the Republic of Kazakhstan "On Trade Unions";

The Law of the Republic of Kazakhstan dated April 2, 2010 No. 261-IV "On enforcement proceedings and the status of bailiffs";

The Law of the Republic of Kazakhstan dated July 14, 1997 No. 155-I "On Notary";

The Law of the Republic of Kazakhstan dated April 22, 1998 No. 220-1 "On Limited and Additional Liability Partnerships";

The Law of the Republic of Kazakhstan dated May 13, 2003 No. 415 "On Joint-Stock Companies";

Normative resolutions of the Supreme Court of the Republic of Kazakhstan: "On certain issues of the application of legislation by courts in the resolution of labor disputes" dated October 6, 2017 No. 9; "On the application by courts of legislation on compensation for moral damage" dated November 27, 2015 No. 7; "On judicial decision in civil cases" dated July 11, 2003 No. 5; "On the application by the courts of the Republic of Kazakhstan of legislation on court costs in civil cases" dated December 25, 2006 No. 9.

Attention!

Law and Law Law Law draws your attention to the fact that this document is basic and does not always meet the requirements of a particular situation. Our lawyers are ready to assist you in legal advice, drawing up any legal document suitable for your situation.

For more information, please contact a Lawyer / Attorney by phone: +7 (708) 971-78-58; +7 (700) 978 5755, +7 (700) 978 5085.

Attorney at Law Almaty Lawyer Legal Services Legal Advice Civil Criminal Administrative Cases Disputes Protection Arbitration Law Firm Kazakhstan Law Office Court Cases