The Employer of Records (EOR/outstaffing) model, where employees in fact work for the client but are formally employed by a local company acting as the employer, is gradually becoming more common on the Kazakhstani market. At the same time, this employer is subject to all labor, social and administrative law requirements, just like any other organization that hires staff. An error in setting up processes may lead to fines, disputes with employees and claims from competent authorities, so it is important to understand the basic rules and formalize them in internal documents.
Status of the employer
From a legal point of view, the employer bears full responsibility for complying with employees’ rights and guarantees, regardless of the fact that they perform tasks in the interests of a third party. It is the employer who concludes employment contracts, formalizes hiring and dismissal, calculates and pays salaries, keeps records of working time, grants leave and pays for periods of temporary incapacity for work. All this requires a structured HR and payroll system aligned with the requirements of Kazakhstani labor legislation.
Leave and temporary incapacity for work
Employees are granted at least 24 calendar days of annual paid leave for each working year. As a rule, a leave schedule is drawn up, approved by an act of the employer and binding on both parties. If leave is taken according to the schedule, a separate application is not required; if leave is taken outside the schedule, an application is advisable and the procedure for submitting it may be set out in internal regulations. It is important to comply with deadlines for paying leave and to avoid situations where an employee does not take leave for years. Periods of illness are formalized with a certificate of temporary incapacity for work, which gives the right to receive a benefit. The employer is obliged to pay for this period at its own expense in the prescribed manner. If an employee does not inform the employer of the reason for absence and does not provide documents, failure to attend work may be qualified as absenteeism, which is particularly sensitive in the EOR model, where it is important to maintain discipline and transparency for the client.
Business trips and working time recording
When employees are sent on business trips, the procedure for arranging them must be clearly described in internal regulations: who initiates the trip, within what timeframe the order is issued, how an advance is paid and when the expense report must be submitted. Business trip documents are both HR and accounting documents, so their timely and correct preparation is essential. Special attention must be paid to recording working time. The employer is obliged to record actual hours worked, days of leave, business trips, illness, as well as work on weekends, public holidays and night shifts. Even if a monthly consolidated report is sufficient for the client, the company must maintain full primary records internally, allowing any data to be confirmed at the request of an employee or a competent authority.
Overtime, night shifts and days off
Engaging employees in overtime work is generally allowed with their written consent and must not exceed the limits established by law. Overtime hours are paid at an increased rate or compensated with time off of at least equal duration. Work at night, on weekends and public holidays is also subject to separate recording and increased pay. For the EOR model, it is critical that the actual workload of employees corresponds to the agreed terms and does not result in systematic unpaid overtime, as this increases the risk of claims and reduces employee satisfaction.
Accrual of service for leave and mandatory insurance
Service for the purpose of annual leave is calculated taking into account the actual time worked and periods during which the employee retained their job and full or partial salary. Periods of temporary incapacity for work and maternity leave are also included in the length of service for leave. Work on a part-time basis does not reduce the length of annual leave, which is important for flexible schedules and part-time arrangements often used in EOR projects. The employer is obliged to pay contributions and deductions under the social and medical insurance systems, as well as to insure employees against accidents occurring in the course of their work. Failure to fulfil these obligations may lead to financial sanctions and disputes if an insured event occurs. Voluntary insurance programmes can be used as an HR policy tool, but they do not replace mandatory types of insurance.
Working time regimes and schedules
Labour legislation does not allow a state of permanent availability without clearly defined working hours and days off. Even with shift-based and flexible schedules, it is necessary to comply with working time norms for the accounting period, establish shift schedules, provide rest days and record overtime. Attempts to effectively establish a “non-standard” regime for entire teams within an EOR project may lead to violations and fines. The optimal approach is to agree reasonable working time regimes with the client in advance and accurately reflect them in employment contracts and the employer’s internal regulations.
How FChain can help
FChain specialists support EOR projects and classical HR models, helping employers to build processes in full compliance with the legislation of the Republic of Kazakhstan. As part of this support, it is possible to analyse and adapt internal regulations, develop clear templates for applications, orders and timesheets, set up working time recording and payroll, and assess the risks of administrative liability. This enables the EOR model to be used as an effective personnel management tool while remaining within the framework of Kazakhstani law.
For professional support, please contact us at almaty@f-chain.com or via WhatsApp at +7 771 214 1820
If you would like to learn more about EOR in Azerbaijan please pay attention to article of FChain Azerbaijan Financial Chain Corporation Launches Employer of Record (EoR) Service
Prepared by: Sergey Gaydarov
Senior Lawyer, FChain Kazakhstan
November 11, 2025