Legal aspects of downsizing

Termination of the employment contract at the initiative of the employer or Can you get “under the reduction”?

Due to the difficult economic situation in the country, the number of those who fall “under the reduction” is growing every day, and this issue is becoming more and more urgent. Besides the fact that this is a big problem that raises a number of questions regarding finances, stability, future and habitual way of life, it is also psychologically unpleasant. It is quite logical to ask the question “why me?”.

Let’s look at this situation from a legal perspective, shall we? So, the list of those who can’t be laid off:

• You are less than 2 years away from retirement. It is not allowed to terminate an employment contract with employees before reaching the retirement age established by the Law of the Republic of Kazakhstan “On Pension Provision in the Republic of Kazakhstan” without a positive decision of a commission formed from an equal number of representatives from the employer and employees.
• You are temporarily unable to work or while you are on vacation. According to the Labor Code, it is not allowed to terminate an employment contract at the initiative of the employer during a period of temporary disability and the employee is on vacation.
• You are pregnant or raising children under the age of 3, or you are a single mother raising a child under the age of 14 (a disabled child under 18) or another person raising one of these categories of children without a mother. Termination of an employment contract at the initiative of the employer due to a reduction in the number or staff of employees is not allowed with pregnant women who have provided the employer with a certificate of pregnancy, women with children under the age of three, single mothers raising a child under the age of fourteen (a disabled child up to eighteen years), other persons raising the specified category of children without a mother.

If you do not fall into any of the categories, then it is important to know that when terminating an employment contract due to a reduction in the number or staff of employees, the Employer is obliged to notify you in writing of the termination of the employment contract at least one month in advance, if the labor, collective agreements do not a longer notice period. With your written consent, termination of the employment contract may be made before the expiration of the notice period.

The termination of the employment contract is documented by the act of the employer, which must indicate the grounds for termination of the employment contract in accordance with the Labor Code of the Republic of Kazakhstan.

Also an important point regarding paid annual labor leave and payment of compensation upon termination of the employment contract. If you partially or did not use your annual leave at all, then you are entitled to a compensation payment for the days of paid annual leave that you did not use.

Paid annual labor leave with the subsequent termination of the employment contract due to the expiration of its term may be granted in the event that the vacation time completely or partially goes beyond the term of the employment contract. The day of termination of the employment contract due to the expiration of its term is considered the last day of paid annual leave.