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Peculiarities of labour regulation within the Astana International Financial Centre (AIFC)

published on 20 June 2025 | reading time approx. 7 minutes

Since 2015, Kazakhstan has maintained the International Financial Center "Astana", established in accordance with the Constitutional Law. The purpose of this center is to establish a leading international center of financial services.

AIFC is a designated territory within the city of Astana, with clearly delineated borders established by the President of Kazakhstan. This territory operates under a distinct legal regime in the financial sector.

AIFC is a hybrid institution that attracts investments to Kazakhstan and develops the Kazakhstan market with an autonomous legal system. In this case, it is important to note that the current law of AIFC is based on the Constitution of Kazakhstan and consists of the following:

the Constitutional Law
acts of the AIFC that do not contradict the Constitutional Law, which may be based on the principles, norms, and precedents of the law of England and Wales and/or the standards of the world's leading financial centers, adopted by the bodies of the AIFC within the powers granted by the Constitutional Law
the current law of Kazakhstan, which applies to the part not regulated by the Constitutional Law.

Therefore, AIFC operates on the basis of English common law principles. The legal system of AIFC is based on the acts adopted by its bodies, including the Constitutional Law. In cases where AIFC acts do not contain specific provisions, the law of Kazakhstan is applied. Additionally, the legislator has clearly defined that the activities conducted within the AIFC's jurisdiction are directly governed by the acts enacted by the MFCA itself. As stated above, the relevant AIFC body, in accordance with its competencies, promulgates a regulation that governs the pertinent sphere of relations between AIFC participants, AIFC bodies, and/or their employees.

In the context of establishing labor relations in which the principle of "high qualification" applies, the following acts are currently in force:

AIFC Employment Regulations (AIFC Regulations No. 4 OF 2017) with amendments as of 15 January 2021, which commence on 15 January 2021 (hereinafter referred to as the Act)
Qualifications necessary for employment in the AIFC (AIFC Act No. GR0009 OF 2017) with amendments as of 22 September 2024
AIFC rules on keeping records of foreign labor attracted by AIFC participants and AIFC bodies (AIFC Rules No. 2 of 2018)

In the same context, we would like to draw your attention to the fact that the Constitutional Law defines the term "employee of an AIFC participant or body." This term refers to a natural person who has employment relations with an AIFC participant or body. The duties of this person include the implementation of the main tasks and objectives of the AIFC participant or body. Therefore, it has been determined that the Labor Code of Kazakhstan does not apply to labor relations between an employer who is a participant of the AIFC or an employer who is a body of the AIFC and an employee of a participant or body of the AIFC. In this publication, we will examine the so-called "key conditions" that must be met to establish an employment relationship between an AIFC employer and an AIFC employee.

Conditions for attracting foreign labor

As per the current regulations, Kazakhstan has implemented a moratorium on the employment of foreign workers until the employer obtains a permit to hire foreign labor or the foreign worker receives a certificate of qualification for self-employment.

In certain cases, an employer must apply for a quota to attract foreign labor to perform labor activities in Kazakhstan. Foreign workers are required to obtain the appropriate visa for labor activity (categories C3 or C4) or a temporary residence permit.

However, the AIFC is exempt from the requirement to obtain a work permit in Kazakhstan. Foreign employees of AIFC are granted an entry visa that is valid for a period of up to five years. In the context of attracting foreign labor, the specificity of AIFC is evident.

Terms and conditions regarding the conclusion of an employment contract

In accordance with Kazakhstani law, individuals who have reached the age of sixteen may enter into an employment contract. According to paragraph 9 of the Act, an AIFC employer may not conclude an employment contract with a person under the age of eighteen. Therefore, an individual employed by AIFC must be of legal age. Therefore, an AIFC employer is prohibited from entering into an employment relationship with individuals under the age of 18.

Conditions on the language and content of the employment contract

In this context, there is a particularity: the employment contract is written in English. If an AIFC employee lacks sufficient proficiency in written English to comprehend the terms of the contract, the AIFC employer is obligated to ensure that the terms are thoroughly explained to the employee prior to signing. Therefore, an employment contract must include the following minimum provisions:

Name of the AIFC employer and the name of the AIFC employee
Date on which the employee's employment commenced
Salary information for the AIFC employee
The applicable payment period
Terms and conditions concerning the number of hours or days of work
Terms and conditions that apply to employment leave, payment of employment leave, national holidays, payment of national vacations, sick leave, and sick pay
The notice period for termination of employment, in which the AIFC employee and the AIFC employer must provide and are entitled to receive
Name of the position of the AIFC employee or a brief description of the AIFC employee's work
Term of the employment contract, if one is planned, or an indication that the employment contract is concluded for an indefinite term
The place of employment
Any disciplinary rules or grievance procedure for an AIFC employee
Other provisions stipulated by AIFC acts

Please be advised that the AIFC employer is required to provide the AIFC employee with a copy of the signed employment contract within two months of the commencement of employment.

Salary currency

According to the standards outlined in the Constitutional Law, all financial obligations arising from the activities of AIFC participants must be expressed and fulfilled in the currency specified by the applicable agreement. Consequently, AIFC employers are permitted to set and pay salaries to AIFC employees in foreign currency, provided that it is stipulated by the terms of the labor contract. The Act does not specify the currency in which the salary of an AIFC employee should be paid.

According to the Labor Code of Kazakhstan, remuneration is to be paid exclusively in the national currency of the Republic of Kazakhstan, the tenge. Therefore, the option to remunerate an AIFC employee in a foreign currency constitutes a salient specificity.

Additionally, AIFC employees are exempt from individual income tax on income from activities in AIFC under an employment contract concluded with an AIFC body or AIFC employer that provides the following services until 1 January 2066.

Islamic Bank banking services
Reinsurance and insurance brokerage services
Services related to the management of investment funds' assets, including their accounting and storage. The services also include the issuance, placement, circulation, redemption, and repayment of investment funds' securities
Brokerage and/or dealer underwriting services
Other financial services are determined by a joint act of the AIFC, the central authorized body for state planning, and the state body in charge of ensuring the collection of taxes and other obligatory payments to the budget
Services to be provided include legal, auditing, accounting, and consulting services.

Terms and conditions of employment leave

According to the Act, the duration of labor leave for an employee of AIFC is a minimum of 20 working days. It is possible to establish a longer duration of labor leave for employees under the AIFC by specifying it in the employment contract. According to the Labor Code of Kazakhstan, the minimum duration of basic paid annual leave is 24 calendar days.

AIFC employees may request a leave of absence by notifying their AIFC employer in writing a minimum of five business days prior to the intended start date of the leave. This request should specify the days on which the employee plans to take leave. Please note that an AIFC employer may require an AIFC employee to take a leave of absence on certain days. In such cases, the employer must provide notice at least 15 working days in advance. In this context, the specificity is that the duration of the AIFC employee's labor leave is calculated in working days, which extends the duration of the labor leave in calendar days.

Termination of employment contract terms

The Act's provisions regarding the termination of employment contracts differ from the standards outlined in the Labor Code of Kazakhstan.

The Act establishes the guidelines for the termination of employment contracts, including:

I. AIFC employers and employees are entitled to a minimum notice period:

In this case, if the AIFC employee has been employed continuously for one month or more, the AIFC employer or the AIFC employee must provide a minimum of notice to terminate the employment contract.

Seven days in the event that the period of continuous employment is less than three months.
30 days for employees who have been with the company for between three and five years.
In the event that the period of continuous employment is five years or more, the timeframe is extended to 90 days.

II. Termination of employment contract due to a specified reason

In such a scenario, the AIFC employee reserves the right to terminate the employment contract without prior notice in cases where cause is deemed sufficient.

Additionally, the parties involved reserve the right to terminate the employment contract early without observing a notice period if specific circumstances warrant such action. For the AIFC employer, reasons are recognized as, inter alia:

An offense committed by an employee of AIFC that had a significant and adverse impact on the AIFC employer.
An employee of AIFC has committed a significant violation of the terms and conditions of their employment contract.
An employee of AIFC has committed a substantial violation of the provisions of the Act, and this violation has had a significant and negative impact on AIFC's employer.
The presence of other reasons stipulated by the rules adopted by the AIFC body or the labor contract of the AIFC employee.

In this context, it is important to note that, unlike the Labor Code of Kazakhstan, which provides for a comprehensive list of grounds for termination of an employment contract at the initiative of both the employer and the employee, the Act adopts a more flexible and open approach. This approach may offer the parties greater contractual freedom but may also create legal uncertainty, particularly regarding dismissals at the initiative of an AIFC employer without specifying explicit grounds. This approach could potentially reduce the level of protection for AIFC employees and could be seen as a shortcoming of the current regulation within AIFC.

To conclude, the legal regulation of labor relations in AIFC is an autonomous and specialized system, different from the general labor legislation of the Republic of Kazakhstan. The norms established within AIFC are aimed at creating a flexible investment-attractive environment, primarily for international participants and qualified foreign specialists.