1. What changes on 8 June 2026
From 8 June 2026, Article 26 of the Labour Code of Kazakhstan was supplemented with clause 1-1: a civil-law contract may not be concluded with an individual if it contains even one sign of an employment contract from Article 27 of the Code. A contract with such a sign is recognised as an employment contract regardless of its name.
The key point: reclassification happens by operation of law — no separate court ruling is required. The labour inspectorate and the state revenue authorities assess the actual model of the relationship, not the title of the contract.
2. Signs that reclassify GPH as employment
Article 27 lists, among others, the following signs of an employment relationship:
- personal performance of work in a specific occupation, qualification or position;
- inclusion in the staff and performance of a permanent job function;
- subordination to the work schedule, routine and instructions of the employer;
- payment for the process of work (regular, like a salary) rather than for a specific result.
Just one sign is enough for a contract to be reclassified as employment.
The main difference is in the nature of the relationship. Compare the key features:
| Criterion | Employment contract | Civil-law (GPH) contract |
|---|---|---|
| Subject of the contract | Labour function, the work process | A specific service or result |
| Payment | Regular salary for the process | For the volume or result delivered |
| Schedule and time | Subordination to rules and schedule | The contractor decides |
| Workplace | Provided by the employer | Not assigned |
| Subordination | To internal rules | None, the parties are equal |
| Nature of tasks | A permanent function | One-off or project-based |
| Taxes | Employer is the tax agent (income tax, social payments) | The contractor pays themselves (self-employed — 4%) |
| Guarantees | Leave, sick leave, social contributions | None |
3. Who must be moved to staff
The risk applies not to one-off and project contractors, but to those who in fact work as employees: they follow a schedule, occupy a workplace in the company's office, obey the routine, perform the same function on a permanent basis and receive regular fixed pay. Such people are better hired on staff under an employment contract (registered in the ESUTD system on enbek.kz). Genuinely independent, result-based work — one-off and project services without a schedule or subordination — can still be arranged under GPH or with the self-employed.
4. What a violation leads to
Liability is split between different authorities — and that distinction matters:
- Labour inspectorate — administrative fine. Substituting or improperly formalising an employment relationship is penalised under the Code of Administrative Offences of Kazakhstan. According to estimates and media reports, for businesses this is on the order of 30–150 MCI depending on the size of the business, and higher for a repeat offence within a year. In 2026, 1 MCI = 4,325 tenge, i.e. roughly 129,750 to 648,750 tenge.
- State revenue authorities — additional charges. For the whole period of the "hidden" employment they assess social tax, mandatory pension contributions (OPV) and the employer's contributions (OPVR), social deductions and OSMS contributions, plus late-payment penalties.
- Obligations to the employee. Employment guarantees arise: paid leave (or compensation for unused leave), sick pay and so on.
The fine amount and the qualification of the violation depend on the specific case — verify exact figures against the current edition of the Administrative Code and, if needed, with a lawyer.
5. What businesses should do now
- Audit your GPH contracts: the subject should describe a result, not a process; remove references to schedule, workplace and subordination.
- Move permanent "staff on GPH" onto the payroll and register the employment contracts in ESUTD.
- For genuinely independent contractors, keep the project model and proper paperwork (a result-based contract, an act, a receipt).
- Check the contractor's status and activity type. See the guide to working with the self-employed.
6. Where the self-employed fit in
The ban concerns the substitution of an employment relationship, not work with the self-employed as such. Engaging the self-employed under the special tax regime is legal — provided it is genuinely an independent contractor without signs of an employment relationship.
Official sources: Labour Code of Kazakhstan (adilet.zan.kz, Articles 26 and 27), Code of Administrative Offences (adilet.zan.kz), registration of employment contracts — enbek.kz. Fine amounts are given per expert estimates. This material is not legal advice — verify against the primary sources or consult a lawyer.