1. Introduction
This informational analysis has been prepared by Metida Group for the purpose of examining the legal regime governing the registration of employment contracts of participants of the Astana International Financial Centre (AIFC) in the Unified System for Recording Employment Contracts (USREC) on the enbek.kz portal, as well as the delineation of powers between AIFC bodies and the state authorities of the Republic of Kazakhstan in respect of inspections and administrative liability.
The analysis is based on the provisions of the Constitutional Statute of the Republic of Kazakhstan on the Astana International Financial Centre (the "Constitutional Statute"), the Acts of the AIFC, and the legislation of the Republic of Kazakhstan currently in force.
This analysis sets out the general rules and the current delineation of jurisdictions and applicable law. It is not intended to serve as an assessment of legal risks or as the basis for developing an appropriate compliance strategy, which Metida Group can formulate only following a detailed review of the activities of a specific company in each particular case.
2. Regulatory Framework and Delineation of Applicable Law
2.1. Application of the Law of the Republic of Kazakhstan
Pursuant to Article 4(1) of the Constitutional Statute, the law of the Republic of Kazakhstan applies to the extent that a matter is not regulated by the Constitutional Statute and the Acts of the AIFC.
Accordingly, where a particular matter is not expressly regulated by the Acts of the AIFC, the general legislation of the Republic of Kazakhstan applies.
2.2. Regulation of Employment Relations in the AIFC
Employment relations of AIFC participants are governed by the AIFC Employment Regulations, which establish AIFC law as directly applicable to employment contracts, set minimum standards, and impose internal record-keeping requirements. This provides the legal basis for the position that the employment contract itself is, by its nature, removed from the scope of the Labour Code of the Republic of Kazakhstan.
In particular, under Section 17 of the AIFC Employment Regulations, an employer is required to:
The AIFC Employment Regulations, however, govern internal record-keeping and the substance of the employment relationship. They contain no provision that abolishes or replaces state registration of contracts in the USREC.
3. Delineation of the Legal Regime by Category of Employee
3.1. Citizens of the Republic of Kazakhstan
The Acts of the AIFC do not establish a separate system of state personnel records for citizens of the Republic of Kazakhstan.
AIFC participants hold a BIN (Business Identification Number), which, pursuant to Article 3(1-1) of the Constitutional Statute, is recognised and applied on equal terms with identification numbers assigned in accordance with the legislation of the Republic of Kazakhstan.
For the purposes of the state systems of the Republic of Kazakhstan — the tax authorities, the pension system and the mandatory social health insurance system — an AIFC participant is identified as a Kazakhstani legal subject.
The obligation to enter information on employment contracts into the USREC arises under the Labour Code of the Republic of Kazakhstan. Since the Acts of the AIFC do not release participants from this administrative obligation in respect of citizens of the Republic of Kazakhstan, the law of the Republic of Kazakhstan applies by virtue of Article 4(1) of the Constitutional Statute.
In addition, Article 63 of the AIFC Employment Regulations expressly obliges an employer to comply with the legislation of the Republic of Kazakhstan in respect of pension provision for Kazakhstani citizens, which is technically linked to registration in state information systems, including enbek.kz.
The absence of an USREC record gives rise to the following consequences:
3.2. Foreign Employees (Expatriates)
Pursuant to Article 8 of the Constitutional Statute, AIFC participants are entitled to engage foreign employees without obtaining permits for the engagement of foreign labour. It should be noted, however, that under Article 8(2) of the Constitutional Statute, AIFC participants are required to obtain and retain documents evidencing the high qualifications of each foreign employee, and the employee is in turn required to provide them. This is a mandatory condition for lawful reliance on the right to engage expatriates without work permits.
Under Article 1(6) of the Constitutional Statute, an "Employee" of an AIFC participant is defined as an individual who is engaged by an AIFC participant and is responsible for the implementation of the principal aims and objectives of that AIFC participant. The special legal regime applies specifically to persons falling within this definition.
Records of foreign labour are maintained by the AIFC Authority (AIFCA). The powers of the AIFCA derive from primary legislation: under Article 11(4)(9) of the Constitutional Statute, the AIFCA assists AIFC participants in engaging labour and obtaining visas.
The recording procedure is governed by the AIFC Rules on Keeping Records of Foreign Labour Attracted by AIFC Participants and AIFC Bodies. The employer is required to submit to the AIFCA the prescribed application form together with a copy of the foreign employee's passport. This data is transmitted to the competent state authority of the Republic of Kazakhstan responsible for migration. Under paragraph 2.2 of these Rules, the foreign employee — personally, through the employer, or through an authorised representative — must initiate the recording procedure with the AIFCA no later than 14 days from the date of their stay in Kazakhstan as the holder of a work visa or from the date of registration.
4. Delineation of Powers Between AIFC Bodies and the State Authorities of the Republic of Kazakhstan
4.1. Powers of the AFSA
Pursuant to Article 12(3)(5) of the Constitutional Statute, the AFSA exercises control and supervision over AIFC participants in the field of financial services and compliance with the Acts of the AIFC.
The AFSA does not supervise compliance with the Labour Code of the Republic of Kazakhstan and does not impose liability for breaches of the enbek.kz registration requirements.
4.2. Powers of the State Authorities of the Republic of Kazakhstan
In areas not transferred to the exclusive competence of the AIFC bodies, the state authorities of the Republic of Kazakhstan continue to operate, including:
As the requirement to register the contracts of Kazakhstani citizens in the USREC has not been abolished by the Acts of the AIFC, the State Labour Inspectorate retains lawful grounds to conduct inspections in this regard.
By virtue of Article 13(4) of the Constitutional Statute, the AIFC Court does not hear administrative cases. Administrative disputes are heard by the courts of the Republic of Kazakhstan under the provisions of the Code of Administrative Offences of the Republic of Kazakhstan (the "CAO").
5. Administrative Liability
A breach of the procedure for entering information into the USREC is classified as an administrative offence under the CAO, which was amended and supplemented by Law of the Republic of Kazakhstan No. 257-VIII of 9 January 2026, entering into force on 12 March 2026.
Under the new wording of Article 98 of the CAO, a breach of the procedure for entering information into the USREC will attract the following fines:
CategoryFirst offenceRepeat offence within one year
Officers (individuals in a managerial capacity)
Small businesses and non-profit organisations
Medium-sized businesses
Large businesses
A repeat offence is one committed within one year following the imposition of an administrative penalty.
We hope that the information set out above proves useful. Should you have any questions or require further comment, please contact us at any time convenient to you.
This informational analysis has been prepared by Metida Group for the purpose of examining the legal regime governing the registration of employment contracts of participants of the Astana International Financial Centre (AIFC) in the Unified System for Recording Employment Contracts (USREC) on the enbek.kz portal, as well as the delineation of powers between AIFC bodies and the state authorities of the Republic of Kazakhstan in respect of inspections and administrative liability.
The analysis is based on the provisions of the Constitutional Statute of the Republic of Kazakhstan on the Astana International Financial Centre (the "Constitutional Statute"), the Acts of the AIFC, and the legislation of the Republic of Kazakhstan currently in force.
This analysis sets out the general rules and the current delineation of jurisdictions and applicable law. It is not intended to serve as an assessment of legal risks or as the basis for developing an appropriate compliance strategy, which Metida Group can formulate only following a detailed review of the activities of a specific company in each particular case.
2. Regulatory Framework and Delineation of Applicable Law
2.1. Application of the Law of the Republic of Kazakhstan
Pursuant to Article 4(1) of the Constitutional Statute, the law of the Republic of Kazakhstan applies to the extent that a matter is not regulated by the Constitutional Statute and the Acts of the AIFC.
Accordingly, where a particular matter is not expressly regulated by the Acts of the AIFC, the general legislation of the Republic of Kazakhstan applies.
2.2. Regulation of Employment Relations in the AIFC
Employment relations of AIFC participants are governed by the AIFC Employment Regulations, which establish AIFC law as directly applicable to employment contracts, set minimum standards, and impose internal record-keeping requirements. This provides the legal basis for the position that the employment contract itself is, by its nature, removed from the scope of the Labour Code of the Republic of Kazakhstan.
In particular, under Section 17 of the AIFC Employment Regulations, an employer is required to:
- keep all records and copies of each employee's contract at the Employer's principal place of business within the AIFC;
- maintain internal records of commencement of employment, remuneration, leave and deductions;
- retain records for two years following termination of the employment relationship;
- maintain documentation in English (as the language of priority).
The AIFC Employment Regulations, however, govern internal record-keeping and the substance of the employment relationship. They contain no provision that abolishes or replaces state registration of contracts in the USREC.
3. Delineation of the Legal Regime by Category of Employee
3.1. Citizens of the Republic of Kazakhstan
The Acts of the AIFC do not establish a separate system of state personnel records for citizens of the Republic of Kazakhstan.
AIFC participants hold a BIN (Business Identification Number), which, pursuant to Article 3(1-1) of the Constitutional Statute, is recognised and applied on equal terms with identification numbers assigned in accordance with the legislation of the Republic of Kazakhstan.
For the purposes of the state systems of the Republic of Kazakhstan — the tax authorities, the pension system and the mandatory social health insurance system — an AIFC participant is identified as a Kazakhstani legal subject.
The obligation to enter information on employment contracts into the USREC arises under the Labour Code of the Republic of Kazakhstan. Since the Acts of the AIFC do not release participants from this administrative obligation in respect of citizens of the Republic of Kazakhstan, the law of the Republic of Kazakhstan applies by virtue of Article 4(1) of the Constitutional Statute.
In addition, Article 63 of the AIFC Employment Regulations expressly obliges an employer to comply with the legislation of the Republic of Kazakhstan in respect of pension provision for Kazakhstani citizens, which is technically linked to registration in state information systems, including enbek.kz.
The absence of an USREC record gives rise to the following consequences:
- mandatory pension contributions and social deductions cannot be correctly calculated;
- the employee's length of service cannot be substantiated;
- access to social services is restricted.
3.2. Foreign Employees (Expatriates)
Pursuant to Article 8 of the Constitutional Statute, AIFC participants are entitled to engage foreign employees without obtaining permits for the engagement of foreign labour. It should be noted, however, that under Article 8(2) of the Constitutional Statute, AIFC participants are required to obtain and retain documents evidencing the high qualifications of each foreign employee, and the employee is in turn required to provide them. This is a mandatory condition for lawful reliance on the right to engage expatriates without work permits.
Under Article 1(6) of the Constitutional Statute, an "Employee" of an AIFC participant is defined as an individual who is engaged by an AIFC participant and is responsible for the implementation of the principal aims and objectives of that AIFC participant. The special legal regime applies specifically to persons falling within this definition.
Records of foreign labour are maintained by the AIFC Authority (AIFCA). The powers of the AIFCA derive from primary legislation: under Article 11(4)(9) of the Constitutional Statute, the AIFCA assists AIFC participants in engaging labour and obtaining visas.
The recording procedure is governed by the AIFC Rules on Keeping Records of Foreign Labour Attracted by AIFC Participants and AIFC Bodies. The employer is required to submit to the AIFCA the prescribed application form together with a copy of the foreign employee's passport. This data is transmitted to the competent state authority of the Republic of Kazakhstan responsible for migration. Under paragraph 2.2 of these Rules, the foreign employee — personally, through the employer, or through an authorised representative — must initiate the recording procedure with the AIFCA no later than 14 days from the date of their stay in Kazakhstan as the holder of a work visa or from the date of registration.
4. Delineation of Powers Between AIFC Bodies and the State Authorities of the Republic of Kazakhstan
4.1. Powers of the AFSA
Pursuant to Article 12(3)(5) of the Constitutional Statute, the AFSA exercises control and supervision over AIFC participants in the field of financial services and compliance with the Acts of the AIFC.
The AFSA does not supervise compliance with the Labour Code of the Republic of Kazakhstan and does not impose liability for breaches of the enbek.kz registration requirements.
4.2. Powers of the State Authorities of the Republic of Kazakhstan
In areas not transferred to the exclusive competence of the AIFC bodies, the state authorities of the Republic of Kazakhstan continue to operate, including:
- the State Labour Inspectorate;
- the tax authorities;
- the migration control authorities;
- the authorities competent to hear administrative offence cases.
As the requirement to register the contracts of Kazakhstani citizens in the USREC has not been abolished by the Acts of the AIFC, the State Labour Inspectorate retains lawful grounds to conduct inspections in this regard.
By virtue of Article 13(4) of the Constitutional Statute, the AIFC Court does not hear administrative cases. Administrative disputes are heard by the courts of the Republic of Kazakhstan under the provisions of the Code of Administrative Offences of the Republic of Kazakhstan (the "CAO").
5. Administrative Liability
A breach of the procedure for entering information into the USREC is classified as an administrative offence under the CAO, which was amended and supplemented by Law of the Republic of Kazakhstan No. 257-VIII of 9 January 2026, entering into force on 12 March 2026.
Under the new wording of Article 98 of the CAO, a breach of the procedure for entering information into the USREC will attract the following fines:
CategoryFirst offenceRepeat offence within one year
Officers (individuals in a managerial capacity)
- 30 MCI
- 60 MCI
Small businesses and non-profit organisations
- 60 MCI
- 80 MCI
Medium-sized businesses
- 80 MCI
- 100 MCI
Large businesses
- 150 MCI
- 200 MCI
A repeat offence is one committed within one year following the imposition of an administrative penalty.
We hope that the information set out above proves useful. Should you have any questions or require further comment, please contact us at any time convenient to you.