On the positive side, the amendments have eased penalties for missing deadlines related to the re-registration of legal entities or notifications of a change of address.

Below, you can find some of the key changes to the Code.

Labor safety

In place of warnings for violating labor safety regulations (Article 93 of the Code), fines will now be issued, ranging from approximately €150 to €850, depending on the business category (small, medium or large), for the following violations:

• No labor safety and protection department (or no specialist) at industrial entities where such department (or specialist) is mandatory
• Failing to meet requirements for mandatory and periodic medical examinations
• Failing to provide employees with personal and collective protective equipment
• Failing to conduct labor safety and protection trainings for employees

Additionally, if the employer violates the legal requirements on conducting assessments of production facilities to ensure their compliance with HSE requirements (Article 94 of the Code), the only possibility is a fine. Previously, liability under this norm was dispositive, i.e., an inspecting body had at its discretion the option of a warning or a fine.

Fines have also been increased for failure to investigate work-related accidents (Article 95 of the Code). For example, the penalty imposed on large business has risen from approximately €1,000 to €1,500.

If violations are repeated within a 12-month period, all above listed fines are doubled.

Personal data protection

In Kazakhstan, illegally collecting, processing or losing personal data, as well as failing to comply with protection measures, can result in administrative and criminal liability. In connection with the new amendments to the Code (Article 79), the fines for such violations have been doubled or in some cases tripled, reaching up to approximately €14,500.

EDS

In Kazakhstan, electronic digital signatures (EDS) are used for signing digital documents. It has been common practice — for work-flow purposes — to transfer to the accountant a company’s EDS that is linked to its CEO. This will now result in a violation. A new clause, “Violation of legislation on electronic documents and digital signatures,” has been added to Article 640 of the Code, which stipulates that the use of an EDS that was issued to another person is now considered a violation and is punishable by a fine ranging from approximately €700 to €1,500.

Registration of legal entities

Previously, failure to notify state authorities of a change of address or lack of re-registration of a legal entity (Article 466 of the Code) could result in either a warning or a fine, at the discretion of the inspecting body. However, unlike the stricter penalties in other areas, this regulation has been eased. Instead of an “immediate” fine, a warning must be issued first; a fine will follow if the violation is repeated.
With this strengthening of liability in respect of labor safety, personal data and the use of EDS, more inspections by state authorities in these fields are likely. Businesses should ensure that they are in compliance with the legal requirements to avoid penalties stemming from these new amendments.

Dentons is ready to respond to any questions you may have regarding these changes to the law.