Important. This material is for reference. Before dismissing a specific employee, check the current version of the Labour Code at adilet.zan.kz and involve a lawyer where necessary — especially in contentious situations.
The main rule: the ground must come from the law
Article 49 of the Labour Code sets out an exhaustive list of grounds for terminating an employment contract. "We did not get along", "not the right personality", "did not fit the team" — such grounds do not exist in law. The employer act must state a specific ground with reference to the relevant article of the Code.
Grounds for terminating an employment contract under Article 49:
| No. | Ground | When it applies |
|---|---|---|
| 1 | Agreement of the parties | both sides have agreed — the safest option |
| 2 | Expiry of the contract term | for fixed-term contracts |
| 3 | Termination at the employer's initiative | only on the grounds in Article 52 |
| 4 | Transfer of the employee to another employer | with the consent of all parties |
| 5 | Termination at the employee's initiative | resignation |
| 6 | Circumstances beyond the control of the parties | for example a court decision |
| 7 | The employee's refusal to continue the employment relationship | when working conditions change or ownership transfers |
| 8 | Moving to elected work or appointment to a position | that precludes continuing the employment |
| 9 | Breach of the conditions for concluding the contract | if the contract was originally made in breach of the law |
Dismissal at the employer's initiative
The riskiest category. Article 52 of the Labour Code contains a list of grounds, including in particular:
- liquidation of an employer that is a legal entity, or cessation of activity by an employer who is an individual
- reduction in the number or staffing of employees
- a decrease in the volume of production, work performed or services rendered that has worsened the employer's economic position
- the employee not matching the position held or the work performed
- other grounds provided by the Code — including cases of breaches of labour discipline
Each ground has its own procedure and they are not interchangeable. For example, unsuitability for a position requires proof — as a rule the results of an appraisal, not the manager's opinion.
Restrictions. Article 54 of the Labour Code sets out cases where termination at the employer's initiative is not permitted — in particular during a period of temporary incapacity for work and while the employee is on leave. Certain categories of employee have additional protection. The only general exception is liquidation of the employer.
Step-by-step procedure
| Step | What to do | What to watch |
|---|---|---|
| 1 | Establish the ground | It must come from the statutory list and be supported by facts |
| 2 | Collect supporting documents | Application, agreement, records, appraisal results, written explanations — depending on the ground |
| 3 | Observe notice periods | For certain grounds, such as redundancy, at least one month's notice is required |
| 4 | Issue the employer act | With reference to the specific article and sub-clause of the Code |
| 5 | Have the employee sign to acknowledge it | If they refuse, draw up a refusal record in the presence of witnesses |
| 6 | Make the final settlement | Salary, compensation for unused leave, any prescribed payments |
| 7 | Complete the HR paperwork | Records and certificates, handing documents to the employee |
Which payments are mandatory
- Outstanding salary for time actually worked
- Compensation for unused leave — for all unused days
- A compensation payment where legislation provides one for the specific ground — for example redundancy
- Other payments established by the employment or collective agreement
Five mistakes that end up in court
- Wording the ground "in your own words". The order must cite an article of the Code, not describe the situation
- Dismissal during incapacity or leave at the employer's initiative is a direct breach
- Unsuitability without an appraisal. A manager's subjective assessment is not evidence
- Breaching notice periods. Even with a correct ground, a procedural breach makes the dismissal challengeable
- Pressure instead of procedure. Forcing someone to write a resignation letter, if proved, results in reinstatement and payments
Agreement of the parties: why it is usually the best option
When it becomes clear that working together is no longer viable, employers are tempted to take the "let us prove unsuitability" route. That is a long, document-heavy and risky path. Agreement of the parties is almost always simpler.
| Criterion | Agreement of the parties | Employer's initiative |
|---|---|---|
| Need to prove grounds | no | yes, with documents |
| Timing | any agreed date | statutory notice periods |
| Risk of challenge | minimal | high if procedure is breached |
| Restrictions for protected categories | do not apply | apply |
| Cost | agreed compensation | statutory payments + administrative resource + dispute risk |
The key condition is that it must be voluntary. An agreement signed under pressure loses force, with all the consequences, if that is proved. So the conversation should be honest: explain the situation, propose terms, allow time to decide.
A company decided to part with an employee whose work no longer satisfied management. No appraisal was carried out and no documentary evidence of shortcomings was collected — they simply issued an order citing unsuitability for the position.
In court the company could not substantiate the ground: a manager's subjective assessment is not evidence. The employee was reinstated with payment for the period of enforced absence.
Had the parties instead signed an agreement with compensation of two months' salary, the company would have spent substantially less and closed the matter in a day.
Documents you will need
The composition of the file depends on the ground, but the general logic is as follows:
| Ground | Key documents |
|---|---|
| Agreement of the parties | A written agreement stating the termination date and terms |
| Employee's initiative | The employee's dated application, the employer act |
| Expiry of contract term | The fixed-term contract, notice, the employer act |
| Redundancy | New staffing schedule, notice to the employee, notice to the employment authority, the act |
| Unsuitability for the position | Appraisal documents and results, the act |
| Breach of labour discipline | Records of the breach, the employee's written explanations, disciplinary documents |
On retention periods. HR documents are kept for prescribed periods after an employee leaves. Destroying documents as "no longer needed" immediately after parting creates a problem if a dispute arises later.
Checklist before dismissal
- The ground is established and matches an article of the Labour Code
- Documents supporting the ground have been collected
- It has been checked whether the employee falls into a protected category
- The employee is not on leave or sick leave (for employer-initiated dismissal)
- Notice periods have been observed
- The order cites the specific provision
- There is a signature acknowledging receipt or a record of refusal
- All mandatory payments have been calculated
In brief
There are nine grounds for terminating an employment contract, all listed in Article 49 of the Labour Code. Dismissal at the employer's initiative is possible only on the grounds in Article 52 and subject to the restrictions in Article 54. The main risks are incorrect wording of the ground, missing supporting documents and breaching deadlines. In a conflict situation, agreement of the parties is usually safer and cheaper.