Important. This article describes the general procedure. A specific situation may have particularities, so before starting check the current version of the Labour Code at adilet.zan.kz and involve a lawyer where necessary.
When redundancy applies
A reduction in the number or staffing of employees is provided for in sub-clause 2 of clause 1 of Article 52 of the Labour Code as a ground for terminating an employment contract at the employer's initiative. The key condition is that the reduction must be genuine: the position is actually abolished or headcount actually falls.
The main risk. If a new person is hired into the same position after the redundancy, a court will very likely find the redundancy to be a sham, with all the consequences: reinstatement of the employee and payment for enforced absence.
Sequence of actions
| Stage | Action | Timing |
|---|---|---|
| 1 | Decision on redundancy and new staffing schedule | before the procedure begins |
| 2 | Check for protected categories of employee | before notices |
| 3 | Written notice to the employee | at least one month in advance |
| 4 | Notification of the employment authority | within the prescribed period |
| 5 | Issue of the employer act on termination | after the notice period expires |
| 6 | Final settlement and issue of documents | on the day the contract ends |
Notice to the employee
The employee is notified in writing at least one month before termination. The notice is served against signature; if they refuse to sign, a record is drawn up in the presence of witnesses. The period runs from the day of service, not from the day the order was signed.
Notifying the employment authority
The employer must inform the employment centre of the forthcoming release of employees. This step is skipped most often — and it is exactly the procedural breach an employee will point to in court.
Prohibition on hiring into the redundant position
After a redundancy the employer may not, for a prescribed period — in practice three months — take on new employees in the positions made redundant. Breaching this rule is one of the main pieces of evidence that a redundancy was a sham.
Who cannot be made redundant
Article 54 of the Labour Code restricts termination at the employer's initiative. In particular, an employee cannot be dismissed during a period of temporary incapacity for work or while on leave. Additional protection applies to certain categories — for example those relating to pregnancy and having young children.
Check before sending notices
- Whether the employee is on sick leave or annual leave
- Whether they belong to a category with additional guarantees
- Whether the position is genuinely being abolished rather than renamed
- Whether there are plans to hire into a similar position in the coming months
- Whether the new staffing schedule has been properly approved
Payments on redundancy
- Salary for time actually worked
- Compensation for unused leave
- A compensation payment for loss of work in the amount established by legislation
- Other payments provided by the employment or collective agreement
All settlements are made on the day the employment contract ends. Delayed payment is a separate breach with its own consequences.
How to prepare before starting
Most lost cases are lost not during the redundancy process but before it begins — through careless preparation of the documents justifying the decision.
The preparatory stage
- Justification for the decision. It should be clear why the function is being abolished: falling volumes, reorganisation, structural change
- Old and new staffing schedules. Both approved, with an obvious difference between them
- A list of positions being cut, each checked against protected categories
- A check for internal vacancies that could be offered to employees
- Calculation of payments for each employee in advance, so there is no delay on the termination date
- A communication plan — what will be said to the team and when: rumours do more damage than the news itself
The conversation with the employee
The formal side matters, but the human side determines whether someone goes to court. An employee treated with respect rarely challenges a redundancy, even when they find flaws in the procedure.
- Tell them personally and first. The worst case is learning about it from colleagues
- Explain the reason honestly. Economic conditions, structural change — people understand such things better than vague formulations
- State timings and amounts clearly. Uncertainty about money is the main source of conflict
- Offer help: a reference letter, assistance finding work, flexibility about time for interviews
- Do not promise what you will not do. Promising "we will bring you back when things improve" without intending to destroys the trust of the remaining team
When reducing a department, a company drew up all documents correctly but informed employees in a general email, with no personal conversations. Two of the six went to court, and three more left public reviews about the employer.
Formally there were no complaints about the procedure, but the reputational consequences affected recruitment throughout the following year: candidates arrived at interviews having already read those reviews.
What happens to the remaining team
Redundancy affects more than those leaving. Remaining employees watch how the company treats people and draw conclusions about their own prospects.
Typical consequences to prepare for: rising anxiety and falling productivity in the first weeks, increased workload on those who remain, and voluntary departures of the most sought-after specialists who find new positions faster than others. This cannot be prevented entirely, but a candid explanation of the situation and plans substantially reduces the effect.
Alternatives worth considering
Redundancy is not the only route and often not the most advantageous. Before starting the procedure, assess the options:
| Option | When it suits | Risk of challenge |
|---|---|---|
| Agreement of the parties | the employee is ready to leave on reasonable terms | minimal |
| Transfer to another position | a suitable internal vacancy exists | low |
| Change of working conditions | the volume of work changes, not the need for the function | medium |
| Redundancy | the function is genuinely being abolished | high if procedure is breached |
In practice, agreement of the parties with comparable compensation often costs less than the full redundancy procedure — once you account for the month of notice, the administrative burden and the risk of dispute.
In brief
Redundancy is possible when a position is genuinely abolished. The employee is notified in writing at least a month in advance, the employment authority is notified separately, restrictions on protected categories are observed, and no new people are hired into the redundant positions for the prescribed period. Breaching any of these steps makes the dismissal challengeable, so in contentious cases agreement of the parties is often the better option.