The KP Disputes team successfully defended the interests of the Kazakhstan branch of a major Chinese bank in a landmark employment discrimination case before the Court of the Astana International Financial Centre (AIFC)
A former employee of the bank brought a claim alleging discrimination in remuneration. He argued that, as a Kazakhstani citizen, he was treated less favorably compared to employees seconded from China.
In its judgment, the Court confirmed that Regulation 59(1) of the AIFC Employment Regulations governs cases of direct discrimination, which cannot be justified, while Regulation 59(2) governs indirect discrimination, which may be objectively justified where the justification constitutes a proportionate means of achieving a legitimate aim.
The judge concluded on the evidence that if there was any discrimination in terms of remuneration, it was justified by the need to provide an incentive to employees from China to relocate to Kazakhstan. Accordingly, the former employee's claim was dismissed.
The AIFC Court also refused the claimant's permission to appeal, noting its lack of prospects.
This case is significant for the regulation of employment relations within the AIFC: it establishes the legal position that differences in remuneration between local and foreign employees are permissible where such differences are objectively justified and proportionate to a legitimate aim.
For KP Disputes, the case represents a successful defense of a client in a strategically important dispute with implications for Kazakhstan's investment climate. The client's case was handled by Ravil Kassilgov, Aibek Kambaliyev, and Bekzada Issabekov.
References to court decisions:
- Judgment in Case No. AIFC-C/SCC/2024/0041 dated 18 March 2025: https://court.aifc.kz/judgments/case-no-41-of-2024/
- Judgment in Case No. AIFC-C/CA/2025/0010 dated 8 August 2025: https://court.aifc.kz/judgments/case-no-10-of-2025/