Employment

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Principle 4

Labor: Business communities shall ensure liquidation of all forms of forced or violent labor.

Principle 6

Labor: Business communities shall ensure elimination of discrimination in the area of employment and occupation.

Accountability

We preserve and create jobs in the framework of our development strategy and opportunities.

Respect for Human Rights

We respect and promote the observance of human rights provided by the Constitution of the Republic of Kazakhstan and international instruments, such as Human Rights Universal Declaration.

We do not accept and prohibit the use of child labor. Our employees are our main value and the main resource, the results of our activity and value, created for investors, directly depend on the level of their qualification and security.

We try to attract professional candidates at the labor market, using open and transparent ways, based on the principle of meritocracy, and to provide training for employees, ensure their safety and develop programs for appropriate motivation and development of professionalism.

Number of employees at the end of the reporting period in 2017 was 90,111 people in Group of companies of JSC NC “KazMunayGas” (91,121 people in 2016, 80,131 people in 2015, 86,216 in 2014), outstaffing is 3,118 people.

The share of production personnel is 89.4 %, of total number of personnel, 10.6 % is administrative personnel (90 % and
10 % in 2016 respectively). Taking into account that area of the companies’ activity is associated with difficult, dangerous and harmful working conditions, share of men is 80.8 %, women is 19.2 %.

Provision of working places by regions of Kazakhstan, %

Employees, detailed by gender for 2015–2017, %

Years

2015

2016

2017

Mn

74.8

79

80.8

Women

25.2

21

19.2

In age category main share of employees is represented in group from 31 to 50 years old – 58 %, while share of men is
78.9 %, women – 21.1 %. Number of employees older than 51 years old is 24.5 % of total number of staff, while share of men is 83.1 %, women – 16.9 %. Share of young people under the age of 30 is 17.5 % of total number staff, and share of
men is 84 %, women 16 %.

Employees by age groups, %

Years

2015

2016

2017

From 30 years old

23

17.5

From 31 to 50 years old

54

58

More 50 years old

23

24.5

Number of newly employed employees is 8,050 people or 9.4 % in 2017.

Newly employed employees for 2015–2017, %

2015

2016

2017

23.9

20.7

9.4

Employees by categories for the accounting period, %

Employees, detailed by gender for the accounting period

Employees by age groups, %

Newly employed employees by age groups for the accounting period, %

Newly employed employees by gender for the accounting period, %

The number of employees with whom employment was terminated during the reporting period was more 12 thousand people. Fluidity factor by Group of companies KMG was 14 % (13.8 % in 2016, 11.1 % in 2015).

KMG provides employees with a guaranteed social package which includes various types of social benefits and compensations: material assistance for health improvement to annual leave, payments related to pregnancy and childbirth, monthly payments to employees absent on leave for childcare till 1,5 years, compensation for termination of employment contract in case of impossibility to transfer to another job, due to full loss of ability to work, disability, one-time payment in case death of employee for organizations of funeral, one-time payment to family of employee, who died in the result of an accident at work.

The company also provides social guarantees for voluntary medical insurance in case of illness and organization of rest for children of employees in children’s health camps in Kazakhstan.

Moreover, employees are provided with historically formed types of social support. These types of social assistance are specified in collective agreements, or provided in internal regulatory documents of the enterprise. Such payments include payments in connection with achievement of anniversary date, in connection with the marriage, short-term leave at the time of marriage, in connection with the birth of a child, due to death of relatives with the preservation of wages, for treatment and payment of medical operations, in the case, if the cost of treatment exceeds limit, established by the insurance program, to disabled workers, disabled children, and many others.

In accordance with the national legislation, pension savings of citizens are in the Single Pension Savings Fund. Pension savings consist of: minimum pension rate, guaranteed by the state, individual pension savings (monthly contribution of 10 % of salary) and additional regional allowances.

Moreover, the Group implements a pension program for non-working pensioners, according to which the employees can get some material support.

In some oilfield services organizations of the Group’s, a project on provision of pre-retirement employees with the possibility of early retirement with payment of compensation for employment termination by agreement of the parties, with employees who, have reached retirement age – with compensation payment upon employment termination, is being implemented.

Social support costs for employees of the Group of companies KMG was 18,859,161 thousand KZT (USD 55 million), including social assistance to non-working pensioners.

The number of employees on leave for child care without preservation of salary pay at the end of the accounting period was 1,697 people, with share of women 98.3 % and 1.7 % of men. Women, who are on maternity leave, are more 800.

If the working conditions are changed, the Company shall notify the employee in writing not later than fifteen calendar days. Minimum notification period towards significant changes in the company’s activities is 4 weeks.

Social support of employees of Group of companies KMG, bln KZT

Employees on maternity/ paternity leave for the accounting period and by years

Employees on maternity/ paternity leave for the accounting period, %