Table of Contents

Uzbekistan

Table of Contents

Currency

Uzbekistan Som (UZS)

Payroll Frequency

Monthly

Employer Taxes

12% - 25%

About Uzbekistan

Uzbekistan is a country in Central Asia, surrounded by five landlocked countries (Kazakhstan; Kyrgyzstan; Tajikistan; Afghanistan; and Turkmenistan). For the past 200 years, the country was a part of the Russian Empire, and then of the Soviet Union, before emerging as an independent state when Soviet rule ended in 1991. Uzbekistan has a diverse cultural heritage due to its history and strategic location at the heart of the ancient Silk Road trade route connecting China with the Middle East and Rome. Its constitutional official language is Uzbek, but Russian has widespread use as a language of governance. Uzbeks constitute 81% of the population, followed by Russians at 5.4%). Muslims are a majority of the population who also identify as non-denominational Muslims.

Employment Relationship

• Permanent Employment

Employment contracts made for an indefinite period are considered permanent contracts in Uzbekistan. If the employment contract does not specify its validity period, the employment contract is considered to be concluded for an indefinite period. If an employment contract is for a fixed period, but the reason for the fixed period is not sufficient, the contract will be considered for an indefinite period. An employment contract concluded for an indefinite period cannot be revised without the consent of the employee for a specific period, as well as for the time of performance of specific work. Such contracts are made for work that is permanent in nature. Employees have the right to paid leave, protection against unfair dismissal, and social security. It is unlawful to conclude fixed-term contracts to avoid granting employees benefits. 

• Fixed-Term or Specific-Purpose Contracts

Employment contracts can be concluded for fixed term not exceeding five years or for performing a specific job. These contracts can be formed only under specific conditions such as the performance or interest of the employer. The employment contract must clearly specify the duration of a fixed-term contract.  Fixed-term contracts can be terminated by the employee by giving a two weeks' notice. Such contracts can also be terminated before their expiry in case of reduction in work, insufficient qualifications, or gross violation of duties. If a contract is terminated prematurely for any other reason, the employer must pay severance benefits as determined in the contract. If the employment relationship continues even after the end of the term, and none of the parties has requested its cancellation within a week, the contract is considered to be extended for an indefinite period.

• Temporary Employment Contratcs

Temporary employment contracts can be concluded for specific jobs or to replace employees who are absent due to illness or vacation, etc. Permanent employees can request to be placed in temporary contracts. Employers can also use outstaffing agencies to hire temporary employees. Employers conclude contracts with an agency to perform particular tasks. Hired temporary employees are considered the employees of the outstaffing agency, but they perform their work duties under the management and control of the legal entity to which they are sent by the employer, in the interests of that legal entity. The payment of wages for the labor of employees is carried out by the employer.

Probationary Period

In Uzbekistan, an employer may require a probationary period. If the existence of a probationary period is not explicitly stated in the employment contract, the employee is considered accepted immediately. A probationary period may not be included in the employment contract for certain kinds of employees. The probationary period may not exceed 3 months for regular employees. Heads of organizations, deputies, and chiefs can have a probationary period lasting up to 6 months. Either the employer or the employee may terminate the employment contract during the probationary period with 3 days’ written notice.

Working Hours

The normal working time for employees must not exceed 40 hours per week. In a six-day working week, the duration of daily work must not exceed seven hours, and in a five-day working week, it must not exceed eight hours. Reduced working hours of 36 hours per week are set for employees under the age of 18, employees in jobs with unfavorable working conditions, and employees in jobs with high levels of mental stress. Employees under the age of 16 may only work 24 hours per week. Employees must be given a break of at least 12 hours between 2 working days. Type of work week and working time regime are determined by the rules of the internal labor procedure in the enterprise, with other local normative documents, and in the absence of these documents, according to the agreement between the employee and the employer. On the eve of holidays, the daily work duration is reduced by at least one hour for all employees.

Holidays / PTO

• Statutory Holidays

—-

• Paid Annual Leave

Employees are granted at least 21 calendar days' paid annual leave after six months of employment for the first year. Employees under 18 years of age and those with group I and II disabilities receive at least 30 days' annual leave. Employees are paid their average salary during their annual leave. It is allowed to postpone annual leave in case of temporary incapacity, maternity leave, or public duties. It is also allowed to divide the vacation into parts based on a written application. In this case, a part of the vacation should not be less than 14 calendar days. In case of termination of employment, employees are entitled to use their remaining annual leave till the last day of their service. When the employment contract is terminated due to the employee's culpable actions, it is not allowed to use the annual leave.  

• Sick Leave

There is no fixed amount of sick leave for employees. It is not allowed to terminate the employment contract at the initiative of the employer during the period of the employee's temporary incapacity for work.  Temporary incapacity for work allowance is paid when sick, disabled at work (or injured in any other way), taking care of a sick family member,  quarantine is declared,  treatment is done at a sanatorium-resort, and prostheses are made. The minimum amount of the temporary incapacity for work allowance is the minimum amount of wages established by the law and should not exceed the amount of the salary from which the allowance is calculated. The benefit amount for temporary incapacity allowance is determined by the kind of employee, the kind of illness, and the length of service of the employee. Allowance for temporary incapacity for work is granted from the first day of loss of working capacity until it is restored or until the disability is determined by the Medical and Labor Examination Commission (TMEK), even if the employment contract with the employee is terminated during this period. In cases where the employee's days of incapacity for work coincide with the annual leave period, the salary is paid for all the sick days.  

• Maternity Leave

Women employees are granted prenatal and maternity leave of 70 calendar days before giving birth and 56 calendar days after giving birth (70 calendar days in case of difficult childbirth or multiple births). Pregnant women cannot be employed in night work, overtime work, or weekend work.  It is prohibited to refuse to hire women and reduce their wages because they are pregnant or have a child. It is not allowed to terminate the employment contract concluded with pregnant women and women with children under the age of three at the initiative of the employer, except for the cases of complete liquidation of the enterprise. In case of an employee's death in childbirth, the father of the child becomes entitled to the remaining maternity leave and benefits.    Employees are entitled to maternity benefits in the amount of 100% of their average wages. Employees need to submit a certificate of incapacity for work. Benefits are also paid for the duration mentioned in the certificate in case of miscarriage.

• Paternity Leave

In Uzbekistan, employees are entitled to something called social leave. The right to social leave is entitled to employees who are pregnant and giving childbirth, are giving childcare, are on study leave, or need a creative holiday. The granting of social leave to employees does not depend on the amount of time the employee has worked for an employer.

Termination of Employment

• Notice Period

An employer must notify an employee of their termination in writing with the following advance notice depending on the reason for termination: Changes in technology, production and labor organization, the reduction of the volume of work that led to a change in the number of employees or the nature of work, or in connection with the termination of the enterprise, as well as the employee reaching retirement age – Two months Employee's insufficient qualifications or becoming unfit for the work due to health condition – Two weeks  Employee's guilty behavior – Three days Employees must provide 14 days' written notice to terminate the employment contract on their own initiative. Employees and employers can agree to replace notice with monetary compensation, even in case of employee's guilty behavior. During notice period,  employees are entitled to at least one day per week of absence from work with pay to look for another job. 

• Severance Benefits

In Uzbekistan, once an employment contract is terminated the employer must compensate the employee for all remuneration due, including compensation for unused basic and additional holidays. If the employee does not work on the date of termination, the employer has 3 days to deliver the remuneration to the employee. In addition to this, an employee is entitled to severance pay based on the circumstances of the termination. If the termination was through no fault of the employee, then severance pay is due. The amount of severance pay is calculated based on the time of service. For employees who worked up to 3 years, the severance pay is 50% of the monthly wage For employees who worked between 3 to 5 years, the severance pay is 75% of the monthly wage For the employees who worked between 5 to 10 years, the severance pay is 100% of the monthly wage For employees who worked between 10 to 15 years, the severance pay is 150% of the monthly wage For employees who worked more than 15 years, the severance pay is 2 months’ wage Collective agreements, local acts, and employment contracts may establish additional severance benefits.