Uzbekistan

Uzbekistan PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Uzbekistan to companies willing to enter the Uzbek market or hire local/expat employees in this country.

Original approach requires establishing a subsidiary in Uzbekistan.  Meanwhile, our solution provides you with a start of the operations in Uzbekistan within days consequently save time and money.  WeHG would hire candidates on your behalf while you keep full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Uzbekistan fast facts

Population, million: 33
Land area: 448,978 km²
Capital: Tashkent
Local currency: Uzbek som (UZS)

GDP per capita:$ 9,595
GDP in currency:$ 60,490 billion

Uzbekistan (or official name Republic of Uzbekistan) is a country in Central Asia and bordered by Kazakhstan to the northwest and north, Kyrgyzstan and Tajikistan to the east, and southeast, Afghanistan to the south, and Turkmenistan to the southwest. Neighboring states: in the east – Kyrgyzstan; in the north-east, north and north-west – Kazakhstan; in the south-west and south – Turkmenistan; in the south – Afghanistan and in the southeast – Tajikistan. Uzbekistan has access to the Aral Sea, however, it is one of two countries in the world (along with Liechtenstein), which need to cross the territory of two states to reach the World Ocean: all neighboring countries also do not have access to the World Ocean.

Hiring, Negotiating and Doing Business in Uzbekistan

Necessity of written employment contract

In Uzbekistan, an employment contract has to be in a written form and it can be permanent or with a duration of 5 years. The duration of the Probation period lasts 3 month.

Different forms of engagement: employment, contracting, work with private entrepreneur

Hiring employees must be formalized by an order (decree), with which the employee must be familiarized with signature (Article 82 of the Labor Code). The Labor Code establishes the conclusion of an employment contract (contract) with a hired person.

The order on employment is filled out in one copy by an employee of the personnel department for all newly hired employees (except for those appointed by a higher authority). When placing an order for work, the instructions of the structural unit, profession (position), probationary period (if it is established when hiring), also the conditions for hiring and the nature of the job ahead (part-time, for damage to a temporarily absent employee, work performance, etc.) .). The order (decree) on employment is signed by the head of the enterprise or by the person with whom he exercises his powers.

Uzbekistan Employment Contract

Types of employment agreements

In Uzbekistan, there’re two types of contracts that are permitted: fixed-term employment contracts and indefinite employment contracts. The maximum duration of the first type is 5 years. Talking about the indefinite employment contract, it’s quite difficult to terminate it upon the initiative of the employer if the worker doesn’t want to terminate such a contract. The probation period is not necessary and its duration is 3 months.

Uzbekistan working hours

A working day lasts not more than 8 hours and 40 working hours per week is permitted.

Overtime

Overtime and work over a rest day are paid at the rate of 200% of the regular pay. 

Vacation leave in Uzbekistan

Workers are entitled to 15 working days of paid annual leave. Also, there’re 30 days of annual leave for disabled or employees under the age of 18. 

Uzbekistan Maternity Leave

Maternity leave in Uzbekistan starts 70 days before the birth of a child and has a total duration of 126 days (plus 56 days after the birth). In some cases, maternity leave can be prolonged to 14 additional days, if a mother had some difficulties during birth or she has multiple births. In Uzbek Law, there’s nothing about paternity leave. Regarding the adoption period, it lasts 56 days for adopting one child and 70 days for multiple adopting.

Uzbek Severance Laws

Initiated by the employer, termination of the employment contract has to be caused by understandable reasons (such as performance, reorganization of the company, or gross misconduct). The employee has to be informed by a writing notice and signed upon receipt in turn. In case the employee is a member of a trade union, the employer has to be permitted to terminate the employment contract and the termination will take not more than a month. 

There’re several understandable reasons to terminate the employment contract which regulate the duration of the notice period:

  • Redundancy – 2 months’ notice  
  • Lack of qualification or health reason that impedes the employee’s ability to carry out their duties– 2 weeks’ notice  
  • Change in the company’s ownership – 2 months’ notice  
  • Gross misconduct or performance- 3 days’ notice  

Severance payment costs1 months’ salary

Uzbekistan Tax

6 - Uzbekistan

Health Insurance Benefits in Uzbekistan

The maximum duration of the paid sick leave is 4 months and 6 months if the employee suffers from Tuberculosis. For receiving the payment the employee has to provide the employer with a medical certificate.  The range of government health services in Uzbekistan is limited, mostly for surgeries. In addition, there’re three divided classes of healthcare in the country:

  • Countrywide
  • Specific regions
  • Local-level consisting of rural areas or towns, with a comparatively smaller private sector.

Additional Benefits in Uzbekistan

Talking about the most important benefits for workers in Uzbekistan, it’s necessary to highlight several of them: accident and health insurance; life insurance and cover for infectious diseases. However, public healthcare is deemed ineffective and private healthcare is too much expensive.

Corruption is widespread in the medical area in Uzbekistan because of the active use of informal payments such as cash or gifts.

General market practice benefits/additional allowances

One of the biggest and efficient benefits of the Uzbek business market is the largest growth of population and economy. The amount of workers in the country allows investors from manufacturing and service companies to successfully set up strat-ups.  Also, the government provides small and middle businesses to save finances on tax and an easier way of tax and customs reporting. 

Uzbekistan Holidays

There are 10 Uzbek public holidays, that consist of religious and national holidays observed by the Law and people across the country: New Year’s Day, International Women’s Day, Navruz, Memorial Day, Ramadan Khait, Children’s Day, Kurban Khait, Independence Day, Teacher’s Day, Constitution Day.

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

 

FAQ Uzbekistan

  • Working hours in Uzbekistan

    A standard full-time workweek is 40 hours or 8 hours per day. 

  • What are the main holidays in Uzbekistan?

    • New Year’s Day
    • International Women’s Day
    • Navruz
    • Memorial Day
    • Ramadan Khait
    • Children’s Day
    • Kurban Khait
    • Independence Day
    • Teacher’s Day
    • Constitution Day
    • Why Choose WeHireGlobally
  • What are payroll taxes in Uzbekistan?

    Employer payroll tax:

    • Social security – 12%
    • Pension – 0,1%
    • Total Employment Cost – 12,1%

    Employee Income Tax:

    • Flat rate – 12%
  • Hannah Kohl
    Author:
    Hannah Kohl. Head of Customer Success. Has extensive experience in the HR and IT industries. Helped 100+ international clients to achieve their global goals.

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