- Overview: Uzbekistan
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global HR Compliance in Uzbekistan
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Uzbekistan Guide below will help you understand the nuances of labor legislation in the country.
There are two main reasons for companies hiring foreign workforce:
- Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
- Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.
After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.
If you need to hire foreign workforce in Uzbekistan so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.
With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.
We are experts in global workforce employment in Uzbekistan, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Uzbekistan.
See the guide below for a general overview of labor rules and regulations in Uzbekistan. Or contact us if you need to employ workers in Uzbekistan or would like to get more details.
Hiring and Firing Workforce in Uzbekistan Guide
# Employment Contracts
Contracts of employment in Uzbekistan may be concluded in writing or verbally, but it is advisable to have them drawn up in writing and in Uzbek for legal purposes. Contracts of employment are usually signed for an indefinite period. According to the labor law, total duration of employment contracts that are concluded for a fixed period of time must not exceed 5 years. Contracts of employment should clearly specify the terms and conditions of employment relations, including the remuneration, entitlements and conditions for termination.
# Minimum statutory employment rights
# Hours of work
The normal workweek in Uzbekistan is Monday through Friday usually between 9:00 a.m. and 6:00 p.m. Employees are entitled to normal working time of up to 40 hours of per workweek.
# Probation period
Probationary period may be given for up to 3 months at the commencement of employment.
# Annual leave
Employees are entitled to an annual paid leave of 15 days each year. Employees have the right to accrue part of their paid leave provided that 12 out of the 15 days are used together, at the same time.
# Parental leave
Employers are obligated to give their pregnant employees a minimum of 70 days of paid maternity leave before their due date and 56 days (or more up to 70 days in some specific cases) after giving birth. Employees on maternity leave are eligible to receive benefit that amounts to their normal pay from their employers who will be reimbursed by the Social Security Fund later on.
Mothers caring for children younger than age 2 may receive monthly paid leave of 20% of the monthly minimum wage. Working mothers are entitled to unpaid leave for a child between ages 2 and 3.
# Sick leave
Employees must be provided with paid sick leave when they are ill, suffer an injury or need to care for their sick family members. Employees on sick leave are entitled to benefit that is equivalent to 100 percent of their average pay if the sickness or injury is work-related. For employees with less than 5 years of uninterrupted employment, 60% of the last month’s wage is paid; 80% with 5 to 8 years; 100% with more than 8 years (or if the insured has three or more children).
Employees in certain work categories specified by law are prohibited from working overtime. Other employees may work overtime on the condition that they consent to do so. Overtime in any 2 consecutive days must not exceed 4 hours. Employees are allowed to work up to 120 hours’ overtime per year. Employees are entitled to 100 percent premium plus to every hour of overtime they put in.
# State minimum salary
The minimum wage is fixed at 149,775 UZS per month.
# Employment termination
Contracts of employment may be terminated on the initiative of either of the employment parties, by mutual consent of both parties, because of certain reasons specified in a contract or that are beyond the control of the employment parties, at the expiration of the term of a contract, or because of the failure to win or refusal to participate in a competition.
Under the provisions of Article 100 of the Labor Code, employers may unilaterally terminate employees contract without having to first obtain their consent. Employers cannot unilaterally end an employment contract if the holder is on sick leave, maternity leave or has a child who is less than 3 years old except for liquidation.
Employers who wish to terminate their employees are obligated to notify them 2 months ahead or provide them with 2 months of their average monthly pay if mutually agreed upon by both parties.
Employees are entitled to severance pay that is equivalent to 3 months of their average monthly pay if they are terminated on the grounds provided in Article 100 of the Labor Code.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Uzbekistan by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.