Employment Law in Uzbekistan

Contracts

In Uzbekistan, employment contracts can be fixed-term or permanent, depending on the nature of the job and the agreement between the employer and employee. Permanent employment contracts typically include benefits such as health insurance, pension contributions, paid leave, and social security coverage. Fixed-term employees are entitled to similar benefits as permanent employees, especially when their roles mirror those of permanent staff.

Uzbekistan also has apprenticeship contracts, mainly for training, which are governed by the Labor Code.

Termination and notice periods

In Uzbekistan, labor laws generally require a written notice for termination, with periods varying based on the type of contract and reason for dismissal: two months for organizational changes, two weeks for unsuitability, and three days for systematic violations. In most cases, terminated employees are entitled to a warning and a fair hearing. Just cause for a dismissal includes the following: 

• Theft
• Insubordination
• Habitual negligence of duty
• Lack of capability
• Prolonged illness
• Redundancy
• Serious misconduct 

Employees with at least two years of service are entitled to severance pay, calculated as a percentage of the employee's average monthly salary, with rates increasing based on tenure. Employees who resign after two years of service may receive a prorated portion of the severance, depending on their total years of service.

As your employer of record (EOR) in Uzbekistan, we can assist you in managing employee terminations by providing legal guidance and a personalized process to ensure compliance with labor laws and minimize legal risks.

Probation periods

In Uzbekistan, probation periods are regulated by national labor legislation, generally set at ninety days for standard employees, and up to one hundred and eighty days for executive roles, with similar provisions applicable in public service positions, as outlined in the Labor Code.

Working hours and overtime

In Uzbekistan, the standard working week is typically set at 40 hours, distributed over five or six days, with a legal maximum of eight hours per day and 40 hours per week. Employees are entitled to a rest period of not less than 30 minutes after five consecutive hours of work and at least one full day off per week, commonly Sunday. 

Any work beyond the standard working time is considered overtime. Uzbek labor law mandates that overtime must be compensated at 200% of the regular hourly wage. Overtime is applicable for hours worked beyond eight per day or 40 per week, and for work performed on rest days and public holidays.

Taxes

In Uzbekistan, withholding tax is known as Personal Income Tax (PIT) and is deducted by employers before paying salaries to employees. Employers must deduct PIT from employee salaries at a flat rate of 12% and submit it to the tax authorities.

Employer payroll contributions

Uzbekistan's social security system requires employer contributions that are dependent on the total number of employees, and these contributions cover pensions, medical care, disability insurance, and gratuity payments. In addition, workers' compensation is financed by contributions from state governments, employers, and employees.