GILS Employment Law: Uzbekistan

UZBEKISTAN

(1) Maternity and Family Leave Rights

1.1. How long is the duration of maternity leave?

70 calendar days before childbirth and 56 (in case of complicated childbirth or the birth of two or more children - 70) calendar days after childbirth. 

Upon completion of maternity leave, at the woman's request, she is granted childcare leave until the child reaches the age of two.

1.2. What are the rights of a parent when returning to work after parental leave?

During maternity and childcare leave, the employee retains their previous position. 

One of the parents (or guardians) of a child under the age of two, in addition to breaks for rest and meals, is provided with additional breaks for feeding the child - no less than every 3 hours for a duration of at least 30 minutes each.

1.3. Do fathers possess the right to take paternity leave? 

Yes, fathers can use the paternity leave provided for childcare if the mother or another person engaged in fulfilling family obligations does not use these guarantees.

1.4. Are there any additional parental leave rights that employers must adhere to?

An employee who adopts or becomes the legal guardian of a newborn child is entitled to leave from the day of adoption or legal guardianship establishment until the expiration of 56 calendar days from the child's birth (in the case of simultaneous adoption or legal guardianship of two or more children - 70 calendar days).

1.5. Do employees have the right to flexible working arrangements if they are responsible for dependents? 

Yes, upon the request of an employee responsible for caring for a sick family member, a part-time work schedule is established.

(2) Termination of Employment

2.1. Is it mandatory for employers to provide notice of termination of employment? How is the notice duration determined?

Employers are required to notify employees in writing (with a signature) of their intention to terminate the employment contract within the following periods: 

1) Not less than 2 months in advance in cases of termination of the employment contract due to: 

• liquidation of the organization (or its separate division) by decision of its founders (participants) or the legal entity's body authorized by the founding documents;
• changes in the number or staff of employees of the organization, caused by changes in technology, organization of production and labor, reduction of workload (production, services);
• change of the organization's owner regarding the organization's management, its deputies, chief accountant, and head of a separate division of the organization.

2) Not less than 2 weeks in advance in cases of termination of the employment contract due to the employee's inadequate qualification for the performed work; 

3) Not less than 3 days in advance in cases of termination of the employment contract due to the employee's wrongful actions (inaction). 

The period of notifying the employee, except for the termination of employment relations due to the liquidation of the organization (or its separate division), does not include periods of the employee's temporary incapacity for work, as well as the time spent by the employee fulfilling state or public duties.

2.2. Can employers enforce "garden leave" during the notice period, where the employee remains employed but does not have to attend work?

Yes, during the notice period, except for the notice of dismissal from work due to the employee’s wrongful actions (inaction), the employee is granted the right not to go to work (“garden leave”) for at least one day a week while retaining their salary during this time to find another job.

2.3. What safeguards do employees have against dismissal? Under what circumstances is an employee considered to be dismissed? Is consent from a third party necessary before dismissal by an employer?

In the event of early termination of the employment contract, the parties have the right to demand compensation from the initiator of the termination of employment relations if provided for in the employment contract. 

Termination of the employment contract at the employer's initiative is not permitted without the prior consent of the trade union, if such consent is provided for in the collective agreement. 

The day of termination of the employment contract is the last day of work.

2.4. Are there specific employee categories enjoying special protection against dismissal?

Termination of the employment contract at the employer's initiative is prohibited: 

• during periods of temporary incapacity or while the employee is on leave;
• during periods when the employee is released from work due to the performance of state or public duties;
• without complying with the requirements providing guarantees for pregnant women and employees with children under the age of three.

2.5. Under what circumstances is an employer justified in dismissing employees: 1) due to individual reasons; 2) business-related grounds? Do employees receive compensation upon dismissal, and if so, how is it calculated?

The employment contract may be terminated at the initiative of the employer if one of the following reasons (grounds) is present: 

1) Individual reasons: 

• Inadequate qualification of the employee for the position held or work performed;
• Systematic violation of the employee's job duties;
• One-time gross violation of the employee's job duties. 

2) Business-related grounds: 

• Liquidation of the organization (or its separate division) by decision of its founders (participants) or the legal entity's body authorized by the founding documents, or termination of activities by an individual entrepreneur;
• Changes in the number or staff of employees of the organization (or its separate division), individual entrepreneurs, caused by changes in technology, organization of production and labor, reduction of workload (production, services).

Severance pay is provided upon termination of the employment contract at the employer's initiative, except for termination based on grounds related to the employee's wrongful actions. 

The amount of severance pay depends on the length of service with the employer and is determined at a rate ranging from 50% to 200% of the average monthly earnings.

2.6. Are there particular protocols that employers must adhere to regarding individual dismissals? 

Termination of the employment contract must be formalized by the employer's order.

2.7. What claims can an employee pursue if they are dismissed? What remedies are available for a successful claim?

An employee who believes that their employment contract was terminated unlawfully can directly address the employer or challenge the termination of the employment contract through established procedures, including legal proceedings. 

The demands of an employee whose employment contract was terminated unlawfully, for reinstatement to their previous position, compensation for material damage incurred, and compensation for moral damages (if the unlawful termination of the employment contract caused the employee moral or physical suffering), are subject to satisfaction.

2.8. Can employers resolve claims before or after they are initiated?

Yes, an employer can enter into a settlement agreement with the employee both before and during the judicial proceedings.

2.9. Does an employer bear additional obligations when dismissing multiple employees simultaneously?

The employer is obligated to notify the local labor authority and territorial or industry trade unions at least 2 months in advance of the impending mass dismissal of employees.

2.10. How can employees enforce their rights regarding mass dismissals, and what are the consequences if an employer fails to comply with its obligations? 

In the event of termination of the employment contract due to changes in the number (staff) of employees of the organization, caused by changes in technology, organization of production and labor, or reduction of workload (production, services), the preferential right to remain employed is granted to employees with higher qualifications and productivity. 

An employer's unlawful decision can be appealed through established procedures, including through the court system. Furthermore, labor authorities, when informed about mass dismissals, are obligated to take measures for the employment of laid-off workers as provided by law.

(3) Data Protection and Employee Privacy 

3.1. How does the employment relationship get impacted by employee data protection rights? Is the transfer of employee data across borders unrestricted for employers?

The transfer of employee personal data is permitted within a single organization in accordance with a local policy, which the employee must acknowledge by signature. 

Cross-border transfer of personal data is conducted to foreign countries that provide adequate protection of the rights of personal data subjects.

3.2. Are employees entitled to obtain copies of any personal information held by their employer?

Yes.

3.3. Do employers have the authority to conduct preemployment checks on prospective employees (such as criminal record checks)?

Yes, the legislation does not prohibit conducting such checks. However, the employer is not entitled to request from an individual applying for a job any additional document not provided for by the Labor Code.

3.4. Do employers have the right to monitor employee emails, phone calls, or use of company computer systems?

The employer has the right to require employees to perform their work duties, take care of the employer's property and comply with the rules of internal labor regulations. The employer does not have the right to check personal e-mail and phone calls.

3.5. Can employers control an employee's use of social media both inside and outside the workplace?

Employers have the right to require employees to fulfill their job duties, to handle the employer's property with care, and to comply with internal work rules. However, employers are not entitled to check personal email and phone calls.

(4) Court Practice and Procedure

4.1. Which courts or tribunals hold jurisdiction over employment-related complaints, and what is their composition?

Cases related to labor disputes fall under the jurisdiction of the civil courts. 

A civil case in the first instance is heard by a single judge. The consideration of cases in the courts of appellate, cassation, and revision instances is carried out collegially by a panel of three judges.

4.2. What procedures govern employment-related complaints? Is conciliation obligatory before proceeding with a complaint, and is there a fee for employees to submit a claim? 

Before filing a complaint with the court, labor disputes may be resolved by labor dispute commissions if they are established within the organization. There is no state fee for filing a lawsuit related to labor relations.

4.3. What is the typical duration for resolving employment-related complaints? 

Cases are resolved by the court no later than one month from the date of completion of the preparation of the case for trial. In cases of special complexity, this period may be extended to two months by a reasoned decision of the judge.

4.4. Is it possible to appeal against a decision at the first instance, and if so, how long does such an appeal usually take? 

A decision of the court can be appealed before it becomes legally binding, within one month from the date of its adoption.

(5) Work Permits 

5.1. What are the restrictions or limitations placed on individuals holding a work permit in terms of job duties, employer changes, or duration of stay? 

Foreign citizens are subject to the general provisions of labor legislation. 

The term of the employment contract with a foreign citizen cannot exceed the term of the work permit.

5.2. What are the requirements for obtaining a work permit? 

To obtain a work permit, the applicant must apply to the centers of public services either in person or online. 

The application must be accompanied by: 

• an electronic copy of the foreign citizen's passport;
• a draft employment contract confirming the initial agreement with the employer regarding the desire and conditions of attracting the foreign citizen to the Republic of Uzbekistan, specifying the salary;
• an electronic photograph of the foreign citizen measuring 3x4 cm;
• documents confirming the qualification of the foreign citizen;
• a copy of the entry visa for citizens of foreign states with a visa regime (work visa "E", work visa "B-1" and "B-2", work visa "C-3" or other types of visas provided for citizens).

5.3. Are there any recent changes or updates to work permit regulations or policies that individuals or employers should be aware of? 

In accordance with the Presidential Decree, starting from July 1, 2022, obtaining a work permit is not required when conducting activities in a remote (online) form while being abroad.

5.4. Are there specific industries or occupations that have different requirements or exemptions for obtaining a work permit? 

A work permit is not required for: 

• Employees of permanent representations of foreign states, international intergovernmental organizations, and representations of state organizations accredited by the Ministry of Foreign Affairs, as well as other individuals with diplomatic status;
• Founders of foreign and joint ventures operating or being established in Uzbekistan, including first executives (from the date of signing employment contracts for relevant positions), for a period of up to 3 months;
• Specialists employed in the tourism sector upon the request of the Ministry of Tourism and Cultural Heritage, for a period of up to 3 months;
• Scientists and cultural figures carrying out labor activities in Uzbekistan in organizations established in accordance with interstate treaties;
• Students working during holidays within the framework of Uzbekistan's university programs;
• Press representatives accredited by the Ministry of Foreign Affairs;
• Employees of representations and branches of nongovernmental organizations accredited by the Ministry of Justice, as well as international and foreign non-governmental organizations;
• Teachers and specialists engaged to work in Presidential Schools in the Republic of Karakalpakstan, regions, and the city of Tashkent, as well as in higher education institutions;
• Individuals subject to a different employment procedure under interstate agreements of the Republic of Uzbekistan;
• Foreign citizens investing at least 8,500 base calculation units in Uzbekistan at the time of investment – in the form of purchasing shares and stakes in economic entities, establishing foreign enterprises;
• Individuals holding a residence permit in Uzbekistan;
• Foreign specialists arriving in Uzbekistan for a short period (up to 1 month) to perform diagnostic and medical procedures, implement exchange programs, conduct master classes, lectures, and staff training;
• Foreign specialists employed by residents of the IT Park in Uzbekistan;
• Individuals working remotely (online) in Uzbekistan while being abroad.

5.5. What is the ratio of foreign and local labor? 

Legislation does not specify a specific requirement for the quantitative ratio of foreign and local labor in an organization. However, when obtaining a work permit for a foreign employee, the territorial labor authority assesses the feasibility of attracting foreign citizens, taking into account the availability of local labor for the vacancies specified by the employer.

(6) Tax

6.1. What are the legal obligations and requirements regarding the individual income tax paid by employers? 

The employer makes mandatory cumulative pension contributions monthly by reducing the amount of individual income tax accrued in accordance with the legislation. 

The amount of mandatory cumulative pension contributions is calculated based on the amount of employees' wages and other income, including those of working pensioners, and is set annually by the Cabinet of Ministers of the Republic of Uzbekistan during the formation of the State Budget of the Republic of Uzbekistan for the upcoming year.

6.2. What is the percentage of withholding tax? 

12%.

 

Author:

Javokhir Urinov.