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Introduction – Uzbekistan
Capital – Tashkent
Currency – Uzbekistani So’m (UZS)
Population – 34.23 Million
GDP – $57.71 Billion
Language – Uzbek
Major Religions – Islam
Uzbekistan, officially Republic of Uzbekistan is a country located in Central Asia. It lies mainly between two major rivers, the Syr Darya (ancient Jaxartes River) to the northeast and the Amu Darya (ancient Oxus River) to the southwest, though they only partly form its boundaries. Uzbekistan is a double land-locked nation. There are only two such countries in the world, the other one being Liechtenstein in Europe.
Uzbekistan is home to five different UNESCO World Heritage sites. The country is also the world’s second-largest cotton exporter and fifth largest producer. Other exports include gold, oil, and natural gas as well as uranium. Interestingly, handshakes are only acceptable as a greeting between two men. An Uzbek woman is greeted by bowing to her with your right hand placed over your heart.
Contract of Employment
In Uzbekistan written employment contract are required by law. The employment agreements should include all the terms of employment, the compensation and benefits along with the terms for ending employment.
Fixed terms agreements must outline any limitations such as the duration of the agreement. A fixed term agreement can only be signed once, any extension would be considered an indefinite agreement.
Indefinite agreements should outline the final months payment and the payment of unused annual leaves, in the event of a mutual agreement to end the employment. The agreement should also outline the terms in the event of a dismissal.
Up to a maximum of 3 months.
The mutually agreeable notice period in employment contracts is generally 1 month.
Termination periods vary depending on the reason:
– 2 months notice if the employment agreement is being terminated due to redundancy.
– 2 months notice if there is a change in ownership which results in termination.
– 2 weeks notice if the termination is due to health reasons or due to lack of qualification/ability to perform the role.
– 3 days notice for gross misconduct.
Payments in lieu of notice can be made.
40 hours per week, Monday to Friday.
Any hours worked over 40 hours per week is considered overtime and has to be agreed upon in the employment contract. The overtime rate is 2x the normal rate of pay.
An employee is entitled to 15 days of annual leave once the employee has completed 6 months of continuous service.
There is no limit on the number of sick leaves an employee is entitled to. The employer will pay 60% to 80% of the employees average earnings, depending on the reason for sickness and what has been agreed upon in the employment contract. Employers can deduct sick leave paid to employees from their taxable income.
Female employees are entitled to 126 days of paid maternity leave. 70 days taken prior to the due date and 56 days taken after giving birth.
There is no provision for paternity leave.
VAT / GST:
The VAT rate is 15%.
Income tax is 12% flat rate for all the earnings of an employee.
Employer contributions is 12.10%:
Social security – 12%
Pension – 0.10%
Employee contribution is 6%:
Social security – 4%
Unemployment insurance – 0.50%
Housing loan regime – 1%
Employee training contribution (INCES) – 0.50%
There are 9 paid public holidays in Uzbekistan.
Severance pay is 1 months salary for every 2 years of service.
Work and Residence Permits (Expatriates)
The employer local employer in Uzbekistan must apply for the visa/work permit (IM-1 Visa) for any foreign worker. The work permit is valid for 1 year and can be extended for the same duration.