Employer of Record in Uzbekistan
Skuad's Uzbekistan EOR solution helps you expand your business effortlessly without worrying about the complexities of the hiring policies in the country. From recruitment, payroll management, and employee management to probation, regulation, and managing provincial laws, Skuad does all that for you without requiring you to set up a separate legal entity. Talk to a Skuad expert today and know how you can expand into Uzbekistan in the most hassle-free manner.
Uzbekistan is a country in Asia, surrounded by Kazakhstan, Tajikistan, and Kyrgyzstan. The majority of its population resides in the capital city of Uzbekistan, Tashkent. It has a large middle-class with a relatively high standard of living. The GDP growth rate here is around 4.5-5.5% during the 2017-19 period. The Ministry of Employment and Labor Relations regulates employment in Uzbekistan. The labor legislation has laid down some basic requirements for employers and employees to follow before starting their work.
It is essential to understand the policies related to employment contracts, recruitment, payroll, working hours, holidays, and termination rules. Skuad, as your EOR, takes over the burden of all HR-related activities like onboarding employees, handling their payroll, and managing employee life cycles while complying with the local employment laws. Call us to know more about our customized solutions.
The foremost step towards starting a business in another country is to understand its labor laws. Lack of awareness can cause threats to businesses. However, expanding the business into another country and building an efficient team of workers can be trouble-free through an effective EOR solution. You can now focus on the growth opportunities of your business rather than spending your precious time researching the HR compliance policies of the country. Know more about how Skuad provides a global one-stop solution to all HR-related matters and manages it all.
Uzbekistan at a Glance
Population: 33.6 millions (2021, according to United Nations' latest data)
Currency: Uzbekistani Som
Languages: Uzbek (official language), Russian
Gross Domestic Product (GDP): USD 56.505 billion by the year 2021
Learn more about expanding your business into Uzbekistan by partnering with Skuad.
Employment in Uzbekistan
The Ministry of Employment and Labor Relations governs employment laws in Uzbekistan. The Uzbekistan labor laws state the process of establishing employment relations in the country. Let us take a sneak peek into Uzbekistan employment laws to understand the entitlements such as employee benefits, working hours, paid time-offs, national holidays, etc.:
To learn more about employment laws, Uzbekistan, and employment agreements, Uzbekistan, talk to experts at Skuad.
Contractors vs. Full-Time Employees
Employment contracts in Uzbekistan are duration-based. The two types of employment contracts are Indefinite duration contracts and Temporary duration contracts. When the workers continue to work after the expiry of the temporary duration, the contract becomes permanent. There is no legal regulation. However, Uzbekistan's doctrine and jurisprudence understand that a Full-time contract is only permitted for objective or material reasons when the task to be performed is of limited duration. Learn more from Skuad experts about the nitty-gritty involved in hiring fixed-time contractors or temporary contractors.
Hiring in Uzbekistan
The first step towards the hiring process is posting a job advertisement. The employers must provide all the information like job role, responsibilities of the workers, wages, etc. The two most popular job boards in Uzbekistan are -
The hiring companies in Uzbekistan can also opt for advertisements in local newspapers. Personal recommendations also work well if the company is well-established.
The Ministry of Employment and Labor Relations regulates the Uzbekistani employment compliance laws. There are legal requirements for recruiting workers in Uzbekistan. The constitution of the country protects the workers that include the right to labor. According to Uzbekistani law, everyone is equal and must get an equal opportunity to work. The employer must make sure that each of the applicants gets an equal opportunity to show their skills.
After selecting the candidate, the employer has to prepare an employment agreement for further processing. The contract can be of a fixed-term or indefinite term depending on the employment needs. The employer must include all the vital information related to employment like the working hours, job role, employee benefits, salary, terms of termination, etc. The employer must mention the salary in the Uzbekistani currency, i.e., Uzbekistani pesos. The employers must keep in mind that the employees sign the employment contract before their first day of work. Likewise, there are many other laws that employers have to follow.
To hire employees in Uzbekistan, employers must follow the HR compliance laws of the country. Experience a positive hiring process by partnering with Skuad.
Probation & Termination
The standard probation period in Uzbekistan is three months. During the probationary period in Uzbekistan, the employers observe the performance of the employees. The employers can check the suitability of the candidate for the position during this time. The employees are paid from the State Social Insurance Fund in times of employee's leave due to disability or illness.
Employers have the right to terminate workers, but they must provide a notice period of 1.5 weeks and a severance payment. However, employers may need to provide additional payment for terminating workers in the following situations:
- Terminating a pregnant woman
- Accident during work
The termination rules may differ for different work sectors other than the above. If an employer terminates an employee, they have to fulfill a few requirements, like severance payment equivalent to one month's salary for every two years of service.
Employers need not provide the above benefits if the employee exhibits improper behavior or misconduct. However, employers must be able to prove it true. The terms for termination of employment in Uzbekistan should be compliant with the HR policies of Uzbekistan.
Learn all about the standard probation period, Uzbekistan, probationary period,Uzbekistan, and termination of employment, Uzbekistan, from Skuad experts today.
EOR Solution in Uzbekistan
Establishing a successful enterprise in a different country requires expert intervention as it is nearly impossible to know the various compliance policies of the country. Employers of Record (EOR), with their team of experts, can simplify your task of conducting business globally; their extensive research on the country's laws and HR policies ensures business expansion at a faster pace. An effective Employer of Record service manages the entire life cycle of the employees. They handle complex HR-related matters and let you focus on your core task. Employer of Record companies Uzbekistan facilitates hassle-free business expansion.
Hire talent from all over the world and improve your business prospects with Skuad's platform for managing globally distributed teams. The team of well-informed professionals handles the arduous task of managing global payroll, compliance, and taxation. Talk to us and build a global team of efficient workers.
Types of Visas in Uzbekistan
Whether for relocating employees or hiring new employees, the employers and employees must make sure that they have a working visa that complies with the country's labor laws. There are different visas that Uzbekistan offers for people willing to enter the country. These varied visas are as follows:
- For students and interns, an A1 visa
- For tourists, T visa
- For permanently employed diplomats in the country, a D1 visa
- For employed foreign nationals, E visas
- For business representatives, B2 visas
The different types of work visas state the duration of the time an employee can work. For example, if the visa is an immigrant visa, temporary residence visa, or permanent visa. However, the Uzbekistan work visa requirements are the same. To obtain an Uzbekistan work visa, the applicant must be at least 18 years old.
Work Permits in Uzbekistan
People with temporary or permanent visas can work in Uzbekistan. Anyone who completes the visa application process and provides all the documents mentioned in the above section can get work permits in Uzbekistan. Uzbekistan work permits for foreigners can be obtained by presenting the documents required for work visa processing to the consulate. However, if the worker wants to stay for a long time, they must apply for a temporary residence visa. People willing to work in Uzbekistan can also apply for an Uzbekistan work permit without a job offer. Still, they must apply for the work permit themselves and not on any company's behalf. They will need the following documents:
- Visa application form
- Recent passport photograph
- Passport with a validity of at least 6 months
- A copy of the applicant's passport's main page
Apart from the above documents, the worker might require documents specific to the job role or the activity they will engage in the country. Learn more about work permits in Uzbekistan with Skuad's global HR solutions.
Payroll & Taxes
Payroll in Uzbekistan
There are various payroll options an employer can consider for setting up payroll in Uzbekistan. The several options are -
Internal payroll - For setting up internal payroll, the company's size must be huge and must contain a large staff.
Remote - It means adding the workers of Uzbekistan to the payroll of the parent company situated in another country. Although it requires one platform for managing payroll, the company must still follow different regulations for different countries.
Payroll processing company Uzbekistan - This will help the company delegate the task of payroll to another company. However, the employer still has to be aware of the HR compliance laws of the country.
Payroll outsourcing Uzbekistan - With an effective payroll outsourcing company like Skuad you can comply with the country's regulations while handling all the payroll-related matters seamlessly as the Employer of Record can manage payroll through an integrated platform of Skuad.
The first step would be to set up a local subsidiary that will help the company hire employees, set up payrolls, work legally in the country and provide benefits and compensation to the employees. It requires a lot of time and effort to set up a subsidiary in Uzbekistan while complying with its laws. Skuad's platform can help you set up subsidiaries in the country and run payroll while completely complying with the country's laws.
Taxes in Uzbekistan
Different countries have different taxation policies, and the employees and employers must comply with the regulations. The personal income is taxed at 12 %. Given below are the employees' and employers' tax rates in Uzbekistan.
Incorporation: How to Set Up a Subsidiary in Uzbekistan
If you wish to expand into Uzbekistan, the first step would be to set up a subsidiary without which the company cannot make a legal presence in the country. There are several factors that you must consider to expand your business in Uzbekistan. The steps for setting up a subsidiary in Uzbekistan are -
- The foremost step in incorporating a holding company in Uzbekistan is choosing the location. The employer must choose the location according to the type of business. They must ensure compliance with the local area rules (if any). It is always better to partner with a third party who knows the local laws better.
- Choose the type of entity for your business. The options are public limited company, (LLC) Limited Liability Company, free trade zone company, branch, or representative office.
- Every entity has different laws, and the employer must select the entity according to the business requirements.
There are immense business opportunities in Uzbekistan. Because of the flourishing economy of the country, many businesses find it attractive to expand into Uzbekistan. However, it is essential to know the various laws for incorporation.
Learn more about setting up a subsidiary in Uzbekistan with Skuad's potent EOR solution.
Professional Employer Organization (PEO)
A professional employer organization in Uzbekistan manages all HR-related functions, such as compliance policies of the country, employee benefits, payroll management, taxes, and risk management. A PEO firm acts as a co-employer, while an EOR firm acts as a legal employer.
Businesses willing to expand into another country must establish a legal presence in the country. Collaborating with a PEO firm will require the companies to set up a legal entity separately. However, when you partner with an EOR team, you can legally start working and hiring employees in the country as it is already a legal employer.
A PEO can take over the responsibilities and liabilities of the company and handle all HR-related matters. An EOR company allows organizations to set up legal entities in different countries and mark their presence in the global market.
Skuad's integrated platform acts as an EOR as well as a PEO. The expert professionals manage all HR-related functions; right from recruitment to termination, the single platform of Skuad handles everything. You can build an efficient team of workers remotely while complying with the local laws. Skuad handles all the functions such as onboarding workers, both full-time and contractors, managing their payroll and taxes, etc. Connect with us and elevate your business prospects while saving your time and money with the advanced EOR solutions of Skuad.
Expand your business into Uzbekistan while complying with all the country's labor laws with Skuad's effective EOR solution. Handle the complexities of business expansion with ease and create a profitable business enterprise by making a global presence. Talk to Skuad experts and learn about every aspect of business expansion.