• Employment contract
The Labor Code defines an employment contract as a written contract between an employer and an individual employee. Employment contracts can be executed with no specified term (indefinite) or for a fixed. Unless the agreement states the term of the employment, it will be unlimited. An employment contract generally includes a period of probation which cannot exceed three months.

• Service agreement
Contractors/freelancers is used to establish a relationship between a service provider and a client. A service agreement is a type of contract used for the provision of services, rather than for an employment relationship. Unlike employment contracts, service agreements do not establish an employer-employee relationship, and the service provider is typically considered to be an independent contractor rather than an employee.

• Normal weekly working hours may not exceed 40 hours.
  Typically, a work week in Uzbekistan consists of 40 hours worked over five or six days.

• Employees shall be entitled to the following types of leave:

  ✓ Vacation — employees are entitled to paid annual leave, which is calculated based on their length of service. Employees are entitled to a minimum of 15 working days (21 calendar days) per year of paid vacation after completing 6 months of continuous employment.

  ✓ Maternity leave — Female employees are entitled to paid maternity leave, which is 126 calendar days.
  They are entitled to 70 days prior to giving birth and 56 days after the birth. Sometimes up to 70 days after birth is allowed for complicated or multiple births. The maternity leave must be supported by a medical certificate. During maternity leave an employee is entitled to social security benefit of 100.00% of their regular salary.
  At the request of the employee, additional unpaid leave may be granted until the child reaches the age of three.

  ✓ Unpaid leave — At the request of the employees, they may be granted leave without pay, the duration of which is determined by agreement between the employee and the employer but cannot exceed three months in total within a 12-month period.

For overtime work, the employer must pay the employee at least 1.5 times their normal hourly wage for each hour of overtime worked. If the overtime work is performed on a day off or a public holiday, the employer must pay the employee at least twice their normal hourly wage for each hour of overtime worked. Overtime work may be applied with the consent of the employee. The duration of overtime work should not exceed for each employee four hours for two consecutive days (for jobs with harmful and difficult working conditions – two hours a day) and 120 hours a year.

• Health insurance: many employers offer to cover medical expenses, hospitalization, and other healthcare-related costs.

• Retirement plans: Some employers offer pensions or 401(k) plans, to help employees save for retirement.

• Flexible work arrangements: telecommuting or flexible hours, to help balance work and personal life.

• Training and development programs: to help improve skills and advance their careers.

• Transportation allowances: cover the costs of commuting to and from work.

• Phone allowance: phone costs reimbursement.

• Vacation and travel benefits: paid time off for travel or vacation packages.

• Labor (Employment) Visa — Expats must have a valid visa to enter Uzbekistan. The type of visa required will depend on the purpose of their visit, such as business or employment.

• Work Permit — Employers must obtain a work permit for the expat employee before they can legally work in Uzbekistan. The work permit is issued by the State Committee on Labor and Social Protection of the Republic of Uzbekistan.

• Temporary Residence Permit (TIN) — Employers must register with the tax authorities and obtain a tax identification number (TIN) before they can hire expat employees. The TIN is used to calculate and pay taxes on behalf of the employee. 

Termination at the Initiative of the Employee.
An employee may terminate an employment contract by notifying the employer in writing at least two weeks in advance of the date they wish to terminate. This notice period may be longer if specified in the employment contract, collective agreement, or other legal documents.

✓ Termination at the Initiative of the Employer
An employment contract may be terminated at the employer’s initiative in the following cases:

• Business reasons, such as downsizing or restructuring.
• Failure to meet performance standards or breach of contract.
• Misconduct, such as theft or fraud.
• Health or disability issues that prevent the employee from performing their duties. • Retirement or reaching the retirement age specified in the employment contract.

Under the Labor Code of Uzbekistan, if an employer decides to terminate an employment contract with an employee, he must provide written notice of termination at least two months in advance of the date of termination.

In Uzbekistan, employers are required to provide severance pay to employees in certain situations, such as termination

without cause or in the case of a reduction in workforce.
The severance pay is equal to one month’s salary for every two years of service from the employee.

The amount of severance pay is calculated based on the employee’s length of service with the employer and cannot be less:

• 50% of the average monthly earnings – for employees with up to 3 years of service;

• 75% of the average monthly earnings – for employees with three to five years of service;

• 100% of average monthly earnings – for employees with work experience of 5 to 10 years;

• 150% of the average monthly earnings – for employees with 10 to 50 years of service;

• 200% of average monthly earnings – for employees with more than 50 years of service.

There are several mandatory payments that employers are required to make upon termination of an employee in Uzbekistan. These payments include — Accrued vacation pay: Employers must pay any accrued but unused vacation pay to employees upon termination. Unpaid wages: Employers must pay any unpaid wages to employees upon termination, including regular wages, overtime pay, and any other wages owed. Unpaid social insurance contributions: Employers must pay any unpaid social insurance contributions, such as pension or health insurance contributions, to the relevant government authorities upon termination. Compensation for unused sick leave: If an employee has unused sick leave at the time of termination, the employer must compensate them for the unused leave in accordance with the law.