Employment Law in Uzbekistan: What Foreign Employers Need to Know

A new framework

The current Labour Code of the Republic of Uzbekistan entered into force on 30 April 2023. It codifies many practices that had developed under the previous Code, introduces new forms of employment such as remote work, and strengthens procedural guarantees for employees. For foreign employers, the main message is that Uzbek labour law remains employee-protective and formal: documents, deadlines and procedures matter, and courts tend to reinstate employees where the employer cannot demonstrate full compliance.

Employment contracts

An employment contract must be concluded in writing before the employee starts work, and information on it is entered into the unified national labour system, the electronic register maintained by the labour authorities. The contract must contain the mandatory terms required by the Code, including the place of work, job function, start date, pay and working time arrangements. Terms that worsen the employee's position compared with the law or applicable collective agreements are invalid.

The employer may set a probationary period, subject to the statutory maximum and to exclusions for certain categories of employees. A probation clause must be included in the contract; it cannot be introduced later.

Foreign parent companies often wish to use their group templates. These should be adapted to Uzbek law rather than translated: provisions on at-will termination, garden leave or unilateral changes to duties are generally unenforceable. Bilingual contracts in Uzbek or Russian and English are common and recommended.

Fixed-term contracts

The Code treats an indefinite-term contract as the default. A fixed-term contract may be concluded only in the cases set out in the Code — for example, where the nature or conditions of the work do not allow an indefinite relationship, for temporary or seasonal work, or for the replacement of an absent employee — and for no longer than the statutory maximum term. If a fixed-term contract is concluded without a lawful ground, or the employee continues working after expiry without objection, the relationship may be treated as indefinite. Employers should record the ground for a fixed term in the contract itself.

Working time and leave

The normal working week may not exceed 40 hours, with reduced hours for certain categories of employees, such as minors and employees working in harmful conditions. Overtime is permitted only within statutory limits and is compensated at an increased rate. The Code regulates part-time work, flexible schedules, shift work and remote work, which can now be agreed expressly in the employment contract.

Employees are entitled to annual paid leave of at least 21 calendar days, with additional leave for specific categories and conditions of work. Unused leave and its compensation on termination should be tracked carefully, as disputes over leave pay are common in practice.

Termination basics

An employment contract may be terminated by mutual agreement, at the employee's initiative, at the employer's initiative, on expiry of a fixed term or on other grounds listed in the Code.

Termination at the employer's initiative is permitted only on statutory grounds, which include:

• changes in technology, production or organisation of work leading to a reduction in headcount or positions (redundancy);
• the employee's unsuitability for the position due to insufficient qualifications or health;
• systematic breach of employment duties, or a single gross breach;
• liquidation of the employer.

Each ground has its own procedural requirements: advance notice, offers of alternative work where required, consultation with the trade union body where one exists, and payment of severance in the cases established by law. Certain categories of employees, including pregnant women and employees with young children, enjoy additional protection. Mutual agreement is often the most practical and lowest-risk route, provided it is properly documented.

Employees may challenge a dismissal in court, and a dismissal found to be unlawful can lead to reinstatement and payment for the period of forced absence. For this reason, employers should prepare a documented record before initiating any termination.

Foreign employees

Foreign nationals employed in Uzbekistan generally require a work permit issued by the competent labour migration authority, as well as an appropriate visa and registration of their stay where applicable. The employer is usually responsible for initiating the permit process and for ensuring that the employee does not start work before the permit is obtained. Simplified rules apply to highly qualified specialists, and nationals of certain countries may benefit from exemptions. Employing a foreign national without the required permit exposes the employer to administrative liability.

The employment of foreign staff is also subject to the general provisions of the Labour Code: a foreign employee working in Uzbekistan under a local contract is entitled to the same statutory protections as Uzbek nationals. This also applies to a foreign director of a local subsidiary who actually works in Uzbekistan: corporate appointment by the parent does not replace the need for an employment contract and, where required, a work permit.

Practical recommendations

• Review group employment templates for compliance with the Code before hiring the first employee.
• Register every contract in the unified national labour system on time.
• Use fixed-term contracts only where a statutory ground applies and record it in the contract.
• Adopt internal labour regulations, a job description for each role and a disciplinary procedure.
• Plan work permits for foreign staff in advance and track their expiry dates.
• Remember that HR data of Uzbek employees is subject to personal data localisation rules.

LEXGLOBAL advises international employers on hiring, HR documentation, restructuring and employment disputes in Uzbekistan.