March 24, 2022

Foreign Labour in Uzbekistan

1. General regime for importation of foreign labor

2. The competent authority

3. Procedure for submitting documents to obtain a Confirmation

4. Documents to be submitted in order to obtain a Confirmation

5. Requirements and conditions for applicants in obtaining the Confirmation

6. Employment of highly qualified foreign employees

7. Taxation of incomes of foreign highly qualified specialists

8. Local labor

8.1. Worker’s council or trade union

8.2. Workers’ collective agreement

8.3. Internal labor regulations

8.4. Individual employment contracts

8.5. Hiring of Uzbek employees by representative office of foreign companies accredited in Uzbekistan

8.6. The list of documents which are necessary for employment 

1. General regime for importation of foreign labor

There is a systematized procedure for foreign nationals wishing to be employed in Uzbekistan and employers seeking to hire foreign specialists in the Republic of Uzbekistan to obtain confirmation of the right to work in the Republic of Uzbekistan (hereinafter referred to as “Confirmation”).

This article illustrates the procedure for obtaining the Confirmation, as well as other procedures related to the import of labor force into the territory of the Republic of Uzbekistan.

The main regulatory acts governing importation of foreign labor to Uzbekistan are:

  1. Law of the Republic of Uzbekistan dated July 14, 2021 № LRU-701 “On licensing, permission and notification procedures”;
  2. Decree of the President of the Republic of Uzbekistan dated August 24, 2020 № DP-6044 “On measures to radically improve licensing and permitting procedures”;
  3. Decree of the President of the Republic of Uzbekistan dated April 20, 2022 № DP-113 “On additional measures to simplify the provision of public services, reduce bureaucratic barriers and develop the national system of public services”;
  4. Decree of the President of the Republic of Uzbekistan dated April 4, 2022 № DP-101 “On the next reforms to create conditions for stable economic growth by improving the business environment and private sector development”;
  5. Resolution of the President of the Republic of Uzbekistan dated November 7, 2018 № RP-4008 “On measures to create favorable conditions for employment of qualified foreign specialists in the territory of the Republic of Uzbekistan”;
  6. Resolution of the Cabinet of Ministers dated February 22, 2022 № RCM-86 “On approval of the unified regulation on procedures for issuing certain documents of permissive nature through a special electronic system” (hereinafter – “№ RCM-86”).

2. The competent authority

The Agency for External Labor Migration under the Ministry of Employment and Labor Relations (hereinafter the “Agency”) is the competent authority for issuing the Confirmation.

In March 2022, in order to reduce bureaucracy and establish a unified procedure for passing through permit procedures using information systems, RCM No. 86 entered into force. In accordance with this regulation, the Confirmation can currently be obtained in the following ways:

1) Through the information system “License” (https://license.gov.uz/); or

2) Through the “Unified portal of interactive public services” (https://my.gov.uz/).

We want to emphasize, that according to the Presidential Decree № 113 dated April 20, 2022 “On additional measures to simplify public services, reduce bureaucratic barriers and develop the national system of public services” from July 1, 2022 non-residents carrying out their labor activity in the Republic of Uzbekistan online, while being abroad, are exempted from obtaining such a Confirmation. That is, they can work, remotely, without obtaining a Confirmation. 

3. Procedure for submitting documents to obtain a Confirmation

Applications may be submitted to the authorized body:

  • Legal entities (employers);
  • Individuals (employers); and
  • Foreign Citizen.

To obtain the confirmation, applicants (employers and the foreign national directly or with the help of an authorized representative) must use an electronic digital signature:

  1. Submit the application and accompanying documents electronically through the IS “License” or UPIPS;
  2. At the time of application, the applicant must certify that the activity he intends to conduct is compatible and meets the requirements and conditions of the permit;
  3. If the applicant discovers that the information on the application is inaccurate, he/she has the right to change it before paying the fee and before sending the application to the competent authority;

The registration fee for the application is 1 BRV – 300,000 (three hundred thousand) soums, approximately 28 US dollars. Payment of the fee is confirmed through information and communication systems;

The relevant document confirming the registration of the application and attached documents is automatically sent to the applicant through the IS “License” or UPIPS;

The information entered into the IS “License” is preliminarily automatically compared and verified on the basis of the information available in the systems of interdepartmental interaction. If the following facts are detected, the application and all attached documents will not be accepted for consideration;

  • If incorrect or unreliable information is found;
  • Failure to pay the registration fee;
  • In case of non-compliance with the requirements and conditions of the permit;
  • If the applicant has a fiduciary document entered for the same activity and valid in the register of fiduciary documents;
  • In case of suspension of the same activity or action by the applicant for a certain period of time;

After paying the fee, the application and the attached documents will be automatically sent to the Agency through the IS “License” or UPIPS, depending on where the applicant has applied;

The Agency considers the applicant’s application and all attached documents within 15 working days. Then, decide on the issuance or refusal to issue the Confirmation (hereinafter the decision) by its approval by the electronic digital signature of the authorized person. If the applicant applied through the IS “License”, the Agency’s decision is automatically sent to the applicant’s personal account in real time.

It is worth noting that the applicant also pays a fee for the issuance of a document of a permissive nature:

  • For highly qualified specialists, as well as teachers and specialists hired to work in presidential schools and institutions of higher education – in the amount of 1 time the amount of the base calculation (300,000 soums, approximately 28 U.S. dollars);
  • For qualified specialists in the amount of 2 times the size of the base calculation (600,000 sums, approximately 55 U.S. dollars);
  • For citizens – in the amount of 2 times the size of the base calculation (600.000 sums, approximately 55 US dollars);
  • For doctors who are other foreign nationals – in the amount of 5 times the amount of the base calculation (1’500’000 sum, approximately 136 US dollars);
  • For other foreign nationals – in the amount of 30 times the amount of the base calculation (9’000’000 sum, approximately 818 US dollars).

After the applicant pays (in accordance with the category) the fee for issuance of a document of permissive nature, in the IS “License” automatically creates, Confirmation with QR – code giving the right to work in the Republic of Uzbekistan and sent electronically to the personal account of the applicant in the IS “License” or UPIPS. Since the moment the Agency issues the Confirmation to the applicant, his/her labor activity on the territory of the Republic of Uzbekistan will be considered legal.

Grounds for refusal to issue a Confirmation are:

  • If the documents required for the issuance of a document of a permissive nature, submitted by the applicant in an incomplete amount;
  • If the applicant does not comply with the requirements and conditions of the permit;
  • If there is incorrect or distorted information in the documents submitted by the applicant.

If the following deficiencies are discovered during the first review, it is not permissible to refuse to issue a permit document without providing a deadline for their elimination:

  • when the documents required for the issuance of a document of a permissive nature are submitted by the applicant in an incomplete form;
  • when the professional qualifications of employees do not meet the requirements established by law;
  • when the submitted documents and programs do not meet the requirements established by law.

If the above deficiencies are found, the Agency sends the applicant a notice indicating the deadline for their elimination in electronic form through the IS “License” or UPIPS within one working day.

After elimination of all mistakes specified in the notification and payment of the fee for issuance of the permit document in the IS “License” the permit document with QR-code (matrix barcode) is automatically formed and sent in the electronic form to the personal account of the applicant in the IS “License” or UPIPS.

Applications can be sent 24 hours a day, regardless of weekends and holidays. From the moment the applicant uploads the application and attached documents and makes the payment in the IS “License” or EPIGU they are considered to be accepted by the competent authority. The applicant, depending on the electronic platform through which the application was submitted, can track its consideration by the competent authority online.

4. Documents to be submitted in order to obtain a Confirmation:

  1. Application

The application should include the following:

  • Name and surname of the foreign citizen, also telephone numbers, e-mail, address of residence on the territory of the Republic of Uzbekistan;
  • Education, specialty;
  • Full name or name of employer, type of activity, STIR;
  • Pre-negotiated salary, regularity, position;
  • terms of registration with the Main Department of Migration and Citizenship (if any).
  1. passport of a foreign citizen;
  • Draft employment contract, confirming the prior agreement with the employer on the intention and conditions of attracting a foreign worker to the territory of the Republic of Uzbekistan, indicating the salary;
  1. a 3×4 cm photograph of the foreign national;
  2. Documents confirming the qualifications of a foreign citizen;
  3. A copy of the entry visa of citizens of foreign countries with a visa regime (work visa “E”, work visa “B-1” and “B-2”, service visa “C-3” or other types of visas provided for citizens);

The list of countries for citizens of which visa-free regime in the Republic of Uzbekistan is established, you can read here.

5. Requirements and conditions for applicants in obtaining the Confirmation:

  1. Compliance with legislation on labor, labor protection, state employment, mandatory employer’s liability insurance;
  2. Compliance of the number and specialization (positions) of the requested foreign nationals with the actual need for labor force;
  3. Non-commitment by foreign nationals of acts contrary to the laws of the Republic of Uzbekistan, including criminal liability;
  4. Notify the competent authorities within one week of any changes in the information provided to the authorized body (information about the organization, applications, questionnaires, passport data, etc.);
  5. Failure to provide documents for obtaining a certificate to foreign nationals whose visa has expired or who are not registered with the Main Department of Migration and Citizenship Registration for more than 3 days, staying in the Republic of Uzbekistan;

The employer, in turn, is obliged to terminate the employment contract concluded with a foreign citizen upon expiration of the certificate granting the right to work in Uzbekistan, or within a week to notify the competent authority in case of dismissal of a foreign citizen or liquidation of the organization.

Validity of the Confirmation:

  1. Confirmation for highly qualified and qualified specialists, as well as for teachers and specialists hired for work in Presidential schools and institutions of higher education, shall be issued for the term of employment contracts, but for a period not exceeding three years, with the possibility of indefinite extension, but in each case not exceeding one year;
  2. For other foreign nationals – Confirmation is issued for the term of the employment contract, but for not more than one year, with the possibility of unlimited extension, but not more than one year in each case.

6. Employment of highly qualified foreign employees

Highly qualified employees are the foreign employees who meet the following requirements:

  1. graduated from the higher education institutions holding top 1000 positions in the ranking of the internationally recognized organizations (Quacquarelli Symonds World University Ranking, Times Higher Education, Academic Ranking of World Universities);
  2. having work experience of at least 5 years in the stated specialty or the specialty specified in the diploma;
  • the terms for attraction for employment in the Republic of Uzbekistan include the salary in the amount of at least US$60,000 per year.

Qualified employees are the foreign employees who meet the following requirements:

  1. having a higher education;
  2. having work experience of at least 5 years in the stated specialty or the specialty specified in the diploma;
  • the terms for attraction for employment in the Republic of Uzbekistan include the salary in the amount of at least US$30,000 per year.

Highly qualified and skilled professionals are provided with the following working conditions in Uzbekistan:

  • highly qualified and qualified specialists have the right to work part-time in the territory of the Republic of Uzbekistan without obtaining confirmation to work part-time;
  • Multiple-entry work visa for highly qualified and skilled specialists is issued for the duration of an employment or civil law contract, but not more than 3 years;
  • extension of validity of work visas issued to highly qualified and qualified specialists is carried out without the need for their departure from the territory of the Republic of Uzbekistan for the duration of the employment or civil law contract, but not more than 3 years in each case;
  • highly qualified specialists and members of their families are issued residence permits for the duration of the employment contract or civil law contract if they wish;
  • After early termination of the contract with the employer, highly skilled and qualified specialists have the right to look for a new employer within 30 working days, during which time the validity of their previously issued confirmations, visas and residence permits is retained.

7. Taxation of incomes of foreign highly qualified specialists

From January 1, 2019, incomes of highly qualified specialists are subjects to personal income tax in the amount of 50% of its established rate (the rate of the personal income tax in 2019 is 12%).

It should be emphasized, in accordance with DP №-101 of April 8, 2022 from January 2023 is canceled 50% tax rate on income of highly qualified professionals.

In the case of early termination of an employment contract or civil law contract on grounds related to the employee’s culpable actions, the amount of tax not paid in connection with the provision of the above tax incentives shall be recovered from him to the State budget of the Republic of Uzbekistan.

8. Local labor

8.1. Worker’s council or trade union

Labor legislation of the Republic of Uzbekistan provides, that interests of employees can be represented by labor unions or other elective employees’ organs. Election of the employees’ representative organs are performed by general meeting of the employees (conference).

Establishing corporate trade-union organization is not compulsory.

In accordance with Article 35 of the Labor Code of Uzbekistan, the right to decide on the need to conclude a collective agreement with the employer is vested in the trade union represented by its authorized body, another representative body authorized by the workers, or directly the general meeting (conference) of the labor collective.

8.2. Workers’ collective agreement

In accordance with Article 31 of the Labor Code, any party has the right to initiate negotiations on the conclusion and amendment of workers’ collective agreement. In accordance with the first part of Article 177 of the Labor Code of the Republic of Uzbekistan, an employer is obliged to conclude a collective agreement. However, if workers didn’t initiate conclusion of the workers’ collective agreement, the employer is not obliged to conclude it.

At the same time, Labor organs of Uzbekistan consider that the conclusion of a collective agreement is desirable for both the employer and the workforce, as it allows settling a number of issues that are not reflected in the legislation. But again, there is no obligation to conclude it.

Despite the fact that the workers’ collective agreements depend on the characteristics of labor, socio-economic and professional relations of specific organizations, it is based on the principles established by law. These principles are the following:

  • compliance with the law;
  • due authority of party’s representatives;
  • equality of the parties;
  • freedom of choice and discussion of issues constituting the content of collective agreements and agreements;
  • voluntary commitment;
  • the reality of ensuring the commitments made;
  • systematic control;
  • inevitability of responsibility.

8.3. Internal labor regulations

The Employer must elaborate:

  • Staffing list;
  • Internal Labor Regulation; and
  • certain other corporate documents.

8.4. Individual employment contracts

Language of labor contract

Labor agreement shall be executed in Uzbek, and in case a majority of the employees do not comprehend Uzbek it shall be made in two languages: in Uzbek and in another appropriate language (including English).

Important note: compulsion of an employee to sign employment contract in a language that he (she) does not comprehend can be considered a violation of labor rights of the employee.

Similar requirements apply to all notifications and addendums to the labor agreement.

Temporary labor contracts

There are general limitations on the temporary labor contracts.

According to Article 75 of the Labor Code of the Republic of Uzbekistan labor agreements may be concluded:

  • For unlimited term;
  • For a fixed term not exceeding 5 years;
  • For the term for fulfillment of a certain work.

Labor agreement concluded for a term of fulfillment of certain work is a fixed-term labor contract. Article 76 of the Labor Code provides that fixed-term labor contracts may only be concluded if unlimited labor contracts cannot be concluded due to presence of circumstances prescribed by Article 76 of the Labor Code.

The legislation determines such circumstances including but not limited to: 

  • Nature of the prospective work;
  • Conditions of performance of the work;
  • Interests of employee;
  • Other cases provided for by the legislation.

8.5. Hiring of Uzbek employees by representative office of foreign companies accredited in Uzbekistan

Performance of labor duties by Uzbek employees of the Representative office is regulated by Uzbek legislation. Uzbek legislation sets forth a number of requirements towards official registration of labor relations.

When putting an Uzbek employee officially on the staff, the Parent company is obliged to perform the following actions:

  1. to check if the Uzbek employee has all necessary documents (see below);
  2. to sign a labor contract with each Uzbek employee and store the executed labor contracts in the Representative office;
  • to collect from each Uzbek employee his/her labor (service record) books or a certificate from the main place of work if the employee is hired for a part time position. Every Uzbek employee must present his/her Labor Book to the Representative office. If Uzbek employee is hired for the first time the Representative office must issue him Labor Book;
  1. to issue to each Uzbek employee corporate order on the hire;
  2. to inform each Uzbek employee on the terms of labor, risks of professional or other diseases, privileges and compensations, and means of individual protection;
  3. to inform each Uzbek employee on the internal labor rules and regulation of hiring of employees and to collect their signatures confirming the fact of acquaintance.

8.6. The list of documents which are necessary for employment

  • In the course of employment process the employee shall provide the following documents:
  • Passport or the substituting document;
  • Employment record book (except for the employees who are hired for the first time);
  • Military ID (for persons who are bound to military service);
  • Diploma on graduation from higher or secondary specialized educational institution;
  • Taxpayer Identification number;
  • individual accumulative retirement account.