January 10, 2023

New edition of the Labor Code of the Republic of Uzbekistan

Normative-legal acts

Introduction

1.1 General provisions

1.1.1 Principles

1.1.2 Code enforcement

1.1.3 Other legislation

1.1.4 Social partnership

1.1.5 Socially vulnerable persons

1.1.6 Severance payment

1.1.7 Mass release protection

1.2 Special section

1.2.1 Subject matter of the employment contract

1.2.2 Party detail

1.2.3 Fixed-term employment agreement

1.2.4 Probationary exceptions

1.2.5 Types of working hours

 

Normative-legal acts

The following normative-legal acts were used in the preparation of this memorandum:

  1. Labor Code of the Republic of Uzbekistan dated December 21, 1995;
  2. New edition of the Labor Code of the Republic of Uzbekistan dated October 29, 2022 (will enter into force on April 1, 2023);
  3. Law of the Republic of Uzbekistan dated October 28, 2022 № ZRU-798 “On Approval of the Labor Code of the Republic of Uzbekistan”;  
  4. Law of the Republic of Uzbekistan dated September 25, 2014 ZRU-376 “On social partnership”.

Introduction

The Labor Code of the Republic of Uzbekistan (hereinafter, the Labor Code or LC) was adopted on December 21, 1995 and entered into force on April 30, 1996. It should be noted that the Republic of Uzbekistan was the first among the other post-Soviet republics to adopt this code. After 27 years, on October 28, 2022 the President of the Republic of Uzbekistan signed Law № ZRU-798 “On Approval of the Labor Code of the Republic of Uzbekistan” in this connection, since April 1, 2023 the Labor Code, will be effective in our Republic in new edition.

This memorandum focuses on the amendments that have been included in the new edition of the Labor Code.

New edition of the Labor Code consists of:

  • 581 articles;
  • 34 paragraphs; and
  • 7 sections.

1.1 General provisions

Principles

The new edition of the LC approved the following principles of legal regulation of individual labor and directly related social relations:

  • Equality of labor rights, prohibition of discrimination in the sphere of labor and occupation;
  • Freedom of labor and prohibition of forced labor;
  • Social partnership in the area of labor;
  • Guaranteed security of labor rights and performance of labor duties;
  • Inadmissibility of worsening the legal status of an employee.

According to the second principle, it is forbidden to conclude an employment contract on coercion of the employer and the employee. In addition to this, it is not allowed to conclude contracts of civil-legal nature that actually regulate individual labor relations between the employee and the employer.  

Code enforcement

Article 11 of the Labor Code specifies the persons to whom this code applies and does not apply, thus, the labor law applies to:

  1. the individual employment relationship between the employee and the employer;
  2. public relations directly related to individual labor relations.

According to this article, the labor law does not apply to:

  • Members of the armed forces who are on fixed-term military service;
  • Members of supervisory boards of organizations;
  • Members of audit commissions (auditors) who are not employees of the organization;
  • Persons performing work (rendering services) who are not employees of the organization; and
  • Other persons, if established by law.

Other legislation

Also in the LC, the following treaties and agreements, which are categorized as other legal acts on labor, are designated:

  • Collective agreements;
  • Collective agreements;
  • Local acts adopted by the employer by agreement with the trade union committee; and
  • Local acts, including individual legal acts adopted by the employer alone within the limits of his authority.

Social partnership

The new version of the Labor Code provides for the following newly introduced concept as social partnership. It is worth noting that in the old version of the LC this concept was mentioned only once, but was not disclosed more broadly. According to Article 6 of the Labor Code, social partnership means interaction of employees, represented by their representatives, employers and their representatives, as well as government agencies aimed at ensuring coordination of interests of employees and employers and the state in the regulation of social and labor relations. Based on this principle, the labor legislation:

  • Creates the necessary conditions for the implementation of bilateral and trilateral cooperation in the field of labor. Bilateral cooperation, i.e. the agreement is concluded between the employee, their representatives and employers and their representatives, while the tripartite agreement is concluded between the representatives of employees, employers and the executive authorities;
  • Guarantees the right of workers and employers to unite to ensure representation and protection of their interests;
  • Guarantees the right of employee and employer representatives to conduct collective bargaining, conclude collective agreements and collective bargaining agreements;
  • Determines what local acts may be adopted by the employer in coordination with the elected body of the primary trade union organization, or other representative body of employees;
  • Provides for the participation of representatives of employees and employers in resolving labor disputes.

Social partnership in the labor sphere is carried out on 4 levels.

  • The primary level
  • Territorial level;
  • Industry level; and
  • Republican level.

Social partnership at the primary level is bilateral in nature. The parties at this level are the labor collective and the employer.

Territorial level has both bilateral and trilateral character. The parties to the bilateral social partnership are considered to be the respective associations of workers and employers. The local executive authorities and other interested state bodies participate in tripartite social partnership at the branch level on the proposal of territorial associations of workers and employers.

The industry level, like the territorial level, is bilateral and trilateral. The parties to the bilateral social partnership are the respective associations of workers and employers. At the proposal of branch associations of workers and employers, public administration bodies of the respective branch participate as parties to the tripartite social partnership. In cases where the public administration bodies of the relevant branch act as employers, the Ministry of Employment and Labor Relations of the Republic of Uzbekistan participates in the tripartite social partnership at this level.

The republican level in social partnership has tripartite nature. The parties at this level are the associations of workers and employers and the Cabinet of Ministers of the Republic of Uzbekistan, the ministries, state committees and departments concerned.

We would like to emphasize that on September 25, 2014 in the Republic of Uzbekistan, the Law № ZRU-376 “On social partnership” was adopted, which regulated relations in the field of social partnership before the introduction of this concept into the Labor Code. By following the link, you can read about this law, too.

Socially vulnerable persons

Article 96 of the new edition of the Labor Code, establishes another innovation, the category of socially vulnerable persons. These include:

  • Single parents (a person replacing the parents) with children under the age of fourteen, children with disabilities, as well as parents (persons in loco parentis) with large families;
  • Young people who have acquired a profession upon graduation from general secondary and specialized secondary educational establishments, vocational schools, vocational colleges and technical colleges;
  • Graduates of “Mekhribonlik” homes, as well as graduates of higher graduates of higher educational organizations, who studied under state grants;
  • Persons discharged from fixed-term military service from the troops of the Ministry of Defense, the Ministry of Internal Affairs, the Ministry of Emergency Situations, the National Guard;
  • Persons with disabilities;
  • Persons of pre-retirement age (two years before the statutory retirement age);
  • Persons released from penal institutions or persons against whom a court decision has been made to impose compulsory measures of medical nature;
  • Victims of human trafficking.

The state provides additional guarantees in the field of employment, the above persons, by creating additional jobs, specialized organizations, retraining programs, and professional development, establishing a minimum number of jobs, the above categories of persons.

Severance payment

The new edition of the Labor Code gives a broader definition of severance pay. According to Article 173, termination indemnity is a lump sum payment provided by the legislation, other legal acts on labor, and the labor contract to the employee at the termination of the labor contract on certain grounds, which is made to mitigate the consequences of the employee’s job loss.

Severance payment is paid with the termination of the employment contract:

  1. At the initiative of the employer, except for the termination of the contract on the grounds of guilty actions (inaction) of the employee;
  2. Due to circumstances beyond the control of the parties
  3. With the conscription of the employee for military or alternative service;
  4. With the reinstatement of the employee, who previously performed the job;
  5. With the entry into legal force of the court decision on the liquidation of the organization;
  6. With the return of a deputy of the Legislative Chamber, as well as a member of the Senate of the Oliy Majlis of the Republic of Uzbekistan, who worked in the Senate on a permanent basis, to his previous position in connection with the expiration of the term of office or the dissolution of the Legislative Chamber and the Senate of the Oliy Majlis of the Republic of Uzbekistan; and in cases;
  7. Violation of the established rules of employment on the part of the employer; and
  8. With the occurrence of circumstances which, in accordance with the law, prevent the continuation of labor relations (recognition of the employee completely incapacitated).

It is worth noting that if under the old Labor Code, the severance pay could not exceed the average monthly earnings, according to the new version of the LC; the severance payment depends on the 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.

Mass release protection  

The new edition of the Labor Code protects employees from mass release. Moreover, it is worth emphasizing that Article 98 of the LC enshrines the criteria for mass releasing, they include:

  1. Liquidation of an organization of any organizational and legal form (its separate subdivision) with twenty or more employees; and
  2. Reduction of the number (staff) of employees with:
  • Fifty or more employees within thirty calendar days
  • Two hundred and more employees within sixty calendar days; and
  • Five hundred and more employees within ninety calendar days.

1.2 Special section

Based on Article 122 of the Labor Code, there are three stages of hiring:

  1. Job orientation;
  2. Reaching an agreement between the parties on the terms of the employment contract and its signing by the employee and the employer;
  3. Issuance of the employment order by the employer and entering information about the employment into the employee’s work record book and interdepartmental hardware and software complex “Unified National Labor System”.

Subject matter of the employment contract

So, on the basis of Article 104 of the Labor Code now, the following conditions at the conclusion of the employment contract between the employee and the employer are mandatory:

  • Place of work – the employer (organization, its separate subdivision or individual) where the employee will work, as well as the location where he/she is to work;
  • Job function – work in a certain profession, specialty, qualification or position, as well as a specific type of work assigned to the employee;
  • The starting date of work is the calendar date on which the employee must begin to perform the work stipulated in the employment contract;
  • Conditions of remuneration (including the employee’s wage rate or salary, additional payments, allowances and incentive payments);
  • The term of the employment contract in the case when a fixed-term employment contract is concluded with an employee, as well as the grounds for its conclusion;
  • Working hours and vacation time regime in case it differs for this employee from the general regime of working hours and vacation time provided for the employees working for this employer;
  • Guarantees and compensations for working in conditions other than normal, if the employee is hired for this job with an indication of the characteristics of working conditions at the workplace; conditions defining the nature of work (mobile, itinerant, on the road, other nature of work), if necessary;
  • Other conditions in cases stipulated by labor legislation and other legal acts on labor.

Failure to include in the employment contract any rights and (or) obligations of the employee and the employer established by the labor law cannot be considered as a refusal to exercise these rights or perform these obligations.

In addition to this, the 107th article introduces another concept to the Labor Code, now according to this article, along with the date, number and place of conclusion of the employment contract, the details of the parties are also indicated in the employment contract.

Party details

Details of the employee, which must be specified in the employment contract are:

  • Surname, first name, patronymic;
  • Information about the identity documents;
  • Address of residence or stay and contact information;
  • Taxpayer identification number;
  • Personal identification number of a physical person (if any);
  • Individual cumulative pension account number.

The employer’s requisites that are specified in the employment contract are:

  • Name of the employer who concluded the employment contract; if the employer is a natural person, then indicate his surname, first name, patronymic, and passport data, and if an individual entrepreneur, then indicate his surname, first name, passport data, number and date of issue of the certificate of state registration;
  • Information about the employer’s representative who signed the employment contract, and the basis by which he/she is authorized to do so, if the employer is an organization or its separate subdivision;
  • Location (mailing address) of the employer – an organization or a separate subdivision of the organization in cases where this subdivision is the employer who signed the employment contract with the employee, or the address of residence or stay of the employer – an individual;
  • Taxpayer Identification Number (except for employers who are not individual entrepreneurs)
  • Bank details for employers – organizations or their separate subdivisions, as well as individual entrepreneurs;
  • Contact information (telephone numbers, e-mail address, etc.) of the employer.

If any of the above details were not included in the employment contract when it was concluded, this does not result in the recognition of the employment contract as unconcluded or its termination. The employment contract must be supplemented with the missing requisites by concluding a supplementary agreement.

Fixed-term employment agreement

According to the new Labor Code, a fixed-term employment contract is concluded for a period not exceeding three years:

  • For the duration of the duties of an absent employee, the employee is retained in his place of work in accordance with the labor law and other the employer has the right to retain his place of work in accordance with labor laws and other legal acts on labor and the employment contract;
  • For the duration of temporary (up to two months) work;
  • For seasonal work, when due to natural conditions
  • Work may be performed only during a certain period (season);
  • For work beyond the employer’s normal activities (reconstruction, installation, commissioning and other work), as well as work related to a deliberately temporary (up to one year) expansion of production or an increase in the volume of work (products, services);
  • With persons who come to work in organizations established for a knowingly specified period according to the founding documents;
  • To perform work directly related to the contract For the performance of work directly related to the contract of industrial training, paid For work directly related to an apprenticeship or internship contract;
  • With persons referred by the labor authorities for temporary work or paid community service;
  • With citizens sent for alternative service;
  • With foreign nationals and stateless persons who have legally entered the Republic of Uzbekistan to carry out labor activities on its territory.

Probationary exceptions

By virtue of Article 129, the list of persons against whom a probationary period is not established has been updated:

  • Pregnant women, women with a child under the age of 3 Pregnant women with a child under 3 years old or a father (guardian) raising a child under 3 years old alone;
  • Persons from socially vulnerable categories of population referred to Persons from socially vulnerable categories of the population directed for employment to reserved positions;
  • Graduates of institutions of higher education who studied Graduates of higher educational institutions trained on the basis of state grants and entering employment Graduates of higher educational institutions, trained on the basis of state grants and entering employment within 3 months from the date of graduation from a higher educational organization;
  • Graduates of general secondary, secondary specialized, vocational and higher educational organizations, employed independently in their specialty when entering the workforce for the first time within 1 year from the date of graduation from the relevant educational organization;
  • Employees with whom an employment contract is concluded for up to 6 months;
  • Persons under the age of 18 years;
  • Persons with whom the employer had previously terminated the employment contract on certain grounds, in case of their re-employment;
  • Trainees undergoing training with an employer under apprentices under apprenticeship contracts;
  • Other employees, if provided for in collective agreements, as well as in the collective agreement and local acts of the employer.

The period of preliminary probationary period is preserved, and it, as before, cannot exceed 3 months, and for the heads of organizations, their deputies, chief accountants and heads of separate subdivisions of organizations – 6 months.

Inclusion of the following conditions in the employment contract will be considered invalid:

  • Deterioration of the employee’s position in relation to labor law and other documents on labor;
  • Violation of the prohibition of discrimination in employment and occupation;
  • Violation of the prohibition of forced labor;
  • Forcing the employee to commit illegal actions, actions that violate the rights of others or the employee himself, threaten his life and health, undermine his honor, dignity or business reputation.

Types of working hours

Article 181 of the Labor Code establishes the types of working hours:

  1. The normal length of working time, for an employee may not exceed 40 hours per week for a 5-6 day work week;
  2. Reduced duration of working time, established for certain categories of employees, taking into account their age, health condition, working conditions, specificity of work functions and other circumstances in accordance with the law.

Reduced working hours are mandatorily established:

  • Employees under the age of 18 are not allowed to work more than 36 hours per week;
  • Employees with disability groups I and II working hours are set not more than 36 hours per week. It is worth noting that the duration of daily work (shift) for employees of this category is set in accordance with the recommendations of the medical and social expert commission, and shall not exceed six hours in a six-day work week and seven hours and thirty minutes in a five-day work week;
  • Employees engaged in work with adverse working conditions, the duration of working time is set not more than 36 hours per week. The list of such works and specific working hours in their performance are determined by collective agreements, collective bargaining agreements, and if they are not concluded, by the employer in consultation with the trade union committee on the basis of the certification of workplaces for working conditions and equipment injury hazards;
  • Medical workers, teachers, and other categories of employees whose work is connected with increased emotional, mental, and nervous tension – the duration of working time is not more than 36 hours per week;
  • One of the parents (guardian) of a child under the age of 3, working in an organization financed from the budget the duration of working time is not more than 35 hours per week;

One parent or guardian of a child under 3 years of age, working for employers not financed from the budget, reduced working hours may be established by collective agreements, as well as the collective agreement or local acts adopted by the employer in agreement with the trade union committee.

For employees who have normal working hours, the duration of daily work may not exceed seven hours in a six-day working week and eight hours in a five-day working week.

  1. Part-time work is established by agreement of the parties to the employment contract when an employee is hired. Part-time work may be established The employer is obliged to establish part-time work without limitation or for any period of time agreed by the parties to the employment contract. The employer is obliged to establish part-time work:
  • At the request of a pregnant woman, a parent with a child under the age of 14, and persons caring for a sick family member in accordance with a medical report;
  • At the request of a person with individuality, if the establishment of working time for him/her is provided for in the recommendations of the medical and social expert commission;
  • In other cases stipulated by the Labor Code or other legal acts on labor.

Based on Article 125, the electronic form of the labor book is now the main document confirming the length of service of an employee.