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Uzbekistan

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Uzbekistan

Notice period

In Uzbekistan, the Labor Code stipulates specific notice periods that employers must follow when terminating an employment contract. These periods differ based on the reason for termination.

Notice Periods According to Termination Reason

The Labor Code prescribes the following minimum notice periods for different termination scenarios:

  • Two Months' Notice:
    • Redundancy due to changes in technology, organization of production, or a reduction in work volume necessitating staff reduction.
    • Liquidation of the enterprise.
    • Change in ownership of the organization.
  • Two Weeks' Notice:
    • Employee's inability to perform assigned work due to insufficient qualifications or health reasons.
  • Three Days' Notice:
    • During the employee's probationary period.

It's important to note that the notice period must be provided in writing, and the employee must acknowledge receipt through their signature.

Additional Considerations

There are exceptions for pregnant women and women with children under three years old. Employers are generally not entitled to terminate their employment agreements unilaterally, except in cases of company liquidation. Fixed-term contracts require a notice period of one week after the last day of the contract. Failure to provide this notice automatically converts the contract to an indefinite-term contract.

Severance pay

In Uzbekistan, the Labor Code outlines specific severance pay entitlements for employees whose employment has been terminated.

Circumstances for Severance Pay

Severance pay is obligatory in the following termination situations:

  • Redundancy due to staff cutbacks, changes in production methods, or technological changes.
  • Liquidation of the company.
  • Employee's termination of the contract due to an employer breach of contract, the labor code, or other legislative changes.

Severance Pay Calculation

The exact amount of severance pay is determined based on the employee's length of service with the company and their average monthly salary:

  • Up to 3 years of service:
    • 50% of the average monthly salary.
  • 3 to 5 years of service:
    • 75% of the average monthly salary.
  • 5 to 10 years of service:
    • 100% of the average monthly salary.
  • 10 to 15 years of service:
    • 150% of the average monthly salary.
  • Over 15 years of service:
    • At least 200% of the average monthly salary.

Additional Information

  • The severance pay cannot be less than the employee's average monthly salary.
  • Collective bargaining agreements or employment contracts may offer more generous severance pay benefits but cannot be less than the minimum established by the Labor Code.

Termination process

In Uzbekistan, the Labor Code outlines a specific process for terminating an employee's contract. It's essential for both the employer and employee to follow these steps to ensure they are acting within the law.

Termination at the Employer's Initiative

Employers can terminate an employee's contract for several valid reasons. These include redundancy due to organizational changes or a reduced workload, liquidation of the company, the employee's lack of necessary skills or health reasons preventing them from fulfilling their duties, disciplinary violations, systematic failure to meet work expectations, and a change in the ownership of the organization.

If the employee is a member of a trade union, consultation and approval from the union may be necessary.

Termination at the Employee's Initiative

Employees have the right to terminate both fixed-term and indefinite-term contracts by providing written notice.

Additional Considerations

Termination notices and any agreements reached between the parties must be in writing. The employer must issue all outstanding payments due to the employee, including salary and compensation for unused vacation.

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