Companies aren’t limited by physical borders anymore. You can hire from anywhere and expand your team with fresh perspectives from all over the world. In recent years, companies have been hiring from countries off the beaten track, such as Uzbekistan. However, finding the talent you need legally can be challenging.
An Employer of Record (EOR) offers a simple and straightforward way to hire and pay global talent legally. It provides everything you need to hire, onboard, and pay employees compliantly.
Read on to learn all about hiring employees from Uzbekistan through an EOR.
Why Hire Talent in Uzbekistan?
Uzbekistan has a well-educated and skilled workforce, particularly in IT, engineering, and finance. While the official languages are Uzbeck and Russian, many Uzbekistanis are also proficient in English, making them well-suited for companies that operate in international markets.
Uzbekistan has a rich cultural heritage, and its people are known for their hospitality and warmth. Hiring remote workers from Uzbekistan can bring a diverse cultural perspective to a company and help promote a more inclusive and global work culture.
Uzbekistan is in the GMT+5 time zone, meaning it is only a few hours ahead of many European countries and the Middle East. This can be beneficial for companies that operate in these regions, as it can enable more efficient communication and collaboration.
How Can I Legally Hire an Employee in Uzbekistan?
If you want to hire talent in Uzbekistan on your own, things may get complicated. To hire in Uzbekistan, businesses must establish an entity based in Uzbekistan. The process can be a headache and may only be worth pursuing if you intend to practice business in Uzbekistan long-term.
EORs offer an easy, straightforward way to hire full-time employees from Uzbekistan. An EOR, like Borderless, serves as an intermediary and facilitates the processes involved in global hiring.
EORs already have an entity in place that can hire and onboard talent, ensuring compliance with local laws and regulations.
What Does an EOR Do?
EORs ensure you maintain strict compliance with local laws and regulations in the countries you hire talent from. They remove the legal roadblocks involved in hiring so that you can focus on growing your business. Hiring laws vary considerably around the world, and it’s critical to comply with them to avoid legal implications. EORs take care of the following processes and ensure they’re fully compliant:
- Work visas and permits
- Employment contracts
- Onboarding
- Tax documentation and filing
- Payroll processing
- Employee benefits
- Intellectual property protection
- Termination
EORs handle all of the tedious administrative tasks associated with these processes. They generate compliant employment contracts, collect tax documentation, file it per local laws, etc.
Employee Insurance and Benefits
It’s always essential to stay competitive, especially in a tight labor market. An EOR will help you stand out from the crowd with a comprehensive benefits package, including generous health and wellness benefits, time off, financial security, and much more. It will ensure you provide your team members with what they’re legally entitled to and help you attract top talent with attractive offerings.
Vacations and Public Holidays
In Uzbekistan, the annual leave entitlement for an employee is 24 calendar days per year. This entitlement applies to all employees who have completed a continuous period of service with the employer for at least 12 months.
In addition to annual leave, employees are entitled to paid public holidays, which include the following.
- January 1: New Year's Day
- January 14 - 15: Day of Defenders of the Motherland
- March 8: Women's Day
- March 21 - 22: Navruz (Spring Equinox)
- May 9: Memorial Day
- May 26 - 27 (varies): Eid al-Fitr
- September 1: Independence Day
- September 19 - 20 (varies): Eid al-Adha
- October 1: Teacher's Day
- December 8: Constitution Day
Taxes & Social Security Contributions
In Uzbekistan, the tax system is based on a flat personal income tax rate of 12% for residents and non-residents alike. Employers are responsible for withholding and remitting taxes on behalf of their employees. Additionally, there is a corporate tax rate of 15% on profits for resident and non-resident companies.
An EOR, like Borderless, will ensure you remit payroll taxes on time, every time. With the support and expertise of an EOR, social security contributions are simplified, and taxes are filed accurately and compliantly. So you can cut back on busy work and focus on growing your business.
What Are the Advantages of Going Through an EOR in Uzbekistan?
Working with an EOR comes with a range of benefits.
- Saves time and money
- Minimizes risks and avoids penalties related to non-compliance
- Cuts back on busy work
- Improves retention and talent attraction
- Expands your talent pool
- Keeps your employee's data safe and secure
- Keeps you up to date on hiring trends
These are just some of the ways EOR can positively impact your business. Connect with Borderless, your EOR of choice, to see what we can do for your business.
How Do I Choose the Right EOR for Me?
With so many to choose from, it’s essential to determine which EOR suits your individual needs. Consider the following to make an informed choice:
- Expertise: Choose an EOR with a notable history of hiring, onboarding, and managing employees in the countries you want to hire from. Checking this box will help ensure your EOR of choice maintains compliance every step of the way.
- User experience: It’s important to provide your team with an easy-to-use, intuitive EOR platform packed with self-service options. The goal is to integrate it into your team's existing workflow stress-free.
- Support: Turn to EORs with a solid team of experts with a proven track record. Ensure that they’ll be there to lend you support when you need it.
- Security: Keeping your data safe and secure is paramount. This is especially true when working with a globally distributed team, leaving you more vulnerable to cyberattacks. So, choose an EOR that has a robust set of data security standards and protocols.
Borderless: The Employer of Record your Company Needs
Broaden your horizons by hiring global talent. Borderless is your EOR of choice to expand your talent base and get the most out of your global hiring experience. Get in touch today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
