Services
Contractor conversion in Uzbekistan
Reduce misclassification risk by moving people in Uzbekistan from civil-law or individual-contractor setups onto compliant employment through EOR.
- Labor Code path Local employment contracts framed under the Labor Code of the Republic of Uzbekistan
- PIT and social tax Personal income tax and employer social tax handled in the employment setup
- Privacy-aware handling Employment data handled under Gini Talent privacy practices
The risk
Many foreign companies pay people in Uzbekistan under civil-law contracts or as individual contractors while managing them like employees. Tax and labor practice look at the substance of the relationship, not its label. Misclassification can create back-dated personal income tax and social-tax exposure, and disputes with the person.
Signs the relationship looks like a job
- Fixed working hours set by your company
- Work for one client only, over many months
- Your laptop, accounts and email address
- A manager who assigns tasks and reviews the work
- A fixed monthly payment rather than payment per result
One sign alone does not decide it. Several together usually mean the person should be employed.
What conversion means
Contractor conversion is a structured move onto a real employment contract under the Labor Code, with payroll and statutory enrolment, while you keep day-to-day management. When you do not have an entity in Uzbekistan, that employment is through an Employer of Record.
Conversion in practice
- Review. We look at how the person works today: scope, exclusivity, tools and reporting line.
- Fit. We confirm that employment through EOR fits the activity and the payment flow.
- Proposal. You see the monthly cost with salary, 12% employer social tax and the EOR fee apart.
- Cutover. The old contract ends on an agreed date and the employment contract starts the next day, so there is no gap.
- Enrolment and first pay run. The person is registered for tax and paid through payroll.
What to prepare
- The current contract and any amendments
- A short description of the work and who manages it
- Recent payment amounts and how they were paid
- The planned salary and start date of the employment
What conversion does not change
It corrects the relationship from the start date onward. Past periods are not automatically cleared. If you are worried about earlier months, discuss it with your tax adviser before the cutover.
Read Employer of Record in Uzbekistan for the employment model, or request a proposal with the roles and the current setup.
Questions companies ask
What is contractor misclassification risk in Uzbekistan?
If someone is paid under a civil-law contract or as an individual contractor but works like an employee — fixed hours, exclusive work, company tools, ongoing direction — labor and tax practice may treat the relationship as employment. That can create back-dated tax and social-tax exposure. Conversion means moving onto an employment contract with payroll.
Is contractor conversion a separate product?
No. It is a structured path onto compliant employment, usually through EOR when you have no entity in Uzbekistan. We review how the person works today before a proposal. Past periods are not automatically cleared.
Request an EOR proposal for your team in Uzbekistan
Tell us whether candidates are ready, the role, the headcount and the target start. We confirm fit before we send a proposal.