HR outsourcing involves complete or partial delegation of issues related to the search, selection, management, support, and development of human capital beyond the company.
Why HR Outsourcing:
HR outsourcing covers the following thematic areas:
We offer two formats of cooperation
Loialte HR will help you become a competitive and responsible employer in the market.
Under the Civil Code and the Labor Code of Uzbekistan, HR outsourcing is legally classified as a service agreement where a specialized provider manages personnel documentation and payroll on behalf of a client. To be legally valid in 2026, the outsourcing contract must clearly define the provider’s responsibility for maintaining the “digital labor records” in the my.mehnat.uz system. Practically, while the administration is outsourced, the client company remains legally responsible for workplace safety and internal labor regulations. This structure allows foreign and local firms to scale their operations without the administrative burden of an in-house HR department. Failure to formalize this service through a written agreement can lead to “misclassification” risks and potential labor disputes. Maintaining a clear legal boundary between the service provider and the client’s operational management is essential for compliance.
Yes, the use of the Unified National Labor System (my.mehnat.uz) is a strict legal requirement for all employees in Uzbekistan, regardless of whether they are managed by an internal team or an outsourcing provider. According to the 2026 labor regulations, every employment action—hiring, vacation, promotion, or termination—must be registered in the system to trigger social insurance and pension accruals. Practically, an HR outsourcing partner takes over the responsibility of uploading “Electronic Labor Contracts” and managing the “Digital Labor Books” of the employees. This ensures that the company remains compliant with the Ministry of Employment’s digital standards. Operating outside of this system is considered “informal employment,” which carries heavy administrative fines. Professional outsourcing ensures that the company’s “digital footprint” is always audit-ready.
HR outsourcing providers manage the calculation of gross wages, the withholding of Personal Income Tax (12%), and the payment of the 12% Social Tax as mandated by the Tax Code of Uzbekistan. Legally, the outsourcing firm ensures that all payroll figures perfectly align with the reports submitted to the State Tax Committee’s automated portals. Practically, this involves managing the monthly “reconciliation acts” and ensuring that payments to employees’ Humo or Uzcard accounts are processed through commercial banks on time. In 2026, the tax system automatically flags discrepancies between the payroll bank transfers and the labor portal records. An expert HR partner mitigates this risk by performing real-time cross-checks. This integrated approach prevents the freezing of corporate bank accounts due to tax arrears or reporting errors.
Yes, the Employer of Record (EOR) model is a recognized legal practice in Uzbekistan, where a service provider officially employs staff to work at a client’s facility or on their projects. Under the Labor Code, the EOR provider assumes all legal duties of an employer, including salary payments, tax withholding, and the provision of mandatory social benefits like maternity or sick leave. Practically, this is an ideal solution for foreign companies without a local legal entity that need to hire staff in Tashkent or other regions. In 2026, EOR contracts must specifically address the “joint and several liability” for workplace safety and labor protection. This model ensures that the employees are fully protected by Uzbekistan law while the client enjoys operational flexibility. Choosing a reputable EOR partner is critical to ensuring that social contributions are actually paid into the state fund.
“Unregistered labor” or “envelope salaries” carry severe legal risks in Uzbekistan, including criminal liability for tax evasion and permanent exclusion from government tenders or IT Park benefits. According to the Tax Code, any discrepancy between a company’s visible activity and its reported workforce triggers a “High-Risk” status in the State Tax Committee’s automated monitoring system. Practically, HR outsourcing eliminates these risks by ensuring that every employee has a registered contract and that every UZS paid is accounted for in the tax filings. Professional HR management provides a “safe harbor” by documenting all labor-related expenses as legitimate business deductions for Corporate Income Tax. In 2026, with the move toward a fully cashless economy, transparent labor management is the only way to maintain a sustainable business reputation. Non-compliance can lead to the revocation of the company’s VAT certificate and immediate suspension of operations.
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Uzbekistan, Tashkent
United Arab Emirates, Dubai
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Uzbekistan, Tashkent
United Arab Emirates, Dubai
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