Uzbek companies to pay penalty fees for delayed wages

The new Labor Code of Uzbekistan which has 581 articles (old 294) obliges to hold liable for delayed salary payment where norms providing for employment, individual labor relations, professional training, retraining and upgrading of employees, features of labor regulation of certain categories of employees, protection of employees' labor rights, consideration of labor disputes were added. 

Article 253 defines the terms of payment of wages. According to the document, the terms of payment of wages to employees are determined in the collective agreement or internal document, and in the absence of them, cannot be less than once every six months.

Employees are paid a monthly salary, as a rule, in two parts (in a lump sum and in the amount of the remaining part) with a break of no more than 16 days.

The employer is financially liable to the employee for delayed payment of wages in accordance with Article 333 included in this Code. And if an employer violates the term of payment of wages, holiday payments, and payments upon termination of the employment agreement, the New Law will impose a surcharge based on the refinancing rate of the Central Bank for each day of delay, starting from the day after the due date.

The employer is obliged to pay the monthly salary or other payments due to the employee regardless of whether he is at fault for the delay in payment.

The new Labor Code comes into force on April 30, 2023.