As Tajibaev noted, his practice often encounters cases where an employee actually performs their duties without an official employment contract. In such situations, income tax is not withheld, and insurance contributions to the Social Fund are not paid, leaving the employee without any formal registration. This scheme represents shadow employment and poses risks for both parties.
Primarily, the employee finds themselves in a vulnerable position: they lose guarantees of job stability, protection, and timely payment of wages. Additionally, the lack of contributions to the Social Fund can negatively affect the formation of work experience and future pension payments, Tajibaev explains.
However, the employer also faces serious risks. In the event of discovering illegal employment, they may face fines, additional tax and insurance contributions, as well as penalties.
Tajibaev added that if regulatory authorities find even one employee working informally, the financial consequences could amount to around 300,000–350,000 soms per year, including fines and penalties.
As an illustration, he cited a case from his practice: a doctor at one of the medical institutions worked without registration by choice to avoid 20% deductions. Later, when attempting to secure another job, he faced the necessity of providing verified work experience and an employment record book. As a result, he filed complaints with government agencies, which led to costs for the medical center's management of about 700,000 soms over 2.5 years, including fines, additional taxes, vacation pay, and penalties (including at a rate of 0.247%).
The expert emphasized that even in the absence of an official employment contract, labor relations may arise between the employer and the employee if there are signs of such relations: a fixed workplace, adherence to internal regulations, established working hours and rest periods, clearly defined duties, and regular wage payments.
