Uzbekistan Relaxes Capital Requirements for Private Employment Agencies
Uzbekistan Lowers Reserve Capital Requirement for Private Employment Agencies
In a bid to support the growth of private employment agencies, the government of Uzbekistan has decided to reduce the reserve capital required for obtaining licenses. This move, as per a recent presidential decree, will come into effect from December 1, 2024, giving agencies the option to deposit reserve funds in commercial banks where they can earn interest, provided that the deposits are not utilized without the agency’s permission.
The minimum capital requirement for licensing will see a decrease from 8,500 times the base calculation unit (equivalent to 3.19 billion UZS) to 4,000 times (1.5 billion UZS), in accordance with Norma.
This adjustment is in line with the measures outlined in the presidential decree of October 17, titled “Additional Measures to Regulate Employment Processes Abroad.” Among other provisions, the decree mandates the Migration Agency to oversee vocational and language training programs for citizens seeking work opportunities overseas. Educational institutions will be engaged through training contracts to offer courses on foreign languages and vocational skills, with financial support from the Education Credit Financing Fund for international certification programs.
Furthermore, a new rating system for foreign language instructors at vocational schools and skills centers will be introduced. The top 50 instructors, whose students achieve a minimum of a B1 level (or equivalent) in English, Korean, German, or Japanese, will be granted a subsidy of 50 million UZS from the fund.
The decree also entails the transfer of certain vocational training institutions under the administration of the Migration Agency, while preserving their existing funding mechanisms. These institutions will establish specialized centers dedicated to preparing citizens, particularly youth, for employment opportunities in foreign countries, with a focus on targeted language and vocational training.
