Legal Regulation of Private Employment Agencies in Uzbekistan

The development of market relations in Uzbekistan has necessitated the creation of alternative mechanisms of employment, which complement the state system of population employment. One of the key instruments has become private employment agencies (PEAs), regulated by the Law of the Republic of Uzbekistan No. ZRU-501 of October 16, 2018. This law established the legal framework for legalizing the activities of PEAs, defined their rights, obligations, licensing procedures, and state control.

According to Article 1, the main purpose of the law is to regulate relations related to the activities of PEAs, including recruitment, employment within the country and abroad, as well as the provision of consulting and information services.

Thus, the legislator pursues a dual objective:

• Ensuring employment of the population through the involvement of private intermediaries.
• Protecting citizens’ rights in the process of employment, especially when leaving abroad.

Legal Status and Organizational Framework

PEAs are defined as commercial organizations that can be established in any organizational-legal form (except state bodies, political parties, and religious associations). The law requires:

• At least two employees, including a manager with higher education;
• A mandatory trade name containing “Xususiy bandlik agentligi”;
• Activities conducted strictly within the framework of the law.

This model combines labor market liberalization with state control.

Types of Services Provided

The law highlights four key areas of PEA activity:

1. Job placement for individuals within Uzbekistan.
2. Recruitment services for employers.
3. Employment abroad (only under license).
4. Information and consulting services.

Particular attention is given to international employment: agencies are prohibited from charging citizens; services are paid by employers, and agencies are required to reserve significant amounts in a special fund to protect migrant workers’ interests.

Contractual Mechanisms

All services are provided exclusively under written contracts (with the job seeker or the employer). Mandatory contract terms include:

• Scope and timing of services;
• Rights and obligations of the parties;
• Refund procedures in case of breach of obligations;
• License information (for international employment).

An innovative element is the requirement to register contracts in real time in the “labor-migration” system, ensuring transparency and control.

Rights and Obligations of the Parties

PEAs have the right to provide paid services, obtain information from state authorities, and refuse services in the absence of required documents.

The obligations of agencies include:

• Maintaining confidentiality,
• Registering contracts,
• Submitting reports,
• Cooperating with the Ministry of Employment.

In turn, employers and job seekers are required to provide accurate information and comply with contract terms.

State Regulation

The Ministry of Employment and Labor Relations is authorized to maintain the register of PEAs, issue licenses, and oversee their activities. An important guarantee is the mandatory publication of data on licenses and the PEA register in mass media and on the official website.

In addition, PEAs are incentivized through tax benefits, access to state orders, and participation in employment programs.

Liability and Protection of Rights

The law establishes:

• The right of citizens and employers to claim compensation for damages and moral harm;
• Judicial protection in cases of refusal to register an agency or breach of contract;
• Liability of agencies and their officials for non-compliance with legislation.

This creates a balance of interests between the state, business, and citizens.

Conclusion

The Law “On Private Employment Agencies” represents an important step in modernizing Uzbekistan’s labor market. It provides for:

• Legalization and development of PEAs as elements of labor market infrastructure;
• Protection of citizens’ rights in the employment process, especially abroad;
• Creation of conditions for public-private partnership in the field of employment.

Rights and Obligations of Employment Participants

Subject	Rights	Obligations
Private Employment Agency (PEA)	• Provide paid services under contract. • Receive information from state bodies, employers, and job seekers. • Refuse services if required documents are not provided.	• Provide services only under contract. • Represent the interests of the client. • Maintain confidentiality and store documents. • Register contracts in the labor-migration system. • Present license upon request. • Report to the Ministry of Employment and state bodies.
Employers	• Obtain information on contract performance. • Demand termination of contract in case of violation. • Claim compensation for damages and moral harm.	• Comply with contract terms. • Pay PEA services on time. • Provide accurate information and documents.
Job Seekers	• Obtain information on contract performance. • Demand termination of contract and compensation for damages. • Appeal to courts, state bodies, and PEA associations in case of rights violations.	• Comply with contract terms. • Provide accurate information and documents.
State (Ministry of Employment)	• Maintain the Register of PEAs. • Issue, suspend, and revoke licenses. • Conduct inspections (without interfering in financial and economic activities).	• Publish information on PEAs and licenses. • Monitor compliance with legislation. • Provide explanations of the essence and significance of the law.