Shadow employment under scrutiny: inspections ahead for employers

Uzbekistan

Uzbekistan is strengthening measures to reduce informal employment. Employers suspected of violations will first receive a warning letter requiring them to address the issues.

Shadow employment under scrutiny: inspections ahead for employers
If the problems are not resolved within three days, a state labor inspection may be carried out at the enterprise. The mechanism is designed to encourage companies to formalize employment and comply with labor laws.

At the same time, employers will have a chance to avoid penalties. If they sign official labor contracts and pay employees their full monthly wages, they will be exempt from administrative liability.

The new system is expected to reduce the level of informal employment and improve social protection for workers.

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