EMBASSY OF UZBEKISTAN TO THE UNITED STATES
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NEWS AND EVENTS
January 6, 2006
President of Uzbekistan decrees to further stimulate the development of home-based labor
The development of family subcontract based on supply of home-based labor with necessary raw materials by industrial enterprises allows citizens using rationally their time and launch the production of separate types of low-profitable and labor-intensive commodity in home conditions, which promotes the increase of effectiveness of large enterprises\' operation. President of Uzbekistan Islam Karimov signed Decree \"On measures to stimulate the expansion of cooperation among large industrial enterprises and production of services through the development of home-based labor\" on 5 January 2005.

The document was adopted with the aim to involve unemployed part of population in production activity, increase incomes of family budgets, and raise the effectiveness of large industrial enterprises\' production activity due to organization of production of separate types of spare parts, ready products and services with use of home-based labor.

In line with the decree, enterprises subcontracting family to produce goods (works and services) starting from 1 February 2006 shall be exempted from single social payment out of remuneration fund worth the amount paid to out-workers in accordance with labor contract.

The decree granted enterprises the right to give out-workers, based on labor contracts, equipment, instruments and inventory in gratuitous use or rent, including leasing (financial rent), for organization of production of goods and services according to orders of enterprises. Moreover, the given equipment is exempted from property tax.

The Cabinet of Ministers of Uzbekistan has one month to approve Regulations on out-work, having stipulated the order of conclusion of labor contracts with out-workers, giving them equipment and organization of the system of its technical servicing, instruments, raw materials, compensation of out-workers\' expenses, mechanisms of their social protection, measures of mutual responsibility of the sides, as well as the system of control by taxation bodies on prevention of abuse when using privileges envisaged by the decree.


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