I. General Provisions

1. This Regulation determines procedure for formation and use of funds of the State Fund for Employment Support under the Ministry of Employment and Labour Relations.
2. The State Fund for Employment Support of the Republic of Uzbekistan (hereinafter referred to as the Employment Fund) was established to ensure effective organization of funding for the implementation of state policy in the field of labour, employment and labour protection, as well as the development of priority activities and projects of the Ministry of Employment and Labour Relations of the Republic of Uzbekistan, territorial and subordinate organizations.
3. The main areas of activities of the Employment Fund are:

funding implementation of targeted integrated measures to ensure sustainable and balanced development of labour market, increase employment and rational use of labour resources;

participation in financing practical implementation of guarantees established by law for employment and material support for the unemployed, graduates of vocational colleges, academic lyceums, higher educational institutions, as well as people who have difficulty finding job and are not able to compete on equal terms in the labour market;

funding costs of organizing provision of unemployed people, especially young people, women and persons with disabilities, quality professional training, retraining and social protection services for the unemployed, as well as strengthening material and technical base of labour agencies.

4. The Employment Fund is state trust fund created at national and local levels without forming legal entity.

The funds of the Employment Fund are reflected in its independent balance.

5. Funds of the Employment Fund at national and local levels are accumulated on its treasury personal accounts opened by the Treasury of the Ministry of Finance of the Republic of Uzbekistan, Treasury Departments in the Republic of Karakalpakstan, regions and Tashkent (hereinafter referred to as treasury personal accounts of the Employment Fund).

                                                    II. Formation and use of funds of the Employment Fund

6. Sources of the Employment Fund are:

deductions from the unified social payment, carried out in the manner prescribed by law;

funds annually allocated from the republican budget of the Republic of Uzbekistan;

funds received from the sale of buildings, structures and premises assigned to the territorial divisions of the Ministry of Employment and Labour Relations of Uzbekistan, sent in full by the State Committee of the Republic of Uzbekistan to Promote Privatized Enterprises and Competition Development in the Employment Fund, with the exception of the actual costs of assessment and implementation ;

contributions of NGOs operating in employment of citizens abroad, to the Employment Fund, produced in form of fixed amount for each sent person, at the rate set by the Cabinet of Ministers of Uzbekistan;

part of net profit remaining at state unitary enterprises subordinated to the Ministry of Employment and Labour Relations of the Republic of Uzbekistan, after all taxes and other obligatory payments to the State Budget of the Republic of Uzbekistan and state trust funds, in amount determined by the founder;

revenues from the sale of workbook forms in line with law;

income from placement of free funds of the Employment Fund in banks and other financial instruments;

charitable donations from individuals and legal entities;

other sources not prohibited by law.

The income of the Fund is not subject to taxation.

7. The managers of the Employment Fund are respectively the Ministry of Employment and Labour Relations of the Republic of Uzbekistan, the Ministry of Employment and Labour Relations of the Republic of Karakalpakstan, the Main Employment Departments of the regions and the city of Tashkent.
8. Employment Fund funds are used for:

funding professional training, retraining and advanced training of persons registered in district (city) employment support centres (hereinafter referred to as employment support centres) as job seekers and having the status of unemployed;

payment of unemployment benefits, compensation in connection with the voluntary relocation to work in another locality on the proposal of employment support centres, material assistance to the unemployed, scholarships paid by the employment support centre to citizens during vocational training, retraining and advanced training in accordance with the law;

reimbursement of expenses to the non-budget Pension Fund under the Ministry of Finance of the Republic of Uzbekistan in connection with the appointment of early pensions to the unemployed;

funding state order for employment services, training and advanced training, qualification assessment with subsequent payment, respectively, to private employment agencies, training centres for the unemployed and the unemployed, and qualification assessment centres;

logistics and maintenance of individual units of employment support centres, temporary job-supply centres, regional vocational training centres for the unemployed, qualification assessment centres, training centres for vocational training, retraining and advanced training of the unemployed, and financing acquisition, construction, reconstruction and overhaul of buildings, premises and facilities for located labour bodies;

partial funding of measures to create specialized jobs for the use of labour of persons with disabilities and other socially vulnerable categories of citizens;

carrying out of information and reference and advertising and publishing work;

funding development of normative-methodical and instructive materials on employment, labour protection, regulation of labour relations, regulation and remuneration;

conducting sociological surveys at national and regional levels, surveying selected groups of the population on employment, labour protection and labour migration;

covering costs of providing employment assistance to unemployed population, including advisory services and organization of career guidance, transportation and other services, including food along the route;

funding establishment and maintenance of coworking centres;

funding development of targeted regional employment programs and job creation for people living in districts and towns with tense situation in labour market, including preparing concepts for the socio-economic development of individual territories, designing engineering and communication networks and developing architectural and planning tasks for creating facilities in the service industries industry and agriculture;

payment of services for consultations, seminars, round tables, preparation and publication of articles, brochures, manuals and other information materials, including organization of video and audio clips and films, scientific and practical research and other activities related to employment and labour protection;

creation, development and technical support of information and computer systems and technologies in the field of employment, employment and labour protection, accounting vacancies and unemployed population, including development of software and acquisition of technical means;

establishment, maintenance, reprofiling of regional vocational training centres for the unemployed and the unemployed and qualification assessment centres

funding measures aimed at developing material and technical base of labour agencies, including the Central Office of the Ministry of Employment and Labour Relations of the Republic of Uzbekistan;

funding costs of maintenance, operation, construction and repair of buildings and structures on the balance of the Ministry of Employment and Labour Relations of the Republic of Uzbekistan, its subordinate organizations and territorial divisions, equipping them with necessary equipment, including furniture, communications, computers and other facilities;

training, advanced training and internships for employees of the Ministry of Employment and Labour Relations of the Republic of Uzbekistan in Republican refresher courses for employees of labour agencies, including at the training and practical base in the Centre for the Promotion of Employment of the Population of Sergeli District, Tashkent, educational and other institutions of foreign states;

introduction of modern information and communication technologies in the activities of the Ministry of Employment and Labour Relations of the Republic of Uzbekistan, its subordinate organizations and territorial divisions, including software development;

payment of travel expenses to employees of the Ministry of Employment and Labour Relations of the Republic of Uzbekistan both within the country and abroad;

funding international cooperation in the field of employment;

funding costs associated with implementation of international projects and agreements on organization of employment and social protection of citizens of the Republic of Uzbekistan, aimed at working abroad;

funding costs associated with holding international and national conferences, forums, seminars and trainings on issues related to tasks and functions of the Ministry, sending employees of labour agencies abroad to participate in events organized by international and foreign organizations, foreign governments, government agencies and non-governmental organizations, and involvement of foreign and national experts for implementation of projects related to tasks and functions of the Ministry;

establishment of the Labour Incentive Fund and strengthening material and technical base of the labour agencies, with allocation of 10 % of the funds to the Treasury personal accounts of the Employment Fund;

reimbursement to the Labour Incentives Fund and strengthening the material and technical base of labour agencies for paid premiums to heads of labour agencies and employees of the State Labour Inspectorate in the amount of up to 10 percent of the amount of fines levied on administrative offenses applied;

provision of subsidies for installation of lightweight greenhouses, purchase of seeds, seedlings and irrigation equipment in the amount of 3 to 10 times the minimum wage on the basis of tripartite agreements concluded between Tomorka Khizmati LLC, employment support centres and owners of private land;

placing resources on credit lines opened in commercial banks for subsequent allocation of microloans by banks for implementation in regions of small and mini-projects providing for the creation of new jobs;

provision of lump-sum subsidies to unemployed persons registered in employment support centres wishing to start business activities, to pay for registration costs as an individual entrepreneur, state registration of small enterprises and micro-firms;

provision of lump-sum subsidies to organizations that recruited persons from socially vulnerable groups of population, including persons with disabilities, in excess of established reserved minimum number (quota);

provision of lump-sum subsidies to employers to fund costs of vocational training and advanced training of workers from among the socially vulnerable groups of the population, including persons with disabilities, employed by recommendation of employment support centres;

allocation of grants to vocational education institutions to fund costs of retraining of unemployed persons registered in employment support centres, especially girls and women from low-income families;

allocation of grants for vocational training in vocational training centres, colleges and higher educational institutions, retraining and advanced training of managers and workers of farmers and dekhkan farms, owners of homestead lands in agricultural technologies, horticulture, vegetable growing, animal husbandry, poultry farming, fisheries and beekeeping;

other actions aimed at improving activities of the Ministry of Employment and Labour Relations.

9. To implement tasks and functions, the Ministry of Employment and Labour Relations of the Republic of Uzbekistan, the Ministry of Employment and Labour Relations of the Republic of Karakalpakstan, Main Employment Departments of the regions and the city of Tashkent provide:

accumulation of funds on treasury accounts of the Employment Fund from deductions from single social payment;

timely appointment, funding and payment of unemployment benefits, compensation, scholarships, grant assistance to the unemployed and other payments provided for by the legislation;

analysis and forecasting of the financial status of the Employment Fund on a systematic basis, and development of proactive measures to maintain its financial stability;

preparation of proposals for establishing the amount of deductions from the single social payment;

development and submission to the Ministry of Finance of the Republic of Uzbekistan of a budget request for forthcoming period;

development of regulatory norms for effective functioning of the Employment Fund within its authority;

development and submission of a draft forecast on sources of income and directions for using the funds of the Employment Fund for the coming year to the Ministry of Finance of the Republic of Uzbekistan;

preparing and submitting reports on the implementation of the budget of the Employment Fund, as well as once a year - the results of an independent audit of incomes and the use of funds from the Employment Fund to the Ministry of Finance and the Cabinet of Ministers of the Republic of Uzbekistan;

ensuring completeness of accounting and maintaining an electronic database on the subjects of payments and objects of financing the Employment Fund.

The Ministry of Employment and Labour Relations of the Republic of Uzbekistan cooperates with international organizations and the competent authorities of foreign countries on matters within the competence of the Employment Fund.

10. Seventy percent of the Employment Fund formed from contributions from single social payment and other sources, remain at the disposal of the Ministry of Employment and Labour Relations of the Republic of Karakalpakstan, the Main Employment Departments of the regions and Tashkent, with their subsequent redistribution between employment support centres, and thirty percent - centrally accumulated at national level by transferring the payment document of the Ministry of Employment and Labour Relations of the Republic of Karakalpakstan, respective Main Territorial Departments of Employment.
11. Lack of funds of the Employment Fund at local level is covered by part of Republican Employment Fund.

If necessary, at the end of the reporting period, the balance in the treasury personal accounts of the Employment Fund, established at the local level, may be directed by the Ministry of Employment and Labour Relations of the Republic of Uzbekistan to national level for subsequent redistribution.

Free funds in treasury personal accounts of the Employment Fund at the beginning of year cannot be directed in accordance with the legislation to cover the deficit of the State budget of the Republic of Uzbekistan.

12. It is not allowed to use the funds of the Employment Fund for purposes not provided for by law.
                    III. The order of review and coordination of forecast income and the use of funds of the Employment Fund
13. The Ministry of Employment and Labour Relations of the Republic of Uzbekistan on annual basis, in accordance with procedure and deadlines established by law, but no later than July 1 of the current year, submits to the Ministry of Finance of the Republic of Uzbekistan a forecast of incomes by sources and expenses for the use of funds of the Employment Fund for coming year (hereinafter - the draft budget of the Employment Fund), developed considering the following

actual receipt of funds for previous year and expected fulfillment of incomes by sources of income in the first half of the current year by regions;

accounts payable of organizations (employers) at the end of the reporting financial year according to the payments to the Employment Fund in accordance with the territories established by the legislation;

total expenditure indicators of the Employment Fund for previous year and expected performance of its expenditure part for the first half of the current year in the context of areas of use and territories, based on the results of the approved forecasts for the period in question;

forecast parameters of the wage fund, calculated taking into account the growth rate of wages and the number of employees for the previous year.

14. When considering the submitted draft budget of the Employment Fund, the Ministry of Finance of the Republic of Uzbekistan takes into account projected change in rates of deductions from single social payment to the Employment Fund for the coming year and the impact of the forecast of macroeconomic indicators.
15. The reviewed and agreed draft budget of the Employment Fund together with the draft State Budget of the Republic of Uzbekistan for coming year as part of the budget message is submitted to the Cabinet of Ministers of the Republic of Uzbekistan.
16. The Ministry of Finance of the Republic of Uzbekistan, after approval of basic parameters of the State Budget of the Republic of Uzbekistan and the budgets of state trust funds for coming year, within ten working days, brings the main parameters of the budget of the Employment Fund to the attention of the Ministry of Employment and Labour Relations of the Republic of Uzbekistan.
17. The Ministry of Employment and Labour Relations after receiving the approved basic parameters of the budget of the Employment Fund from the Ministry of Finance of the Republic of Uzbekistan:

within a week, approves the basic parameters of income by sources of income and expenditure on the use of the Fund’s resources for the coming year, with a quarterly breakdown for the Ministry of Employment and Labour Relations of the Republic of Karakalpakstan, the Main Employment Departments of the regions and Tashkent, employment support centres;

provides subsequent review of the results of their work at a meeting of the Board of the Ministry of Employment and Labour Relations of the Republic of Uzbekistan.

19. The Ministry of Employment and Labour Relations of Uzbekistan, the Ministry of Employment and Labour Relations of Karakalpakstan, the Main Employment Departments of the regions and Tashkent, employment support centres, with the view to meet approved indicators of the budget of the Employment Fund ensure implementation of the approved forecast indicators of income and expenses of the Employment.

                                                IV. Executive body of the Employment Fund

20. Executive bodies of the Employment Fund are:

at national level - the Department of Employment of the Ministry of Employment and Labour Relations of the Republic of Uzbekistan;

at regional level - sectors for the effective and targeted use of the funds of the Employment Fund.

21. Executive body:

generates forecast on income and expenses of the Employment Fund and balance sheets;

ensures maintenance of records and reports on the execution of income and expenses of the Employment Fund, after approval by the manager of the funds of the Employment Fund, sends a report to the relevant financial authorities;

ensures accuracy of financial statements of the Employment Fund;

organizes audit of targeted use of funds from the Employment Fund;

gives explanations on the targeted and effective use of funds from the Employment Fund.

V. Responsibility and control over the receipt and use of funds of the Employment Fund

The Ministry of Employment and Labour of Uzbekistan, the Ministry of Employment and Labour Relations of the Republic of Karakalpakstan, the Main Employment Departments of regions and Tashkent, employment support centres are responsible for strictly targeted and effective use of the funds of the Employment Fund.

Control over correctness of calculation of unemployment benefits, compensation, scholarships and material assistance to the unemployed and other payments established by law is carried out by the Ministry of Employment and Labour Relations of the Republic of Uzbekistan and territorial labour authorities.

Control over the use of funds of the Employment Fund is carried out by the Ministry of Employment and Labour Relations and the Ministry of Finance of the Republic of Uzbekistan.