Azerbaijan

Employment Contract
Under the Labour Code, an employment contract is a written agreement between an employer and an individual employee. These contracts become effective once registered with the Ministry of Labour and Social Protection of Population (MLSPP) via the government’s electronic filing system ([e-gov.az](https://www.e-gov.az/)). Employment contracts can be indefinite or for a fixed term of up to five years. If no term is specified, the contract is considered indefinite.

Service Agreement
Service agreements are used by contractors or freelancers to provide specific services to businesses or individuals as outlined in the Civil Code. Companies hire contractors for specific tasks as needed, but contractors have the flexibility to accept or decline these requests.

The standard weekly working hours in Azerbaijan must not exceed 40 hours. Typically, a working week consists of five days, followed by a two-day weekend. However, depending on the nature of the work and conditions, employers may implement a six-day workweek. In a six-day schedule, daily working hours are capped at 7 hours for a 40-hour weekly norm, 6 hours for a 36-hour weekly norm, and 4 hours for a 24-hour weekly norm.

Employee Leave Entitlements
Employees are entitled to various types of leave, including paid vacation, which consists of base and additional vacation days. All employees must receive at least 21 calendar days of paid base vacation annually, while some categories are eligible for 30 calendar days.

Additional vacation time is granted based on years of service:
– 5 to 10 years of service: 2 additional days
– 10 to 15 years of service: 4 additional days
– Over 15 years of service: 6 additional days

Furthermore, employees who are single parents, adoptive parents, or those raising children under specific conditions are entitled to extra vacation days. Single parents and adoptive parents with two children under 14 years old receive 2 additional days, while those with three or more children under 14 or a child with disabilities under 16 receive 5 additional days.

Overtime Pay and Regulations
Overtime work in Azerbaijan is compensated at a rate of at least 200% of the employee’s regular salary. Overtime refers to any hours worked beyond the standard workday, performed by the employee with consent and under the employer’s directive. Employees cannot be required to work more than 4 hours of overtime in a row for 2 consecutive working days, and no more than 2 hours in workplaces with difficult or hazardous conditions.

Exceptions for Overtime Work
Overtime is allowed only in specific situations, such as:
– Completing tasks essential for national defense or addressing immediate needs following a social or natural disaster, or industrial accident.
– Performing work vital to the public, such as ensuring the continuous operation of water, gas, heat, electricity, sewage, transportation, and communication services, especially to resolve emergencies that disrupt their proper functioning.
– Finishing work already underway that cannot be completed during normal hours due to unforeseen delays caused by technical issues, where incomplete work could result in unavoidable damage or loss of goods.
– Temporarily repairing and restoring equipment or structures when a breakdown could cause a significant number of employees to be idle.
– When a work break is not feasible due to the absence of a substitute worker.

Compensation for Overtime Work
Overtime pay is calculated based on the type of wage structure:
– Hourly Wage: Employees receive at least twice their standard hourly wage for each hour of overtime.
– Piecework Basis: Employees are paid additional wages that are no less than the hourly rate for employees on the same pay scale.
– Additional terms for overtime compensation may be specified in employment contracts and collective agreements.

Unpaid Leave Regulations
Unpaid leave in Azerbaijan can be granted at the request of employees, by mutual agreement, or as specified by law. Through mutual consent between the employee and employer, and as outlined in collective agreements or employment contracts, unpaid leave can be provided for a duration agreed upon by both parties, but not exceeding six months. Unpaid leave for up to one working year may be granted under the following conditions:

– Parental Care for Chronic Illness: One parent or a family member providing direct care for a child with a chronic illness, based on the medical consulting commission’s recommendation, can receive unpaid leave until the child turns four years old.
– Paternity Leave: Husbands whose wives are on maternity leave are entitled to 14 calendar days of unpaid leave.
– Single Parents or Guardians: Women, single parents, trustees, or guardians with a child under 16 years old can take up to 14 calendar days.
– Individuals with Disabilities: Disabled employees or employees under 18 with disabilities are entitled to up to 1 calendar month of unpaid leave.
– Veterans and War Participants: Those who served in active military duty during the war can take up to 14 calendar days.
– Injured Employees: Employees injured while protecting the territorial integrity and sovereignty of the Republic of Azerbaijan can take up to 14 calendar days.
– Care for Children with HIV/AIDS or Disabilities: Parents with children affected by AIDS, HIV, or other disabilities under 18 years can receive up to 14 calendar days.
– Postgraduate and Doctoral Students: Employees pursuing postgraduate or doctoral studies can take up to 1 calendar month.
– Entrance Exams for Higher Education: Employees taking entrance exams for higher educational institutions can take 14 calendar days, while those for secondary specialized educational institutions can take 7 calendar days.
– Innovators: Authors introducing an invention or proposal for the first time outside their workplace are entitled to up to 14 calendar days.
– Family Care: Relatives caring for a sick family member, as confirmed by a healthcare institution, can take up to 14 calendar days.
– Family and Personal Reasons: Employees dealing with family, household, or social matters can take up to 7 calendar days.
– Parents of Children with Disabilities: Employees with children having health disabilities up to 18 years old are entitled to 14 calendar days.

Additional Leave for Difficult Working Conditions
Employees working under harmful or difficult conditions are entitled to extra leave proportional to the time worked during the year. This additional leave is granted once the employee has worked in such conditions for at least six consecutive months.

Maternity Leave and Benefits
Expectant mothers in Azerbaijan who have worked for 12 consecutive months are eligible for up to one year of paid maternity leave. This includes a minimum of 35 days of paid leave before childbirth and 63 days after delivery. After the initial 63 days, the employee can choose to either continue her leave or return to work. Mothers expecting multiple births are entitled to a longer maternity leave of 390 days.

Maternity pay is structured as follows:
– For the first six months, maternity leave is paid at 80% of the employee’s average monthly salary from the previous year.
– For the following six months, maternity pay is reduced to 50%, as specified in Article 104 of the Labor Code.

Parental Leave
In Azerbaijan, employees are entitled to 12 days of paid parental leave to care for a child. Those with children under the age of three receive an additional three days of paid leave. If necessary, employees can also request up to 30 days of unpaid leave per year to care for their child.

Additional Benefits and Allowances for Employees in Azerbaijan

– Additional Vacation Days: Extra vacation days are provided for certain categories of employees, such as all employees based on their seniority and working women with two children under 14 years old.

– Maternity and Paternity Leave: Expectant mothers are entitled to extensive paid maternity leave totaling 126 days, while fathers can take up to 14 days of unpaid paternity leave.

– Insurance Benefits: Employees receive accident insurance, and compulsory medical insurance will soon be introduced.

– Allowances:
– Offshore work allowances range from 40% to 75%, depending on the distance from the coast.
– Night shift allowances are between 20% to 40% for hours worked from 22:00 to 06:00.
– Additional allowances are provided for working under harmful or dangerous conditions.

Labour (Employment) Visa
A labour (employment) visa in Azerbaijan is issued to foreign nationals and stateless individuals intending to engage in paid employment within the country. This visa is granted based on an invitation from an employer, such as government authorities, legal entities, sole entrepreneurs, or foreign entities’ branches in Azerbaijan. The visa allows for a stay of up to 90 days.

Temporary Residence Permit (TRP)
Foreigners and stateless persons wishing to temporarily reside in Azerbaijan must obtain a Temporary Residence Permit (TRP) from the State Migration Service (SMS). The TRP allows them to live in Azerbaijan and travel in and out of the country without a visa during its validity period. This permit also serves as proof of identity and residence within Azerbaijan.

Application Process for TRP
To apply for a TRP, applicants must submit all necessary documents to verify their identity and legal reasons for residing in Azerbaijan. Additionally, a medical certificate stating the applicant is free of infectious diseases is required. The application process typically takes 25 days from the submission of all required documents.

Work Permit
Application Process: Employers are responsible for applying for a work permit on behalf of foreign employees. The work permit duration matches that of the temporary residence permit. To qualify, the applicant must be over 18 years old, and there should be no suitable Azerbaijani candidate for the job. Employers must apply to the State Migration Service, providing justification for each criterion.

Certain professions do not require a work permit in Azerbaijan, including:
– Employees of diplomatic missions
– Top management and staff of international companies
– Sailors
– Businesspeople visiting for less than three months
– Teaching staff
– Entrepreneurs
– Media personnel

Time Frame: Work permits are typically issued within 30 to 35 days. If an application is rejected, written notification is provided within five days of submission. The permit cannot be transferred to another person or employer and is valid for one year, with the option to renew it four times for an additional year each time.

Additional Information: After five years of working in Azerbaijan, foreigners must leave the country and can only return after one year for employment purposes. If a work permit is lost, employers must notify the Ministry of Labour and Social Protection within 15 days. Fees apply for work permit extensions, and employers must report employment contract terminations within five days.

Termination at the Initiative of the Employee
An employee can terminate an employment contract by providing written notice to the employer one calendar month before the termination date. However, the employee may terminate the contract immediately without a month’s notice for specific reasons, including reaching retirement age, disability, admission to an educational institution, relocation, or entering into a new employment contract with another employer. Other cases allowing for immediate termination are specified by law (Article 69, Labour Code).

Termination at the Initiative of the Employer
An employer may terminate an employment contract in the following situations:

– Enterprise Liquidation: If the enterprise is being liquidated, the employee must be given official notice two months in advance.
– Personnel Cutback: In the event of a personnel reduction, the employee must receive official notice two months in advance.
– Lack of Professional Skills: If a competent authority determines that the employee lacks the necessary professional skills for their position.
– Job Performance Issues: If the employee fails to meet the requirements outlined in their job description or does not perform their duties as specified in the employment contract.

Termination by Mutual Consent
Termination of the employment contract by mutual consent between the employee and employer is also an option, allowing both parties to agree on the terms and date of termination.

Termination Benefits Based on Employment Duration

When an employment contract is terminated due to the liquidation of the enterprise or staff redundancies, the employer must provide severance pay based on the employee’s years of service:

– Less than One Year: Severance pay equivalent to the average monthly salary.
– One to Five Years: Severance pay of at least 1.4 times the average monthly salary.
– Five to Ten Years: Severance pay of at least 1.7 times the average monthly salary.
– More than Ten Years: Severance pay of at least twice the average monthly salary.

Other Termination Reasons

If the employment contract is terminated due to the following reasons, the employer must pay an allowance equal to twice the average monthly wage:

– Change in Terms and Conditions: If the terms and conditions of employment are changed.
– Military or Alternative Service: If the employee is called for military or alternative service.
– Complete and Permanent Disability: If the employee is unable to perform their job for more than six months due to complete and permanent disability (unless a longer period is specified by law).

In the event of the employee’s death, the heirs will receive an allowance equal to three times the average monthly wage.