Farid Khalilzade

Khazar University
Economics and Business Law
  WWW.E-QANUN.AZ

 All
other sources may provide
outdated (irrelevant) version
of legislation
 In this topic we will consider the basic
requirements for registration of employees.
Basic rights and obligations of the parties
according to labor law.
 Two types of employment:

◦ Under labor agreement

◦ Under Service agreement (this is not labor

relations!)
 No service contract:

 7.2-3.4. of the Labor Code: if the relationship

between the parties arises in connection with
the performance of work (services) related to
the main field of activity of the employer;
 As usual two parties:
◦ Customer
◦ Contractor

Contractor:
◦ Tax registration (mainly)
◦ Paying taxes by himself (mainly)
◦ No vacations
◦ Not covered by labor law
 Does not cover:

 a) military personnel;
 b) judges;
 c) deputies of the Milli Majlis of the Republic of
Azerbaijan and persons elected to municipal
bodies;
 d) foreigners signing employment contracts with
a legal entity of a foreign country and fulfilling
his labor functions in an enterprise (affiliate,
representation) operating in the Republic of
Azerbaijan;
 Signing a labor contract and receiving
notification from electronic system (using
Asan Imza)

 In case if the director – right after state

registration
 no discrimination among employees shall be
permitted on the basis of citizenship, sex, race,
nationality, language, place of residence,
economic standing, social origin, age, family
circumstances, religion, political views, affiliation
with trade unions or other public associations,
professional standing, beliefs, or other factors
unrelated to the professional qualifications, job
performance, or professional skills of the
employees, nor shall it be permitted to establish
privileges and benefits or directly or indirectly
limit rights on the basis of these factors.
 to create equal opportunities and equal approach to
employees, regardless of gender in employment,
dismissal from work, advanced training, mastering
the new specialty and professional development,
assessment the quality of work;
 to create equal working conditions for the workers
regardless of gender, engaged in the same work, do
not apply to employees different administrative
discipline measures for the same misconduct, to take
the necessary measures to prevent discrimination
based on gender and sexual harassment;
 No to involve children in activities that may endanger
their life, health or morals.
 It shall be unacceptable to give priority to the
rights of foreign citizens and stateless
persons over citizens of the Republic of
Azerbaijan or to limit their rights established
herein with respect to labor relations.
 shall be executed in writing.

 shall be prepared in at least two (2) copies

and authenticated by the signatures (seals) of
the parties. One copy shall be given to the
employee, the other copy shall be kept in
perpetuity by the employer.
2 types:

1) without specified term (unlimited)

2) or for a agreed period (limited)

Notes:
When the nature of the work or services are a priori
specified as permanent according to the job
description, an employment contract must be
concluded without specified term

If the limited contract continues within more than 5

years without interruptions, it is considered to be
indefinite-term employment contract
Article 48 of Labor Code

 ID
 employment history (book) (no if is1st place
of work)
 Diploma (in case if the job requires that)
 Medical report (if the job requires)
 An employment contract may be executed for a
probationary period in order to examine an
employee`s professional qualifications and
ability to perform a particular job.

 The probationary period shall be established with

the consent of the parties and may not exceed
three months.

 An employment contract in which a probationary

period is not mentioned shall be considered to
have been entered into without a probationary
period.
 with persons s under the age of 18;
 with persons hired competitively;
 pregnant women and women with a child under
the age of three, as well as men, independently
bringing up the child under the age of three;
 persons, hired for the first time as per specialty
(profession) on graduation from the educational
institution;
 persons, elected by the paid elective office;
 persons, with whom employment contract for up
to two months is entered;
 in other cases with the consent of the Parties.
 the initiative of one of the parties;
 expiration of the employment contract;
 a change in terms and conditions of
employment;
 cases related to a change in the ownership of
an enterprise:
 Cases not depending on the will of the
Parties;
 Cases established by the Parties in the
employment contract.
 notifying the employer in writing one
calendar month in advance
 If there are retirement age, his disability,
admission to an educational institution, move
to a new place of residence or entering into
an employment contract with another
employer, in cases of sexual harassment, or
in other cases provided by law – at the date
shown in application.
 the enterprise is liquidated;
 a personnel cutback;
 if competent body decides that the employee
does not have the professional skills for the
job he holds;
 the employee does not fulfill his job
description or fails to perform his duties as
defined by the employment contract
 if the employee has not justified the
expectations within probation period.
 Daily working hours may not exceed eight hours.

 Normal weekly working hours corresponding to

normal daily working hours may not exceed 40
hours.

 In general, an employee shall have a five-day work

week with two days off.

 Depending on the nature of the industry, service, and

terms of employment, an employer or the relevant
authority may establish a six-day week with one day
off within weekly working hours.
 Main vacation, consisting of base and
additional vacation time;
 social leave ;
 educational and creative leave for continuing
education and pursuing scientific research;
 unpaid leave.
 At least 21 days;
 30 days for specialists, doctors, and etc.;
 2 extra days for each 5 working years (not
more than 6 days)
 Additional days for women with 2 child and
etc.
 Up to one monthly salary in case if there is no
Agreements on Full Liability

 if there is Agreement on Full Liability – full

liability.
 Final amount to be paid:

Salary
- Income tax (now is not deducted for for wages under 8000
AZN, 14% for wages mor than 8000)
- SSPF allocations (3% till 200 AZN, then 10%)
- Unemployment insurance fee (0.5%)
- Compulsory health insurance fee (2% + 0,5% for sums
more than 8000 AZN)
- Trade union membership fee (if exists)
=final payment

For oil and gas sector and state employees – another %.

 Need to obtain individual work permit

 Need to prove that you need certain expat.

 State Migration Service

 All other is the same as for local citizens.

 THANK YOU!