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Azerbaijan
The Republic of Azerbaijan is in southwestern Asia. It is bordered by the Caspian Sea, Russia, and Georgia to the north, Armenia, and Turkey to the west, and Iran to the south.
POPULATION
10,43 million inhabitants
CURRENCY
Azerbaijani Manat (AZN)
GDP
$80,02 billion
MINIMUM MONTHLY WAGE:
AZN 400.00
TIME ZONE
UTC +4
bridge between Europe and Asia. Thus, the roads leading fromEast to West and West to South that bypass Azerbaijan, the substantial road infrastructure of the country, as well as the newly built Baku International Sea Port transform the country into the strategic logistical hub of the region.
✓ Employment contract
The Labour Code defines an employment contract as a written contract between an employer and an individual employee.
Employment agreements enter into force on registration with the MLSPP through the government electronic filing system (https://www.e-gov.az/). Employment contracts can be executed with no specified term (indefinite)or for a fixed period of up to five years (term). Unless the agreementstates the term of the employment, it will be unlimited.
✓ Service agreement
Contractors/freelancers conclude service agreements for providing specific services to legal entities and individuals in accordance with the relevant provisions of the Civil Code. Companies seek contractors to complete set amounts of work as and when they need it, but the contractors can accept or reject requests.
✓ Normal weekly working hours may not exceed 40 hours.
A working week is a five-day working week with two-day weekends.
Depending on the nature of production, work, services, and working
conditions, the employer may establish a six-day workweek. In a six-day working
week, the daily working time may not exceed 7 hours if the weekly norm is 40 hours, 6 hours if the weekly norm is 36 hours, and 4 hours if the weekly norm is 24 hours.
✓ Employees shall be entitled to the following types of leave:
• Vacation, consisting of a base and additional vacation time.
At least 21 calendar days of paid base vacation must be granted to employees. Some categories of employees shall be eligible for 30 calendardays of paid base vacation per year.
Depending on their seniority, employees shall be eligible for the followingamounts of additional vacation time:
Seniority of five to ten years – 2 additional calendar days.
Seniority of ten to fifteen years – 4 additional calendar days.
Seniority of over fifteen years – 6 additional calendar days.
Regardless of the amount of base and additional vacation time, working women/fathers raising their children as single parents and adoptive parents with two children under the age of 14 shall be eligible for 2 additional calendar days of vacation time; while women/fathers raising their children as single parents and adoptive parents with three or more children of this age or with a disabled child under the age of 16 shall be eligible for 5 additional calendar days of vacation time.
Pay for overtime hours is at least 200% of an employee’s regular salary rate.
Overtime shall be considered time beyond the established workday during which an employee consensually performs his duties based on an order (instructions, decision) from his employer. Every employee cannot be assigned to overtime work in a row for 2 working days more than 4 hours, and in workplaces with difficult and harmful working conditions – more than 2 hours.
Exceptions
Overtime shall be permitted only in the following cases:
➢ during the performance of work necessary for national defense or to
prevent or immediately respond to a social or natural disaster or industrial accident;
➢ during the performance of work vital to the general public such as the supply of water, gas, heat, light, sewage, transportation, and
communications, to clean up accidents or solve unanticipated problems which interfere with their proper functioning;
➢ if it is necessary to complete a job which has already begun and cannot be completed within normal working hours due
to unanticipated or accidental delays caused by technical conditions and if failure to complete the work may entail inevitable commodity damage or loss;
➢ during temporary work to repair and restore mechanisms or structures when their failure to function shall idle a large number
of employees.
➢ In cases when a break at work is impossible due to the absence of a substituting employee.
Compensation for Overtime
Wages for each hour of overtime work shall be paid to employees as follows:
➢ If wages are based on time worked, the amount paid per hour shall not be less than twice the standard hourly wage.
➢ If wages are paid on the basis of piecework performed by the employee, extra wages must be paid in an amount no less than
the hourly wages of employees with the same pay scale.
➢ Additional payment for overtime work may be stipulated in employment contracts and collective agreements.
Unpaid leave is granted at the request of employees or by mutual agreement of the parties or by the code. Based on the mutual consent of the employee with the employer, as well as in cases provided for in collective agreements, including on the conditions specified in the
employment contract, employees may provide unpaid leave, the duration of which is set at the discretion of the parties, but not more than six months. At the request of employees and with the consent of the employer, unpaid holidays in one working year are granted in the following cases and for terms:
➢ on the basis of the conclusion of the medical consulting commission one of the parents with a child with chronic disease, or another family member directly caring for the child – until the child reaches four years;
➢ Husbands whose wives are on leave in connection with childbirth – 14calendar days;
➢ Women or single parents, trustees, guardians, with a child under 16 years old – up to 14 calendar days;
➢ Regardless of the group and reasons for disability for disabled persons, employees under 18 with disabilities- up to 1 calendar month;
➢ To persons who took part in the war as part of an active army – up to 14 calendar days;
➢ employees injured (wound, trauma, contusion) during the protection of territorial integrity and sovereignty Republic
of Azerbaijan – up to 14 calendar days;
➢ Parents raising children with AIDS or infected with the human immunodeficiency virus (HIV), as well as those with children under 18 with disabilities – up to 14 calendar days;
➢ Employees studying in postgraduate and doctoral studies – up to 1 calendar month;
➢ Employees admitted to the entrance exams for higher educational institutions – 14 calendar days,
➢ Employees admitted to the entrance examinations in secondary specialized educational establishments – 7 calendar
days;
➢ Authors whose invention or rationalization proposal is being introduced for the first time outside the enterprise where it works -up to 14 calendar days;
➢ One of the relatives caring for a sick family member on the conclusion of a healthcare institution, up to 14 calendar days;
➢ Employees with children with health disabilities for up to 18 years – up to 14 calendar days
➢ Employees for solving family, household, and other social questions – up to 7 calendar days.
➢ Employees with harmful and difficult working conditions shall be granted additional leave in proportion to the time
actually worked during the working year in the relevant production, profession, or position. The employee’s right to this additional leave arises when he/she has worked at those jobs for at least six consecutive months.
Expectant mothers (who have worked for 12 consecutive months) are entitled to up to a year of paid maternity leave, with a minimum of 35 days paid before birth and 63 days after delivery. After 63 days, the employee can remain on leave or return to work. Women who are expecting more than one child are entitled to 390 days of maternity leave.
The first six months of maternity pay is calculated at 80% of the employee’s average monthly salary from the previous year.
The following six months’ maternity pay is reduced to 50%, as detailed in Article 104 of the Labor Code.
Parental Leave
Parental leave in Albania is 12 days of paid leave to tend to a child. Employees with children under three years old are entitled to an additional three days and can request additional unpaid leave for up to thirty days per year should it be required to care for the child.
1 Jan – 2 Jan New Year’s Day
20 Jan Martyrs’ Day
8 March Women’s Day
20 – 24 March Novruz/Spring Holiday
9 May Victory Day over Fascism
28 May Republic Day
15 Jun Day of National Salvation of the Azerbaijani People
26 Jun Azerbaijan Armed Forces Day
8 Nov Victory Day of the Republic of Azerbaijan
9 Nov State Flag Day of Azerbaijan
31 Dec World Azerbaijanis Solidarity Day
2 days Ramadan holiday
2 days Feast of the Sacrifice (Gurban holiday)
- Additional vacation days for some categories of employees, for all employees depending on employees` seniority, for working women with two children under the age of 14.
- Extensive paid maternity leave for a total of 126 days and unpaid paternity leave for 14 days.
- Accident insurance, soon – compulsory medical insurance.
- Allowances for offshore from 40 to 75% depending on the distance from the coast, allowances of 20-40% for night hours (22.00- 06.00), and allowances for the harmfulness and danger of work conditions.
✓ Labour (Employment) Visa
A labour (employment) visa is issued to foreigners and stateless persons who intend to carry out paid labour activity (employment) in the Republic of Azerbaijan. Such visas are provided by invitations submitted by the employer, e.g., Government authorities of the Republic of Azerbaijan, legal entities, and sole entrepreneurs, as well as branches and representations of foreign legal entities, and the period of stay under this visa is determined for up to 90 days.
✓ Temporary Residence Permit (TRP)
Foreigners and stateless persons intending to reside temporarily on the territory of the Republic of Azerbaijan should obtain a relevant permit for it and a permission card for temporary residence from the State Migration Service of Azerbaijan(“SMS”).
Permission for
temporary residence (TRC) in the territory of the Republic of Azerbaijan is a document authorizing foreigners and stateless persons to reside in the Republic of Azerbaijan temporarily and exit from the Republic of Azerbaijan and return to the Republic of Azerbaijan under a visa-free regime during its validity period. Moreover, a residency card certifies the identity and place of residence (domicile) of the foreigner in Azerbaijan.
- Procedure for obtaining approval. Foreigners applying for residency in Azerbaijan are asked to submit all documents necessary to prove their identification and legal grounds for their stay in Azerbaijan. Besides these documents, the foreigner should provide a reference certifying that the person is not the carrier of a virus, or any disease included in the list of dangerous infectious diseases.
- Time frame. 25 days after submission of all required documents, with the temporary residence permit application form.
Work Permit
Procedure for obtaining approval. The employer is responsible for applying for a work permit when employing a foreigner. The work permit’s duration corresponds with that of the temporary residence permit and the documentsrequired are submitted together.
A foreigner is eligible for a work permit if:
They are more than 18 years old.
There is no suitable Azerbaijani candidate to fill the position.
The employer must apply to the State Migration Service, justifying each point.
Foreigners who work in some professions do not require a work permit in Azerbaijan. These include:
- Employees of diplomatic missions
Employees and top management of international companies
- Sailors
- Businesspeople who stay in Azerbaijan for less than three months
- Teaching staff
- Entrepreneurs
- Mass media employees
Time frame
The work permit is generally issued within 30 -35 days. If the application is rejected, they receive written notificationwithin five days after the application has been submitted.
A work permit cannot be transferred to another person or employer.
A work permit’s duration corresponds with that of a temporary residence permit.
A work permit is issued for one year, after which it can be renewed four times, each time for one year
If a work permit is renewed, a new card is issued.
Once a foreigner has worked in Azerbaijan for five years, they have to leave the country, and only
afterone year can they return for working purposes.
If the work permit is lost, the employer must notify the Ministry of Labour and Social Protection
within15 days.
There is a fee for a work permit extension.
The employer must inform the Ministry of Labour and Social Protection that an employment contract has been terminated within five days of its termination date. The duration of a work permit corresponds with that of the employment contract.
✓ Termination at the Initiative of the Employee.
An employee can terminate an employment contract by notifying the employer in writing one calendar month in advance of termination. The employee can terminate his/her employment without giving a month’s notice for specific reasons including being of retirement age, disability, admission to an educational institution, moving to a new place of residence or entering into an employment contract with another employer, or in other cases provided by law (Article 69, Labour Code).
✓ Termination at the Initiative of the Employer
An employment contract may be terminated at the employer’s initiative in the following cases:
the enterprise is liquidated (the employee shall be officially notified by the employer two months in advance);
there is a personnel cutback at the enterprise (the employee shall be officially notified by the employer
two months in advance);
a competent body decides that the employee does not have the professional skills for the job heholds;
the employee does not fulfill his job description or fails to perform his duties as defined by the employment
contract and job description.
✓ Termination at the mutual consent
On termination of the employment contract on the grounds of liquidation of the enterprise or staff redundancies, an employer must pay an employee as follows, depending on the years of service:
Less than one year: the amount of the average monthly salary.
One to five years: at least 1.4 times the average monthly salary.
Five to ten years: at least 1.7 times the average monthly salary.
More than ten years: at least twice the average monthly salary.
If an employment contract is terminated due to the following reasons an employer must pay an employee an allowance equal to twice the average monthly wage:
A change in terms and conditions of employment.
The employee is called for military or alternative service.
The employee cannot perform his/her job for more than six months because of complete and permanent disability (unless the law sets a longer period.)
If an employment contract is terminated due to the death of the employee, the heirs of the deceased will receive an allowance equal to three times the average monthly wage.
Multiple immigration law changes have been effective in Azerbaijan since July 24, 2019, for TemporaryResidence Permit (TRP), Permanent Residence, and citizenship applications.
With our immigration support solution, we can ensure 100% compliance with new immigration requirementsand local legislation, to facilitate and speed up the expansion of your business to the country.
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