As of 16 January 2026, a number of significant amendments have been introduced to the Labor Code of the Republic of Azerbaijan. These amendments aim to clarify concepts in the regulation of labour relations, establish legal grounds for modern forms of work, and strengthen the social protection of employees.
Within the framework of the amendments, the basic definitions used in the Labor Code have been revised. Thus, the concept of “enterprise” has been expanded. Under the new wording, an enterprise means a legal entity established in accordance with the legislation of the Republic of Azerbaijan by a state or municipal body (institution), regardless of the organizational-legal form, name, and type of activity of the owner, as well as its branch or representative office, and the branch or representative office of a foreign legal entity.
The concept of an “employee with family responsibilities” has been added to the Labor Code. This concept has the following meaning:
An employee whose ability to commence labour activity, perform labour functions, or be promoted at work is restricted due to the provision of care or assistance, based on a medical opinion, to family members in need of care or assistance — namely, a spouse, parents, adoptive parents, children, including adopted children, as well as other persons under guardianship (custody), or a child placed with the employee as a foster family (parent), shall be considered an employee with family responsibilities.
The concept of an employer in the Labor Code has also been expanded. According to the amendments that have entered into force, an employer means the following entities who have full legal capacity and the right to conclude, terminate, or amend employment contracts (agreements) with employees:
More than 50 articles of the Code have been supplemented with the concept of a “natural person employer.” This ensures that the legal regulation of relations with employers operating without establishing a legal entity also covers the following areas:
In addition, the term “cancellation of an employment contract” has been replaced with “termination of an employment contract” throughout the Code. In this regard, a number of articles have been amended and a unified terminological approach has been adopted.
Among the basic concepts used in the Code are the concepts of business trip and remote (distant) work.
Business trip – the assignment of an employee, by order (instruction, decision) of the employer, for a specified period to a place other than the permanent workplace, for the purpose of performing a lawful assignment of the employer.
Remote (distant) work – the performance of a labour function outside the enterprise or workplaces created by a natural person employer, at another place suitable for performing work (providing services), using electronic, software-technical, telecommunication, and other relevant means.
Article 6 of the Labour Code has also been amended. Previously, the Code did not apply to foreigners who concluded an employment contract with a foreign legal entity in that country and performed their labour function at an enterprise (branch, representative office) operating in the Republic of Azerbaijan.
According to the amendment, the phrase “at an enterprise (branch, representative office) operating” has been removed. This eliminates the confusion regarding operating through a company, branch, or representative office (in the case of a temporary assignment to Azerbaijan — in fact, no company, branch, or representative office is actually established in Azerbaijan).
Within the framework of the amendments made to the Labour Code, the rights and obligations of both employees and employers under employment contracts have been clarified and expanded.
Rights and Obligations of the Employee Related to Business Trips
Under the new amendments, the employee’s right to receive business trip expenses has been clarified further at the legislative level. Thus, the employee has the right to receive business trip expenses in an amount not less than the norms approved by the body (institution) determined by the relevant executive authority.
At the same time, among the employee’s obligations — taking into account the limitations established by this Code — the obligation to go on a business trip at the instruction of the employer has been explicitly stated. This approach serves to maintain a mutual balance in labour relations.
Rights of the Employer Related to Business Trips
The amendments have also specified one of the key rights of the employer. Thus, the employer has the right to send employees on business trips in compliance with the limitations provided for in the Labour Code. This norm strengthens the legal foundations of the business trip institution while ensuring legality in its application.
Extension of Employment of Employees Who Have Reached the Age Limit in State-Funded Institutions
The period of employment of an employee working in a state-funded institution who has reached the age of 65 may be extended by the head of the relevant state body each time for a period not exceeding one year. The total duration of such extensions may not exceed five years.
An exception is provided for employees aged 65 working in state-funded institutions who have rendered special services, as determined by the relevant executive authority, in the development of science, culture, healthcare, and education. In such cases, their period of employment may be extended for more than five years.
A new article regulates the formalization of extensions. Such extensions are formalized by an order (decision, instruction) of the employer. Pursuant to subparagraph “e” of Article 70 of the Labour Code (termination due to reaching the age limit), termination of the employment contract and simultaneous conclusion of a fixed-term employment contract for the extended period is not permitted.
Prohibition of Discrimination in Labour Relations
In the previous version, benefits and privileges provided to women, persons with disabilities, persons under the age of 18, other persons in need of social protection, as well as specialists working in territories liberated from occupation, were not considered discrimination. The amendment adds “employees with family responsibilities” to this list.
Establishment of the Tripartite Commission on Labour and Social Issues
With the addition of new Article 41-1 to the Labour Code, the establishment of a permanently operating tripartite commission on labour and social issues in the Republic of Azerbaijan is envisaged.
The main objectives of the Commission are as follows:
The Commission will consist of an equal number of representatives from the body determined by the relevant executive authority, trade unions, and republican associations of employers, and will operate on the basis of the principle of equality of rights. This mechanism is of significant importance for the institutionalization of social dialogue.
Cases Where a Fixed-Term Employment Contract May Be Concluded
According to the amendment, the conclusion of a fixed-term employment contract is permitted in cases where students undergo industrial training and internships, and where foreigners and stateless persons are engaged in paid labour activity within the territory of the Republic of Azerbaijan on the basis of a work permit.
Documents Submitted upon Conclusion of an Employment Contract
Under the new article, for the purpose of applying guarantees and benefits related to the employee’s labour and social rights, other documents related to labour relations (number of dependent family members, disability status, war veteran status, internally displaced person status, etc.) may be voluntarily submitted by the employee. The application of this article enables the employee to benefit from additional social guarantees and privileges in a timely and full manner, while ensuring the correct determination of the relevant rights and obligations for the employer.
Regulation of Labour Relations When Filling Positions through Competition
Depending on the nature of the work to be performed and the labour function, the employer may announce a competition to fill certain positions (professions). Persons who have been deprived of the right to hold certain positions or engage in certain activities as a punishment may participate in the competition for the relevant position (profession) announced one month prior to the expiration of the term of their punishment. The procedure for conducting the competition is determined by the employer, in agreement with the body (institution) determined by the relevant executive authority, provided that it does not contradict the principles set out in part 3 of Article 2 of this Code.
Regulation of the Result of the Probation Period upon Recruitment
When determining a probation period in an employment contract, the condition allowing the employer to terminate the employment contract during that period on the grounds that the employee failed the probation has been abolished.
Additional Conditions of Working Conditions
Additional conditions of working conditions related to the performance of labour functions in the form of remote (distant) work are determined by the employment contract by mutual agreement of the parties.
Suspension from Work
According to the amendment, the following are considered grounds for suspension from work: identification of contraindications to the performance of labour functions in a medical opinion issued in connection with a mandatory medical examination; refusal to participate in occupational safety training and knowledge assessment in the prescribed manner; and obstruction of the investigation of a violation of labour duties.
The employer may suspend the employee from work until the circumstances giving rise to the suspension are eliminated.
The period of suspension is determined by the employer based on the nature of each specific case, the elimination or continuation of the relevant circumstances during the suspension period, and the actions (or inaction) of the employee related thereto. The employer may cancel the order (instruction, decision) on suspension ahead of time.
Acts Considered as Gross Violation of Labour Duties
The dissemination of special-category personal data deemed confidential under the Law of the Republic of Azerbaijan “On Personal Data” is recognized as a new ground. In the previous version, the provision “intentional disclosure of production, commercial, or state secrets or failure to fulfill obligations to keep such secrets confidential” has been replaced in the new version with “disclosure of state, commercial, and/or tax secrets or failure to fulfill obligations to keep such secrets confidential.”
Grounds for Termination of an Employment Contract Due to Circumstances Beyond the Control of the Parties
The provision “if the employee is unable to perform the labour function due to continuous full loss of work capacity for more than six months, unless a longer period is established by legislation” has been expanded and clarified in the new version.
It now reads as follows: “if, unless a longer period is established by law, the employee is unable to perform the labour function due to continuous persistent loss of work capacity for more than six months, and if it is not possible to adapt the workplace or transfer the employee to lighter work in accordance with the individual rehabilitation program.” In addition, when terminating the employment contract on this ground, the employer must substantiate the impossibility of adapting the workplace or transferring the employee with a disability to lighter work in accordance with the individual rehabilitation program.
Persons with Preferential Right to Retain Employment in Case of Redundancy
Persons with the status of internally displaced persons, persons equated to them, and refugees no longer have preferential rights.
When a vacant position (profession) arises or when the necessary factors related to part-time working time change, the employer must take measures to enable an employee working part-time to work full-time. This innovation ensures fair opportunities for employees in working conditions and clarifies the employer’s obligations.
Remuneration for work performed on a part-time basis
In accordance with the procedure prescribed by this Code, employees working on a reduced working day or reduced working week shall be remunerated in proportion to the time actually worked or according to the actual output produced.
The new regulations also provide for full remuneration by mutual agreement of the parties.
Cases Where Part-Time Working Time Is Established for Women and Retention of Wages During Medical Examinations
At the request of pregnant women, women with children under the age of 14 or children with disabilities, as well as women caring for a sick family member based on a medical opinion, the employer must establish a part-time working day or part-time working week. In this case, the duration of daily or weekly working time is determined by agreement of the parties.
Previously, when a part-time working day or part-time working week was established, wages were paid in proportion to the time worked.
The former title of the article: Employees who may not be involved in night work.
When organizing a shift work regime and assigning employees to night shifts, the special needs of employees, including those related to the performance of family responsibilities, should be taken into account where justified and possible.
State Sovereignty Day (20 September) is now considered a public holiday.
Basic Leave and Its Duration
In the previous version, it was stated that public holidays that do not count as working days and coincide with the period of labour leave are not included in the calendar days of leave and are not paid.
According to the amendments, public holidays that do not count as working days, national days of mourning, and voting days that coincide with the period of labour leave are not considered leave days and are not paid; however, the duration of the leave is extended by the number of such days. In this case, if the Qurban and Ramadan holidays coincide with another non-working public holiday and this coincidence falls within the period of labour leave, the coinciding days are counted as one day.
Duration of Labour Leave for Employees with Special Services to the Azerbaijani People
The list of employees belonging to this category has been expanded. Employees with disabilities due to reasons related to the defense of the territorial integrity, independence, and constitutional order of the Republic of Azerbaijan; the events of 20 January 1990; the performance of military service duties (official duties); or the performance of military service duties at the Chernobyl Nuclear Power Plant; employees awarded the title of war veteran for participation in combat operations for the territorial integrity of the Republic of Azerbaijan; employees who served as military personnel performing military service in countries where combat operations were conducted; employees who sustained injuries (wounds, trauma, contusion) in defense of the freedom, sovereignty, and territorial integrity of the Republic of Azerbaijan; Heroes of the Patriotic War of the Republic of Azerbaijan; National Heroes of Azerbaijan; Heroes of the Soviet Union; employees awarded the highest state award of the Republic of Azerbaijan, the Istiglal Order, as well as other state awards related to the defense of the sovereignty and territorial integrity of the Republic of Azerbaijan, are granted leave of not less than 46 calendar days.
Creative Leave and Its Duration
Employees who are in labour relations with an employer and simultaneously continue their studies in doctoral (adjunct) programs to obtain the relevant academic degree may be granted paid creative leave solely for the completion of dissertation work. In the previous version, this also included writing textbooks or teaching aids by authors. During the period of creative leave, the employee is paid the average salary determined in accordance with Article 177 of this Code. Previously, the monthly salary was calculated.
Maternity Leave
The duration of the prenatal part of maternity leave is extended with pay by the number of days from the expected date of childbirth to the actual date of birth, and in this case, the postnatal part of the leave is not reduced.
Men are granted paid leave of a total of 14 calendar days before and after childbirth, based on a medical certificate, in connection with the birth of a child.
Leave Rights of Women Who Adopt Children
Women who adopt a child up to two months of age have the right to use the 56-day paid social leave established after childbirth.
Women who adopt a child also have the right to use the additional leave established by Article 117 of this Code and the partially paid leave provided for in Article 127.
Duration of Unpaid Leave Granted at the Employee’s Request
The provisions providing for up to 14 calendar days of leave for men whose wives are on maternity leave and for employees with children with disabilities have been abolished.
Under the new rules, when an employee is sent on a business trip at their main place of work, unpaid leave is granted at the additional place of work for the duration of the business trip at the main place of work, and vice versa.
Procedure for Granting Labour Leave
Pedagogical employees directly involved in the educational process may be granted labour leave not only during the summer vacation period in schools, but also during the academic year with the consent of the employer, regardless of the time they commenced employment.
Scheduling of Labour Leave
Employees working at an additional place of work who take leave at their main place of work, and employees working at a main place of work who take leave at their additional place of work, are granted labour leave at a time convenient for them, at their request.
Formalization and Record-Keeping of Leave
With the exception of the case specified below, all types of leave are granted on the basis of a written application (on paper or via an electronic information system) by the employee and are formalized by an order (instruction, decision) of the employer. The order (instruction, decision) must indicate the employee’s first name, patronymic, and surname, position (profession), type and duration of the leave granted, the relevant working year, the date of commencement and end of the leave, and the year, month, and day on which the employee must resume work after the end of the leave period.
If, after written notification (on paper or via an electronic information system) by the employer, the employee fails to submit an application to the employer to use labour leave (in full or in part) in compliance with the leave schedule and the conditions and procedure for rescheduling labour leave, the employee is sent on labour leave for the relevant working year by an order (instruction, decision) of the employer.
Procedure for Calculating and Paying Average Salary for the Period of Leave
When calculating the average salary for the period of leave, months not worked or not fully worked due to partially paid social leave or unpaid leave not initiated by the employee, as well as downtime not attributable to the employee, are replaced by the nearest fully worked calendar months.
Employment contracts or collective agreements may establish other deadlines for the payment of the average salary for the period of leave, provided that such payment is made no later than the day on which the next salary (advance or remaining part) is paid to employees going on leave.
Minimum Wage
Under the new wording, the minimum wage is defined as a social norm that determines the lowest level of monthly wages for unskilled labour and services in accordance with the Law of the Republic of Azerbaijan “On the Living Minimum.”
Providing the definition with a more precise reference to the law is noteworthy from the perspective of legal certainty.
Deadlines for Payment of Wages
Wages must be paid to employees at least once a month. By mutual agreement of the parties, monthly wages may be divided into two parts (as an advance and the remaining amount) and paid twice a month with an interval not exceeding sixteen days.
Under the previous rules, wages were generally paid in two parts.
Place, Form, and Unit of Wage Payment
The rule that wages are generally paid at the workplace where the work is performed has been abolished. When wages are paid in non-cash form, they are transferred to the employee’s bank account via payment instruments. Pursuant to Article 3.4.4 of the Law of the Republic of Azerbaijan “On Non-Cash Settlements,” if wages are paid in cash, they are paid at the workplace or, at the employee’s request, sent to the relevant address or transferred to a bank account with the delivery or transfer costs deducted from the employee.
Limitation of the Amount of Deductions from Wages
The limitations established by the first and second parts of this article — namely, that the total amount of all deductions made each time wages are paid may not exceed twenty percent of the wages payable to the employee, and in cases provided for by relevant legislation, fifty percent, as well as the requirement that fifty percent of the employee’s wages be retained in all cases where amounts are deducted on the basis of multiple enforcement documents — do not apply to deductions made for the execution of corrective labour, alimony payments, compensation for damage to health, compensation for damage caused to persons who suffered due to the loss of a breadwinner, and compensation for damage caused by a crime. According to the amendment, in these cases, the amount of deductions may not exceed 70 percent of the wages payable to the employee.
Average Wage and Procedure for Calculation
In all cases except for wages paid for the period of labour leave, the employee’s average wage is determined by dividing the total wages earned during the two calendar months preceding the payment by the number of working days in those months to determine a one-day wage, and multiplying the resulting amount by the number of working days for which wages are retained.
For employees who have worked for less than two months, the average monthly wage is calculated as follows: the wages earned during the days actually worked are divided by those days to determine a one-day wage, and the resulting amount is multiplied by the number of working days for which wages are retained.
In the cases specified, if the calculated one-day wage is lower than the employee’s last one-day wage due to partially paid social leave, unpaid leave at the initiative of the employer, or downtime not attributable to the employee, the last one-day wage is applied.
Guarantees of Remuneration for Labour
In cases where an enterprise or a natural person employer becomes insolvent and bankrupt, such payments are made in accordance with the order of priority established by the Law of the Republic of Azerbaijan “On Insolvency and Bankruptcy,” and, with respect to banks and insurance organizations, by the Laws of the Republic of Azerbaijan “On Banks” and “On Insurance Activity.”
The new wording strengthens the principle of legal certainty by providing more precise references to legislation.
Cases Where the Employee’s Workplace and Average Wage Are Retained
The workplace and average wage are retained when the employee is sent on a business trip in connection with the performance of military duties, including military and training, inspection, special assemblies, and other measures determined by the relevant executive authority in accordance with areas of activity (military registration, training in special military specialties, medical examination of conscripts, measures aimed at ensuring the martial law regime, etc.), as well as in connection with the performance of military transport duties.
Employee’s Right to Receive a Share of the Enterprise’s Profit
If provided for in a collective agreement or employment contract, employees have the right to receive a share of the profit determined based on the results of annual financial statements, in the manner and amount provided for in the charters of joint-stock companies or limited liability companies.
Periods during which the employee has temporarily lost work capacity or is on leave, as well as periods specified in Article 179 of this Code during which the workplace and average wage are retained, are not included in the two-year period from the moment a disciplinary offense is committed.
Employees working in harmful and heavy industries, in workplaces, professions (positions), and on machinery, mechanisms, and equipment that constitute sources of increased danger must receive occupational safety instruction at least once every three months, depending on the characteristics of working conditions, and employees in other workplaces at least once a year. Depending on the characteristics of working conditions, the timing of occupational safety instruction is determined by collective agreements, and in cases where no collective agreement is concluded, by the employment contract or by agreements between the employer and the trade union organization (labour collective). The employer must record such instruction via an electronic information system, and in cases specified by part 2-1 of Article 7 of this Code, in special journals.
Depending on its purpose and designation, occupational safety is financed from the state budget and from the funds of the enterprise or the natural person employer.
An occupational safety engineer position is established at workplaces created by natural person employers where the number of employees exceeds fifty. In enterprises and workplaces created by natural person employers where the number of employees is less than 50, the organization of occupational safety work is included in the labour function of one of the employees with occupational safety knowledge, with the employee’s consent and by making appropriate amendments to the employment contract; if this is not possible, the employer establishes an occupational safety specialist position.
Several significant amendments have been made to the Labor Code of the Republic of Azerbaijan. Th...
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