Compensation for additional leave is now mandatory

On 18 February 2026, the Plenum of the Constitutional Court of the Republic of Azerbaijan adopted a decision reviewing the compliance of Parts 2 and 3 of Article 144 of the Labour Code of the Republic of Azerbaijan with Parts I and III of Article 25, Part II of Article 71, and Parts I and III of Article 149 of the Constitution of the Republic of Azerbaijan.

Previously, Part 3 of Article 144 of the Labour Code excluded the payment of compensation upon termination of employment for additional leave granted in connection with length of service or the nature of the profession, as well as additional leave provided to women with children and specialists working in the territories liberated from occupation.

According to the Court’s position, the institution of additional leave serves to ensure the fair protection of employees’ rights by taking into account differences arising from working conditions and social circumstances. Therefore, depriving an employee of payments arising from this entitlement upon termination of employment is inconsistent with the principle of equality. Consequently, the Court found the respective provision unconstitutional and decided to suspend its application.

Accordingly, from now on, within the territory of the Republic of Azerbaijan, regardless of the grounds for termination of an employment contract, employers will be obliged to pay full compensation to employees for both unused basic and additional leave days.

It should be noted that the decision does not apply to legal relationships that have already been completed. It will apply only to employment terminations occurring after its entry into force, as well as to cases currently pending before the courts.