On August 28, 2018, the new Law of the Republic of Azerbaijan "About Employment" (hereinafter: the Law) came into force. Thus, the Law About Employment, dated July 02, 2001, has been invalid.
The main updates in the law can be classified in several groups:
1) setting up an electronic vacancy bank and the obligations of the employer in connection with it;
2) state provisions for employment of persons in need of social protection;
3) about legal entities engaged in mediation in employment;
4) self-employment support;
5) payment of wages at social workplaces
1. The new law contains a number of updates and amendments that should be taken into account during the activites of entrepreneurs and legal entities. Thus, according to the Law, an electronic vacancy bank will be established where employers should include information about new job positions and vacancies in the system. Based on employer's employment contract reports and information about job vacancies, a table of staff units is created for each employer. In this case, employers should provide information to the electronic information system with information about salary within 5 working days when there is new or vacant work places. If employers do not include or delay this information, they are fined in the amount of 50 manats according to the Code of Administrative Offenses of the Republic of Azerbaijan.
Also, employers should submit monthly reports about persons directed by the Ministry of Labour and Social Protection of the Population for employment to this authority. Otherwise, employers are penalized in the amount of 60 manat under the Code of Administrative Offenses.
2. The state provides additional provisions for those in need of social protection and those who have difficulty in finding jobs. The quota is determined by the number of employees not exceeding 5% of the average number of listed employees in enterprises, and this the number of jobs is allocated to ensure the employment of those in need of social protection. Details of quota determination and list of enterprises where quotas are not applied are determined by the Cabinet of Ministers of the Republic of Azerbaijan. Failure to comply with these requirements causes responsibility according to the Code of Administrative Offenses of the Republic of Azerbaijan. In this case, employers are fined in the amount of 1,500 to 2,000 manats.
Under the law, the Ministry of Labor and Social Protection of the Population forms temporary employment of unemployed persons at specific enterprise, in order to organize paid public works, where they are involved in public works on a contractual and paid basis at specified enterprises.
3. According to the law, recruitment activities in employment can only be carried out by legal entities, and there will be an electronic registers of these legal entities. Recruiters should submit information to the Ministry of Labour and Social Protection of the Population about the number of persons applying for employment and the number of persons employed.
4. One of the updates in the law is about self-employment support. The body responsible for self-employment is the Ministry of Labour and Social Protection of the Population, which operates it in several ways. They provide advice and information for unemployed to ensure self-employment, help them to choose a direction for self-employment and to organize self-employment, as well as support them for the establishing a business plan. At the same time, equipment, materials and other property can be provided for unemployed people with self-employment in the chosen direction. It should be noted that such property is granted on a contractual basis for two years and it is checked whether person's activity meets the business plan. As a result of inspections, if the activity of a person complies with the business plan, the property is transferred to his/her ownership at the end of the contract period. However, if the person does not use the property for a period of one year without any valid reasons, he should return the market value of the property. The law defines preferred categories during self-employment. Thus, priority is given to persons receiving targeted state social assistance, persons with disabilities and children with disabilities under 18 years old, those registered as unemployed for more than one year, Persons who are less than two years of retirement age, and unemployed persons released from places of detention.
5. In the social workplaces where unemployed people are directed for providing employment, some part of the wages is paid by the Ministry of Labour and Social Protection of the Population, and the procedure for financing it is defined by the Cabinet of Ministers. The amount of the portion of the salary funded by the unemployment insurance fund should not be more than the average monthly nominal wages for the previous year determined by the State Statistical Committee, but not less than the minimum monthly salary is equal to 50% of the salary and deductions (compulsory insurance premium from the labor fund, compulsory insurance premium, unpaid insurance premium, accidents in production and compulsory insurance premium in case of occupational disability as a result of occupational accidents and occupational diseases) provided by the employer's staff unit. Part of wages of employees hired by employment contract in social workplaces for a period not less than 2 years is financed by the Ministry of Labor and Social Protection of Population for no less than 3 months and not more than 12 months.
It should be taken into account while determining the amount of wages that wages of unemployed persons who have been employed at any social workplace should not be more than 10% of wages of other workers in that enterprise.