Azerbaijan
Capital: Baku
Currency: - AZN
Azerbaijan: An Overview of Labor Law and Employment Policies
Overview of Employment Law
- Key Legislation:
- Labor Code
- Social Security Law
- Tax Code
- Legal Characteristics:
- Aims to protect employee rights and promote a fair employment environment.
- Regulates matters such as minimum wage, working hours, paid leave, and severance pay.
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts (maximum 5 years)
- Indefinite-term contracts
- Contractual Provisions:
- Must include job description, remuneration, working hours, probation period (maximum 3 months), etc.
- Language and Currency:
- Azerbaijani language is strongly recommended.
- Currency is Azerbaijani Manat (AZN).
Working Time Regulations
- Standard Working Hours: 40 hours per week, 8 hours per day.
- Rest Days and Breaks: Minimum of 24 hours rest per week, minimum of 1 hour break per day.
Leave Policies
- Annual Leave: Minimum of 21 days, with additional days for increased years of service.
- Public Holidays: 15 official public holidays.
- Special Leaves:
- Sick Leave: 14 days paid sick leave, from the 15th day paid by the Social Insurance Fund.
- Maternity Leave: 126 days paid maternity leave, 70 days before birth, 56 days after birth.
- Paternity Leave: 14 days unpaid paternity leave.
Employee Dismissal and Contract Termination
- Notice Period:
- Employer: 1 month
- Employee: 1 month
- Severance Pay:
- Dismissal due to redundancy: Minimum of 3 months' salary.
- Dismissal for other reasons: Up to 2 months' salary, depending on years of service.
- Protection against Unfair Dismissal:
- Employer must prove fair reason for dismissal.
- Protected groups, such as pregnant women and parents of children under three, cannot be dismissed.
Tax Laws
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Personal Income Tax:
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Salary Range (AZN) Tax Rate 0 - 8,000 0% 8,000+ 14%
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Social Insurance Contributions:
- Employer: 22%
- Employee: 3%
Health Insurance
- Insurance Policy:
- State health insurance scheme.
- Coverage:
- Basic healthcare services.
Compensation and Benefits
- Minimum Wage: 300 AZN/month
- Salary Structure:
- Base salary
- Bonuses
- Allowances
Work Permits and Visas
- Permit Requirement:
- Foreign employees require a work permit.
- Application Process:
- Applied for by the employer through the State Migration Service.
Confidentiality and Non-Compete Clauses
- Enforceability:
- Enforceable, but must be reasonable and not unduly restrict employee's employment opportunities.
- Common Provisions:
- Confidentiality of information
- Non-competition restrictions
Training and Development
- Legal Requirements:
- Safety training
- Skills development training
- Government Support:
- Government-funded training programs.
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on factors such as gender, race, religion.
- Enforcement Measures:
- Employers must have anti-discrimination policies in place.
Remote Work Policies
- Legal Framework:
- Remote work is permitted, but must be clearly outlined in the employment contract.
- Tax and Insurance Implications:
- Tax and social insurance implications of remote work depend on specific circumstances.
Authoritative Website Addresses
- Ministry of Labor and Social Protection of Azerbaijan: https://lsms.gov.az/