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Our global employment products, including G-P Meridian Prime™ and G-P Meridian Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of compliant global expansion — so you can focus on opportunities ahead.
As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Hiring in Azerbaijan
International employees are required to have individual work permits issued by the State Migration Service. If a company employs an international worker without a work permit, they will be fined.
An employment agreement may not exceed the duration of the work permit, which itself cannot exceed 1 year. When negotiating terms of an employment contract and offer letter with an employee in Azerbaijan, it may be useful to keep the following in mind.
Employment contracts in Azerbaijan
Written employment contracts are legally required in Azerbaijan. Contracts can be for a fixed term of up to 5 years or for an indefinite term.
- Contracts must contain the following information:
- The full name and address of the employee and employer
- The employee’s position and place of work
- The date from which the contract becomes valid and the employee’s first day of work
- How long the contract is valid for
- The employee’s duties
- General labor terms and conditions, including salary, working hours and break times, annual leave, labor protections, and social insurance
- Details of any other insurance provided
- Obligations the employer and employee must adhere to
- Any other agreed terms and conditions
There should be at minimum 2 copies of the contract. All copies must be signed by both the employer and the employee, and sealed by the employer. Employees can keep their copy for their records. Any amendments to or cancellation of the employment contract will become valid after the employer registers the notice of the employment contract by entering it into the electronic information system using an enhanced electronic signature.
Working hours in Azerbaijan
A normal working day cannot exceed 8 hours, and the normal working week is 5 days, with 2 days off. The day before holidays, nationwide mourning days, and voting day is reduced by 1 hour.
For 6-day working weeks, the daily hours should not exceed 7 hours per day and 6 hours for days before weekends.
Holidays in Azerbaijan
Azerbaijan celebrates 15 public holidays:
- New Year’s Day
- Women’s Day
- Victory Day
- Republic Day
- National Salvation Day
- Azerbaijan Armed Forces Day
- Independence Day
- Victory Day
- Flag Day
- Constitution Day
- National Revival Day
- Day of Solidarity of World Azerbaijanis
- Novruz (a multi-day holiday)
- Ramazan Bayrami (a multi-day holiday)
- Gurban Nayrami Holiday (a multi-day holiday)
Public holidays that fall on a weekend are observed on the following Monday. Independence Day, Constitution Day, and National Revival Day are working holidays.
Vacation days in Azerbaijan
Generally, employees are allowed 21 days of vacation leave. Some specialist and managerial positions are provided 30 days of leave. Employees must take 2 weeks of leave together.
In general, employees are not entitled to leave during their first 6 months of employment.
Azerbaijan sick leave
Employees may take sick leave within reasonable limits if they are covered by State Social Insurance.
Payments during sick leave are paid by the employer if the leave is less than 14 calendar days. After the first 14 days, payments are covered by the State Social Protection Fund.
Maternity/paternity leave in Azerbaijan
Pregnant employees are entitled to a total of 126 days of paid maternity leave, which consists of 70 days before and 56 days after the expected date of delivery.
After a difficult delivery or the birth of 2 or more children, mothers are entitled to 70 days of paid leave after the birth. This amounts to 140 days in total.
Maternity leave is paid for by the State Social Protection Fund and is equal to 100% of gross average monthly earnings over the previous 12 months.
Fathers are entitled to 14 days of unpaid paternity leave after the birth of a child.
Additionally:
- An employment contract with a pregnant worker, or a mother with children under 3 years old, cannot be terminated.
- Pregnant employees and mothers with children of 18 months and under are subject to reduced working hours up to a maximum of 36 hours per week.
- Pregnant employees, or mothers with a child or children under 3 years old, cannot be requested to work night shifts.
- Mothers with 2 children under 16 years old are entitled to 2 days of additional vacation.
- Mothers with 3 or more children under 16 (or with a disabled child under 16 years old) are entitled to 5 days of additional vacation.
- Mothers (or single father) with children under 16 years old are entitled to up to 14 days of unpaid leave.
Health insurance in Azerbaijan
Azerbaijan has compulsory medical insurance where 2% of the employee’s salary is withheld monthly and 2% is from the employer.
Azerbaijan supplementary benefits
Employers in Azerbaijan often offer private medical insurance to supplement limited free care.
Bonuses
Bonuses are commonly given in Azerbaijan. The exact bonus structure varies by company.
Termination/severance in Azerbaijan
Generally, a probation period of up to 3 months is allowed. With fixed-term employment contracts lasting up to 6 months, the maximum probation period is 2 weeks, while for other employment contracts, the probation period is a maximum of 3 months.
Azerbaijan has strict termination laws that protect the employee and must be followed closely by the employer who must document the termination of employment.
In general, employment contracts may be terminated for:
- Expiration of the fixed term.
- Change of employment conditions.
- Circumstances outside the employee’s and employer’s control.
- Inability of the employee to perform the work.
- Team reduction or downsizing.
- Failure to pass the probationary period.
- Reaching pensionable age.
- Grounds as laid out in the employment contract.
During team reductions or downsizing, there are specific rules related to employee seniority at the company:
| Work experience in the company | Minimum period of written notification (in weeks) | Allowance (in the average salary) | Payment, instead of notice period with the consent of the employee (in the average salary) |
|---|---|---|---|
| 1 year or less | 2 | 1 | 0.5 |
| 1-5 years | 4 | 1.4 | 0.9 |
| 5-10 years | 6 | 1.7 | 1.4 |
| 10+ years | 9 | 2 | 2 |
Paying taxes in Azerbaijan
Employee’s social security contributions are 3% of the employee’s salary on income up to AZN 200 plus 10% on any amount beyond that. For employees in the oil and gas and government sectors, the rate is 3%. The contribution is paid to the Social Protection Fund.
The employer’s social security contributions are 22% of the employee’s salary, including bonuses, on income up to AZN 200 plus 15% for any amount above that. For employees in the oil and gas and government sectors, the rate is 22%.
Why G-P?
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading Global Growth Platform™. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
Contact us today to learn more.