Recent Developments In Azerbaijani Labour Law

The deadline of 1 October 2014 has now passed for companies to implement the changes to the Labour Code, adopted by parliament on 27 December 2013. Now the Ministry of Labour and Social Protection of the Population is in the process of comparing the list of legal entities and employees registered with the Registry of Commercial Legal Entities of the Ministry of Taxes and other agencies through integrated electronic systems to the list of legal entities that registered the employment contracts of their employees.

The changes introduced a new approach to concluding labour contracts and the manner in which they enter into force. Before the changes were adopted, employment contracts would enter into force on the date they were signed or another date stipulated in the contract. Employers did not have to register employment contracts with government; moreover, Article 49 of the Labour Code prohibited the registration or confirmation of labour contracts with/ by government agencies. With December changes to the law, however, government imposed an obligation on employers to register the notifications regarding the concluding of employment contracts, amendments thereto as well as the termination of such contracts with the Ministry of Labour and Social Protection of the Population. The exception to this rule applies to contracts for the public sector employees and civil servants.

According to the Law on Amendments and Additions to the Labour Code, the Ministry of Labour and Social Protection of the Population had to introduce an electronic registry system for labour contracts and take measures to ensure the registration of employment contracts in the system by 1 July 2014. The Ministry, however, did not make the system available by July, thus the deadline for the registration of employment contracts was extended until 1 October 2014.

Amendments to the Code of Administrative Offences, dated 27.12.2013 envisaged financial sanctions applicable to instances where employers involved individuals in any kind of works (services) before their employment agreements (contracts) become effective, as stipulated by the legislation. Employers who are natural persons who make use of an individual's work without an employment contract in force will be subject to fines in the amount of AZN 1,000 to AZN 3,000, and the directors/executives of entities will receive a fine ranging from AZN 3,000 to AZN 5,000, and legal persons (entities) shall be subject to fines ranging...