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Employ Candidates Compliantly in Azerbaijan

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  1. Overview: Azerbaijan
  2. Global PEO and payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Employer of Record in Azerbaijan

What is a Global Employer of Record?

A global employer of record (EOR) is a company that provides employment solutions to organizations that want to hire workers in countries where they don’t have a legal entity or established presence. The Global EOR acts as the legal employer, handling all employment-related tasks, such as payroll, benefits, taxes, compliance, and other administrative tasks. This allows companies to expand their global reach and hire talent anywhere in the world without having to set up a legal entity in each country or worry about local employment laws and regulations. The global EOR model is becoming increasingly popular as businesses expand into new markets and look for more flexible and cost-effective ways to manage their global workforce across jurisdictions.

Global Employment Journey — Recruitment. Onboarding. Management. Retention. Termination

The global employment journey consists of several stages: recruitment, onboarding, management, retention, and termination. Each of these stages requires different processes, tools, and expertise, and it’s important to ensure that all of them are conducted in compliance with local laws and regulations.


Recruitment involves finding and attracting the best candidates for the job, regardless of their location. This requires a deep understanding of local labor markets, cultural differences, and recruiting channels. A global employer of record can help companies streamline their recruitment process by leveraging their global network of talent and expertise in local recruiting practices.

Onboarding and Drafting Employment Contracts

Onboarding is the process of integrating new employees into the organization and ensuring they have the resources and support they need to succeed. This includes setting up payroll and benefits, providing training and orientation, and complying with local employment laws. A global employer of record can handle all these tasks, ensuring a smooth onboarding process for new hires.

Another important aspect of onboarding new employees is drafting compliant employment contract agreements across multiple jurisdictions. This involves ensuring the employment contract complies with local labor laws and regulations, including minimum wage requirements, working hours, benefits, and termination clauses.

A Global Employer of Record can provide support in drafting and reviewing employment contracts to ensure compliance with local laws and regulations in each jurisdiction. This can help companies avoid legal disputes and financial penalties arising from non-compliance with local employment laws.

Additionally, a Global Employer of Record can assist in negotiating employment terms with candidates and handle the paperwork associated with the employment contract, ensuring that all necessary documents are completed and filed in a timely manner.

Overall, having a Global Employer of Record can help companies streamline their onboarding process by ensuring that all necessary steps, including drafting compliant employment contracts, are completed accurately and in compliance with local laws and regulations.

Global Talent Management

Global Talent Management involves overseeing employees’ daily activities, ensuring they are productive and engaged, and addressing any performance issues or concerns. A Global Employer of Record can support and guide managers, helping them navigate cultural differences and local employment laws.

Payroll and tax administration involve calculating and distributing salaries, withholding taxes, and complying with local tax laws and regulations. A Global Employer of Record can handle these tasks, ensuring that employees are paid accurately and on time, and that all tax-related obligations are met.

Working time, attendance, and paid time off management involve tracking employees’ working hours, managing leave requests, and ensuring compliance with local labor laws and regulations. A Global Employer of Record in Azerbaijan can help companies implement time-tracking systems, manage employee leave requests, and ensure compliance with local labor laws and regulations.

A Global Employer of Record in Azerbaijan can support other HR functions, including performance management, employee benefits administration, employee relations, and HR reporting and analytics. These functions are critical to ensuring that employees are engaged, productive, and motivated and that the organization meets its strategic objectives.

Employee Retention

Retention is the process of keeping employees motivated and engaged, reducing turnover, and promoting a positive work environment. This includes offering competitive compensation and benefits, providing opportunities for growth and development, and ensuring a healthy work-life balance. A Global Employer of Record can help companies develop and implement retention strategies that are tailored to each location and culture.


Termination is the process of ending an employee’s employment, whether voluntarily or involuntarily. This includes complying with local employment laws regarding notice periods, severance pay, and other termination-related issues. A Global Employer of Record in Azerbaijan can help companies navigate this process, ensuring a smooth and compliant transition for the employer and the employee.

Throughout each stage of the global employment journey, compliance and legal guidance are crucial to ensuring that companies operate within the bounds of local laws and regulations. A Global Employer of Record can provide 24/7 local support across multiple locations, helping companies avoid costly mistakes and stay on top of changing employment laws and regulations.

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Global Employment Services by Acumen International

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting


Talent skilled in highly-specialized areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

Businesses in the process of expanding globally often face challenges when it comes to compliantly onboarding employees in foreign countries. In most cases, legal compliance requires establishing a legal in-country business entity, a complex, costly, and time-consuming process many employers are not ready to undertake.

To help your organization legally onboard and payroll a workforce in Azerbaijan, Acumen International offers a global employment solution via our Global Employer of Record (EOR) designed to help you circumvent the legalities of direct hiring, eliminating the need for you to establish a legal entity in Azerbaijan to conduct business there.

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Global Employment Challenges and Solutions

Challenge Why Use a Global Employer of Record
Legal and Regulatory Compliance Collaborate with a Global EOR provider to leverage their local expertise and experience in navigating complex legal and regulatory environments. Access tailored compliance support and training to ensure adherence to local labor laws and regulations.
Administrative Burden Utilize advanced automation and AI-driven HR technology solutions offered by a Global EOR provider to streamline and simplify administrative tasks. This can free up HR staff to focus on strategic initiatives, increasing productivity and efficiency.
Employment and Termination Engage a Global EOR provider to access their in-depth knowledge of local labor laws and regulations. Obtain expert support for complex employment and termination procedures to mitigate legal risks and ensure compliance with local labor laws.
Global Payroll Administration Partner with a Global EOR provider to utilize their cloud-based global payroll platform. This provides real-time access to global payroll data and analytics, ensuring compliance with local tax and labor laws, and simplifying global payroll administration.
Employee Benefits Administration Consult a Global EOR provider for expert guidance on designing and implementing a competitive and compliant employee benefits program. Leverage their partnerships with local providers to offer affordable, high-quality benefits that comply with local regulations.
IP Right Protection Collaborate with a Global EOR provider to receive tailored IP protection guidance. This may include global trademark registration, monitoring, and expert advice on navigating complex local IP laws and regulations to safeguard your company’s valuable intellectual property.
Business Transitions (Acquisitions, Mergers, Close-Downs) Work with a Global EOR provider to receive expert support for complex business transitions. This may include merger and acquisition due diligence, risk management and mitigation strategies, and company close-down assistance.
Dealing with Multiple Global Employment Service Providers Consolidate all global employment services with a single Global EOR partner. This offers a one-stop-shop for all global HR and employment needs, simplifying the global expansion process and avoiding confusion or legal issues arising from working with multiple providers.
Lack of Local and International Legal Support Obtain expert legal support and guidance from a Global EOR solutions provider. This may include leveraging their global legal network and partnerships with top-tier law firms to ensure compliance with local and international legal requirements and mitigate legal risks.

Spotlight on Azerbaijan

Azerbaijan (Republic of Azerbaijan) is a country in southwestern Asia. Azerbaijan borders the Caspian Sea, Georgia to the north, Armenia, Turkey to the west, and Iran to the south. Azerbaijan has a unique geographical position situated in 9 out of 11 existing climatic zones.

  • Capital: Baku.
  • Population: 10,353,296 (Estimated 2023).
  • Labor force: 5.215 million (2023).
  • Local currency: Manat (AZN).
  • Minimum statutory salary: Azerbaijan has a government-mandated minimum wage, and no worker in Azerbaijan can be paid less than this mandatory minimum pay rate. The minimum wage has been revised in Azerbaijan, effective 01 January 2023. The minimum wage has increased from AZN300 to AZN345 per month.
  • Most developing industries: Azerbaijan’s economy is based on gas and oil, steel, iron, chemical and petrochemical products, and textiles. Main agricultural crops include wheat, barley, corn, fruits (wine grapes), potatoes, cotton, tea, silk, and tobacco. The country also produces other potentially valuable crops, including indigenous pink grapes and persimmon. Agriculture accounts for 5.2% of GDP, industry accounts for 52.2%, and services account for 35.2% of GDP. Flourishing service sectors include banking, construction, and real estate. Azerbaijan has privileged tourism potential. The country’s widespread salt springs are progressively becoming flourishing health spa resorts.
  • Trading partners: Export partners are Italy, Turkey, Israel, Germany, and India with crude petroleum, natural gas, refined petroleum, tomatoes, and gold. The main import partners are the United Kingdom, Russia, Turkey, and China. Import commodities include gold, cars, refined petroleum, wheat, and packaged medical supplies.

Employ your Selected Workforce via Acumen Employer of Record (EOR) in Azerbaijan

As a Global Employer of Record services provider, Acumen International helps businesses legally engage and pay their selected highly skilled professionals in Azerbaijan.

Businesses desiring to hire local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates. Acumen International serves end employers and service companies representing international clients as a global employment organization.

Acumen’s Global employment services are designed to provide our clients with professional assistance to meet their global HR needs, such as:

  • Global talent acquisition and retention
  • Global expansion to help you quickly enter new global markets without legal and HR compliance risks
  • Local support for international clients and their ex-pat employees

Acumen’s Employer of Record / EOR service in Azerbaijan offers an efficient and inexpensive alternative to direct hire. Our employer of record solution allows companies to operate in Azerbaijan and across 190 international markets where we serve our clients without registering as a local business entity.

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Legally onboard and payroll employees in Azerbaijan via Acumen Employer of Record / EOR

Acumen’s EOR global employment solution helps businesses overcome legal challenges by hiring and compensating your local and ex-pat workforce in Azerbaijan on your behalf risk-free and cost-effectively.

If you are looking to reinforce your internal team with the expertise of Azerbaijan-based global talent, or if you have already selected a local candidate to work for you remotely and in full legal compliance in Azerbaijan, our global EOR solution is the ideal choice for you.

You can trust Acumen to handle your workforce management’s global employment and HR details in Azerbaijan to ensure full compliance with in-country employment laws.

Acumen’s Global Employer of Record / EOR solution was designed to help international companies like yours expand their global reach and engage the brightest global talent for their projects.

In addition to legally onboarding local citizens, we can organize work permits and business visa sponsorship for your expatriate team via our Global Employer of Record and employ them on your behalf once legal permissions have been attained.

Partner with Acumen International, and let us help you handle your global employment and HR needs. With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating your local and expatriate employees in Azerbaijan and 190 countries worldwide where we serve our international clients.

Reduce risks while expanding your business without establishing your legal entity in Azerbaijan. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.

Trust us to handle the global employment and HR side of your workforce management in Azerbaijan so you are sure that none of these nuances are missed and that your employees are employed and payrolled properly and compliantly on your behalf.

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