Employ Candidates Compliantly in Azerbaijan

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  1. Overview: Azerbaijan
  2. Global HR Compliance
  3. Global PEO and payroll
  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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Global HR Compliance in Azerbaijan

If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Azerbaijan Guide below will help you understand the nuances of labor legislation in the country.

Companies hire international workforce for various reasons but in most cases they are:

  • entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
  • hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.

Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.

If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Azerbaijan, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Azerbaijan and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.

We are experts in global workforce employment in , and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Azerbaijan.

Hiring and Firing Workforce in Azerbaijan Guide

# Employment Contracts

Employment contracts may be executed for a fixed-term of no more than 5 years or for an unlimited period. As a legal requirement, employment contracts must be entered into in writing and provided in at least 2 duplicate copies. Employment contracts must contain a meticulous information about the full names and addresses of the employer and employee, employment description, including start and validity date, employee’s position, duties and obligations, place of engagement, hours of work, break, leave, employment protection, social insurance and any other specific terms agreed by both parties.

Employment contracts must be signed by both parties of employment to be valid. Employees are entitled to a copy of one of the signed contracts.

# Minimum statutory employment rights

# Hours of work
A normal 5-day workday shall comprise a maximum of 8 working hours and 2 rest days. A normal 6-day workday cannot not exceed 7 hours. Employees are entitled to a reduced working hour (by one-hour) on the eve of any official holiday, voting day or national mourning day.

# Probation period
Probation of no more than 3 months period is permissible, when hiring for the first time. Probation period must be set by the agreement of both parties of employment.

# Annual leave
Annual leave entitlement is available during the first year of employment. Generally, employees are entitled to a minimum of 21 calendar days of paid base annual leave. Other employees such as those in agricultural, administrative, public official, educational, medical sector are entitled to 30 calendar days of paid base annual leave yearly.

# Parental leave
Generally, maternity leave benefit is provided by the Social Protection Fund at an amount that is equivalent to 100 percent of gross average monthly pay during the preceding 12 months.

Pregnant employees are entitled to 126 days of paid maternity leave: 70 days prior to the due date and 56 days after the date of birth. In the event of multiple births or complications at delivery, employees shall be granted a total of 140 days’ paid leave to be taken 70 days before and 70 days’ after birth. Women workers with two under 14 children are entitled to 2 days of additional leave. Women with at least three under 14 children or those with a disabled child who is under 16 are entitled to 5 days of additional leave.

In addition, pregnant employees and those who have children of 18 months and under are entitled to reduced working hours of up to 36 hours per week. Pregnant women, or women with a child or children under age 3 are not permitted to work night shifts.
Male employees shall be allowed to take 14 days of unpaid paternity leave for a newborn baby. This shall be applicable to single fathers (or female employees) who have children who are under age 16.

# Sick leave
Employees are entitled to sick leave if they are covered by the Social Protection Fund. There is no time limit for sick leave. However, employers have the right to terminate a sick employee who has been away for more than 4 months unless the sickness is work-related.

Sickness benefit:

  • 100% of the last month of earnings is paid for an employee with at least 8 years of employment;
  • 80% with 5 to 7 years;
  • 60% with less than 5 years;
  • 150% of the last month of earnings is paid for an employed person with a disability, up to 2 months of salary;
  • 100% of the last month of earnings is paid for certain groups, including persons wounded in certain conflicts; for the parents, wives, and children of soldiers killed in combat; for those who participated in the containment of the Chernobyl catastrophe.

The benefit is paid from the first day of incapacity until recovery or certification of permanent incapacity for work.The employer pays benefits for the first 14 calendar days. The State Social Protection Fund covers the remaining period.

# Overtime
Overtime is not allowed in all cases. However, when permissible, employees cannot be allowed to work more than 4 hours overtime in any 2-consecutive workday or 2 hours overtime per day/shift if they work in difficult and hazardous working conditions.

# Employment termination
Employment contracts may be terminated under the following circumstances:

  • failure to pass the probation period
  • completion of the contract definite term
  • downsizing
  • change of employment conditions
  • employee’s unsatisfactory performance (after probation)
  • nearing pensionable age
  • force majeure
  • other circumstances, as stipulated in the employment contract

Employees are entitled to 2 months prior notice in the event of redundancy. In any respect, employees shall be provided with 3 months’ severance pay for their contracts termination.

Employers are obligated to keep a documentation of every employment termination. An employee is generally free to leave his place of employment by providing one month prior notice to the employer.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Azerbaijan by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.

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