Employment contracts Azerbaijan

What should an employment contract in Azerbaijan include? 

Employment contracts in Azerbaijan must include a few essential elements, as follows:

• Names, addresses, and contact information for both parties – the employer and the employee.
• A comprehensive description of the job position.
• Working days and hours.
• Salary or wage and benefits entitlements.
• Policies under which the contract can be terminated.
• Non-disclosure and confidentiality policies.

Each party is responsible for gaining comprehensive knowledge and understanding of every clause in the agreement before signing.

What types of employment contracts exist in Azerbaijan?

The following are the most important employment contract categories in Azerbaijan:

1. Employee contracts

Employee contracts can be divided into two main categories:

• Permanent employment contracts: Under permanent contracts, the employment relationship remains in effect until terminated by one of the parties. To terminate a permanent employment contract, it’s necessary to follow the notice period policies defined within the agreement. These contracts are considered to offer job security and stability, as they don’t impose end dates and define terms such as salaries, benefits, working hours, and other important conditions.
• Fixed-term employment contracts: In contrast to permanent employment contracts, fixed-term contracts contain clearly defined start and end dates of effective employment. After the completion of the end date, fixed-term contracts are automatically terminated. Except for the employment duration, fixed-term contracts should also define the most critical terms of employment.

2. Temporary employment contracts

Temporary employment contracts are used to employ workers for seasonal work or to fill in for a temporarily absent employee. Due to the temporary nature of the employment, the contract should specify the start and end dates of effectiveness. Companies that use temporary employment contracts have the option to extend or terminate them after expiration.

3. Service employment contracts 

Service employment contracts are categorized as civil law contracts that are used when individuals provide specific services to companies or clients. These contracts serve as a legal agreement between the employer and the employee, outlining key terms and conditions and establishing the rights and responsibilities of both parties. 

How to hire employees in Azerbaijan?

Before a company hires an employee in Azerbaijan, it’s mandatory to comply with local labor laws. This includes registering a legal entity in the country, applying for a tax identification number, and opening local bank accounts.

Companies must also fulfill minimum statutory requirements regarding salaries and other benefits to which employees are entitled.

A convenient alternative to navigating complex law systems is engaging a global recruitment company like Native Teams. By using our Employer of Record services, you can have your payroll, taxation, and HR administration handled while staying compliant with local employment laws.