3 August 2020





Extract from the Labor Code of the Republic of Azerbaijan



Section III


Employment Contracts


Chapter Seven. Grounds and Rules for Entering into Employment Contracts


Article 42. Parties to Employment Contracts

1. Employment contracts shall be entered into freely. No one shall be compelled to sign
an employment contract.
2. The parties to an employment contract shall be the employer and the employee. The
person who is not establishing and willing to create employment relations cannot be
compelled to sign an employment contract.
3. A person who has reached the age of fifteen may be a party to an employment contract.
An employment contract may not be signed by a person considered to be disabled as
established by legislation.
4. A completely disabled person may not serve as an employer.

Article 43. Content of an Employment Contract

1. The content of an employment contract shall be defined by the contract pursuant to the
2. An employment contract must contain the following terms and information:
a) the full name and address, series and number, date of issue of the identity card,
name of the authority issuing the identity card to the employee;
b) if the employer is a legal entity - his name and registered address and, if the
employer is a natural entity engaged in entrepreneurial activities without the
creation of a legal entity - its full name, address, taxpayer identification number
(TIN), series and number, date of issuance of identity card, the name of the
authority issuing identity card;
c) the employees workplace place of work and position (occupation);
d) the date of execution of the employment contract and the day on which the
employee must start work;
e) the term of the employment contract;
f) the employees duties;
g) the terms of the employees labor conditions - work and rest time, salary and
adjustments to it, duration of employment leave, labor protection, social and other
h) mutual obligations of parties on employment agreement;
i) creation of conditions for workers to engage in physical training and sports,
including rehabilitation and professional-practical exercises in working terms
and after work, sports and health tourism;
j) information on other terms and conditions defined by the parties.
3. The rights and guarantees defined for employees by this Code may not be reduced
when an employment contract is signed or upon termination of the labor relations.
4. Unless stipulated herein, the terms of the employment contract shall not be unilaterally

Article 44. The Form of an Employment Contract

1. An employment contract shall be executed in writing.
2. An employment contract must be executed in accordance with the example attached
hereto on the basis of Parties consent.
3. An employment contract shall be prepared in at least two (2) copies and authenticated
by the signatures (seals) of the parties. One copy shall be given to the employee; the other
copy shall be kept in perpetuity by the employer.

Article 45. The Term of an Employment Contract

1. An employment contract may be executed without specified term (unlimited) or for a
period up to 5 years (term).
2. Unless an employment contract states the term for which it is being executed, it shall
be considered to be unlimited.
3. An employment contract executed without specified term may not be unilaterally
replaced by a term employment contract without the mutual consent of the parties.
4. When the nature of the work or services are a priori specified as permanent according
to the job description, an employment contract must be concluded without specified term,
except for cases stipulated by Article 47 of this Code.
5. If the fixed-term employment contract continues within more than 5 years without
interruptions, it is considered to be indefinite-term employment contract.

Article 46. Procedure for Execution of an Amendment to an Employment Contract

1. An employment contract shall be executed with the terms of employment specified in
Article 54 hereof, including additional terms which the parties have agreed on, the job
description of the employee and obligations of the parties.
2. An employment contract also may be executed in a collective manner. An employment
contract may be signed on the basis of the written consent of each member of the
collective (team, working group) in the event that the performance of the appropriate
work and services (construction-refurbishment, loading-unloading, everyday, commercial
sowing and harvesting and farming) is fulfilled in a collective manner by two or more
working groups. In this case, the employees authorize one of their representatives to sign
a collective employment contract with an employer.
3. In cases when a collective employment contract is signed an employer must fulfill his
obligations under this Code and the employment agreement with regard to each member
of the collective. A collective employment contract may be terminated only on the
grounds and in the manner stipulated by this Code.
4. An employment contract may be entered into with persons over the age of fifteen. An
employment contract concluded with persons under the age of 15 shall be void, and the
employer, concluding such contract is subject to administrative liability in accordance
with Article 312 of this Code. An employment contract may be executed with persons
aged fifteen to eighteen with the consent of their parents, an adoptive parent (guardian),
or a legally-authorized surrogate.
5. Any employment contract executed without indicating one of the terms specified in
Article 43, Part 2 may be declared invalid or be required to be redrafted at the initiative
of one of the parties. The employer must incorporate these terms into the employment
contract as soon as their absence is discovered. In such cases, unless another agreement
exists between the parties, the employment contract shall be effective from the date on
which it is signed or drafted in writing, regardless of the date of introductions of this
provision (provisions).
6. An employment contract shall be amended by the agreement of the parties. The agreed
amendments shall be incorporated into the employment contract. If it is impossible to
incorporate the amendments into the employment contract because of their length, the
employment contract shall be redrafted or these amendments shall be separately drafted
and approved.

Article 47. Cases when Fixed-Term Employment Contracts are Signed

In the following cases a labour agreement may be concluded for a definite term:
a) an employees temporary disability, absence on a business trip or leave, as well
as when another employee must perform the duties of the employee in question
because of said employees temporary disability due to reasons stipulated by
Legislation by keeping his workplace and position;
b) for carrying out seasonal work which cannot be done throughout the year due
to natural and climatic condition or to features of the work;
c) in cases when the scope and duration of refurbishment, construction and
installation work and assimilation and application of new technology, the
conducting of experiments and tests or other similar work is performed;
d) in cases when employee training and the achievement of a high professional
standing (training, interning, downtime) from the point of view of complex and
responsible labor function concerning appropriate position (occupation) is
e) in cases related to an employees personal and family status, as well as cases
related to an employees work and education and his appropriate temporary place
of residence because of some reasons and his desire to work when he/she reaches
retirement age;
f) in cases when paid social work is performed on the basis of a proper permit
from the Executive Authority;
g) in cases when a person is elected to a position in an elective agency
(organization, union), except those agencies indicated in Item c of Article 6 of this
h) at the mutual consent of the Parties in compliance with the principle of the
Parties legal equality;
i) in cases when a collective employment contract is signed with employees in the
form of a team or working group as stipulated in Paragraph II of Article 46 of this
j) in other cases stipulated by Legislation.

Article 48. Documents Submitted by Employees Entering into Employment Contracts

1. When entering into an employment contract an employee shall submit an employment
record, as well as a document confirming his identity and state social insurance
certificate (except for individuals commencing labour activity for the first time).
2. The availability or non-availability of the employee’s registration at a proper place of
residence may not be taken as a basis for signing an employment contract. Persons
entering into an employment contract for the first time shall not be required to present an
employment record.
3. An employment contract may be entered into without presenting an employment
record by and between persons having refugee or displaced-persons status, and persons
with like status, as well as by foreigners and stateless individuals who are commencing
work for the first time in the Republic of Azerbaijan.
4. When an employment contract is signed, if training or education in accordance with
job requirements is considered necessary, then the employer shall be provided with the
appropriate education document.
5. Employees shall submit a health certificate for jobs involving heavy and dangerous
labor harmful to employee health including, for the purpose of safeguarding public health
in the workplace, workplace for work at food processing, public catering, medical, and
retail establishments. The list of professions (positions) with applicable labor conditions
and workplace relevant workplaces shall be prepared and confirmed by the appropriate
6. An employee entering into an employment contract shall not be required to submit any
additional documents other than those stipulated by this Code, including documents
which do not pertain to his employment (position) functions.

Article 49. Effective Date of an Employment Contract

1. An employment contract shall take effect when it is signed by the parties, unless
otherwise stated therein.
2. If an employee has actually begun working in violation of the requirements of this
Code with the employers consent but without a written employment contract, the
employment contract shall be considered to have been entered into from that date. In such
cases the employment contract must be drafted and approved within no more than three
3. The registration and confirmation of an employment contract by any state agency or
other authorities shall not be admissible.

Article 50. Governance of Labor Relations for Positions Filled on a Competitive Basis

1. Depending on the nature of the employment and job description, an employer may
announce competitive hiring.
2. Competitive hiring shall be announced for positions connected with scientific or
scientific-pedagogical activity at scientific and educational institutions. Equal
participation by employees in any competition declared shall be ensured. There shall be
no announcement of the competition only for members of the same sex, except as
provided by law.
3. The competition may be judged either on the basis of a mix of the employees (person
applying for a position) documents, scientific work and information included in his
application, by some form of testing, or by utilizing both of these methods.
4. The relevant Authority shall adopt a Normative Legal Act regulating the terms of
competitions and the holding of positions on a competitive basis.
5. Employer shall enter into a termless employment contract or an employment contract
with a fixed date with the winner of the competition in an established order.
6. Termination of the employment contract of an employee hired competitively, including
other labor relations, shall be governed exclusively by the procedures and rules defined
7. Any candidate who is not satisfied with the outcome of a competition held may appeal
to a court within a month after the date of adoption of the Competition Commissions
decision. The results of said competition shall be declared null in the event that the court
determines that the competition was held in violation of the requirements of Legislation
or was biased. In such cases the competition shall be held again, provided that the
circumstances indicated in the decision are rectified.

Article 51. Probationary Period

1. An employment contract may be executed for a probationary period in order to
examine an employee’s professional qualifications and ability to perform a particular job.
The probationary period shall be established with the consent of the parties and may not
exceed three months.
2. The probationary period shall consist of the work time during which the employee
actually performs his duties. Periods during which the employee is temporarily disabled
and absent from the job for valid reasons and when his job and salary is kept for him and
he is compensated shall not be included in the probationary period.
3. An employment contract in which a probationary period is not mentioned shall be
considered to have been entered into without a probationary period.

Article 52. Cases for which a Probationary Period shall not Apply

1. In the following instances there shall be no probationary period when an employment
contract is entered into:

  • with persons s under the age of 18;
  • with persons hired competitively;
  • pregnant women and women with a child under the age of three, as well as men, independently bringing up the child under the age of three;
  • persons, hired for the first time as per specialty (profession) on graduation fromthe educational institution;
  • persons, elected by the paid elective office;
  • persons, with whom employment contract for up to two months is entered;
  • in other cases with the consent of the Parties.


Article 53. Outcome of Probation and Rules Governing Hiring

1. Before the end of the probationary period, one of the parties may terminate an
individual employment contract by notifying the other party in writing with three days
2. If neither party has demanded termination of an individual employment contract, the
employee shall be considered to have passed his probationary period. As of the time
when the employee is considered to have passed his probationary period, the employment
contract may be terminated only on the grounds established by this Code.
3. If the employment contract specifies a probationary period, the terms for termination
of the employment contract by the employer in the event of an unsatisfactory
probationary period must be indicated.
4. If the results of the probationary period are unsatisfactory, the employer may terminate
the employment contract.