SUMMARY of Law dated 02 April 2021 on Amendments to the Labor Code

This Summary reflects the inadmissibility of the regulation of labor relations in the territory of the Republic of Azerbaijan by civil law contracts.

In conformity with this Law the principle of “inadmissibility of formalization of labor relations by civil law contracts” was added to the Labor Code of the Republic of Azerbaijan (“LC”) and respective amendments and additions were made accordingly.

According to these amendments and additions, relations arising between the parties shall be considered labor relations in below cases and shall not be allowed to be formalized by civil law contracts (for example, service contracts, etc.) that widely used in practice and actually regulate labor relations:

• if the content of the contract covers the terms of a standard employment contract,
• if the form of the contract is drawn up in accordance with the form of a standard employment contract,
• if a labor book is submitted to formalize the relationship between the parties,
• if the relationship between the parties arises in connection with the admission (appointment) to the relevant profession or position, including paid election or appointment, as well as holding a position on a competitive basis, employment on a quota basis, reinstatement by a court decision,
• if the relationship between the parties arises in connection with the performance of work (services) related to the main field of activity of the employer,
• if the relationship between the parties arises in connection with the performance of works (services) on a substitute or temporary replacement basis,
• if the extension of the contract is regulated in accordance with Article 73 of the LC, when the work (service) is of a temporary nature due to the terms of performance, that is, if the relationship between the parties continues to the end of the term specified in the contract and within one week after the expiration of the term neither of the parties demands termination of the contract, the contract shall be considered extended for a previously determined period,
• if the composition of the fee paid for the performed work (service) consists of a monthly tariff (position) salary, allowance and bonus,
• if the contract provides for the regulation of the issues specified in the articles “Main responsibilities of the employee under the employment contract”, "Employee guarantees in case of termination of employment contract", "Types of leave", "Cases of retention of jobs and average wages of workers" and "Disciplinary responsibility for violation of labor and executive discipline and types of this responsibility" of the LC.

A written employment contract shall be concluded between the parties from the date of discovery of one of the cases mentioned above.