Find your employer of record in Azerbaijan

Foreign individuals who desire to work in Azerbaijan need to obtain a work permit. And through their employers, they must obtain their permit from the State Migration Service of the Republic of Azerbaijan. Usually, the work permit is valid for 1 year at a time. In other words, the employee would have to receive or re-issue this permit multiple times during their employment period.

And within 15 days of arrival in Azerbaijan, the applicant must submit their application by using electronic services. These services are available on the official website of the State Migration Service. However, they can also submit their application via the e-government portal, email, or in person at the regional migration department. Or it could also be at the ASAN service centres.

On the other hand, these are the documents that the application process requires:

• A completed application form for the work permit.
• Copies of the employee’s passport and other border-crossing documents. It may include the visa page and pages indicating the most recent entry to the country.

It is recommended that all visitors to Azerbaijan obtain their visa prior to their arrival in the country. Apart from this, note that the immigration authorities at the airport will retain passports without visas. And in that case, visitors must apply to the Consular Department of the Ministry of Foreign Affairs during working hours. Then, they will be able to retrieve their passport with a visa.

The issued work permit serves as the prerequisite to obtaining a temporary residence. And with a temporary residence permit, individuals can stay in Azerbaijan for up to 1 year. However, they can extend it up to 2 years at a time.

For obtaining a temporary residence permit, applicants have a maximum timeframe of 20 working days after submitting their complete application package.

In Azerbaijan, the standard VAT rate is 18.00%. And in case you desire to learn more about this topic, an Employer of Record in Azerbaijan can help you. In addition, PEO solutions or Contractor Management Services may also help you operate your company in Azerbaijan.

Termination Process

In Azerbaijan, the termination process of an employment contract is generally strict. And the employer must manage it in accordance with the Employees Act (Angestellten-Gesetz).

In addition, the employer must deliver the final payment at the very latest by the final day of employment. Furthermore, they must register the resignation of employment agreement in an electronic information system on the last working day. And it must be together with the notification to the MLSPP providing details related to the worker’s role and salary.

Notice Period

Section 20 of the Employees Act (Angestellten-Gesetz) states the notice period for an employee in Azerbaijan. For example, it states that all employees, regardless of their length of employment, must give at least one month’s notice. Moreover, employers must provide employees with a standard notice period.

However, this period can vary depending on the employee’s length of employment, as follows:

• The employee served for 2 years or less: 6 weeks’ notice
• The employee served between 2 and 5 years: 2 months’ notice 
• The employee served between 5 and 15 years: 3 months’ notice
• The employee served between 15 and 25 years: 4 months’ notice
• The employee served more than 25 years: 5 months’ notice

And, as we previously mentioned, all workers must give no less than one month’s notice. However, this period can be increased up to 6 months (subject to contractual agreement).

On the other hand, a two-month notice will be a requirement if the employer terminates an employee due to downsizing. Furthermore, the employee can take one day of paid time off per week during this period to find new employment.

Severance Pay

If an employer terminates an employee based on redundancy, a severance pay of at least 3 months will be mandatory. And generally, severance payments can vary depending on the length of the worker’s employment period, as follows:

• The employee served for 1 year or less: 1-month salary
• The employee served between 1 and 5 years: 4 times the monthly salary 
• The employee served between 5 and 10 years: 7 times the monthly salary
• The employee served more than 10 years: 2 times the monthly salary

And apart from the general severance pay, an employee can receive a termination payment of 2 months’ salary if:

• There were changes to the terms of employment.
• The worker is called for Military Service.
• Due to a permanent disability, the worker can no longer perform their duties.

Furthermore, the worker’s family members will receive a 3-month salary allowance in the event that the worker passes away whilst still in employment.

Probation Period

Just like in other countries, the standard probation period in Azerbaijan is up to 3 months.

And during this period, either the employer or the employee is able to terminate or cancel the employment agreement. But in that case, a 3 days’ notice will be necessary to proceed. To learn more about this topic, an Employer of Record in Azerbaijan can be your best partner.

Paid Time Offs

The Minimum Annual Leave entitlement that employees over the age of 18 in Azerbaijan can receive is 21 days. However, this entitlement may increase depending on the number of years of employment that an employee serves within a company. And the calculation would be as follows:

• The employee served between 5 and 10 years: +2 days of leave per annum
• The employee served between 10 and 15 years: +4 days of leave per annum
• The employee served more than 15 years: +6 days of leave per annum

Apart from this, the Law also stipulates that annual leave can be divided into multiple leave periods. Nonetheless, one of those leave periods must be 2 weeks in length.

Furthermore, in case weekly days off and non-working days coincide, the employer must transfer that day off to the working day immediately after the holiday. For example, if the holidays of Eid al-Adha (Gurban) and Ramadan coincide with a non-working day, the employee may have a day off the next working day.

Public Holidays

There are 24 national holidays throughout the year.

Vacation Holidays

There are 21 vacation holidays throughout the year.

Sick Days

If an employee is unable to work due to sickness or illness, they will receive paid sick leave. And for the first 14 days, the employer must fully pay the employee’s sick leave. But thereafter, the State Social Protection Fund will make the corresponding payments. On the other hand, the employee must provide a valid medical certificate in order to obtain the sick pay benefit.