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POPULATION

10.2m

CURRENCY

₼ (AZN)

CAPITAL CITY

Baku

Overview

Azerbaijan, a country in the South Caucasus region, is known for its rich history, diverse culture, and strategic location at the crossroads of Europe and Asia. From the ancient city of Baku to the stunning landscapes of the Caucasus Mountains, Azerbaijan offers a unique blend of tradition and modernity.

The country's economy is largely driven by oil and gas production, with efforts underway to diversify the economy, improve infrastructure, and promote sustainable development. Azerbaijan's strategic location and natural resources make it an important hub for trade and transportation in the region.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Last updated on March, 22nd, 2023

Employment Contracts

Employment contracts in Azerbaijan must be written. It is strongly recommended that the contract be in the Azerbaijani language. Once it is signed, the employee should receive a copy. An employment contract becomes valid after registration with the Ministry of Labor and Social Protection of the Population (MLSPP). An employment contract may be for a fixed term of up to five years, including renewals. The fixed term must be specified in the contract. Probation periods of up to three months are permitted.

Working Hours

The standard workweek in Azerbaijan is 40 hours with an eight-hour day over five days. In some circumstances, it is possible to establish a workweek with six working days. A six-day workweek may be structured as a 40-hour workweek with no more than seven working hours per day, or as a 36-hour workweek with no more than six working hours per day.

Overtime is allowed only in unusual circumstances and is normally limited to two hours for employees in hazardous jobs and a maximum of four hours over two working days for other employees. Overtime and work on holidays are paid at 200% of an employee’s basic rate, while work scheduled at night is paid at 140% of the basic rate. Additional time off may not be substituted for overtime hours.

Public Holidays

In Azerbaijan, the public holidays are:

  • New Year's Day

  • Day of National Mourning

  • Women's Day

  • Victory Day

  • Republic Day

  • Day of National Salvation of the Azerbaijan People

  • Armed Forces Day

  • National Independence Day

  • Constitution Day

  • National Restoration Day

  • Azerbaijan World Solidarity Day

Employment Termination/Severance

An employer in Azerbaijan that wishes to terminate an employee must justify the termination of the employment contract. Acceptable reasons for termination include: liquidation of the enterprise and personnel cutbacks; the employee is declared to be lacking the necessary professional skills by a competent body; and the employee fails to perform his/her duties without a valid reason. The employer’s order to terminate the contract must be signed and authenticated by the employer and a copy should be given to the employee along with record book and final payment. An employee may terminate an employment contract by providing the employer with a minimum of one month of notice in writing. If an employee is dismissed due to changes in the terms of employment such as the employee being called for military or national service or the employee not being able to perform their duties for six months due to disability, the employee receives a severance payment equivalent to two months of salary. Pregnant women, parents with children under three years old, temporarily incapacitated workers, and certain other categories of employees cannot be terminated under normal circumstances.

Compensation

Azerbaijan has a minimum wage. Performance bonuses may be paid at the discretion of the employer.

Population 10.2m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

58%

Urban Population

89%

Internet access

56.3%

Banking access

100%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Last updated on March, 22nd, 2023

Vacation Leave

Employees receive at least 21 days of paid annual leave in Azerbaijan. Many categories of workers receive additional leave, among them managers, doctors, teachers, and workers in several scientific, medical and public health jobs. Typically, employees in these positions are entitled to either 42 or 56 days of leave per year. Employees who work underground or who have especially dangerous or difficult jobs receive a minimum of six additional days of paid leave. Employees under 16 years old and employees with disabilities receive a minimum of 42 days of leave, while those 16 to 18 years old receive a minimum of 35 days. Employees also receive additional leave based on their length of service to an employer: two additional days for five to 20 years of service; four additional days for 10 to 15 years of service; and six additional days for more than 15 years of service. Employees can also receive unpaid leaves by agreement with their employer for urgent family or personal matters, academic work, treatment of a medical condition, or certain other special situations. Generally, these leaves are for a few weeks, and the leave may not exceed six months.

Sick Leave

Employees in Azerbaijan receive 14 days of sick leave paid by the employer. Beginning on the 15th day, the employee can receive a social insurance payment, if eligible. The sick employee must provide a medical certificate issued in accordance with the law.

Maternity/Paternity Leave

Female employees in Azerbaijan receive paid maternity leave of 126 calendar days (18 weeks), 70 days to be taken before the birth and 56 days after. In the event of a birth with complications, the maternity leave increases to 156 calendar days (70 days before the birth and 86 days after). Maternity leave is 180 calendar days if there are multiple births (70 days before the birth and 110 days after).

Male employees in Azerbaijan receive 14 days of leave while their wives are on maternity leave.

Health Insurance Benefits

Azerbaijan has national health insurance. Employers sometimes provide private health insurance.

Unemployment 5.6%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

62.9%

Labor force population share

49.9%

Female share of labor force

66%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

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