AZERBAIJAN Law and Practice Contributed by: Farid Nabili, Pari Gasimli and Sona Abdullayeva, Caspian Legal Center
1. Employment Terms 1.1 Employee Status
the inclusion of “by mutual consent of the parties” indi - cating that these circumstances are not exhaustively limited. The Code also mandates fixed-term contracts in certain situations, particularly for positions involv - ing high occupational health risks where the employer must inform the employee of the probable duration of potential occupational illness exposure. Fixed-term employment contracts terminate automat - ically upon expiration of their stated term; however, if neither party provides written notice (whether on paper or through an electronic information system) of contract termination at least one week prior to the expiration date, the contract shall be automatically extended for the period originally specified in that contract. Indefinite Term Employment Contract Regarding indefinite term employment contracts, while the legislation does not provide extensive spe - cial regulation, it clearly establishes that if an employ - ment contract does not specify the period for which it is concluded, it shall be considered concluded for an indefinite period. Importantly, an employment contract concluded without a specified term cannot be unilat - erally replaced with a fixed-term employment contract without the mutual consent of both parties. Employment Contracts With a Probation Period Both indefinite and fixed-term employment contracts may include a probation period to assess the employ - ee’s professional level and ability to perform the required labour function. For employment contracts concluded for up to six months, a probationary period of no more than two weeks shall be established. For all other employment contracts, a probationary period of no more than three months may be applied. The pro - bationary period consists only of actual working hours during which the employee performs their labour func - tion. Periods when the employee temporarily loses work capability or is absent from work while maintain - ing average salary are excluded from the probationary period calculation. Certain categories of employees are exempt from probation periods, including persons under 18 years of age and those who obtained their position through competitive selection processes.
Azerbaijani labour law is very protective of the employ - ee and applies to all employees. Thus, in Azerbaijan, there is no legal distinction between blue- and white- collar workers. However, one semi-distinction shall be mentioned regarding the minimum 21 days’ annual paid leave rule: white-collar workers, which are under - stood to refer to employees who are usually involved in managerial or professional (specialist) work, are granted minimum 30 days’ annual paid leave. Employees can be classified based on the nature and duration of the work performed as follows: • fixed-term employees – hired for a specific period, with employment ending on a predetermined date; • indefinite-term employees – hired for an indefinite period; • part-time employees – employed on partial working day or partial working week by mutual agreement between the employee and the employer; • full-time employees – perform their labour func - tions with weekly and daily working hours provided by the legislation; • piece-rate employees – paid based on the amount of work performed; • time-based employees – paid for specified labour relations within a specified time frame; • probationary employees – employed on a trial basis for the purpose of determining their qualifica - tion for regular employment; and • seasonal employees – work or perform services which are seasonal in nature, and the employment A fixed-term employment contract is defined as a con - tract that is concluded for a specific period of time. If this type of contract continues uninterrupted for more than five years, it is automatically deemed an indefi - nite employment contract. The Labour Code establishes circumstances where fixed-term contracts may be concluded, such as for seasonal work and short-term work assignments, with is for the duration of the season. 1.2 Employment Contracts Fixed-Term Employment Contract
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