AZERBAIJAN Trends and Developments Contributed by: Sona Abdullayeva and Ayna Abbaszada, Caspian Legal Center
other organisations. Mandatory passenger insurance payments have been removed from the list of trans - portation costs. The regulation now elaborates on both domestic and international business trips. Domestic business trips For domestic business trips, daily expenses are allo - cated as 70% for accommodation, 25% for meals and 5% for other services. To put it into perspec - tive, before the amendment, the Regulation allocated only 20% for daily expenses (meals, communication, transportation and other services) without even speci - fying accommodation costs. If the host provides the employee with accommoda - tion and meals, 5% of the daily business trip expense norm is paid for each day. If only accommodation is provided, 30% of the daily business trip expense norm is paid for each day. If only meals are provided, 75% of the daily business trip expense norm is paid for each day. International business trips For international business trips, similar specifica - tion has been conducted. There is also an increased compensation when hosts provide only meals, rising from 60% to 65% of the daily allowance. The new regulations guarantee a minimum 5% payment even when hosts provide both accommodation and meals, whereas the previous version provided no compensa - tion in such cases. The amendments introduced clearer financial security measures. When hosts provide partial cash payments below standard thresholds, employees now receive both the difference and an additional 5% buffer. The previous version only covered the difference without this extra protection. Modifications in the establishment of labour relations In 2024, several significant amendments were made to the Code. These changes have not only been exten - sive in scope, but they have also taken into account the trends of the modern world, specifically digitalisa - tion.
Responsibilities of employers Additional responsibilities have been added to the key duties of employers. Employers are now required to ensure timely and full payment not only for compul - sory medical insurance but also for mandatory state social insurance, unemployment insurance, and com - pulsory insurance against loss of occupational ability due to accidents and occupational diseases at the workplace. Electronic conclusion of employment contracts Except for those that must be concluded in written form with certain positions as required by labour leg - islation, employment contracts are now concluded in electronic document form. When amendments are made to such employment contracts, the original con - tract must be re-prepared and approved. The recording of these employment contracts, amendments made to them, orders (instructions, decisions) related to them, as well as other orders (instructions, decisions), the recording of information about the employee’s work activity, and the archiving of this information are all ensured through the elec - tronic information system. Accordingly, when such an employment contract is concluded, employees are only required to present their identification card, not workbooks anymore. Employers are prohibited from requesting documents that can be obtained from rel - evant state information systems and databases. The end of the collective conclusion of employment contracts and an employment contract notice An interesting change is the abolition of norms regu - lating the collective conclusion of employment con - tracts and the respective abolition of such employ - ment contracts. Another change in labour legislation is the abolition of the concept of an employment contract notice. Accordingly, labour relations are now considered to have arisen when the employment contract is con - cluded in electronic document form in the electronic information system, not when the employment con - tract notice entered into the system. This change is also reflected in the rules regarding the legal effect of employment contracts. Except in cases prescribed by law, an employment contract or its amendment is con -
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