Employment 2025

AZERBAIJAN Trends and Developments Contributed by: Sona Abdullayeva and Ayna Abbaszada, Caspian Legal Center

Different approaches have also been applied to sanc - tions related to the investigation process. The upper limit of the penalty for failing to prepare a report after investigating an incident has been raised from AZN 2,000 to AZN 2,200. However, the lower limit of the penalty for avoiding the preparation of a report about the investigation has been reduced from AZN 1,800 to AZN 1,500. Increased accountability and reporting to the Ministry The scope of mandatory instructions from the Min - istry of Labour and Social Protection of the Republic of Azerbaijan has been expanded for participants in labour relations. Penalties are now imposed for non- compliance with instructions regarding labour docu - mentation, conclusion and implementation of collec - tive agreements, regulation of employee insurance, and compliance with labour protection norms and rules. The legislation has also established information sub - mission obligations in this area. Liability arises for failing to provide necessary information related to all violations reflected in the norm or for not providing it completely, correctly, or on time. Officials are fined from AZN 1,000 to AZN 1,500, and legal entities from AZN 2,000 to AZN 2,500. Thus, employers’ responsi - bility is primarily increased to strengthen control over compliance with labour legislation. New workplaces where the Labour Code applies In accordance with the amendments entering into force in 2025, the Code now applies to diplomatic missions of the Republic of Azerbaijan as well. The law acknowledges that international service cre - ates unique circumstances, as families may need to relocate quickly when one spouse serves abroad. Hence, it establishes special procedures for ending employment contracts of the spouse of an employee of a diplomatic mission or consulate of Azerbaijan or who has been assigned by the President or Ministry of Foreign Affairs to work with international organisations abroad. These contracts may be terminated on the date specified in the spouse’s application, provided that the spouse works in a designated position in:

• a state body; • a public legal entity established on behalf of the state; • a legal entity owned by the state and the control - ling share (stocks) of which belongs to the state; or • a budgetary organisation. Moreover, the Code grants special benefits in such cases. Namely, such spouses can apply to take up their previous position while their partner is working at the diplomatic mission, consulate or international organisation abroad, or within 60 calendar days after that assignment ends. When such a request is made, the spouse’s qualifications and skills will be evaluated, and they will be reinstated to their previous position. If the original position is unavailable, they will be offered The Supreme Court of Azerbaijan has always fre - quently addressed labour disputes, particularly those related to the termination of employment contracts. However, in recent years, their approach has become more precise, and they have also addressed certain new issues. The Court underscores that employers bear the burden of substantiating their decisions on the termination of the employment contracts and must duly consider the circumstances and categories of employees specified in the Code for whom dismissal is prohibited. Regard - ing the second scenario, the Court established new legal practice in 2025. another position equivalent to it. Recent Supreme Court Practice The Court emphasised that in cases where the employ - ee fails to fulfil their job responsibilities and commits gross violations of labour discipline, the employer has the right to terminate the employment contract. The mere possession of protected status does not consti - tute sufficient grounds for exemption from dismissal proceedings. Unless there is a causal link between the employee’s violation and their privileged status, the employer’s prerogatives must be upheld, and the termination should be deemed legally valid. This judi - cial approach reflects an optimal equilibrium between protecting employers’ interests and acknowledging employees’ protection.

49 CHAMBERS.COM