Question 1

Main types of employment contracts

Accepted Answer

Indefinite-Term (Permanent) Employment ContractThe most common form of employment in Azerbaijan, used when there's no fixed end date to the working relationship. This is the default contract type unless a fixed term is specifically justified. Main characteristics:No predetermined expiration dateStandard notice periods and severance protections applyRequires valid legal grounds for terminationFixed-Term Employment ContractUsed for employment relationships with a defined start and end date. Must be justified by specific circumstances — e.g., seasonal work, project-based roles, temporary replacement of an absent employee.

Question 2

Probation period

Accepted Answer

A probation period is not automatic — it must be explicitly stated in the employment contract at the time of hiring. If it isn't included in writing, the employee is considered hired without probation. The probation period in Azerbaijan is capped at 3 months. It cannot be extended beyond this limit, even by mutual agreement.

Question 3

Working hours and overtime

Accepted Answer

Standard: 40 hours per week.Overtime: Generally capped at 4 hours over two consecutive working days. Overtime pay: At least 200% of the normal rate. Work on weekends, public holidays, or night shifts are paid at least at 200% of the normal rate. Rest-in-lieu arrangements are also permitted by agreement.

Question 4

Leave entitlements

Accepted Answer

Annual (paid) leave21 calendar days of paid annual leave per year (excluding public holidays), accruing throughout the year of employment. Additional paid leave (minimum 6 days) is granted for employees working in hazardous or harmful conditions, with the extra days depending on the specific conditions. Unused leave carries over. Annual leave must be used, not converted into extra pay, while the employment relationship continues — leaves can only be paid out in cash upon termination.Public holidaysAzerbaijan observes 24 public holidays per year. If a public holiday coincides with a weekly rest day, a substitute rest day is provided. Special rules apply when religious holidays (e.g., Ramadan, Gurban/Eid al-Adha) fall on non-working days.Sick leaveEmployees are entitled to paid sick leave upon providing a valid medical certificate. The first 14 calendar days are paid by the employer, beyond 14 days is paid by the State Social Protection Fund (SSPF), at a rate that varies depending on the employee's length of social insurance contributions. Sick leave can extend significantly depending on the illness, subject to medical certification.Maternity leaveMaternity leave is a defined period before and after childbirth (126 calendar days total under standard circumstances, extended for multiple births or complications), paid through the State Social Insurance Fund based on the employee's average income and contribution history. Additional unpaid leave is available for childcare (up to age three).

Question 5

Termination of employment

Accepted Answer

Grounds for terminationEmployee resignationEmployees who wish to resign voluntarily must provide at least one month's written notice to the employer — this applies regardless of the employee's length of service.Employer-initiated termination Under Article 68 of the Labour Code, an employment contract may only be terminated on legally established grounds — Azerbaijan does not permit at-will termination. Common lawful grounds include: liquidation of the employer, redundancy / reduction in staff numbers and disciplinary grounds.Mutual agreement: Cleanest route when achievable; typically involves a negotiated settlement.Notice periodNotice periods vary primarily by reason for termination and length of service.Severance paySeverance is mandatory when termination is initiated by the employer for reasons not related to employee misconduct or performance failures (e.g., redundancy, liquidation) and calculated based on length of service.

EOR Services
Azerbaijan

Why use Globalyze EOR Services in AZERBAIJAN?

Employment FAQ

Main types of employment contracts

Probation period

Working hours and overtime

Leave entitlements

Termination of employment

Are you ready to Globalyze?

EOR Services Azerbaijan

Why use Globalyze EOR Services in AZERBAIJAN?

Employment FAQ

Main types of employment contracts

Probation period

Working hours and overtime

Leave entitlements

Termination of employment

Are you ready to Globalyze?

EOR Services
Azerbaijan