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Skuad’s EOR Azerbaijan (Employer of Record Azerbaijan) helps your business expand into Azerbaijan without the need for an entity setup. Skuad’s unified and automated global HR platform enables you to hire employees in Azerbaijan, tend to business opportunities in Azerbaijan, and manage their payroll, benefits, etc., compliantly, thereby helping you streamline the global expansion process.
Azerbaijan is situated in the Caucasus Mountains, sandwiched between Russia and Iran, with Georgia and Armenia as neighbors.
Population: 10.5 million
Currency: Azerbaijani Manat
Capital city: Baku
Spoken languages: Azerbaijani(92%), Russian and Armenian (1.5%)
GDP: USD 78.72 billion
Time zone: UTC +4
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Hire and pay talent globally, the hassle-free way with Skuad
Talk to an expertAzerbaijan employment laws apply to both foreign nationals and their citizens. However, there are some differences in their entitlements. Therefore, to minimize the challenges that may arise for companies looking to set up a local office, it is advisable to partner with a local payroll provider who is well aware of the Azerbaijan laws for both local and foreign workers.
General
40 hours per week
Employees aged under 16 years
24 hours per week
Employees aged between 16 and 18 years, Pregnant women, Workers with disabilities, Women with a child younger than one and a half years, and Single parents with a child younger than 3 years.
36 hours per week
Hazardous Jobs
Max 2 hours
Others
Max 4 hours
On Holidays
Some % of basic pay
Night Shift
Higher than basic pay
New Year's Holidays - 1-4 January
Day of National Mourning - 20 January
International Women's Day - 8 March
Novrus Bayram (Persian New Year) Holidays - 20-26 March
Victory Day Holidays - 9, 10 May
Ramazan Bairam (End of Ramadan) - 13,14 May
Republic Day - 28 May
National Day of Salvation - 15 June
Armed Forces Day Holidays - 26,28 June
Gurban Bayram (Feast of Sacrifice) - 20,21 July
Victory Day - 8 November
State Flag Day - 9 November
Solidarity Day of World Azerbaijanis - 31 December
14 days of paid sick leave.
From the 15th day onwards, the employee receives a social insurance payment (if eligible) for up to 4 months.
General Employees - 126 days PL
Agricultural workers - 140 days PL
Single Mothers (Child younger than 3 years) - Entitled to partial PL
Employees receive at least 21 days of paid annual leave in addition to the public holidays.
Doctors, teachers, managers, and workers in scientific, medical and public health jobs
42-56 days
Underground workers and those having especially difficult or dangerous jobs
Additional 6 days
Employees below 16 years of age and workers with disabilities
Minimum 42 days
Employees aged between 16-18 years
Minimum 35 days
5-10 years of service
Additional 2 days
10-15 years of service
Additional 4 days
15+ years of service
Additional 6 days
If the employee wishes to terminate the contract (after the mandatory grace period) but still has remaining paid leaves, he/she is entitled to take those leaves. After the paid leaves have been claimed, the contract is officially terminated. If the employee refuses to avail of the leave according to the cases and procedure, he/she shall be paid the monetary compensation of the unused leave as per the terms and procedure.
Strict implementation of the following laws ensures anti-discrimination rights and employee protection:
The personal data of employees (and all the legal residents of Azerbaijan) is maintained by the Ministry of Transport, Communications, and High Technologies, which is entitled to assure the confidentiality of the personal data obtained and maintain the state registry of information systems of personal data. The Personal Data Law permits the transfer of personal data without the data subject’s consent if it is necessary to transfer personal data to protect the life and health of the data subject, and it is impossible to obtain the data subject’s consent immediately.
While hiring employees on a contract basis seems a logical and more cost-effective way to proceed, Azerbaijani laws are strict and complex in this respect. Thus, it is advisable to hire full-time employees. Of course, your company would have to provide health insurance, travel allowances, and some other benefits, but it is less risky and would pay off in the long run, and it is better than paying fines annually.
Hiring protocols differ marginally when hiring foreign nationals. However, as opposed to Azeri residents, foreign employees without individual work permits awarded by the State Migration Service could face hefty penalties. In addition, both foreigners and residents of Azerbaijan need an indefinite or a fixed-term employment contract in writing.
To arrange a meeting to hire employees in Azerbaijan, you need to send a letter to the concerned party outlining your company's background, its history, and a request for a meeting, as well as details of what you’ll cover. A minimum of two copies of the contract are required, and both copies need to be signed or sealed by both the employer and the employee. The employment contract must include:
The probation period for an employee in Azerbaijan can last up to 3 months. During this time, either the employee or employer can cancel the employment agreement by giving a 3 days notice.
In general, termination of an employment contract in Azerbaijan is strict and must be carried out with the utmost care. Labor laws regarding termination of employment are mostly in favor of the employee, and any misstep can have major consequences for the employer. If an employee is terminated due to redundancy, he/she is entitled to 3 month’s severance pay.
In general, employment contracts may be terminated for the following reasons:
Terminating an employment agreement due to downsizing requires 2 months’ notice. During these 2 months, the employee can take one day of paid time off per week to find new employment.
Duration Of Employment and Notice Period are mentioned below:
One month’s prior notice is required if the employee initiates the termination.
There are two ways to expand into Azerbaijan; either build an in-house team or take the services of an EOR to manage payroll and employee lifecycle.
Working with an Employer of Record based in Azerbaijan makes it quick and easy for businesses to expand into Azerbaijan. Skuad’s Azerbaijan EOR solution can help you manage monthly payroll, contracts, work permits, taxation, etc., in Azerbaijan for your employees. Book a demo with Skuad here.
Here are some of the types of work visas required to take up employment in Azerbaijan:
Note: All the documents mentioned below should be submitted to the Azerbaijani Embassy’s Consular Section.
There is a common application form for all the visas. Visit Skuad for details on obtaining visas for workers in Azerbaijan.
Skuad’s local partner in Azerbaijan can sponsor foreign workers for work permits. As an EOR in Azerbaijan, Skuad takes care of all the requirements and responsibilities related to employment. On Skuad’s HR platform, the client company can manage its employees’ daily activities and operations.
Can Skuad Sponsor Work Permit in Azerbaijan
Yes.
Processing time
2 weeks.
Work Permit process
Passport submission
The employee's original passport is presented during their appointment with the Ministry of Manpower.
Work Permit Validity
The Employment Pass is valid for 1 year. The employee can get it renewed after 1 year.
Work Permit Process for Different Countries
For most, the process to obtain a work permit for foreigners is the same. However, there are some exceptions for citizens of some countries like China.
Change of Sponsor Within Azerbaijan
The employee needs to submit a new application for a change of sponsor.
Where is the application processed?
The application may be processed in either Azerbaijan or the employee’s home country.
Work Permit Restrictions
To obtain a work permit for a foreigner in Azerbaijan, the applicant must have a fixed minimum monthly salary of AZN 2,950 per month.
When Can Employee Travel to Azerbaijan
An employee can travel to Azerbaijan once he receives the IPA letter from the Ministry of Manpower. This letter has a pre-approved single-entry visa for the employee that gives the employer 6 months to get the employee to Azerbaijan and have the pass issued.
What’s The cost of a business visa
USD 160.
Duration of business visa processing
5-10 days.
Switch Business Visa to Work Permit?
No.
Can spouses work on a dependent visa?
The spouse of the employee, who has obtained the work permit, cannot work on a dependent's visa. They must apply for a Letter of Consent to work in Azerbaijan.
Termination of Work Permit
The work permit should be canceled within a week of the last day of employment termination.
Special Requirements for Work Permit Cancellation
The employer or appointed employment agent must cancel the work permit.
As a foreign company, you must adhere to the local tax laws. For this, it is important to decide whether you wish to hire locals or foreigners.
Setting up a limited liability company in Azerbaijan takes approximately 11 days, and there are seven procedures to be followed. The parent company is required to provide an apostille or notarized/translated copy of the incorporation document and the charter of the parent company abroad. Skuad’s formation agents can supervise the creation of a subsidiary in Azerbaijan in 2024.
Skuad’s expert agents can walk you through all these procedures and answer all your queries regarding subsidiaries in Azerbaijan. Register here to schedule a meeting with the experts.
A PEO is like an outsourced HR department. When a medium to small-sized company collaborates with a PEO, it continues with its usual mode of operations while the PEO handles the HR-related operations. Moreover, the HR documents and employee checks will display the PEO’s name instead of the company’s name.
You can choose either one of the above services, depending on your requirements. Discuss with Skuad’s legal assistants and experts regarding your needs and expectations.
Visit Skuad to expand your business in Azerbaijan.
An Employer of Record (EOR) streamlines assumes the legal employer responsibilities of your Azerbaijan workforce. They handle critical HR functions like payroll, tax administration, and benefits management. This allows you to focus on your strategic business priorities and eliminates the need for a local legal entity setup.
To calculate cost of employment in Azerbaijan, click here.
Employer of Record acts as a bridge for companies seeking top international talent. They assume legal employer responsibilities for overseas workers, handling critical HR functions like payroll, tax administration, and benefits management. This lets you focus on talent acquisition without the burden of establishing a local legal entity.
An employer of record (EOR) legally employs individuals on behalf of another company and handles all compliance, payroll, and HR tasks. A Professional Employer Organization (PEO) co-employs staff, sharing responsibilities with the client company but typically requires the client to have an established business entity in the country.
Employer of Record services helps you expand your organization internationally. They become the legal employer for your overseas hires, handling critical tasks like payroll, taxes, and benefits. This eliminates the need for a local entity setup, saving you time and resources.
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