Quick facts
Azerbaijan, located at the crossroads of Eastern Europe and Western Asia, has a growing economy primarily driven by its oil and gas industry. The country has invested heavily in infrastructure and modernization, and its employment laws reflect a blend of traditional and modern practices. The labor market is highly regulated, offering strong protections for employees.
Employment contracts in Azerbaijan are signed digitally through the Unified Labour and Employment Subsystem (EMAS) using electronic signatures. Contracts can be either indefinite or fixed-term, with the common practice being temporary contracts of up to one year. If a fixed-term contract is not terminated on time, it is automatically extended. After five years, a temporary contract converts into an indefinite one.
The maximum probation period in Azerbaijan is 3 months, though for contracts lasting less than 6 months, the probation period cannot exceed 2 weeks. There are no probation periods for certain categories of workers.
The standard workweek is 40 hours, with 8 hours per day across five days. Employees are entitled to weekends off, and overtime pay applies as per the labor laws.
Employees are entitled to a minimum of 21 calendar days of paid annual leave. Managers receive 30 calendar days. Additionally, employees with longer work experience are entitled to extra vacation:
Unused vacation is compensated upon termination, and vacation pay must be provided no later than 3 days before the start of the leave.
Employees who are unable to work due to illness must inform their employer and provide a medical certificate to qualify for sick leave compensation. Sick pay depends on the employee's work experience:
The employer covers sick pay for the first 14 days, after which social insurance takes over. Sick leave is available for up to 1 year, after which, if a disability is confirmed, the employment contract can be terminated.
Wages can be paid once or twice a month depending on company policy. Salaries must be set in Azerbaijani manats (AZN) under the EMAS system, with possible exceptions for foreign currencies expected in the future. The minimum wage is 345 AZN (approximately $200 USD).
Azerbaijan recognizes 19 public holidays, including:
Employers in Azerbaijan are responsible for several social insurance contributions:
Employees pay the following:
During the probation period, the notice period is 3 days for both the employer and employee. After the probation period, the standard notice period for an employee resignation is 1 month, although in specific cases (retirement, relocation, harassment), the employee can resign with just 1 day notice. Employers must provide notice for various termination reasons, including redundancy and misconduct, with specific legal requirements depending on the situation.
International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.
Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.
Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.
Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.
Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.
Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.
Acvian provides a diverse range of benefits, including but not limited to:
We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.
Acvian can provide private health insurance options as part of its comprehensive employee benefits package.
The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.
While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.
Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.
Businesses typically need EOR and PEO services when they:
Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.
Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.
Under EOR, Acvian manages the payroll process by:
Explore the details here.
Yes, Acvian provides comprehensive support for expatriate EOR workers, including:
Explore in details here.
Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:
After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.
The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.
Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.
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