Author: np-post

As part of the 2026-2030 Employment Strategy Action Plan, Azerbaijan intends to develop a legal framework for introducing flexible working hours regime, drawing on International Labour Organization standards and international best practices. Under the proposed model, employees would be allowed to choose their start and finish times within agreed time intervals, provided that they complete the applicable weekly working time (generally 40 hours) and remain available during designed core working hours. According to the Ministry of Labour and Social Protection of the Population, the flexible...

The Azerbaijani Labor Code has been amended to introduce a legal framework for employee share ownership plans. These amendments will provide employers with a clear legal basis for offering shares in the company as a long-term incentive to employees. How can employees receive shares?             Under Article 7-1 of the Labor Code, an employer (or the company’s founder) and an employee may enter into an employee share ownership plan agreement. The agreement may specify that an employee becomes entitled to company shares based...

Based on Presidential Decree No. 246 dated 10.12.2025 and Presidential Resolution No. 359 dated 27.11.2025, the Central Bank of the Republic of Uzbekistan developed and launched a unified code “UZQR”. It has become mandatory for retail and service businesses starting July 1, 2026. In order to sign up, which is also free of charge, entrepreneurs are required to submit an application through their servicing banks. This system means checkout counters no longer need payment terminals or a pile of different bank stickers — just one code that works with any bank app. The buyer simply...

Starting January 1, 2026, a new state social insurance system has been launched in Uzbekistan. A separate State Social Insurance Fund (SSI Fund) has been created — it takes over the assignment and payment of benefits.  Under Resolution of the Cabinet of Ministers No. 796 of December 17, 2025 (in force since December 19, 2025), starting July 1, 2026, this fund will pay sick leave benefits. The first 5 working days of an employee’s illness per calendar year are paid by the employer out of its own funds. The limit is cumulative for the year rather than per individual sick leave...

Recent amendments to the Administrative Offences Code of Azerbaijan have proposed new administrative penalties aimed at strengthening compliance with labour and financial leasing regulations. In the employment sphere, employers may now face administrative fines for hiring or continuing the employment of individuals diagnosed as narcological patients in professions or positions for which activity restrictions have been established by the competent authority. Responsible officials may be fined 3,000 AZN  for such violations. The amendments also establish liability for employing individuals...

The Constitutional Court of Azerbaijan has issued a significant decision concerning the interpretation of Article 739.2 of the Civil Code, which requires loan agreements exceeding AZN 3,000 to be concluded in writing. The decision addresses an issue that has long created uncertainty in judicial practice. In a number of cases, courts treated the absence of a written loan agreement as a defect affecting the validity of the transaction itself. As a result, creditors who had actually transferred funds to borrowers were often required to rely on unjust enrichment claims rather than contractual...

The Civil Chamber of the Supreme Court of Azerbaijan has issued an important decision establishing a unified judicial approach regarding termination of employment contracts following a change in ownership of an enterprise. The case concerned a bank employee serving as a branch manager whose employment was terminated after changes in the bank’s shareholder structure. While the lower courts ruled in favor of the employee, the Supreme Court took a different view. The Court emphasized that Article 68 of the Labor Code grants a new owner the right to terminate employment relationships with employees...

An amendment has been proposed to the Law of the Republic of Azerbaijan “On Private International Law” clarifying the applicable law governing financial lease (leasing) agreements involving a foreign element. The amendment adds new Article 25.1.3-1 to the Law, providing that where the parties have not expressly agreed on the governing law of a financial lease agreement, the law of the country in which the lessor is established, domiciled, or principally conducts its business will apply. Article 25 of the Law sets out default conflict-of-law rules applicable in the absence of a choice-of-law...

Recent proposed amendments to the Labour Code of the Republic of Azerbaijan introduce an important development in the area of employee remuneration, reinforcing the principle of equality in the workplace.In particular, Article 154 of the Labour Code has been supplemented with a new provision establishing the obligation of employers to ensure equal pay. Under the newly added Part 3 of Article 154, employers are required to pay equal wages to employees performing the same work or work of equal value, regardless of gender. Determination of Work of Equal Value The amendment further clarifies...

Recent legislative amendments have been proposed to the Labour Code of the Republic of Azerbaijan, affecting both termination grounds of employment contracts and principles of remuneration, which are aimed at strengthening workplace safety, ensuring compliance with health requirements, and promoting equality in pay. New Grounds for Termination of Employment Contracts Amendments to Article 74 (termination of an employment contract due to circumstances beyond the parties’ control) expand the list of cases where an employment contract may be terminated. Under the newly added provisions: An...