In August 2024, Azerbaijan implemented substantial amendments to the Labour Code to improve efficiency, transparency, and flexibility in employment practices, providing advantages for both employers and employees.

Key Changes to the Labour Code entered into force on August 12, 2024:

1. Employment relationships are now established through electronic agreements signed with enhanced electronic signatures, replacing traditional paper contracts and notification about employment.

2. Employees can now submit resignation notices, leave requests, and other employment-related documents via the electronic system.

3. Labour book is not required for employment since work activity now recorded electronically.

Employment Agreements

Employment relationships are now established when an employment agreement is signed via the Unified Labour and Employment Subsystem (EMAS) by both employer and employee (with the exception of employees working in state bodies who are still required to conclude an employment agreement on paper). Employees and employers are required to have an enhanced electronic signature (such as E-imza, ASAN imza, or SIMA imza) to complete these processes.

The same procedure will apply when modifying or terminating an employment contract, for example, in cases of changes to salary, position, or any other employment conditions.

Prior to these amendments, the conclusion, amendment, or termination of an employment agreement only became effective after the employer’s notice was registered in the electronic system.

The conversion of previously signed employment contracts into electronic documents will be carried out in stages when the official procedure for this is adopted.

Other Employment-Related Documents

Employees can now submit leave requests, resignation notices to their employer through the electronic system. Employer`s orders, certificates, references, and other related documents can also be handled electronically.

Labour Books

The amendments eliminate the need for employees to provide a labour book when entering into a new employment agreement. The requirement to record an employee’s work activity in a labour book has also been removed, with such information now recorded through the electronic system. This change does not apply to employees in certain state bodies, who must still sign paper employment agreements.

For employees whose employment agreements were terminated before July 1, 2014 (prior to the launch of the electronic system for registering employment agreements), their work experience will be verified based on the information in their labour book.