Back to EOR

Employer of Record (EOR) in Azerbaijan

Employer Of Record In Azerbaijan

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 the business opportunities in Azerbaijan, and manage their payroll, benefits, etc., compliantly, thereby helping you streamline the global expansion process.

Azerbaijan At A Glance

Azerbaijan is situated in the Caucasus Mountains, sandwiched between Russia and Iran, with Georgia and Armenia as neighbours.

Population: 10.14 Million

Currency: Azerbaijani Manat

Capital city: Baku

Spoken languages: Azerbaijani(92%), Russian and Armenian (1.5%)

GDP (PPP): $189.050 billion

GDP growth: 1.5% (2018)

Time zone: UTC +4

Employment In Azerbaijan

What You Must Know Before Employing In Azerbaijan

Azerbaijan 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.

Entitlements Explanation
Statutory Work Hours
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.
Single parent with a child younger than 3 years.
36 hours per week
Overtime Eligibility
Hazardous Jobs Max 2 hours
Others Max 4 hours
On Holidays Some % of basic pay
Night Shift Higher than basic pay
Paid Public Holidays
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
Medical Leave 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.
Maternity Leave
General Employees 126 days PL
Agricultural workers 140 days PL
Single Mothers (Child younger than 3 years) Entitled for partially PL
Holiday Pay And Annual Leave Accrual Entitlement Employees receive at least 21 days of paid annual leave in addition to the public holidays.
Category Of Employee Paid Leaves Per Year
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 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
Leave Expiry, Cashout, and Accrued Leave At Termination 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.
Employee Protection and Anti-discrimination Rights Strict implementation of the following laws ensure anti-discrimination rights and employee protection:
  • Ban on discrimination based on gender
  • Equal opportunities in the choice of field of work / professional affiliation
  • Equality in terms of payment
  • Guarantee of equality during mass dismissals of employees
  • Ban on sexual harassment
  • Basic employee rights related to Employment Agreements
  • Basic employee obligations relating to Employment Contracts
  • Prohibition of Forced Labour
Confidentiality of Personal Information 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.

Contractors vs. Full-Time Employees

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 the foreigners and residents of Azerbaijan need an indefinite or a fixed-term employment contract in writing.

Learn More

Hiring In Azerbaijan

For arranging 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:

  • Name and address of the employee and employer
  • Position and place of work
  • Employment contract period
  • Work duration and breaks
  • Employees’ duty
  • Compensation
  • Insurance provided by the employer.

Click Here to Start Hiring Employees in Azerbaijan

Probation & Termination

Probation period

The probation period of 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.

Termination of service

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:

  • expiration of the fixed term
  • change of employment conditions
  • the inability of the employee to perform the work
  • staff reduction or downsizing
  • failure to pass the probationary period
  • reaching pensionable age
  • any other grounds as laid out in the employment agreement contract.
Topic Explanation
Notice For Termination Of Employment 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 Notice Period
Less than a year 2 weeks
1-5 years 4 weeks
5-10 years 6 weeks
10+ years 9 weeks
One month’s prior notice is required if the employee initiates the termination.

EOR Solution In Azerbaijan

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.

Types of Visas in Azerbaijan

Here are some of the types of work visas required to take up employment in Azerbaijan:

Visa Category Requirements
Single Entry Visa
  • Visa application form
  • A passport that is valid for at least 3 months after departure from Azerbaijan. Foreigners residing in the U.S. must submit a permanent resident card.
  • Two colored passport-sized photos of the applicant, which were taken not more than 6 months before arrival in Azerbaijan.
  • Invitation letter:
    1. Business visit- an invitation letter from the receiving party and a copy of the organization’s charter and state registration certificate.
    2. Personal visit- an invitation letter from a citizen and resident of Azerbaijani or a foreign citizen residing in Azerbaijan along with their Azerbaijan ID card.
    3. For leisure – a copy of the hotel reservation.
Multiple Entry Visa (up to 1 year)
  • An invitation letter from a receiving party should be sent to the Consular Department of the Ministry of Foreign Affairs.
  • Visa application form
  • A passport that is valid for at least 3 months after departure from Azerbaijan. Foreigners residing in the U.S. must submit a valid permanent resident card.
  • Two colored passport-sized photos of the applicant, which were taken not more than 6 months before arrival in Azerbaijan.
  • Consular fee for the US citizens: For all types of visas, $160 US dollars. For a work visa, $190 US dollars.
  • Copy of passport.
Transit Visa
  • Visa application form
  • A passport that is valid for at least 3 months after departure from Azerbaijan.
  • Two colored passport-sized photos of the applicant, which were taken not more than 6 months prior to arrival in Azerbaijan.
  • Travel itinerary
  • Copy of passport
  • Consular fees are as follows:
    1. Single entry (up to 5 days) - USD 20.
    2. Double entries (up to 5 days) - USD 20.
Diplomatic and official visas
  • Visa application form
  • A diplomatic or official passport that is valid for at least 3 months after departure from Azerbaijan.
  • Two passport-sized photos of the applicant taken within the last six months to reflect the current appearance; colored photos must be full face, stapled into the marked corner of the application.
  • Diplomatic note or an official letter
  • Copy of passport.
Visa Upon Arrival
  • A passport that is valid for at least 3 months after departure from Azerbaijan.
  • Boarding pass
  • Visa fee - USD 20

Visit: Skuad for details on obtaining visas for workers in Azerbaijan.

Work Permit

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 their employees’ daily activities and operations.

Work Permits Requirements
Can Skuad Sponsor Work Permit in Azerbaijan Yes.
Processing time 2 weeks.
Work Permit process Step 1: Skuad’s local partner in Azerbaijan applies for the Employment Pass. Step 2: Ministry of Manpower gives an in-principle approval (IPA) letter. Step 3: The worker enters Azerbaijan with the IPA letter. Step 4: The worker is provided with a letter that permits them to start work and travel in Azerbaijan. Step 5: The employee submits his biometrics at the Employment Pass Services Centre. Step 6: The employee gets his pass card.
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.

Payroll & Taxes in Azerbaijan

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.


How to Set Up A Subsidiary In Azerbaijan

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 2021.

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.

PEO (Professional Employment Organization)

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.


  • Managing employee benefits, including academic, medical, and dental
  • Payroll processing and record maintenance
  • Managing the workers’ compensation
  • Employee training and development
  • Recruitment and hiring
  • Management of HR costs, planning, and advertisement costs for hiring in Azerbaijan.


  • Loss of control
  • Unexpected changes
  • Cash flow disturbance
  • The potential risk of penalties
The PEO company must establish its legal presence across the country where it has employees if it plans to collaborate with a PEO. If the EOR is established across locations, then the company is legally allowed to employ workers in those states through the EOR.
It serves as the co-employer of the company and is used for the entire organization’s workforce. Serves as a legal employer and assumes the responsibilities and liabilities of an organization.
It shares (and can take over) the HR responsibilities and liabilities of the organization. EOR takes over a portion of the HR functions and can be used for the partial workforce.
Provides services for 5-10 employees (at least). Provides services for 1-5 employees (at least).


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.

Start Hiring For Free Today

Hire and pay upto 2 contractors, for free, in 150+ countries.

Get Started For Free