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.
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.
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
- Insurance provided by the employer.
Click Here to Start Hiring Employees in Azerbaijan
Probation & Termination
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.
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:
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 their employees’ daily activities and operations.
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
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.