✨Limited Time Offer✨

Employer of Record in India at ($299) $169/month
Employer of Record in at () $/month


Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Wait! Before you go, why don't you book a call with our experts?






Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
close icon
notification icon
 ✨ Access Skuad’s free Global Hiring Toolkit: E-books, guides, and more at your fingertips! ✨Explore now

Employer of Record (EOR) in Azerbaijan

Updated on:
16 Jan, 2024
EOR in 
(Save upto 15%)
(billed annually)
Start Hiring Now

Employ contractors and employees in 160+ countries

Get started
EOR in 
(billed annually)
(billed monthly)

Employ contractors and employees in 160+ countries

Table of Content

Employ and pay global talent starting at $199
Employ contractors and employees in 160+ countries
Get started
Offer banner
EOR in 
(Save upto 15%)
(billed monthly)
Start Hiring Now
Employ contractors and employees in 160+ countries
EOR in 
Offer banner
(billed annually)
(billed monthly)

Table of Content


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

One platform to grow your global team

Hire and pay talent globally, the hassle -free way with Skuad

Talk to an experteor pattern

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.

Statutory Work Hours

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

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.

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 below 16 years of age and workers with disabilities

Minimum 42 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, Cash out, 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 Labor

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.

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 and Notice Period are mentioned below:

  • 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:

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.
    For more details, contact 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 

Note: All the documents mentioned below should be submitted to the Azerbaijani Embassy’s Consular Section.

There is a common application form for all the visas - (https://washington.mfa.gov.az/files/85Visa_Application_Form_new.pdf)

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

Can Skuad Sponsor Work Permit in Azerbaijan


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?


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.

Special Requirements for Work Permit Cancellation

The employer or appointed employment agent must cancel the work permit.

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 2024.

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.

bee pattern

Skuad is the best solution to hire
and expand globally.

Global employment, payroll, teams and expansion, simplified.

Request demo
EOR in 
(billed annually)
(billed monthly)

Employ contractors and employees in 160+ countries