According to a new Law (№ 675-VQD) concerning to the “Changes to the Labor Code of the Republic of Azerbaijan” dated 31 May 2017, there has been made changes and amendments to Article 77 of  Labor Code regulating process of staff reduction/lay out. The Law has already been entered into force as of  January 01, 2018. 

According to newly made changes to Article 77.1 of the Code, depending on a period of employee’s working experience, which is to be clarified on the basis of labor contract(s) concluded between the parties, the employer will provide notification informing employee on the termination of his/her labor contract at least during the following periods:

• less than 1 year of work experience                        - minimum 2 calendar weeks before;
• from 1 year up to 5 years of work experience          - minimum 4 calendar weeks before;
• from 5 years up to 10 years of work experience       - minimum 6 calendar weeks before;
• more than 10 years of work experience                   -  minimum 9 calendar weeks before;

Furthermore, employer will also have to pay dismissal allowance depending on employee’s period of experience, which is again to be determined on the basis of labor contract(s) concluded with employer. Accordingly, the amount of dismissal allowance is to be defined in the following manner:  

• less than 1 year of work experience                        - in the amount of average monthly salary;
• from 1 year up to 5 years of work experience          - minimum 1.4 times of average monthly salary;
• from 5 years up to 10 years of work experience       - minimum 1.7 times average monthly salary;
• more than 10  years of work experience                  - minimum 2 times of average monthly salary