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AZERBAIJAN. LABOUR CODE DATED 1 FEBRUARY 1999
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AZERBAIJAN

LABOUR CODE, 1 FEBRUARY 1999


CHAPTER I- GENERAL NORMS

CHAPTER II-COLLECTIVE CONTRACTS AND AGREEMENTS

CHAPTER IV-WORKING HOURS

CHAPTER V- DAY OFF AND LEAVE RIGHTS OF EMPLOYEES

CHAPTER VI- WORK QUOTAS, FORMS AND METHODS OF COMPENSATION AND COMPENSATION GUARANTEES

CHAPTER SEVEN- LABOUR AND PERFORMANCE DISCIPLINE

CHAPTER VIII- MUTUAL MATERIAL LIABILITY OF EMPLOYER AND EMPLOYEE

CHAPTER IX- PROTECTION OF LABOUR

CHAPTER X- SPECIFICATIONS OF DEFINING LABOUR RELATIONS FOR WOMEN, EMPLOYEES UNDER 18 YEARS OF AGE AND AGRARIAN SECTOR

CHAPTER XI- LABOUR DISPUTES

CHAPTER XII- SOCIAL INSURANCE FOR EMPLOYEES

CHAPTER XIII- GENERAL

Legal Acts and Documents Appended to the Labour Code of the Republic of Azerbaijan


Pursuant to Article 35 of the Constitution of the Republic of Azerbaijan labour is the basis of individual and public welfare. Every person has the right to freely choose an activity, profession, occupation and place of work on the basis of his skills and abilities.

The following shall be authorized by the Labour Code of the Republic of Azerbaijan:

Employment, social and economic rights of employees and employers in the sphere of labour relations on the basis of the appropriate legal norms and a minimum level of proper guarantees relating to said rights;

Principles and procedures ensuring the right to employment, rest and work under safe and healthy conditions and to other basic human rights and freedoms as stipulated in Section Two of the Constitution of the Republic of Azerbaijan;

Regulations governing the rights and obligations of employees and employers, including relevant national government bodies with respect to the execution, amendment, or termination of employment agreements and the protection of the rights of parties to these agreements, shall be defined pursuant to the principles of human rights and freedoms provided by the Labour Code of the Republic of Azerbaijan, the Constitution of the Republic of Azerbaijan and international treaties and agreements signed or supported by the Republic of Azerbaijan, conventions of the International Labour Organization and other international laws.

CHAPTER I- GENERAL NORMS

Division One- General Provisions

Section 1. Regulatory Acts included in the Labour Law System of the Republic of Azerbaijan

The Labour law system of the Republic of Azerbaijan shall consist of:

- this Code;

- the relevant laws of the Republic of Azerbaijan;

- the normative and legal acts adopted by relevant Executive Authorities within the scope of their authority;

- international treaties signed or supported by the Republic of Azerbaijan with respect to Labour and socioeconomic issues.

Section 2. Purposes and Principles of the Republic of Azerbaijan Labour Code

1. The Labour Code of the Republic of Azerbaijan shall govern Labour relations between employees and employers, as well as other legal relations derived from such relations between them and relevant national authorities and entities.

2. The Labour Code of the Republic of Azerbaijan shall establish the minimum norms for regulations ensuring implementation of the Labour rights of physical persons and these rights themselves.

3. The Labour Code of the Republic of Azerbaijan (hereinafter referred to as "This Code") shall be based on the following principles with regard to Labour relations between the parties:

- equal rights;

- protection of their interests by justice and the superiority of the law;

favourable conditions for the use of mental, physical and financial capacities to meet material, spiritual, social, economic and other living requirements;

- legal guarantees for the fulfilment of employment contracts.

Section 3. Basic Terms and Definitions Used in the Labour Code of the Republic of Azerbaijan

1. Enterprise: a legal entity, its affiliate or representation established by the owner regardless of the legal form, name or activity of the organization.

2. Employee: an individual who has entered into an employment agreement (contract) with an employer and who works in an appropriate workplace for pay.

3. Employer: the owner or manager of a designated establishment or authorized body as well as any individual conducting business without having established an entity who is fully entitled to enter into agreements with employees and to terminate or amend them.

4. Labour Team: a union of employees who have established Labour relations with an employer and who are employed at appropriate places of work and who have the authority to collectively implement the Labour, social and economic rights specified by this Code and other Normative Legal Acts and to protect their-lawful interests.

5. Employment contract (agreement) (hereinafter "employment contract"): a written contract by and between an employer and employee on an individual basis describing the basic conditions of employment and the rights and obligations of the parties.

6. Collective contract: a written contract by and between an employer and a Labour collective or, at its discretion, a trade union, governing employment, socioeconomic, day-to-day, and other relations within an enterprise.

7. Collective agreement: an agreement by and between the relevant Executive Authority, republic, professional, industrial, or territorial association of trade unions and employers that defines the obligations of the parties to improve working conditions, provide employment, and to engage in joint activity for the social protection of employees.

8. Workplace: the place where an employee performs his job as defined by his job (professional) description, and for which he is paid a salary.

9. Job description: the scope of work (services) to be performed by an employee in one or several positions (professions) as stipulated in the employment contract.

10. Occupational safety: the system of social, economic, organizational, technical, public health, hygiene, treatment and preventive measures and methods defined by regulations, collective contracts (agreements), and employment contracts for the purpose of guaranteeing the right of employees to a safe and healthy work environment.

11. Working conditions: the set of terms, the names of professions (positions), specialties, rates, systems, compensation, working hours, time off, occupational safety, state social insurance and other social, economic,, and industrial requirements specified in employment contracts and collective contracts (agreements) and defined by regulations.

12. Employees' representative agency: a trade union chapter (association) established voluntarily by employees that serves as a representative under its own bylaws and the law to protect its employee and their social and economic rights and legal interests.

13. Employers' representative agency: a public association established voluntarily by employers operating under their own bylaws and the law to protect the employment, social and economic rights associated with their business and interests with respect to ownership and industrial and Labour relations.

14. Collective requirements: requirements tabled by employees or trade unions before employers, their unions or relevant authorities in connection with collective contracts, agreements, amendments thereto, their execution, and other Labour and social issues.

15. Collective Labour dispute: a disagreement arising from collective demands.

16. Individual Labour dispute: an individual disagreement between an employer and employee during the term of a Labour contract, employment contract or agreement and arising from the exercise of this Code and other regulations.

17. Strike: a voluntarily, temporary refusal of employees to perform their work in whole or in part in order to resolve their collective Labour disputes.

Section 4. Workplaces where this Code Applies

1. This Code shall apply to all enterprises, establishments, organizations (hereinafter referred to as "Enterprises"), as well as workplaces where an employment agreement exists without the establishment of an entity, to all embassies and consulates of the Republic of Azerbaijan operating outside the territory of the Republic of Azerbaijan, to all ships sailing in international waters under the banner of the Republic of Azerbaijan and to all offshore installations and other workplaces, regardless of their property, organizational and legal form, and to relevant government bodies, individuals and entities of the Republic of Azerbaijan, pursuant to the rules specified in this Code.

2. This Code shall also apply to employees performing jobs in their homes using their employer's goods (materials).

Section 5. Other Workplaces and Officials to whom this Code Applies

1. This Code shall apply unconditionally to all workplaces incorporated by foreign countries, their citizens or entities, international organizations, and stateless persons in the Republic of Azerbaijan registered under the law and doing business under a special permit (license) unless otherwise stipulated by the agreements signed by and between the Republic of Azerbaijan and foreign countries and international organizations.

2. This Code shall apply to all public officials, as well as to all officials of the public prosecutor's office, police offices and other law enforcement authorities taking into account the particulars as established in Normative Legal Acts regulating the legal status of public officials. If these Normative Legal Acts do not cover in detail said public officials' Labour, social and economic rights determined by this Code, then the appropriate requirements hereof shall apply.

Section 6. Individuals and Jobs to which This Code shall not Apply

This Code shall not be applied to the following individuals and jobs:

Section 7. Governance of Labour Relations by Law and Contracts

1. The employment rights and minimum degree of protection associated with these rights shall be assured by the regulations cited in Section 1 hereto.

2. Labour relations shall be established upon the execution of a written employment contract.

3. Clauses providing for additional Labour, socioeconomic, material, domestic and other relations may be included in collective contracts and employment contracts. It shall be prohibited to include any clauses in employment contracts that limit the rights of employees beyond current law and the collective contract or agreement. Tangible, intangible, and other losses incurred by employees as a result of the application of these clauses shall be compensated folly by employers.

4. An agreement for training in a new profession and specialty may be concluded on the basis of mutual consent of employer and employee directly when an employment contract is signed or in the process of Labour relations.

5. The terms, procedures and duration of employee's training in a new profession or specialty and the parties' obligations shall be governed by an appropriate agreement or employment contract signed pursuant to the consent obtained.

Section 8. Calculation of Time Periods Defined by this Code

1. The time periods used in this Code in connection with the origination, alteration or termination of employment rights and obligations shall be calculated from the ending calendar date of the period in question in calendar time or years, months, weeks or days.

2. A given time period shall be calculated starting on the day following the date established for the beginning of that time period.

3. Time periods calculated in years, months, or weeks shall expire accordingly on the last day of the year, month, or week. Time periods calculated in calendar weeks and days shall include non-working days.

4. Should the last day of a time period falls on a non-working day, the period shall expire on the first working day following the non-working day in question.

Division Two - Basic Rights, Duties and Labour Relations of Parties to Employment Agreements and General Legal Guarantees in the Area of Labour Relation Regulations

Section 9. Basic Employee Rights Related to Employment Agreements

Employees shall have the following basic rights relating to employment agreements:

Section 10. Basic Employee Obligations Relating to Employment Contracts

Employees shall have the following basic obligations with respect to employment contracts:

Section 11. Basic Employer Rights

1. An employer shall have the following basic rights with respect to Labour relations:

2. Any interference with the implementation of an employer's rights and obligations as stipulated m this Article and as specified in Article 12 of this Code and other Normative Legal Acts shall be prohibited. Any person interfering with an employer's activity in this sphere or violating his lawful rights shall bear the appropriate liability as stipulated by Legislation.

Section 12. Basic Employer Obligations and Responsibilities

1. An employer shall have the following basic obligations with respect to labour relations:

2. Employers who violate employees' rights, who do not fulfill their obligations under an employment contract and who violate the conditions of this Code shall be called to appropriate account in the manner established by Legislation.

Section 13. Regulation of the Labor Rights of Foreigners and Stateless Persons

1. Foreign citizens and stateless persons who have entered into employment contracts shall enjoy the same rights and have the same obligations as defined in this Code, regardless of their length of stay in the Republic of Azerbaijan, unless provided otherwise by law or an international treaty to which the Republic of Azerbaijan is a party.

2. Foreign citizens and stateless persons may enter into employment contracts and exercise employee rights by presenting a document confirming their legal right to be in the Republic of Azerbaijan.

3. It shall be unacceptable to give priority to the rights of foreign citizens and stateless persons over citizens of the Republic of Azerbaijan or to limit their rights established herein with respect to Labour relations.

Section 14. Duties of State Bodies in the Sphere of Labour Relations

1. Legislative, executive and judicial bodies shall be responsible for the regulation of Labour relations with respect to the following within the scope of their authority:

2. The State shall regulate Labour relations to ensure the efficient utilization of manpower and to prevent the groundless hiring of foreign experts at the expense of the suitable workforce available in the country, and shall accomplish this by taking into account the professional qualifications, Labour skills and long-term experience of its citizens for the purpose of eliminating unemployment, pursuant to Paragraph VIII of Article 35 of the Constitution of the Republic of Azerbaijan, and for resolving problems of unemployment and population employment and migration.

3. The relevant Executive Authorities shall oversee the implementation of State policy in the sphere of Labour relations. The aforesaid Executive Authorities shall:

Section 15. Agency Implementing State Oversight for the Execution of Labour Legislation

1. The relevant Executive Authorities shall implement state oversight for theexecution of Labour legislation and the requirements of other Normative Legal Acts. 

2. The Authority implementing state control over the execution of Labour Legislation shall have the right to require those persons guilty of Labour legislation violations to cease their violations of the law, to hold these persons accountable in cases and the manner determined in the Republic of Azerbaijan's Infringement of Law Code and to table before the relevant authorities whether to hold said persons liable for other infringements.

3. The rights, obligations and procedures of the Authority implementing state control over the execution of Labour Legislation shall be governed by Regulations approved by the relevant Executive Authorities.

4. The Authority implementing state control over the execution of Labour Legislation may not engage in the resolution of issues referred to a court authority under this Code or other Normative Legal Acts.

5. Employers and employees, as well as other parties to Labour relations, shall be obliged to execute the decisions and instructions on compliance with Labour legislation adopted by officials of the Authority implementing state control over the execution of Labour Legislation pursuant to the requirements of this Code and other Normative Legal Acts on Labour legislation.

6. Complaints concerning the decisions and instructions of officials of the Authority implementing state control over the execution of Labour Legislation may be lodged with the court.

Note: The term "parties to Labour relations" used in this Code shall mean the employers, employees, owner, and officials subject to the employer; representatives of Labour protection services; representatives of the employee authorized to protect the employee's rights; trade union representatives; and authorized officials of the employee's represented agencies.

Section 16. Unacceptability of Discrimination in Labour Relations

1. During hiring or a change in or termination of employment no discrimination among employees shall be permitted on the basis of citizenship, sex, race, nationality, language, place of residence, economic standing, social origin, age, family circumstances, religion, political views, affiliation with trade unions or-other public associations, professional standing, beliefs, or other factors unrelated to the professional qualifications, job performance, or professional skills of the employees, nor shall it be permitted to establish privileges and benefits or directly or indirectly limit rights on the basis of these factors.

2. Concessions, privileges and additional protection for women, the handicapped, minors, and others in need of social protection shall not be considered discrimination.

3. Employers or other physical persons that permit the discrimination indicated in Subsection 1 of this Section shall bear the appropriate responsibility in the manner established by the Legislation.

4. A person subject to the discrimination stipulated in Clause 1 of this Section during his employment may seek recourse in a court of law.

Section 17. Prohibition of Forced Labour

1. It shall be prohibited to oblige an employee to perform a job not included in his job description through any kind of duress or under the threat of termination of the employment contract. Offenders shall be held liable under legally established procedure.

2. Forced Labour shall be permitted in connection with military and emergency situations if the work is performed under the supervision of relevant national authorities under the relevant law or court order.

Section 18. The Right for Individual and Collective Employment Disputes and its Governance by Law

1. Employees, employers, Labour collectives and trade unions shall have the right to initiate an individual or collective employment dispute in order to protect their rights and legal interests. The methods by and terms under which these rights are exercised may be limited under the law.

2. The resolution of individual and collective disputes originating during the application of Labour law between an employee and employer or with a Labour collective shall be governed by the roles hereof.

Section 19. Trade Unions

1. A trade union may be established on a voluntary basis without discrimination among employees or without prior permission from employers. Employees may join the appropriate trade union and engage in trade union activity in order to protect their Labour and socioeconomic rights and legal interests.

2. The law of the Republic of Azerbaijan "on trade unions" and trade union charters shall define the rights, obligations and powers of trade unions.

Section 20. Employers' Representative Agencies

1. For the purpose of protecting their interests with respect to their economic, financial, and business activities, as well as to promote social cooperation with employees' representative agencies, employers may voluntarily establish an organization and unite in this organization.

2. The rights, duties, strategies and roles of employers' representative agency shall be defined by relevant regulations and by the agency's bylaws.

3. The activity of employers' representative agency and the equality of the rights of employees and employers in Labour relations defined under the roles hereof shall be regulated on the basis of relevant contracts and agreements.

4. No superior rights, privileges, or advantages may be granted to employers' representative agency over employees' representative agency.

Section 21. Activity of Public Self-government Agencies at Enterprises

1. Together with trade unions organizations, other public self-government agencies and employers' representative agencies established under the specified procedure may provide activity according to their bylaws.

2. The owner or manager of an enterprise shall provide the appropriate conditions as stipulated in collective contracts, defined by mutual agreement of this organization and public self-government agencies and employer or by the contract concluded between them for the activity of trade unions and other employees' representative public self-government agencies.

3. No political party or religious society may engage in activities at enterprises.

Note: Pursuant to the appropriate Normative legal Acts, "Public Self-government Agencies" used in this Section shall mean other public organizations founded by the Labour team council, the boards of chairmen (directors), and inventors, rationalizers, women and veterans ' societies and creative association.

CHAPTER II-COLLECTIVE CONTRACTS AND AGREEMENTS

Division Three-General Procedures for Entering into Collective Contracts and Agreements

Section 22. Basic Principles for Drafting, Signing, and Executing Collective Contracts and Agreements

The basic principles for drafting, signing, and executing collective contracts and agreements shall be as follows:

Section 23. Inadmissibility of Interfering with the Signing, Amendment, and Execution of Collective Contracts and Agreements

No interference on 'the part of government authorities, other employers, political parties, voluntary associations, or religious societies which may restrict the legitimate rights of employees or their interests as protected by law or prevent the exercise of said rights in the process of signing, amending, or executing collective contracts and agreements shall be permitted.

Section 24. Mandatory Terms of Collective Contracts and Agreements

1. The terms of collective contracts and agreements shall be binding on the parties and on the places of work to which these terms refer.

2. Any terms of collective contracts and agreements that worsen the standing of employees relative to the Labour, social or economic standards stipulated in this Code and in other Normative Legal Acts shall be invalid under current law.

Division Four-Collective Bargaining

Section 25. Rights to Collective Bargaining

1. Labour collectives, employers, trade unions, relevant authorities and employers' representative bodies shall have the right within the scope of their authority to draft, enter into and amend collective contracts and agreements.

2. The initiating party shall send a written notice of the commencement of bargaining to the other party. The notified party shall be obliged to commence bargaining within no more than ten days.

3. If there is no trade union at an enterprise, the Labour collective shall establish a commission with special bargaining powers.

4. If there are several trade unions (trade union associations) or other employee-authorized representative agencies at the national, industry, territorial and district level, a commission shall be created proportionate to employee membership in order to conduct the bargaining.

5. It shall be unacceptable to refuse to bargain to draft the terms of collective contracts and agreements.

Section 26. Collective Bargaining Procedures

1. The parties shall create a commission consisting of an equal number of representatives from each party to bargain for the purpose of drafting a collective contract or agreement or amendment to it.

2. The members of the commission, and the agenda, place and time of bargaining shall be decided jointly by the parties.

3. The parties shall be free to choose and discuss the issues constituting the substance of a collective contract or agreement.

4. Employers and authorities must submit the information necessary for bargaining within five days at the commission's request. Should said information constitute a state or trade secret, the parties to the bargaining shall be liable under the law for disclosing any information they have received.

5. The parties shall keep minutes in the event of disagreement during bargaining. The final proposals, as well as the date on which bargaining shall resume, shall be indicated in the minutes.

Section 27. Guarantees to Parties to Collective Bargaining

1. Persons participating in negotiations (representatives of the parties, consultants, experts, mediators, specialists, arbiters and other persons invited by the parties) shall receive their average monthly salaries for no more than three months during the course of the year, and the time spent in bargaining shall be counted towards their seniority.

2. The employer shall compensate costs connected with bargaining.

3. Persons invited by the parties to participate in bargaining shall be compensated for their Labour on the basis of an agreement between the parties.

4. The participants in collective bargaining shall not be disciplined, reassigned to other work, or dismissed by their employers during the bargaining.

Division Five-Collective Contracts

Section 28. Adoption of a Resolution on the Necessity of Drafting and Signing a Collective Contract

1. A resolution on the need to draft and sign a collective contract on the basis of the initiative stipulated in Section 25 of this Code shall be adopted by the trade union.

2. If there is no trade union at the enterprise the general meeting (conference) of a Labour collective may adopt a resolution on the bargaining, drafting and signing of a collective agreement.

Section 29. Parties to a Collective Contract

The parties to a collective contract shall consist of employers and the trade union. If there is no trade union at the enterprise, the second party to a collective contract shall be a Labour collective.

Section 30. Procedures for Drafting and Signing a Collective Contract

1. Procedures for the drafting and signing and the duration of a collective contract shall be defined and undertaken by the agreement of the parties. The parties may create the appropriate commission (working group) with an equal number of representatives.

2. The commission (working group) shall submit the draft collective contract to the Parties for consideration. The revised draft with suggestions shall be submitted to the general meeting (conference) of the trade union for approval after the proposals received have been investigated.

3. The authorization of trade union organization meetings, conferences and other sessions shall be regulated by its charter. Any general meeting (conference) where over 50% of employees (representatives) participate shall be considered an authorized meeting.

4. Employers must provide conditions for the trade union or specially authorized commission to use all available facilities (internal communications and information, copy machines, equipment, etc.) to submit the draft of the collective contract for employee approval.

5. If the draft of the collective contract is not approved, the parties' representatives shall revise it within fifteen days (unless the parties have agreed otherwise) and submit it to the general meeting (conference) of the Labour collective or, if appropriate, to the trade union.

6. The draft of a collective contract shall be approved by a majority vote of the participants of the general meeting (conference).

7. The parties must sign a collective contract within three days after its approval the signed collective contract and its amendments shall be submitted to the Labour and social issue authority as information within seven days.

Section 31. Content of a Collective Contract

1. The content of a collective contract shall be defined by the parties.

2. As a rule, a collective contract shall include the mutual obligations of the parties in relation to the following matters:

3. With respect to the enterprise's economic capabilities, a collective contract may stipulate other employment and social and economic terms and conditions, including ones more beneficial than those provided herein (additional vacations, increased pensions, compensation for transportation and travel expenses, free or discounted food, other benefits and compensation).

4. Regulations which this Code and other regulations require to be included in a collective agreement must be included.

Section 32. Term of a Collective Contract

1. A collective contract may be executed for a period from one to three years.

2. A collective contract shall take effect when it is signed or on the date indicated therein.

3. Upon expiration, a collective contract shall remain in effect until a new contract is executed.

4. Neither changes in the organizational structure of an enterprise, except in the case of a change of ownership or liquidation of the enterprise, nor termination of trade union activities shall be grounds for nullification of a collective contract.

5. Should the ownership of an enterprise change, the collective contract shall remain in effect for three months. During this time the parties shall have the right to begin negotiations on a new collective contract or on retention, revision, or amendment of the previous one.

6. If an enterprise is liquidated by the procedure and under the terms established by law, the collective contract shall remain in effect throughout the entire liquidation period.

7. A collective contract shall apply to all employees at an enterprise, including individuals hired before the collective contract went into effect.

Section 33. Revisions and Amendments to a Collective Contract

A collective contract shall be revised or amended during its term on the basis of mutual agreement of the parties by the procedure defined therein. If no such procedure has been defined, revisions and amendments shall be made by the procedure stipulated by this Code.

Section 34. Oversight of Fulfilment of a Collective Contract

1. The parties and the relevant authority shall oversee fulfilment of a collective contract. Competent individuals exercising oversight must be provided with all necessary information.

2. The parties shall report to the Labour collective on fulfilment of the collective contract on the dates stipulated in the contract, but no less than once a year.

Division Six-Collective Agreement

Section 35. Types of Collective Agreements

1. Depending on the scope of the relations in question, the following collective employment agreements may be executed:

Section 36. Parties to a Collective Agreement

1. A collective agreement may be executed between the following parties:

2. Main, Area and Territorial collective agreements may be executed between the relevant Executive Authorities, trade unions and employers' representative bodies (unions).

Section 37. Procedures for Drafting and Executing a Collective Agreement

1. The parties shall create a commission consisting of an equal number of representatives from each party to conduct negotiations for the purpose of drafting and executing the collective agreements specified herein.

2. A collective agreement shall be drafted and executed and the time period for the commencement and completion of negotiations, including amendments of such agreement, shall be determined by the agreement of parties.

3. Three months prior to the expiration of the previous agreement each party shall have the right to give a written notice to the other party to commence negotiation for the purpose of making a new agreement. The party notified must commence the negotiations to conclude a collective agreement within no more than ten days.

4. Should the negotiations fail or the commencement date pass, the appropriate trade union shall have the right to take steps defined by law.

5. If new negotiations are not completed by expiration of the valid agreement, the term of that agreement may be extended by three months at the consent of the Parties.

6. The signed collective agreement and its amendments must be sent to the relevant authority within seven days as information.

Section 38. Content of a Collective Agreement

1. The content of a collective agreement shall be defined by agreement of the parties.

2. The parties shall have the right to include in a collective agreement the following points:

Section 39. Term of a Collective Agreement

1. A collective agreement shall take effect when it is signed or on the date indicated therein.

2. A collective agreement shall be executed for a period of from one to three years.

Section 40. Revisions and Amendments to a Collective Agreement

1. A collective agreement shall be revised or amended during its term on the basis of a mutual agreement of the parties by the procedure defined therein. If no such procedure has been defined, revisions and amendments shall be made by the procedure stipulated by this Code.

2. The parties may revise or amend a collective agreement on the basis of petitions by employers at enterprises covering different professional groups or their associations or at the request of the relevant trade unions to join to an industry agreement.

Section 41. Oversight for Fulfilment of a Collective Agreement

1. The parties and the relevant authority shall oversee fulfilment of a collective agreement.

2. Competent individuals exercising oversight must be provided with all necessary information.

CHAPTER III-EMPLOYMENT CONTRACTS

Division Seven-Grounds and Rules for Entering into Employment Contracts

Section 42. Parties to Employment Contracts

1. Employment contracts shall be entered into freely. No one shall be compelled to sign an employment contract.

2. The parties to an employment contract shall be the employer and the employee.

3. A person who has reached the age of fifteen may be a party to an employment contract. A person considered to be disabled as established by legislation may not sign an employment contract.

4. A completely disabled person may not serve as an employer.

Section 43. Content of an Employment Contract

1. The content of an employment contract shall be defined by the contract pursuant to the law.

2. An employment contract must contain the following terms and information:

3. The rights and guarantees defined for employees by this Code may not be reduced when an employment contract is signed or upon termination of the Labour relations.

4. Unless stipulated herein, the terms of the employment contract shall not be unilaterally replaced.

Section 44. The Form of an Employment Contract

1. An employment contract shall be executed in writing.

2. An employment contract shall be executed in accordance with the example attached hereto on a basis of Parties' consent.

3. An employment contract shall be prepared in at least two (2) copies and authenticated by the signatures (seals) of the parties. One copy shall be given to the employee, the other copy shall be kept in perpetuity by the employer.

Section 45. The Term of an Employment Contract

1. An employment contract may be executed without specified term (unlimited) or for a period up to 5 years (term).

2. Unless an employment contract states the term for which it is being executed, it shall be considered to be unlimited.

3. An employment contract executed without specified term may not be unilaterally replaced by a term employment contract without the mutual consent of the parties.

4. When the nature of the work or services are a priori specified as permanent according to the job description, an employment contract must be concluded without specified term.

Editor's Note: Sections 46-56 are omitted.

Section 57. Employee Job Description

1. An employer must precisely define the scope of the job description for work to be performed or services to be rendered by employee in one or more positions or professions as provided in the employment contract.

2. The scope of a job description shall be defined in accordance with Unified Pay Scale Handbook approved by the relevant authority or by the employer and shall be detailed in the employment contract.

3. The job description shall be changed only by agreement of parties. The job description shall not be changed unilaterally, nor shall an increase or reduction it its scope be allowed.

4. If an employer cannot provide an employee with the specified job for specific reasons and gives him another job corresponding to his profession, the employee may refuse that job if he is not paid the average wage.

Section 58. Execution and Governance of a Multiple Employment Contract

1. Should the terms of the employment contract permit, an employee may work in his primary place of work and elsewhere after the working hours of his primary job on the basis of a multiple employment contract. The second workplace for which a multiple employment contract is executed shall be the secondary workplace; the first organization shall be the primary workplace.

2. The working hours at an organization employing an employee holding multiple jobs shall be agreed by the parties and shall not exceed the norm defined in Section 89 hereof.

3. Special permission shall be required of the employer in order for an employee to hold two or more jobs after working hours at a primary workplace. Holding another job during working hours shall be permitted with the employer's consent. When an employee holds multiple jobs the terms of employment and the scope of the job description shall be determined by the employer.

4. Employees holding multiple jobs shall be subject to but not limited by all norms, rules and provisions specified by Labour law, except as indicated in Parts 5 and 6 of this Section.

5. If an employee works under harmful or dangerous working conditions having a negative effect on his health in his primary place of work, he shall not be permitted to work under the same conditions in his other jobs.

6. Employees under age of 18 may be allowed to hold multiple jobs if their total daily working hours do not exceed the reduced work hours provided for them in Section 91 hereof.

7. The right to enter into an employment contract and engage in work at an additional workplace place of work shall not apply to relevant officials of the state power authorities in those cases directly as stipulated by Legislation.

Section 59. Transfer to Another Job

If an employee is assigned to perform a job in another profession, specialty and position not provided in his employment contract, this shall be considered a transfer to another job. It shall be permitted only with the employee's consent and on the basis of a new employment contract.

Section 60. Temporary Transfer to Another Job at the Employer's Initiative

An employee may be temporarily transferred to another job without his consent for up to one month for business reasons and to prevent idle time. An employee may not be transferred to a job, which has a negative effect on his health or to a job with a lower skill rating. While on the other job, the employee shall be compensated on the basis of work performed, but no less than his previous monthly wage.

Section 61. Performance of Another Employee's Job

1. An employee may perform the job of another employee absent from work for a specific reason for more than fifteen days by the agreement of the parties. In this case he shall be compensated for work performed under the rules as provided in Section 162 hereof.

2. The job description of the vacant job shall be assigned to the employee with his consent. If the employee performs his own and the assigned job he shall be compensated no less than the half of the wage of the vacant position.

3. The employee may be assigned to perform a vacant job for no more than three months. Upon completion of this period the replacement may be transferred to that job with his consent, or both of the jobs may be combined and a new contract signed to extend the employment of the replacement employee, or a new employee may be hired for the vacant job.

Section 62. Employee Dismissal

1. In order to protect the interests of owner and employees, prevent possible violation of occupational safety rules and ensure Labour discipline, an employer may remove an employee during working hours in the following cases:

2. Dismissal of an employee must be supported by proof (doctor's statement, testimony by employees, references and other official documents) in each specific case.

3. An employee shall not be compensated when he is dismissed from work.

4. An employer may apply one of the disciplinary penalties specified in Section 186 hereof regardless whether the dismissed employee committed an administrative or criminal offense.

5. Should an employee consider his dismissal illegal and groundless as a result of malice, false documentation or other facts, he may appeal to a court to restore his violated rights and defend his honour.

Section 63. Governance of Labour Relations in the Event of a Change in Ownership

1. Should the ownership of an enterprise changes, the employment contracts signed by and between the former owner and the employees, other than the ones noted in Subsection II of this Section, and the terms and conditions of said contracts shall be kept in effect by the new owner. The new owner may terminate an employment contract with these employees in the manner specified in the employment contracts of these employees and on the basis stipulated in Sections 70, 73 and 75 of this Code.

2. The new owner may terminate an employment contract with the employer (manager) or his deputies, senior accountant and other division managers who are fulfilling direct managerial functions in conformity with subsection c of Section 68 of this Code, or may modify the terms and conditions of their contracts in the manner stipulated in Section 56 of this Code.

3. In relation to a change of ownership, the new owner or his employer shall be prohibited from undertaking any mass termination of employment contracts, thereby abusing his right to ownership, without first assessing the employees' professionals qualifications, ability to perform their tasks and any incompetence that may cause damage to the owner's business. The new owner or employer shall establish the employees' professional qualifications and the need for available jobs in order to independently implement ownership activity at the enterprise by means of workplace and employee certification workplace.

Note: "mass termination of employment contracts" used in subsection 3 of this Section shall be defined as follows, depending on the total number of employees within three months at the same time, or at a different time beginning on the date the proprietary right for the appropriate enterprise was established:

Division Nine- Legal Norms Regulating the Certification of Employees and Workplaces

Section 64. Workplace Certification: its Purpose and Overseeing ifs implementation

1. The Employer shall provide workplace certification in the manner specified in the relevant Normative Legal Act for the purpose stipulated in Subsection 2 of this Section independent of working conditions.

2. In order to provide the protection of Labour at proper working places or to determine and improve the status of production sanitary and hygiene, as well as during the application of the latest advanced methods including new techniques and technologies for the increase of Labour productivity and work efficiency, the Employer must carry out workplace certification. For this purpose, a workplace certification commission shall be established that consists of trade union representatives and professional experts on Labour protection and organization services.

3. The procedures for carrying out workplace certification shall be governed by a Normative Legal Act adopted by a relevant Executive Authority Executive Authority.

Section 65. Employee Certification, Procedures for Implementation and Terms and Conditions

1. With the exception of those employees indicated in Section 66 of this Code, all employees may be certified in order to examine their professional standing expertise and to determine their compliance with their specialty, profession or position.

2. Only those employees who have been employed at their places of work for at least one year may be certified. A given employee may be certified no more than once every three years.

3. A Certification Commission consisting of experienced, objective and impartial persons with highly professional skills, as well as a representative from the trade union shall he established pursuant to the employer's order (instructions). Neither the employer nor the employee's supervisor at his workplace may be a member of the aforesaid Certification Commission.

4. The Certification Commission shall consist of at least 5 persons and in all cases the number of its staff must be odd numbers. The term of authority of the Certification Commission shall be determined in the proper order (instructions) concerning its establishment.

5. The members of the Certification Commission may question an employee regarding his position (occupation), function, specialty (profession), the jobs performed by him/her and their results, as well as on issues concerning his rights and obligations under an employment contract in order to determine his compliance with his position (profession). The professional standing of an employee that is certified may not be evaluated according to his political outlook, spiritual or moral maturation, personality, faith and other personal qualities including his degree of discipline.

6. The Certification Commission's activity shall be carried out openly, objectively, impartially and in compliance with the requirements of Legislation. The Certification Commission shall adopt its decision by a majority vote obtained during open or secret balloting. The desire of Labour collective representatives to participate as observers at the Certification Commission's meeting must be accommodated.

7. The Certification Commission shall adopt only one decision: whether an employee complies with his position (profession). Moreover, the Certification Commission may submit recommendations to the employer on the expediency of utilizing said employee in another position (profession).

8. Other procedures on the certification of employees as established in this Section shall be governed by a Normative Legal Act approved by the relevant Executive Authority.

Section 66. Non-Certifiable Employees

The following employees shall not be certified:

Section 67. Regulation of Employee Performance and Workplace Certification

1. The employment contract of an employee for whom the Certification Commission has rendered a decision on non-compliance with his position may be terminated by an employer pursuant to subsection c of Section 70 of this Code by following the procedures stipulated in Section 71 herein.

2. Employers may transfer employees to another appropriate position (profession) at the employee's consent by taking into account the Certification Commission's recommendations.

3. Massive reductions in workplaces as a result of certification shall not be permitted.

4. Employers may not cancel employees' employment contracts based on the results of workplace certification.

5. Persons who consider the decisions of the Certification Commission on employee and workplace certification to be groundless, illegal, ill-intentioned and biassed may appeal to a court.

6. In the manner established by this Code, courts alone may consider individual Labour dispute based on the claim of an employee whose employment contract has been cancelled or he/she has been transferred to another position (profession) by an employer due to non-compliance with his position on the basis of the Certification Commission's decision.

Division Ten-Grounds and Rules for Termination of an Employment Contract

Section 68. Grounds for Terminating an Employment Contract

1. An employment contract maybe terminated only on the grounds and under the conditions established hereby.

2. Grounds for terminating an employment contract shall be the following:

Section 69. Termination of an Employment Contract at the Initiative of the Employee

1. An employee may terminate an employment contract by notifying the employer in writing one calendar month in advance.

2. At the end of one calendar month, the employee shall have the right not to go to work and to demand a final accounting. The employer shall be obliged to meet the employee's demands.

3. If there are specific, valid reasons, such as the employee's being of retirement age, his disability, admission to an educational institution, move to a new place of residence or entering into an employment contract with another employer, or in other cases provided by law, the employee may terminate his employment contract on the date he has indicated in his application.

4. An employee who has submitted notice of termination of his employment contract shall be entitled to rescind this notice or submit a new application to the employer to cancel this notice within the term of notice. In this case the termination shall not be allowed and the employment contract shall not be terminated, provided that the employer has not submitted written notice to the employee concerning another employee's involvement in said position (profession). Upon termination of the employment contract pursuant to the rules defined herein, the employee's request to rescind or cancel his notice shall be invalid.

5. If the employee's notice does not indicate the date on which the employment contract is to be terminated, the contract may not be terminated on the grounds defined in this Section until the term of the notice has expired.

6. An employee exercising his right to take leave may submit an application to the employer requesting annual leave and termination of his employment contract as of the date of completion of the leave. The employee may rescind his notice or submit a new application to the employer to cancel his notice before the end of his leave in the manner determined in Subsection 4 of this Section. In such cases the employee's request must be satisfied.

7. An employer shall be prohibited from using force, threat, or any other method against the employee's to oblige him to terminate his employment contract.

Section 70. Grounds for Termination of an Employment Contract at the Employer's Initiative

An employment contract may be terminated at the employer's initiative in the following cases:

Note: The competent body in Clause "c" shall be defined as the certification committee established to determine that the employee matches his specialty, occupation grade, experience, professional qualifications and having the relevant authority, including the enterprise board of directors, or the scientific board of scientific and educational institutions. Employee certification shall be carried out pursuant to Section 65 of this Code.

Section 71. Necessary Terms and Rules to be considered when an Employer Terminates an Employment Contract

1. If an enterprise is broken up, merged with another enterprise, reorganized, its organizational or legal form is changed or the number of employees is reduced, or positions are eliminated without making said changes, including a decision by a competent body that the employee is not suitable for his position (profession, occupation), the possibility of transferring the employee to another job (position) must be reviewed. If the employer has no such possibilities at his disposal, the employment contract may be terminated.

2. The employment contract shall be terminated under Section 70, if the employee has deliberately or negligently violated common work discipline, production, Labour or performance discipline at the workplace by failing to perform his job or duties (obligations) or has infringed on the owner's, employer's, or Labour collective's rights and interests protected by law.

3. The employer shall be obliged to prove the necessity of terminating the employment contract as described by Section 70 hereof.

Section 72. Cases Considered Gross Violations of the Job Description

If an employee:

Section 73. Procedures for Terminating a Term Employment Contract

1. A term employment contract shall be terminated upon its expiration. If the term of the employment contract has expired, employment continues, and neither party demand termination of the contract within a week after its expiration, the employment contract shall be considered to have been renewed indefinitely.

2. If a term individual employment contract expires while the employee is absent from work for specific, valid reasons (illness, business trip or leave, as well as in cases when his job and average salary as stipulated in Section 179 of this Code are kept for him), the contract may be terminated on the day determined by employer, but in any event within one week after the employee returns to the workplace.

Section 74. Grounds for Termination of an Individual Employment Contract in Cases not depending on the Will of the Parties

1. An individual employment contract shall be terminated independent of the will or wishes of the parties in the following cases:

2. If an employee illegally dismissed from his place of work appeals to a court of law and the court accepts his claim and rules to reinstate his job, the employer must carry out the court ruling immediately and reinstate him in his previous job or in another job with his consent. The employment contract for the employee put into this employee's position may be terminated by the procedure defined in Section 71 hereof.

Note: Permanent disability shall be determined by an opinion of the relevant Executive Authority. Permanent disability shall be defined as the disability of an employee for at least one year on the basis of a decision of the relevant Executive Authority. Temporary disability for a period of less than 6 months shall not be grounds for termination of the employment contract. Individuals temporarily disabled shall be paid a mandatory social insurance allowance and their workplace and position shall be retained under the established procedure. Moreover, the relevant Executive Authority's opinion shall be taken into account in relation to employees who have partially lost their ability to work for a period not exceeding one year.

Section 75. Termination of Employment Contracts in Cases Provided Therein

1. When entering into employment contracts the parties may define conditions for their termination, in addition to those provided herein.

2. The following additional cases concerning the termination of employment contracts may be stipulated in employment contracts pursuant to the Parties' mutual consent:

3. In order to more fully regulate Labour relations in the future, the Parties shall include in the employment contract those cases stipulated in Subsection 2 of this Section and complying with employee's Labour conditions.

4. The cases of employment contract termination specified by the parties may not contradict the guaranteed principles of employee and employer rights defined in Section 2, Part 3 hereof.

5. The parties may not define terms for employment contract termination which degrade their honour and dignity and limit their rights as provided herein.

Section 76. Limitations on Employment Contract Termination

1. An individual employment contract may be terminated only on one of the grounds provided in Section 68, 69, 70, 73, 74 and 75 hereof.

2. An employment contract may not be terminated for two or more grounds if one is not provided by law or does not comply with the rules for termination of employment contracts provided herein.

Division Eleven-Employee Guarantees upon Termination of an Employment Contract

Section 77. Employee Guarantees upon Termination of an Employment Contract

1. If an individual employment contract is terminated due to a reduction in employees or staff, the employee shall be officially notified by the employer two months in advance in cases provided by Section 70, para. b.

2. During the notice period, the employee shall be given at least one day a week off with pay to enable him to find appropriate work.

3. If an employment contract is terminated under Section 70, para. a and b hereof employees shall be paid:

4. An employer may terminate an employment contract by paying the employee according to subsection 1 of this Section and Section 56 of this Code if the employee is dismissed, instead of applying the notice period defined in subsection 1 of this Section.

5. The average payment provided in subsection 1 of this Section shall be paid according to a certificate issued to individuals by the relevant Executive Authority. Said certificates shall be issued to persons listed by the relevant executive authorities within one month after dismissal. The payments must be made by the employer at the enterprise from which the employee was laid off; if it was liquidated, by the new owner of its assets (the entity or individual managing the assets). This procedure shall not apply to a new owner who has purchased the enterprise, or to cases stipulated in Subsection 4 of this Section.

6. Collective agreements and employment contracts may stipulate that the employee retain his average monthly wage for a longer period while he looks for a job and is paid more amounts compared to the ones stipulated in Subsections 3 and 7 of this Section.

7. If an employment contract is terminated under Section 68 subsection c, or Section 74 subsection a and c. the employer shall pay the employee an allowance equal to twice the average monthly wage. If an employment contract is terminated because of the death of the employee, the heirs of the deceased shall receive an allowance equal to three times the average monthly wage.

Section 78. Individuals Given Preference during Personnel Cutbacks at an Enterprise

1. Should there be a personnel reduction, employees with the highest skill ratings (professional qualifications) shall be retained. The employer shall determine a given employee's professional qualifications.

2. Should skill ratings be identical, the employer shall retain the following individuals:

Section 79. Employees Whose Employment Contracts May Not be Terminated

1. The employer shall be prohibited from terminating the employment contracts of the following individuals

2. The provisions of subsection 1 of this Section shall not apply to cases of termination carried out pursuant to subsection a of Section 70 and Section 73 hereof.

Section 80. Agreements when Employment Contracts are Terminated by Employers

1. Should collective contracts provide, an employment contract may be terminated on the grounds indicated in Section 70 hereof by providing advice or consent by and between the employer and trade union.

2. Should an employment contract be terminated by a decision of the employer, advising the trade union or obtaining prior consent shall not be required, except in cases provided in subsection 1 of this Section.

Division Twelve Procedures for Executing, Amending and Documenting the Termination of Employment Contracts

Section 81. Documenting Employment Contracts

1. For the purpose of regulating clerical procedures and enforcement, a collective contract by the parties may be documented by an order (decree, decision) of the employer at his discretion.

2. It shall be prohibited to document Labour relations without a written employment contract as defined by this Code.

Section 82. Documenting Transfer to Another Job or Other Cases

In cases provided herein, a change in Labour relations, terms of employment or the execution of a multiple employment by the relevant order (decree, decision). In this case the procedures for executing an employment contract and amending it must be followed.

Section 83. Documenting Termination of Employment Contracts

1. Unless rules other than as provided in this Chapter are established for documenting the termination of an employment contract, the termination of an employment contract by the employee or employer or in the cases independent of the parties' wishes shall not be documented by order (decree, decision) of employer pursuant to the procedures and rules provided in Sections 68, 69, 70, 73, 74 and 75 hereof.

2. An employer's order (decree, decision) to terminate an employment contract must be signed by the employer and authenticated by the enterprise seal. During the last working day a copy of this order shall be given to the employee together with employee's record book and employer's final payment (compensation for unused leave time due the employee and other payments).

Section 84. Content of the Order on Terminating an Employment Contract

1. The following information must be contained in the order (decree, decision) terminating an employment contract:

2. An order (decree, decision) lacking any of the information provided in subsection 1 of this Section may be declared invalid by the court resolving the Labour dispute.

3. The order (decree, decision) of the employer terminating the employment contract may be prepared in simple form indicating only the information in subsection 1 of this Section; also in accordance with regulations it shall consist of a descriptive (introductory) section and the decision where this information is shown.

Section 85. Procedures for Registering Employment Contracts

1. The employer must register executed employment contracts, amendments thereto, orders related therewith, including other orders (decrees, decisions), in a special book or in a computer program. If said registration is not carried out by means of a computer then this book must be numbered, laced up and the enterprise seal must be placed over the knot of the lace on the last page of the book.

2. The employer must keep the register book as a special registration document and it must be written neatly. It shall be prohibited to black out or erase notes in the book, or to tear out or modify its pages.

3. The document register may be computerized. However, if it is the employer must provide protection for this register.

Section 86. Storage of Employment Contracts and Orders

1. Employers shall be obliged to store and protect executed employment contracts, amendments thereto, and orders (directives, decisions) issued in relation to said contracts and to register them in a special book (register) or in a special program on a computer. If the registration is not computerized then the registration book must be paged, laced and the seal of enterprise affixed onto the knot of the lace on the last page of the book.

2. Employers shall keep the registration book as a special registration document and the notes shall be written neatly in said book. It shall not be permitted to underline or erase the notes or to tear out or alter pages.

3. Employers shall provide perpetual storage of the registration documents when registration of the documents indicated in this Section is carried out either by computer or by hand.

Section 87. Documents on Employment Experience and Respective Employee Payment Records

1. Document concerning employees' employment experience shall consist of the employee's record book. The employee record book shall indicate the employee's employment experience: date of employment, profession (position), date and grounds for dismissal.

2. The employer must note in the record book information on hiring, transfer to another permanent job, and termination of the employment contract for all employees who have worked more than 5 days.

3. Dismissed employees shall be given their record books on the day on which the employment contract is terminated (last workday).

4. The respective Executive Authority shall approve the form of employee record books and the rules for their preparation.

5. Employers shall draw up a document (book, list) on the payment and registration of employee salaries and other compensation pursuant to the procedure stipulated in Section 173 of this Code.

Section 88. Terms for Providing Employees with References and Testimonials and Their Assignment to Other Places of Work

1. At the employee's request, the employer shall be obliged to provide a reference or file information on his position (profession), earnings during the relevant period, copies of personal documents, and his testimonial regarding the employee's professionalism, efficiency and other personal qualities.

2. With the employee's consent, the employer may send documents concerning the employee's personality or employment activity to another employer or to the respective authorities, as well as to other parties at the request of another employer or the relevant authority. Employers shall not be permitted to send a testimonial, letter of recommendation or other document concerning the employee unless he is familiar with it. A reference or letter of recommendation with positive content may be sent to another party without familiarizing the employee with it. In this case the employer must inform the employee where said documents have been sent.

CHAPTER IV-WORKING HOURS

Division Thirteen-Working Hours and Rules for Their Regulation

Section 89. Standard Working Hours

1. Standard working hours shall be considered the time during which an employee must perform his duties during the weekly and daily working hours provided in this Code.

2. Daily working hours may not exceed eight hours.

3. Normal weekly working hours corresponding to normal daily working hours may not exceed 40 hours.

Section 90. Determination of Weekly Working Hours

1. In general, an employee shall have a five-day work week with two days off.

2. Depending on the nature of the industry, service, and terms of employment, an employer or the relevant authority may establish a six-day week with one day off within weekly working hours.

3. In a six-day work week, daily working hours may not exceed 7 hours for a weekly quota of 40 hours; 6 hours for a weekly quota of 36 hours; and 4 hours for a weekly quota of 24 hours.

Section 91. Reduced Working Hours

1. For different categories of employees, taking into consideration their age, health, terms of employment condition, duties, etc., reduced working hours may be determined by this Code, the proper Normative Legal Acts, as well as by the terms and conditions of the employment contract and collective agreements.

2. The following reduced working hours must apply: employees up to the age of 16, 24 hours per week; aged 16 to 18, category I and II disabled employees, and pregnant women and women with a child under the age of one-and-a-half, 36 hours per week.

Section 92. Reduced Working Hours for Employees Employed in Adverse Work Environments

1. Shorter working hours of no more than 36 hours per week shall be established for employees engaged in occupations, positions and industries characterized by working conditions hazardous to human health with regard to physical, chemical, biological and industrial factors. The list of such workplaces shall be approved by the relevant authority.

2. The list of jobs characterized by hazardous working conditions and the specific working hours for employees performing these jobs shall be specified in the collective contracts. If such contracts have not been concluded, this list shall be determined by the employer in consultation with the trade unions, taking into account the list mentioned in subsection 1 of this Section.

Section 93. Reduced Working Hours for Specific Categories of Employees

1. Reduced working hours of no more than 36 hours per week shall be specified for certain places of work (e.g., doctors, teachers and individuals working with electronic devices and engaged in work elsewhere, as stipulated by Legislation ) where working conditions (special in nature) are characterized by a high degree of sensitivity, excitement, mental, physical and nervous strain, or other factors negatively affecting human health. The list of such workplaces and positions, professions, and specialties shall be approved by the relevant authority.

Section 94. Part-Time Work

1. Short working hours, short workdays and short work weeks may be established by agreement between the employer and employee upon execution of an employment contract.

2. Part-time hours and their effective duration over a month or year shall be defined at the agreement of the parties.

3. If the health and physiological state (pregnancy, disability) of an employee, a chronically sick child, or any other family member, requires part-time employment on the basis of medical findings, as well as for women with children under 14 or a disabled child under 16, the employer shall be obliged to arrange part-time work (workday or work week) on the basis of their applications.

4. Part-time work shall be defined according to compensation, time spent on the job, or by agreement of the parties.

5. There shall be no limitation of any kind on the Labour rights of part-time employees as defined by this Code or the employment contract.

Division Fourteen- Work Schedule and Regulation of Rules for Overtime

Section 95. Work Schedule

1. Rules for working hours shall be determined by daily work time, work starting and stopping time, break time and length, the number of shifts per day, shift documents and their preparation, transfer from one shift to another, total hours worked. The alternation of workdays and days off (shift rotation), and weekly workdays shall be governed by the organization's internal work rules, the employment contract and collective agreement.

2. Work schedules and rules shall be confirmed by an order (directive, resolution) issued by the employer pursuant to the work schedule defined by this Code and other regulations. Employees must be familiar with these rules.

The basic sections of rules regulating the work schedule must be reproduced and hung in a place visible to all employees.

3. At industrial, transportation, construction, trade and other service enterprises where there are fewer than 50 employees the employer may establish a work schedule that is different from the rule stipulated in this Section, provided that the employee employment, social and economic rights specified herein are not restricted.

Section 96. Total Hours Worked

1. Total hours worked may be used if working hours during the period of record do not exceed the standard number of working hours. In this case, the period of record must not exceed one year; the daily work (shift) period, 12 hours.

2. The procedures for the use of total working hours shall be regulated by the collective contract, rules governing the work schedule at the enterprise, or the employment contract.

Section 97. Night Work

1. Working hours at night shall be defined as the period from 10:00 PM to 6:00 AM.

2. If half of the total working hours is at night, night working hours shall be reduced by one hour.

Section 98. Limitation on Night Work for Certain Categories of Employees

1. The following individuals shall not be permitted to work at night: pregnant women, women with children under the age of three, individuals under the age of 18.

2. Disabled employees may engage in night work only on the basis of their written consent and by taking the opinion of the relevant Executive Authority into account.

Section 99. Overtime

1. Overtime shall be considered time beyond the established workday during which an employee consensually performs his duties based on an order (instructions, decision) from his employer.

2. An employee shall be permitted to perform overtime in order to prevent a natural disaster, industrial accident, or other emergency events, or to eliminate their consequences, as well as to prevent the loss of perishable goods, pursuant to this Code.

3. Employees working under very difficult and hazardous, conditions and in other cases stipulated by this Code shall not be required to work overtime.

4. Overtime must not exceed 2 hours per day (per shift) in areas where working conditions are difficult and the workplace hazardous.

5. Employers must create industrial and social conditions in conformity with the standards foreseen in Section "Protection of Labour" hereof and ensure the safety of Labour for employees involved in overtime work.

Section 100. Maximum Overtime Work

At workplaces where working conditions are difficult or hazardous no employee may work overtime in excess of four hours during two consecutive working days or be engaged in overtime work exceeding 2 hours.

Section 101. Exceptions Where Overtime is Permitted

1. Overtime shall be permitted only in the following cases:

2. Employers shall be obliged to take all measures needed to substitute the absent employee with another employee and in a timely fashion to rectify the causes for the involvement of employees in overtime work in exceptional cases as stipulated in this Section.

Section 102. Calculation of Hours Worked

1. An employer shall be obliged to calculate each employee's exact, correct hours worked during regular working time and overtime.

2. Employers shall determine the form and procedures for calculating the hours worked.

CHAPTER V- DAY OFF AND LEAVE RIGHTS OF EMPLOYEES

Division Fifteen- Rest Time

Section 103. Rest and Meal Breaks

1. An employee must be granted a rest and meal break during the workday (shift).

2. The time at which the break is granted and its duration shall be specified by internal work rules, shift schedules, or by an employment contract or a collective agreement between the employer and employee.

3. On jobs where operating conditions make it impossible to grant this break, the employer must give an employee the opportunity to rest and eat during working hours.

4. Employees must have at least 12 hours rest between workdays. The duration, of rest time for employees working on a sliding schedule shall be governed by the respective shift schedules.

5. Break and meal times shall not be included in working hours. Employees may use rest and meal breaks as they wish, at their own discretion.

Section 104. Days Off

1. All employees must be provided the opportunity to take consecutive days off during the week. The number of days off during the week for employees on a five-day schedule shall be two days; for employees on a six-day schedule, one day. The period of continuous weekly time off must be at least 42 hours.

2. Days off shall be granted in accordance with shift schedules approved by trade unions. This procedure shall be regulated by an employment contract at workplaces where there is no trade union.

Section 105. Holidays which are not Considered Working Days

The following holidays shall be provided in the Republic of Azerbaijan every year:

1 January - New Year's Day;

8 March - Women's Day;

9 May - Victory Day;

28 May - Republic Day;

15 June - Day of National Salvation of the Azerbaijan People;

26 June - Armed Forces Day;

18 October - National Independence Day;

12 November - Constitution Day;

17 November - National Restoration Day;

31 December - Azerbaijan World Solidarity Day;

Novruz - two days;

Gurban - one day;

Ramadan - one day.

On these days, employees shall be required to work under special circumstances as provided herein.

2. The time of Novruz, Gurban, and Ramadan shall be determined and announced to the public each year by the relevant authority.

3. If a day off and a holiday coincide, the day off shall be carried over to the next working day after the holiday.

Section 106. Day of National Mourning

January 20 of each year shall be a Day of Mourning for those who perished for the independence and territorial integrity of Azerbaijan. This day shall not be considered a working day.

Section 107. Prohibition on Work during Days Off, Holidays and Day of National Mourning

Except in cases provided in Section 101, subsection a and b hereof, as well as at uninterrupted production facilities, commercial, public catering, communications and other service enterprises, no employee shall work on days off, holidays or on the Day of National Mourning.

Section 108. Length of the Workday on the Eve of Holidays, Days Off and the Day of National Mourning

1. Except in cases provided in Sections 91, 92 and 93 hereof, the work day on the eve of one of the holidays listed in Section 105 hereof and the Day of National Mourning shall be reduced by one hour regardless of the number of working days in the week.

2. At enterprises with six-day work weeks, the workday before days off shall not exceed 5 hours.

Section 109. Compensation of Employees Who Work on Days Off, Holidays and Other Days not Considered Working Days

1. As an exception, employees who work on days off and holidays must be granted another day off or double compensation for the work performed on those days.

2. Employees who work on the Day of National Mourning in the exceptional cases provided by Section 101 hereof shall be paid double.

Division Sixteen- Leave Rights and their Provision

Section 110. Rights of Employees to Take Leave

1. Employees shall be entitled to take the leave provided by this Code regardless of their position (profession), terms of employment or the effective period of their employment contract.

2. Employees holding two or more jobs shall be entitled to take vacation as provided by this Code.

3. The rights of employees to leave and the rules for their exercise as specified by this Code may not be limited.

Section 111. Legal Guarantees for Employees Exercising Their Right to Leave

1. While an employee is on leave, his job, position and, in cases provided for by this Code, his average monthly salary shall be retained. His employment contract may not be terminated, nor may the employee be disciplined at his employer's initiative. This period shall be counted towards the employee's seniority (in his specialty).

2. The employment contract or collective contract may provide additional material and social benefits for employees.

Section 112. Types of Leave

1. Employees shall be entitled to the following types of leave:

2. Other types of leave may be specified by the employment contractor collective contract.

Section 113. Vacation

1. Vacation is time off to be taken by an employee at the employee's discretion, for a period not less than provided in this Code, for proper rest, restoration of working capacity, preservation and improvement of his health, depending on the nature of his work and place of employment. The vacation term shall be calculated using calendar days.

2. Vacation - consisting of annual base vacation for employees in a specific position (profession), and additional base vacation granted according to the industry involved the employee's Labour and work experience, and for women with small children - may be granted either together or separately.

3. Vacation shall be granted every year during the employment year. The employment year shall begin oh the date on which the employee was hired and end on the same day of the following year. If the employee's work year has not begun on the date when the employee requests a vacation, vacation may be granted only at the start of his employment. If an employee has two vacations in a calendar year, he may take them together or separately.

Division Seventeen- Duration of Vacation

Section 114. Base Vacation and its Duration

1. Base vacation shall be defined as vacation whose minimum duration is established by  2 and 3 of this Section on the basis of the occupation (position) of the employee as stated in his employment contract.

2. At least 21 calendar days of paid base vacation must be granted to employees.

3. The employees listed below shall be eligible for 30 calendar days of paid base vacation per year.

4. Part-time employees (working a partial day or partial week) shall be granted vacation of unrestricted duration depending on the work they perform or the position they hold.

Section 115. Additional Vacation Time Based on Working Conditions and Job Description Characteristics

1. Employees engaged in underground work or in hazardous or arduous occupations and those whose occupations involve increased sensitivity, excitement, or mental and physical stress shall be eligible for additional vacation time. Depending on the nature of the working conditions and duties, additional vacation time must be no less than 6 calendar days.

2. The list of hazardous and arduous industries, workplaces, occupations and positions, types of employment and employee categories granted additional vacation time according to working conditions and duties shall be approved by the relevant authority and the duration of additional vacation time shall be indicated therein.

Section 116. Duration of Additional Vacation Time for Seniority and Procedures for Granting Additional Vacation Time

1. Depending on their seniority, employees shall be eligible for the following amounts of additional vacation time:

2. The duration of additional vacation time according to length of service shall be determined on the basis of the time period within which an employee signs an employment contract with the employer at an enterprise and begins to actually work. Along with the time period which an employee has actually worked under an employment contract, the time periods within-which an employee has become temporarily disabled and his job and average salary have been retained as provided in Section 179 hereof shall be included in the employee's said length of service.

3. Additional vacation time based on length of service (as well as working conditions) shall not be granted to those employees indicated in Sections 118, 119, 120 and 121 hereof.

Section 117. Additional Vacation Time for Women with Children

1. Regardless of the amount of base and additional vacation time, working women with two children under the age of 14 shall be eligible for 2 additional calendar days of vacation time; while women with three or more children of this age or with a disabled child under the age of 16 shall be eligible for 5 additional calendar days of vacation time.

2. Fathers raising their children as single parents and adoptive parents shall be eligible for the additional vacation time specified in subsection 1 of this Section.

3. The right to additional vacation time as determined in this Section shall also be retained in cases when one of the children is 14, until the end of the relevant calendar year.

4. Any additional vacation time established in this Section shall not be granted to employees indicated in Sections 118, 119, 120 and 121 hereof.

Section 118. Duration of Vacations for Educators and Researchers

1. The following employees shall be eligible to a vacation of 56 calendar days per year:

2. The following employees shall be eligible to vacation of 42 calendar days per year:

Section 119. Vacations for Physiological Reasons

1. Employees under the age of 16 shall be eligible for 42 calendar days of vacation per year; employees aged 16 to 18 shall be eligible for 35 calendar days.

2. All disabled employees, regardless of the category, reason, or length of disability, shall be eligible for a base vacation of at least 42 calendar days.

Section 120. Vacation for Persons Who Have Performed Meritorious Service to the Azeri Nation

Persons who have been wounded in the struggle for the freedom, sovereignty, and territorial integrity of the Republic of Azerbaijan, including National Heroes of Azerbaijan, Heroes of the Soviet Union, and winners of the Order of Independence, shall be granted a base vacation of at least 46 days.

Section 121. Vacation for Certain Categories of Employees of Theatrical, Entertainment, and Other Establishments

Artistic directors and actors at theatrical and entertainment establishments, and artistic directors and actors on TV, the radio, and at movie establishments shall be granted 42 calendar days of vacation; stagehands shall be granted 35 calendar days of base vacation.

Division Eighteen- Research Leaves and Their Duration

Section 122. Research Leaves and Their Duration

1. Employees who are continuing their Master's (graduate) or Doctoral studies for the purpose of obtaining an academic degree and educational writers may be eligible for paid research leaves for the purpose of completing their dissertations or writing textbooks or teaching aids.

2. Employees shall be eligible for up to two calendar months of research leave for the purpose of completing their Candidate's (Master's) dissertations; employees shall be eligible for up to three calendar months of research leave for the purpose of completing their Doctoral dissertations. A special certificate issued to the employee by a specialized academic council shall serve as proof of eligibility for research leaves.

3. Employees undertaking Master's (graduate) or Doctoral studies (including those taking entrance exams) while working shall be granted 30 calendar days' paid vacation each year.

4. Employees writing textbooks or teaching aids may be granted paid research leave of up to three months by decision of the relevant agency.

5. The appropriate scientific council or relevant executive authorities shall determine the issues regarding the duration and utilization of creative leaves in advance consultation with employers.

6. Salaries paid during said creative leaves shall be calculated on the basis of the employee's monthly salary as established for his position (profession).

Section 123. Paid Educational Leaves

1. Employees who are pursuing their education while continuing to work shall be eligible for the following paid leaves:

2. During paid educational leave, average salaries paid to the employee shall be determined in the manner stipulated in Section 177 hereof.

Section 124. Duration of Educational Leaves

1. Students attending evening classes at higher educational institutions shall be granted 20 days' leave during their first and second years for Laboratory research, tests, and examinations, and 30 days of leave for the same purpose during their remaining courses.

2. Students attending evening classes at special secondary educational institutions shall be granted 10 days of leave during their first and second years for Laboratory research, tests, and examinations and 20 days of leave for the same purpose during their remaining courses.

3. Employees taking correspondence courses from higher educational institutions shall be granted 30 calendar days of leave during their first and second years for Laboratory research, tests, and examinations and 40 calendar days of leave for the same purpose during their third and fourth years. Employees taking correspondence courses from special secondary educational institutions shall be granted 20 calendar days of leave during their first and second years and 30 calendar days of leave during the other courses.

4. Students taking evening and correspondence courses from higher and special secondary educational institutions shall be granted 30 calendar days of leave when taking national examinations.

5. Students taking evening and correspondence courses from higher educational institutions shall be granted up to 4 calendar months of leave to prepare and defend their graduation projects (theses); students taking evening and correspondence courses at special secondary educational institutions shall be granted up to two calendar months of leave for this purpose.

6. Employees attending vocational schools and lyceums while continuing to work shall be eligible for 30 calendar days per year of leave to study for and take their examinations.

7. Employees taking evening and correspondence classes from general secondary schools shall be eligible for 20 calendar days of leave to take examinations in the eleventh grade.

8. These leaves may be used during the periods specified in class schedules on the basis of a letter from the educational institution.

Division Nineteen- Social Leave

Section 125. Pregnancy, Maternal, and Child Care Leave

1. Woman shall be granted pregnancy and maternity leave of 126 days, starting seventy (70) calendar days prior to childbirth and ending fifty-six (56) calendar days after childbirth. In the event of abnormal or multiple births, women shall be granted seventy days leave after childbirth.

2. Women working in industry shall be granted the following pregnancy and maternity leave.

Section 126. Leave for Women Adopting Children

Women who have adopted children under two months of age or who are raising them without adoption shall be entitled to the 56 calendar days of social leave specified for after birth, as well as to additional leave defined in Section 117 and partially-paid leave defined in Section 127 hereof.

Section 127. Right to Partially-Paid Leave and Rules for Exercising It

1. A single parent or another family who is directly caring for a child until it is three years old, shall be eligible for partially-paid social leave in the amount determined by Legislation.

2. An employee caring for a child may use partially paid social leave completely or in part at his discretion.

Division Twenty- Unpaid Leave

Section 128. Rules for Taking Unpaid Leave

An employee shall be entitled to unpaid leave if it becomes necessary for him to take time off from work to solve urgent family, personal, or other social problems, to study, engage in creative scientific work, or due to his age and physiological qualities.

Section 129. Types of Unpaid Leave

1. Unpaid leaves in the cases provided for by this Code shall be granted on the basis of requests by employees and the mutual agreement of the parties.

2. Employees may be granted unpaid leave at the discretion of the parties by mutual agreement of the employer and employee and in the cases provided by the collective contract, including under the terms of employment contracts.

Section 130. Duration of Unpaid Leave Granted at the Request of Employees

Unpaid leaves of the following duration shall be granted at the employee's request and with the employer's consent in the following cases:

Division Twenty-One- Procedure/or Exercising Vacation Rights

Section 131. Procedure for Authorizing Vacations

1. An employee shall be eligible for vacation after six months of employment following the signing of the employment contract with his employer.

2. After an employee has worked six months at an establishment, the employee may be granted vacation prior to the expiration of his first year of employment on the basis of his application within a time period coordinated with his employer.

3. Vacation in the second and subsequent years of employment may be grantee at an appropriate time during the work year based on the order of preference for vacation.

4. The following individuals shall be eligible to take vacation during their first year of employment regardless of when they were hired:

5. Educational employees directly engaged in teaching shall be granted vacation during the summer vacation period, regardless of when they were hired.

6. Additional vacation time for difficult and hazardous working conditions shall be granted to employees in proportion to the employee's actual working time in the given position, profession or production site within a working year. Employees shall be entitled to said additional vacation after they have worked at least six months at the aforesaid place of work.

Section 132. Periods Which Count and Do Not Count Towards Determining Seniority for Vacation Purposes

1. In addition to die actual amount of time worked by an employee, the following periods shall count towards seniority for vacation purposes:

2. Periods of partially paid social leave as stipulated in Section 127 hereof, and sentences served by individuals sentenced to corrective Labour without confinement shall not be counted towards seniority for vacation purposes.

Section 133. Order of Preference for Vacations

1. In order to avoid disrupting the normal flow of work and to maintain proper vacation records, the order of preference for vacations may be determined every year before the end of January.

2. The order of priority for vacations shall be approved by the employer in consultation with the trade union and the employee.

3. The following employees may be granted vacations at a time convenient for them:

Section 134. Conditions and Procedures for Deferring Vacations

1. Vacation may be deferred for valid reasons at the initiative of either the employer or the employee only by their agreement.

2. Vacation deferral shall be defined as the postponement. of vacation as provided in the order of preference schedule from one month of the current year to the next or from the current to the next year of employment or next calendar year.

3. At the employee's initiative, vacation may be deferred in the following cases:

4. Vacation may be deferred at the employer's initiative whenever granting an employee vacation at the time indicated by the normal order of preference would disrupt normal operations.

5. By mutual agreement of the parties, any unused vacation time may be added to the vacation granted in the next year of employment.

Section 135. Cases Where Denial or Deferment of Vacation is Prohibited

1. Deferral of vacation (21 and 30 calendar days) defined by this Code from one year to another and denial of vacation for two consecutive years shall be prohibited.

2. Denial or deferral of vacation for employees under the age of 18, pregnant women, or employees eligible for additional vacation because of hazardous and arduous working conditions shall be prohibited.

Section 136. Procedure for Combining Base and Additional Vacation Time

1. Base vacation time as provided in Section 114 hereof shall be granted together with additional vacation time as provided in Sections 115 and 116.

2. If an employee is concurrently entitled to two or more additional vacations under Sections 115 and 116 hereof, the longest additional vacation shall be combined with his base vacation.

Section 137. Procedures for Dividing Vacation Time and Recall from Vacation

1. At an employee's request, vacation time may be divided and granted in segments, provided that at least one segment consists of at least two calendar weeks. In cases when a segment of vacation is used, then its remaining part shall be granted by the end of the working year when said vacation was granted or by the end of the calendar year or, at the employee's request, it may be combined and granted with the vacation for the next working year.

2. An employee on vacation may be recalled only with his consent, or in cases when it is necessary to respond to an emergency at the establishment or to keep the establishment in operation and functioning properly. Any recalls from vacation must be executed as orders (directives, decisions).

3. Any employee recalled from a vacation shall be given unpaid off days for worked vacation days (substituted days) or paid his regular salary minus any vacation pay for unused days of vacation. When the employee is granted vacation at a new time, he shall be paid vacation pay for unused vacation days under the procedure established by Section 140 hereof.

4. The recall of an employee from vacation at his initiative may be carried out only at the employer's discretion.

Section 138. Written Authorizations and Records of Vacations and Leaves

1. All vacations must be authorized on the basis of an employee application by an order (directive, decision) issued by the employer. The order (directive, decision) must indicate the employee's full name, job title, the kind and amount of vacation or leave granted, the year of employment for which the vacation or leave is granted, and the start and end dates of the leave.

2. The leave order must be issued at least five days prior to the start of leave and must be initialled by the employee.

3. Employers must keep accurate records of leaves. Leave records must be kept for the employee's years of employment, kinds and length of leaves, and the date of issue and number and date of the appropriate order (directive, decision). The granting of leaves shall be handled either by computer or by simple clerical work depending upon employer's financial status.

4. For the purpose of accuracy in the granting of vacations, leave records must be kept according to employees' work years.

Division Twenty-Two- Procedure for Compensation of Vacations and Leaves

Section 139. Types of Compensation Considered when Leave Payment is Made

1. In determining the average salary paid during leave, all types of compensation shall be subject to the notion of salary determined in Subsection 1 of Section 154 hereof, except lump-sum payments not included in the existing salary system.

2. An itemized list of payments which shall and shall not be counted for the purposes of determining average leave salary and, if necessary, procedures for indexing average leave salaries to inflation shall be determined by the relevant Executive Authority.

Section 140. Procedures for Determining and Paying Average Leave Salaries

1. The average salary for leave, regardless of the year of employment for which it is paid, shall be based on the average salary for the preceding 12 calendar months.

2. The average salary for employees wishing to take leave after working at an establishment for less than 12 calendar months shall be based on the number of full calendar months actually worked.

3. In order to determine pay for leave days, one shall determine the average monthly pay by dividing the total salary for the 12 calendar months preceding the leave by 12, and then dividing the result by the average number of days in a calendar month, i.e. 30.4, to determine the average daily salary. The daily salary determined by this procedure shall then be multiplied by the number of calendar days of vacation.

4. This procedure for determining salary for leave purposes shall also apply to paying monetary compensation for unused leave time to a terminated employee.

5. The average salary for leave time must be paid at least three days before the leave begins.

6. Unless otherwise stipulated by an employment contract and collective agreement, the start time of leave may be reckoned from the day that the average monthly salary was actually paid if the average monthly salary was paid after leave had already begun.

7. The average salary calculated for leave time must be indexed and paid under the procedure prescribed by law.

Section 141. Payment of Additional Social Allowances to an Employee on Vacation

1. Allowances and material support shall be paid together with leave pay in cases when the employment contract or collective agreement provides additional social and living conditions (i.e., payment of a certain amount as social and living allowance, sending employees to rehabilitative resorts, or providing material support to improve family living conditions); if the enterprise has not entered into collective contracts; or for estimation of the budget for state-run enterprises or organizations.

2. The relevant authority, employees or employer's representative agency may draft and adopt procedures to regulate the payments and material support specified in subsection 1 of this Section.

Section 142. Source of Funds for Paying Average Salaries During Leaves

1. Payment for leave time shall be drawn from the funds earmarked for salary compensation.

2. Employers shall determine the means and sources for the compensation of designated payments indicated in Section 141 hereof.

Division Twenty-Three- Right to Leave upon Termination of Employment

Section 143. Exercise of the Right to Leave upon Termination of Employment

1. Upon termination of the employment of an employee who has not used up his leave for the year of employment in question, except for employees dismissed under the provisions of Section 70, subsection a and b hereof, the employee may be granted leave for the aforementioned year (years) of employment at his discretion, and the date of termination shall be considered the last day of leave.

2. If an employee should decline to use leave in the cases and according to the procedure described in this Section, he shall be paid monetary compensation for any unused leave time under the procedure and pursuant to the provisions of Section 144 hereof.

Section 144. Payment of Monetary Compensation for Unused Leave

1. Current employees shall not be paid monetary compensation in lieu of vacation time.

2. Regardless of the reason and basis of termination of his employment contract, an employee must be paid monetary compensation for any unused vacation time, with no term or limitation.

3. Upon termination of employment, monetary compensation shall not be paid for additional leave, educational and research leave, or social leave as specified in Sections 115 and 116 hereof.

4. If the employment contract with an employee who has taken his vacation for the year of employment should be terminated prior to the end of the year of employment, a proportional amount of his leave pay may be deducted from his final pay.

Section 145. Cases Regulated by Collective Agreements or Employment Contracts with Respect to Leaves

An employer, together with the trade union or at his discretion and at the establishment's expense, may enter into collective contracts or employment contracts providing other kinds of leave or longer leave, or absorb the cost of treatment at rehabilitative institutions, or provide additional financial and social benefits or other measures to certain categories of employees or all employees during leave in order for them to enjoy their leave.

Section 146. Regulation of Rules for Sending Employees on Leave in Groups as a Result of Operational Shutdowns at Enterprises

1. In the event of a disruption in the normal functioning of an establishment as stipulated in collective agreements or, if they have not been entered into, then in employment contracts, such as natural disasters, industrial accidents, and other problems which cannot be corrected promptly due to operational shutdowns caused by circumstances beyond the employer's control, employees may be sent in groups on paid or unpaid leave in accordance with the terms and procedures specified in collective contracts. In this case, the duration of unpaid leave must be no less than the base leave for two years as defined herein.

2. The granting of unpaid leave to a group of employees shall not be permitted when the operation of a production site or line or work is stopped and it is the fault of the employer. This shall be considered downtime relating to the fault of the employer and salaries in the amount indicated in Section 169 hereof shall be paid to the employees.

CHAPTER VI- WORK QUOTAS, FORMS AND METHODS OF COMPENSATION AND COMPENSATION GUARANTEES

Division Twenty-Four Work Quotas and Wages

Section 147. Work Quotas

1. Work Quotas - production quotas, time tables, service quotas, and numbers of employees - shall be determined according TO the level of equipment and technology available.

2. If work is performed and wages are paid collectively, work quotas may be increased and more complex work quotas may be implemented.

3. During job and efficiency certification and when new equipment and technology are introduced, in order to increase productivity existing quotas must be replaced by new ones.

4. Production quotas shall be set so that employees shall have the opportunity to finish their job on time. Wages must be no lower than the minimum wage set by law.

Section 148. Implementation, Alteration and Revision of Work Quotas

1. Work quotas shall be implemented, replaced or modified pursuant to collective Labour contracts. When a collective Labour contract has not been signed work quotas shall be implemented by employers after they have been coordinated with trade unions.

2. Employees must receive at least 2 months' official advance notice of the adoption of any new work quotas.

3. Quotas for various units and similar fields shall be changed or increased only by the agencies that adopted them and shall be implemented pursuant to regulations determined by these agencies.

4. Quotas may not be revised when higher output is achieved as a result of initiatives by different employees or teams using advanced work experience and applying new work methods and their working conditions are improved by using sources available.

5. Quotas for different sectors shall be determined by the authorized Governor's office and shall be based on recommendations of the National Federation of Trade Unions; quotas within each sector shall be defined by vocational and sector-specific employer organizations with the consent of the relevant trade union and authorized Governor's office.

Section 149. Calculating Compensation

1. Compensation shall be calculated on the basis of standard levels of work, paid Labour, and standard salaries and production quotas (time quotas).

2. Compensation shall be calculated by dividing the daily standard wages (or hourly standard wages) in accordance with the degree of difficulty of the work performed by the daily (or hourly) production quota. Compensation may also be calculated by multiplying the daily standard wages (or hourly standard wages) according to the degree of difficulty of the work done by the daily (or hourly) time quota.

3. Daily standard wages (hourly standard wages) shall be calculated by dividing the monthly standard wages based on the level of compensation by the number of work days (work hours) in a month.

Section 150. Duration of Quotas for Labour, Time, and Services

1. Indefinite production quotas (time quotas) and service quotas shall be set for an unlimited period and shall remain in effect until they are changed.

2. Temporary production quotas (time quotas) and service quotas shall be set for up to three months until the production techniques, equipment and technology are mastered or until production or Labour standards are established.

3. In individual cases the duration of temporary quotas may be extended by the employer with the consent of the enterprise trade union. Upon expiration of the stipulated period, temporary quotas shall be replaced by indefinite ones.

4. Quotas for work related to technological changes, emergencies, accidents or other similar events which may happen only once are to be set while work pertaining to each incident is being done, only if temporary or indefinite quotas for the same type of work have been established.

Section 151. Creating Conditions for Fulfilling Production Quotas

In order for production quotas to be fulfilled, the employer must provide the following at a minimum:

Section 152. Calculating Compensation for Inventors

1. When production, time, and service quotas and compensation are changed as a result of the implementation of inventions or large-scale use proposals, for six months after implementation of the new quotas and prices the wages of inventors or-of the authors of proposals shall be based on previous prices.

2. For three months after implementation of the new quotas and prices the wages of other employees who have helped the inventors or authors of proposals shall be based on previous prices.

Section 153. Determination of Fixed Tasks and Service Norms

The number of fixed services or employees may be determined during piece-rate pay so that employees can fulfill various functions, tasks or the relevant scope of work.

Division Twenty Five- Compensation Norms

Section 154. Wages

1. Wages are the total daily or monthly amounts paid in cash or check by the employer to the employee for work performed (or services rendered) while carrying out his duties during the work period in accordance with the employment contract as well as supplements, bonuses, and other payments.

2. Employee wages may not be reduced in any way, nor may employees be paid less than the minimum wage set by the State in violation of Section 16 of this law banning discrimination.

Section 155. Minimum Wage

1. Employees shall have the right to payment of no less than the minimum salary determined by the State without discrimination.

2. The minimum wage is the amount equal to a monthly salary paid to a non-skilled employee based on economic and social conditions and is a social norm which establishes the lowest salary level.

3. The monthly wage of an employee who has performed his duties and completed his work quota during the monthly work period shall be no less than the monthly minimum salary set by the State.

4. Collective agreements and employment contracts may establish a higher wage compared to the minimum salary determined by Legislation.

5. Prizes based on compensation, supplements to compensation, wage increases, and overtime wages shall not be added to the minimum wage.

6. The relevant Executive Authority shall determine the minimum wage.

Section 156. Compensation and Determination of Expertise and Pay Scale

1. Wages paid shall be no less than the amount specified in employment contracts or standard salaries agreed upon in collective Labour contracts.

2. The level of work performed by employees shall be determined and they shall be assigned to grades based on their expertise and pay scale pursuant to the existing standards-expertise booklet.

3. The employer shall increase the degree of qualification of employees who complete their work quotas at a higher level and quality first or without observing the order of priority.

4. An employee who has performed at higher work standards within at least 3 months or has passed exams relating to his specialty shall have the right to ask the employer to assign him a higher grade of expertise in accordance with the regulations. The employer shall meet the aforesaid demands by employees.

5. The grade of expertise of an employee who has violated, production and equipment usage guidelines and has caused a serious deterioration in product quality may be reduced by one level; this reduced level may be raised again pursuant to regulations, but no sooner than three months after it was reduced.

6. The previous pay scale for an employee whose pay scale has been reduced may be raised if he achieves good performance results, but no sooner than three months after it was reduced.

7. The employer shall have the right to increase or reduce the pay scale in specified amounts based on the results of tests given to employees with the participation of trade unions and pursuant to regulations.

Section 157. Compensation System and Methods

1. Employee compensation may be based on the amount of work performed or the amount of time the employee has put in or on some other criteria. Wages may be based on either the individual or collective result of the work performed.

2. During a year in which the targets in the employment contract are met, in order to encourage employees and keep them interested in improving production and work quality they may be paid bonuses and awarded other prizes based on the results of work performed.

3. Compensation shall include the standard monthly pay, supplements to it, and bonuses.

4. As part of compensation, the standard salary shall be based on the complexity of the job, the speed required, and the level of expertise of the employee.

5. Supplements to compensation shall be added to the employee's standard salary as compensation for difficult work or as an incentive.

6. A bonus shall be a cash incentive to encourage employees to improve the quality and quantity of work and shall be paid pursuant to the wage system.

Section 158. Implementation of a Compensation System

1. The kinds, systems and standards of wages, tariff (official) wages, wage supplements, bonuses, and other incentives shall be specified in collective agreements and employment contracts. If there is no collective agreement, they may be specified in employment contracts and, in relevant cases, by mutual agreement between the employer and the trade union.

2. The compensation system, and the kind and amount of salaries of employees in state-run organizations shall be determined by the relevant department of the Governor's office.

3. The amount of an employee's salary shall be based on the results of his work performance, personal efficiency and professional standing and it may not be restricted within any one level.

Section 159. Compensation in Special Cases

Supplements to wages shall be paid to increase compensation for jobs in which conditions are difficult and hazardous, and in workplaces where the climate makes work difficult. The minimum amount of such supplements shall be determined by the relevant agency of the Governor's office.

Section 160. Compensation for Work Performed in Different Jobs

1. When an employee whose compensation is based on the amount of time spent on the job works on different jobs, duties, assignments, or uses different levels of expertise while performing his duties, or provides services to work stations, machinery, or equipment exceeding the set quota, then his salary shall be paid according to the expertise that is entitled to the highest amount and supplements to his salary shall be added.

2. Wages based on the amount of work performed shall be paid according to Labour costs. If, according to production conditions, work with a lower pay scale in any field is assigned to an employee who is paid by the amount of work performed, then the difference between the salaries also shall be paid to the employee. If the employee fulfills the production quota in a job which is paid at least 2 levels lower than his wages, he should also be paid the difference between the two wages.

3. When an employee performs different jobs, the difference between job levels or when the services additional machinery and equipment, the higher wages and conditions for their payment shall be specified in collective agreements and employment contracts, if there is no collective contract, the higher wages and conditions for their payment shall be determined by the employer and the trade union.

Section 161. Compensation after Changing Jobs

1. If an employee is assigned work or duties to fulfill partially or fully in addition to the requirements of his employment contract, supplements shall be made to his wages and paid to him accordingly.

2. In other cases, compensation for additional work or duties shall be specified in the manner stipulated in the collective agreement or employment contract or on the basis of the mutual agreement of both sides.

Section 162. Compensation for Temporary Replacement

1. When an employee on temporary leave for specified reasons is replaced by another employee, the replacement shall be paid the difference between his standard wage and that of the employee on leave.

2. If the standard salary of the replacement employee is less or the same as that of the employee on leave, the replacement employee shall be paid a supplement to his salary. This extra amount shall be determined by mutual agreement between the employer and the employee.

Section 163. Compensation for Substitute Employees

1. The compensation for substitute employees shall be based on working conditions and the actual work performed.

2. Standard salaries, bonuses, supplements, and wage increase for substitute employees shall correspond to those of regular employees.

Section 164. Holiday or Weekend Compensation

1. Wages for work performed on holidays, weekends and days of national mourning shall be paid as follows:

2. Should an employee who works on a holiday or day of national mourning so desire he may have an extra day off in lieu of pay.

Section 165. Compensation for Overtime

1. Wages for every horn of overtime work shall be paid to employees as follows:

2. Additional payment for overtime work may be stipulated in employment contracts and collective agreements.

3. An extra day off may be granted instead of pay for overtime.

Section 166. Compensation for Night or Multiple Shift Work

1. Wages for work at night or multiple shifts shall be no less the amount set by the relevant agency of the Governor's office.

2. Collective agreements or employment contracts shall determine specific extra wages for work at night or multiple shifts.

Section 167. Compensation in the Event of Failure to Fulfill Production Quotas

Should production quotas not be met for reasons which are not the fault of the employee, wages shall be paid for the amount of work performed. In such cases, the amount paid shall be no less than two-thirds of the standard salary.

Section 168. Compensation in the Event of Defective or Spoiled Goods

1. If goods produced are defective for reasons, which are not the fault of the employee, he shall be paid reduced wages for work performed. In such cases, the amount paid shall be no less than two-thirds of the standard salary for the employee's pay scale.

2. If the defect in the goods is not visible or is detected after passing inspection, wages for that employee shall equal the wages for normal goods.

3. Wages may not be paid for work performed by employees who have produced useless and defective goods when it is their own fault. If the goods produced are partially usable, the employee shall be paid reduced wages based on the degree of usability of the defective goods.

Section 169. Compensation for Idle Time

1. Should an employee notify his employer or supervisor (manager, foreman team leader, etc.) that he is idle, he shall be paid for the time he was idle that was not his own fault in an amount not less than two-thirds the standard salary for his pay scale.

2. Wages may not be paid for idle time that is the employee's fault.

Section 170. Compensation for New Production (output)

Until the new process has been mastered, if wages for new production, are less than the employee's previous wages, he shall be paid at his previous average wages. In such cases the employer shall determine the time over which previous wages are applied and the employees who are subject to them.

Section 171. Compensation for Incomplete Work

Wages of employees who have worked incomplete work days or incomplete work weeks shall be paid in proportion to the amount of time spent at work or the amount of output as outlined herein.

Division Twenty-Six 

Means and Methods of Compensation, Wage Deductions

Section 172. Compensation Schedule

1. As a rule wages shall be divided into two parts (advance and remaining pay) and paid to employees twice a month with an interval not to exceed sixteen days. Wages for employees whose salaries are calculated over a one-year period must be paid not less than once a month,

2. Other terms for the payment of wages may also be stipulated in collective agreements and employment contracts.

3. If a payday falls on a holiday or weekend, payment shall be made the day prior.

4. Should an employee quit, all payments due him shall be paid in fall on the day that he quits.

5. If payments are delayed through the fault of the employer and this has not already resulted in a grievance by the employee, the employee shall be paid an additional one percent of his salary for each day the payment is delayed. If the delay has resulted in a grievance, it shall be resolved pursuant to the guidelines in the section on Labour Disputes herein.

6. If an employee's record book is not issued within the time determined in Subsection 3 of Section 87 of this Code and the delay is the fault of the employer, the employee must be paid an average salary for the entire period of time during which he was not hired.

Note: The phrase "delay is the fault of the employer" used in this Section shall mean non-payment of an employee's salary over the period in question due to salaries not having been calculated within the fixed time, salaries not having been withdrawn from an authorized bank and financial and accounting operations not having been conducted in time, as well as in cases depending directly on the employer's will and capabilities. This procedure shall not apply in cases when an employer is not able to pay employee salaries on time due to a bank's mishandling of operations regarding funds when said employer is a client of the bank, due to the bankruptcy of the bank, or due to non-payment by another employer for work performed or services rendered, etc., which do not depend on the employer.

Section 173. Employee Payment Documents

1. Employers shall draw up all payment documents (books, lists, checkbooks) for employees reflecting all accounting statements relating to the calculation and compensation of salaries and deductions from them.

2. The following information shall be indicated in employee payment documents (books, lists, checkbooks):

3. Payment documents (books, lists, check-books) shall be signed by the accountant that has drawn them up and shall be issued to employees every time salaries are paid. Should the employee so desire, payment documents may be kept at the accounts department.

4. Alt accounting calculations regarding the computation and compensation of salaries and salary deductions may be computerized. Each time salaries are paid employees may request to see said calculations stored in the computer's memory. This information may be printed and issued to the employee in keeping with his request.

Section 174. Place and Form of Compensation; Monetary Unit Used

1. Wages shall be paid regularly at the workplace where the actual work is performed.

2. Wages may be deposited in the employee's bank account or sent to a specified address at his request.

3. At the employee's consent, up to 50 percent of his wages may be paid in goods produced by the company or in other consumer products, with the exception of alcoholic beverages and narcotic medicines.

4. Wages shall be paid in the currency of the Republic of Azerbaijan, the Manat.

Section 175. When Wage Deductions are Permissible and Deduction Methods

1. With the exception of cases defined hereby, specific deductions may be taken from the salary of an employee only with his written consent or on the basis of a court order.

2. An employer may deduct only the following from an employee's salary:

3. An employer may perform accounting operations to deduct cash advances, money owed by the employee, or overpayments resulting from miscalculation no later than one month after the deadline for its reimbursement. Upon expiry of the noted term, the aforesaid amounts may not be deducted from the employee's account.

4. No deductions from severance pay, wages, or other payments that are tax-exempt pursuant to law shall be permitted.

5. With the exception of payments resulting from mathematical error, additional amounts paid to the employee, including the amounts paid as a result of failure to enforce the law or other regulations, may not be deducted.

6. At the written request of the employee, portions of his salary in amounts that he specifies may be deducted and sent to specified creditors in payment for loans, credit, and other personal debt. An employer may not accept creditors' requests unless the employee has requested said deductions.

Section 176. Reducing Deductions from Compensation

1. Total deductions may not exceed 20 percent of the employee's compensation. In the case of legal actions defined by law, the deductions may not exceed 50 percent of his compensation.

2. When legal documents require several simultaneous deductions, the employee always shall be paid 50 percent of his compensation.

3. The limits specified in the first and second subsections of this Section do not apply to child support or when the employee is undergoing corrective Labour (serving time in prison).

Division Twenty-Seven

Average Compensation and Methods of Calculating It

Section 177. Average Compensation and Methods of Calculating It

1. Average compensation is the amount paid by the employer for work completed (duties performed) and other payments pursuant to this law and other regulations.

2. With the exception of paid vacation, average compensation shall be calculated by adding the employee's wage in the two calendar months prior to the payday, dividing it by the number of workdays in those months and multiplying the result, the average daily wage, by the number of workdays in the month.

3. If the employee has not yet worked two months, his average wage shall be calculated in the following manner: the salary earned by the employee during the days actually worked shall be divided into said days, a daily salary determined, and the result multiplied by the number of workdays.

4. Average wages shall be calculated with regard to all payments made pursuant to Section 157 hereof.

5. Average wages shall be calculated in those cases specified in Sections 60, 77, 123,170,172,179,181,198,224,230,232,236,243,244,245 and 293 hereof.

6. When average wages are calculated, the inclusion or exclusion of any payment shall be determined by the relevant government agency.

Section 178. Compensation Guarantees

1. An employer, regardless of his financial situation, shall be obliged to pay an employee the specified salary for work performed at the times specified by Section 172 hereof. Any employer who has failed to pay the monthly salary of his employee shall be prosecuted pursuant to applicable laws.

2. In cases when the company has shut down priority shall be given to paying salaries and all social benefits, including payment for unused, paid vacation days. Pursuant to Section 77 and 239 hereof, the employer shall make all other payments due employees up to the day of closure. Said payments shall be compensated to employees in the manner stipulated by Legislation in cases when the company becomes insolvent as a result of bankruptcy.

3. If in the cases specified in the second subsection of this Section the employer does not have the material or financial resources to pay, payments shall be made by selling the property of the company or by insurance from the relevant government agency pursuant to regulations.

Section 179. Cases when an Employee's Job and Average Compensation Shall be Protected

1. When an employee is called upon to perform state or social duties pursuant to the law, his job and title shall be preserved and he shall be paid his average wage while serving his duties.

2. In the following cases the job and average salary of the employee shall be protected: 

Section 180. The Stock Rights of Employees

Employees shall have the right to receive shares from stockholder companies and other entities created in accordance with applicable laws and when owners' shares are defined in the companies' bylaws (regulations). The number of these shares shall be based on profits, and the percentage of shares on the bylaws. Any employer who limits or repeals these rights shall be held fully liable under the law.

Section 181. Regulation of Other Employee Guarantees Pursuant to Law

Any employee, who has an invention, has contributed ideas for efficient production, who delivers blood or blood components or who is sent on a business trip shall receive appropriate guarantees. These rights are included in the standard regulatory codes. Such employees shall also retain their jobs and regular average employee rights.

CHAPTER SEVEN- LABOUR AND PERFORMANCE DISCIPLINE

Division Twenty-Eight- Regulations on Labour and Performance Discipline

Section 182. Internal Discipline

1. Internal discipline regulations may be adopted by the employer to ensure Labour discipline, oversee fulfilment of employment contracts directly in the workplace, as well as collective Labour contracts, and to comply with Labour law.

2. In cases stipulated in the bylaws of corporations the relevant Executive Authority of a group of entities may adopt internal discipline regulations for enterprises included in said entity.

3. Internal discipline regulations shall be enforced pursuant to this Code and other Labour regulations. The relevant provisions of internal regulations and the legal result of their application shall be considered invalid if they contradict these regulations.

Section 183. Content of Internal Regulations

1. As a rule, the following shall be included in internal discipline regulations:

2. Internal regulations for establishments which include a group of legal entities shall comply with subsection 1 of this Section and shall also include other information on additional conditions listing the names of the establishments to which the regulations apply, and other information which complies with Labour and performance discipline.

Section 184. Governance of Labour and Performance Discipline with Discipline Regulations

1. Labour and performance discipline shall be governed by discipline regulations in order to increase the responsibility of the parties for the nature of the work performed and service provided in the following establishments:

2. Discipline regulations may stipulate only provisions differing from the requirements of the chapter on Labour and performance discipline herein. However, at establishments where Discipline Regulations exist, other Labour relations shall be regulated by this Code.

3. Discipline Regulations shall be developed with the participation of trade unions and shall be approved by the relevant executive authorities pursuant to the law.

Section 185. Employee Rewards for Labour and Performance Discipline

1. Employees distinguished for performing their duties at a high professional level or for observing internal discipline shall be rewarded by the employer as follows:

 

Division Twenty-Nine- Liability/or Violation of Labour and Performance Discipline and Regulation of its Application

Section 186. Disciplinary action for Violations of Labour and Performance Discipline

1. Employers may punish employees for failure or delay in the performance of their duties or for substandard performance, for violation of duties defined by the employment contract and internal discipline regulations. Moreover, employees shall be held accountable in other cases stipulated by Legislation.

2. When an employee does not fully fulfill his duties or performs them poorly an employer may adopt punitive measures as indicated in Section 10 hereof, and may take one of the following measures if the employee violates his obligations under the employment contract or the internal discipline regulations:

3. When applying disciplinary action the employer must take into account the employee's personality, his reputation at the enterprise, his professional standing and the nature of the fault committed by him. The employee may be warned verbally or in writing without applying any of the disciplinary action stipulated in Subsection 2 of this Section. Warnings shall not be considered punitive measures, disciplinary action.

4. Holding an employer accountable for disciplinary violations as stipulated herein shall be the responsibility of the official considered to be his employer or the relevant Executive Authority if the proprietor of the enterprise and the enterprise itself are under state jurisdiction. Employers shall be held to administrative or criminal accountability in the manner established by Legislation.

Section 187. Regulations for Application of Disciplinary Warnings

1. Before applying a disciplinary warning the employer shall require the employee to submit a written explanation. The employee's refusal to provide a written explanation shall not prevent the issuance of a disciplinary warning.

2. A disciplinary warning may be issued within one month from the date of violation of the Labour or employment discipline. Time during which the employee was on sick leave or annual leave or on a business trip shall not be included in said period.

3. Disciplinary warnings may not be given to the employee after six months from the date the disciplinary offense was committed. If the results of an audit (investigation or search) of financial records uncovers a disciplinary offense on the employee's part, a disciplinary warning may not be given more than one year after the determination of the offense. This Section does not include criminal procedures.

Section 188. Officials Authorized to Impose Disciplinary Action

1. Disciplinary action may be imposed only by an employer authorized to enter into, amend and terminate an employment contract.

2. Unless otherwise stipulated by the enterprise's bylaws (regulations), an employer may give by order (instructions, decision) one of his deputies or a manager of the office of a division outside of the enterprise the authority to impose disciplinary action on employees. The order (instructions, decision) shall state the reason for this authorization and the scope of authority.

3. No other officials except those indicated in subsections 1 and 2 of this Section shall have the authority to impose disciplinary action on employees. If, in violation of these regulations, disciplinary action have been imposed by an unauthorized employee, such order shall be considered invalid.

Section 189. Conditions of Disciplinary Action

1. Only one disciplinary action shall be taken per disciplinary violation. Several disciplinary actions may not be imposed for a single disciplinary violation.

2. Disciplinary action may be imposed on an employee on a working day when he is present. Disciplinary action may not be imposed on an employee when he is on vacation or on a business trip or while he is injured.

3. Disciplinary action may be imposed according to the order (instruction, decision) of the employer. The employee shall be acquainted with the order (instruction, decision) and shall be presented a copy at his request.

4. The order (instructions, decision) concerning disciplinary action shall not include information denigrating the employee's honour and dignity, his identity or moral sensibilities, nor shall it be based on vengeance for his lack of discipline.

Section 190. Term of Disciplinary Action and its Advance Repeal

1. Disciplinary action shall remain in effect for six months from the date of issuance.

2. Should the employee perform his duties at a high level as a result of disciplinary action and not violate internal regulations, the employer may lift the order (instruct, decision) on disciplinary action in advance.

3. If the employee claims, while subject to disciplinary action, that the employer has violated legal requirements and his rights, the employee may appeal to a court for resolution of an individual Labour dispute pursuant to this Code.

4. If an employee is given any of the rewards stated in Section 185 hereof for performing his duties at a high professional level while under disciplinary action, the disciplinary action shall be considered invalid from the date of the reward.

CHAPTER VIII- MUTUAL MATERIAL LIABILITY OF EMPLOYER AND EMPLOYEE

Division Thirty- Cases Determining the Mutual Material Liability of Employer and Employee

Section 191. Material Liability of Employer and Employee for Damage.

1. While meeting their obligations under an employment contract, an employer and employee shall be mutually liable for damage caused one other as stipulated in this Code and relevant regulations.

2. The parties shall be liable for damage caused one another intentionally or through negligence, provided that the following three conditions are met:

Section 192. Commencement of Material Liability and Its Substantiation

1. Material liability of the parties shall commence on the date of identification of the damage caused as a result of the employer's and employee's activity or inactivity.

2. When the parties claim the amount of material damage and its cause or deny fault for damage to the other party, they shall be required to provide proof.

Section 193. Employer Liability for Damage to the Owner of the Property

1. The employer shall be held fully and financially liable for damage to property as a result of his actions in violation of the laws pursuant hereto, and in other situations defined by other standard regulations.

2. The owner of the property may issue an order (instructions or decision) and provide payment for the damage caused him by the employer or he may choose to resolve the issue legally by filing a lawsuit against the employer in order to obtain compensation in the manner established by Legislation.

Section 194. Conditions for Damage Compensation

1. The party that caused the damage may be held administratively or otherwise liable, but regardless of the punishment, he shall also be liable for monetary compensation in an amount specified by regulations.

2. The offender shall not be relieved of financial liability if Labour activities were stopped after the damage to the property.

Division Thirty-One- Financial Liability of an Employer for Damage to an Employee and Procedures for Settlement

Section 195. Financial Liability of an Employer for Damage to an Employee

An employer shall bear full financial liability for damage to an employee during his employment under the circumstances shown below:

Section 196. Determination and Monetary Compensation for Damages to an Employee

1. If an employee determines that one of the situations listed in Section 195 hereof is applicable to his situation, he shall apply for compensation. If the relevant authority - agency, office, institute, investigator responsible for investigating financial and economic activities, auditor, auditing company, tax service office or official -decides or votes or certifies or a court order (decision) proves his argument, then compensation shall be due the employee.

2 .The monetary value of the damage to the personal belongings or other property of the employee shall be determined by the market value of the property at the time of the damage. In this case, by mutual agreement of the parties, the monetary equivalent of the damage to the property may be paid by any means.

3. If the employer permits an employee to use special tools, etc., to do his work during or after the execution of an employment contract with that employee, the employer shall be financially liable for damage to the personal tools of the employee.

4. If an employer creates suitable conditions in the workplace for his employees and does not allow employees to bring their own personal tools and other belongings to the workplace, but an employee acts unilaterally and takes his own tools to the workplace in order to perform his work, then the employer is responsible only for monetary compensation for the damages he intentionally caused to the personal property of said employee.

5. The monetary amount for spiritual damage caused to an employee shall be determined in the manner stipulated in Subsection 3 of Section 290 hereof.

Note: In this Section, "personal tools and other belongings" shall be defined as possessions which the employee takes to the workplace in order to perform his duties with the permission of the employer. In order to be considered hereunder the value of such machines and mechanisms, electronic or electric power tools, communication tools, transportation vehicles and machinery shall be more than double the monetary value of the minimum wage.

Section 197. Assessment of the Damage to the Employee

1. The employee shall present a formal petition to the employer requesting the monetary equivalent of the damage. The employer in return shall investigate the claim of the employee stated in the petition and shall come to a decision and answer the employee in writing within fifteen days.

2. If the employee cannot reach total or partial agreement with the employer on his decision or if he does not receive an answer, he may take the dispute to court to seek compensation for damages.

3. To avoid going to court, the parties may reach a bilateral agreement on a different ways to solve the conflict out of court. This shall not limit the employee's right to court appeal.

Division Thirty-Two- Financial Liability of Employees for Damage to an Employer and Procedures for Settlement

Section 198. Financial Liability of the Employee Up to His Monthly Wage

Except in the situations defined in Sections 199 and 200 hereof, in all other situations an employee shall be liable to pay up to one month's average salary for damages he caused to an employer.

Section 199. Full Financial Liability of the Employee

The employee shall bear full financial liability for the situations shown below if he violates the law:

2. when damage is caused by an employee under the age of 18 he shall be held fully liable only under subsection c, d, and e of this Section.

Section 200. Agreements on Full Liability

1. Upon entering into an employment contract later during employment, an employer may entrust property or other materials to the employee. Any employee who is 18 years of age and is engaged in the protection, production, sale, transport, use or other activities related to the property or materials entrusted to him by the employer may sign a written agreement assuming full financial liability for that property or materials.

2. When an employer entrusts property or other valuables, to a group of employees for protection, production, sale, transportation, use or for other purposes, the financial liability of each these employees must be defined contractually. If it is not possible to sign individual contracts with each employee, a collective agreement on group liability may be signed.

3. The employer shall determine the list of the employees and jobs mentioned in subsections 1 and 2 of this Section for which total liability agreements shall be signed.

4. When collective liability is determined for employees in the workplace, and if there is damage to the employer by the collective, each member of the collective shall bear different financial liability depending on his position.

5. With the exception of criminal activities, if there is no agreement on total financial liability, an employee may held financially liable for damage to the employer only to the extent of his average wage.

Section 201. Employee Exemption from Financial Liability

1. If a natural disaster - flood, overflow, landslide, drought, fire or any other unstoppable disaster - occurs and causes a risk to normal production, or a technological accident occurs through no fault of the employee, such as the breakdown or failure of machines, mechanisms, tools or any other means of work, or in the event of necessary breakage or breakage for the employee's self-defence, the employee shall not be liable for damage to the employer. If the parties do not come to an agreement in these cases, they may be solved in the court pursuant to relevant laws.

2. An employee may not be held liable beyond the actual damage he causes by his activity or inactivity. That is, an employee shall not be financially liable for the employer's loss of possible future income.

3. If an employee knowingly and intentionally through illegal activity or inactivity tries to prevent the future income and profit of the employer and causes specific damage to the employer, then the employee may be held financially liable only by a court ruling responsible for possible future income loss of the employer and may be punished pursuant to the law.

Section 202. Determination of the Amount of Monetary Damage

1. Damage to the employer shall be determined on the basis of actual losses.

2. If the employer loses property which is considered the main source of his business or this property is stolen or damaged, its financial value shall be calculated at base prices. In other situations, damage shall be calculated at the market value of the property at the time of the damage.

3. The monetary amount of spiritual damage caused to an employer shall be determined by the court on the basis of his application, pursuant to the principle foreseen in Subsection 3 of Section 290 hereof.

Section 203. Investigation to Determine of the Amount of the Damage

1. Before an employer decides to seek compensation for property damage, he shall request a written explanation from the employee. The employer shall then try to determine the legality of the employee's activity or inactivity, whether the damage was caused by the employee and, if so, the reason for the damage. The employer shall also try to determine the actual monetary value of the damage.

2. The employee shall have the right to familiarize himself with the investigation (research), inspect documents, provide additional explanation, or object to them. The employer must inform the employee of the process.

Section 204. Voluntary Payment of Damage by the Employee

1. The employee who is responsible for the damage to the employer may pay total or partial damages voluntarily.

2. Voluntarily payment for damage to the employer may be applicable only to situations shown in this Code.

3. The employer may establish a schedule for damage compensation with the agreement of the employee.

4. If the employer agrees, the employee may replace the property that was damaged or lost instead of paying compensation, or he may repair it or have it repaired at his own expense.

Section 205. Procedure for the Deduction of Costs for Damage the Employee Causes the Employer

1. If the cost of damage to the employer is not more than the monthly income of the employee, then the employer shall decide (order) how to deduct the damage from the employee's salary.

2. If damage occurs while the employee has full financial liability and its value is more than his monthly income and the employee refuses to pay voluntarily, the employer shall file suit in court to resolve the case, and the cost may be paid by court order.

3. If the employee does not agree with the employer's order on compensation, he may file a suit pursuant to the regulations.

Section 206. The Role of the Court in Damage Compensation

1. Considering the degree of guilt, the facts, the financial resources of the employee and other circumstances important to the case, the court may reduce the amount of damage or authorize a settlement agreement between the parties.

2. If one of the parties incurs damage as a result of the other's criminal activity or inactivity, the court shall conduct a criminal investigation resulting in the payment of damages.

CHAPTER IX- PROTECTION OF LABOUR

Division Thirty-Three- Norms, Regulations and Principles for Protection of Labour

Section 207. Laws Determining Occupational Safety Standards and Procedures

1. Employees shall have the right to work under safe and healthy conditions.

2. Standards and regulations on occupational safety shall be governed by this Labour Code, the regulations of relevant authorities within their jurisdiction, other regulations, as well as international agreements signed or supported by the Republic of Azerbaijan.

3. Compliance with occupational safety standards and regulations shall be mandatory for parties to Labour relations and other persons and entities.

Section 208. Workplaces Where Occupational Safety Standards and Regulations Apply

Occupational safety standards and regulations defined by this Code and other regulations shall apply to the workplaces of the persons mentioned below: employees; apprentices; military personnel employed by institutions; inmates employed during their prison sentences according to the court decision;occupational safety standards and regulations defined by this Code must apply to all workplaces where individuals have been called to eliminate the results of a natural disaster or to perform work in a state of emergency.

Section 209. Basic Principles of Occupational Safety

Relevant state authorities, owners, employers and employees shall ensure occupational safety pursuant to the following principles:

Section 210. Participation of Public Organizations in the Settlement of Occupational Safety Issues

Employers, employees and various physical persons may join and establish public organizations operating pursuant to the law or public organizations in order to settle occupational safety issues State authorities and employers shall provide multilateral assistance to public organizations and shall consider their proposals and recommendations when adopting occupational safety regulations.

Division Thirty-Four- Legal, Organizational, Technical, and Financial Guarantees of Occupational Safety

Section 211. Government Regulation of Occupational Safety

1. A unified government occupational safety policy shall be prepared and implemented by the relevant authorities in order to provide their equal fulfilment and to ensure the application of the right of additional leave and other standards by taking into account the peculiarities of work conditions, in cases determined in this Code. The relevant authorities shall prepare unified and detailed list of:

2. The lists enumerated in Subsection 1 of this Section shall be published in numerous copies and issued for utilization to employers and trade unions in all branches of the economy. Employers shall be obliged to take actions required to familiarize the employees with them at a convenient time for them and create opportunities for them to use said lists.

Section 212. Regulation of Protection of Labour by the State

1. A unified state policy on occupational safety shall be implemented by the relevant Executive Authority.

2. The relevant Executive Authority shall:

Section 213. The Right of Executive Authorities in Occupational Safety

The relevant executive authorities, including state concerns, companies, associations and corporations shall:

Section 214. The Rights of Municipal Authorities in Occupational Safety

Municipal authorities shall:

Section 215. Employer Occupational Safety Obligations

The owner and employer of the establishment shall be directly responsible for the occupational safety of employees in the workplace and for the application of regulations. They also shall be obliged to take the following measures in the workplace:

Section 216. Employee Duties Involving Occupational Safety

Employee duties involving occupational safety shall include the following:

Section 217. Procedures on the Investigation and Registration of Industrial Accidents

1. Employers shall be obliged to immediately advise the authority exercising state control over compliance with Labour legislation of the accident on the day it took place for its investigation, independent of the gravity of said accident.

2. The authority exercising state control over compliance with Labour legislation shall establish a commission on the basis of the information' received in the manner established by Legislation and shall organize an investigation of the accident that has taken place.

3. Employers must draw up an appropriate act in the manner determined by Legislation within a day after the investigation of said accident is completed, and one copy of the noted act shall be absolutely issued to the injured employee.

4. Employers or their authorized officials who conceal the facts of an accident that has occurred or neglect to draw up a proper report on the investigation carried out shall bear responsibility in the manner stipulated in Legislation.

5. Oversight for the investigation and registration of accidents shall be governed by a Normative Legal Act approved by the relevant Executive Authority on the basis of procedures stipulated herein.

Section 218. Compliance with Occupational Safety during Facility Planning, Construction and Operation

1. Unless they meet the requirements of current occupational safety standards, regulations and conditions, industrial buildings and machinery may not be planned, constructed or reconstructed; means of production may not be fabricated or distributed, and technology, including imported technology, may not be used.

2. Construction plans for an enterprise and production buildings must be approved by government experts and production tools and devices shall meet the requirements for occupational safety and shall be tested and approved by appropriate government institutes.

3. Local government authorities and state agencies shall consult with appropriate organizations and experts to determine if the proposed plans meet occupational safety requirements and shall undertake an expert review on behalf of the government agencies.

4. Harmful substances, raw materials and other toxic materials cannot be used until a production engineering, fire protection, public health and hygiene, and medical-biological expert study has been performed and research and other inspection methods used on these materials to determine their effect on human health.

5. No new or reconstructed enterprise, object or production institute may start operation without a certificate or license issued pursuant to the relevant regulations.

6. No newly-constructed or reconstructed establishment to be used for social or public food service purposes may operate without permission of the State Labour Inspection Board or other relevant authorities.

7. The operation of enterprises and the means of production that do not meet occupational safety requirements or endanger employees' health and lives shall be shut down by the authorities exercising state control over compliance with Labour legislation in the manner established by Legislation unless they are brought into conformity with occupational safety requirements. In the aforesaid cases, employee salaries shall be paid in the manner defined in Section 169 hereof.

Section 219. Training of Occupational Safety Experts and Employees

1. On the basis of current production information, the government shall provide education and training for occupational safety experts at specialized schools.

2. Employers shall provide occupational safety education and instruction for employees with the participation of trade unions and shall implement this form of professional development pursuant to the law.

3. Employers and managers of enterprises must take courses to improve then-knowledge of occupational safety at least once every three years, and their knowledge on this subject must be tested.

4. In all employee training and qualification-improvement programs training on occupational safety must be included. Employers must provide employees that are hired or transferred to another job with occupational safety instructions and see that they are taught how to use safe working methods and render first aid to those employees injured in accidents.

5. Employees who have been hired to work at hazardous workplaces and in hazardous professions (positions), as well as with machines, mechanisms and equipment which are sources of high risk shall not be permitted to start to their job unless they have been instructed with respect to occupational safety roles. Employers shall be obliged to register said instructions in special registration books.

Section 220. Funding for Action on Occupational Safety

1. Depending on the purpose and assignment, expenses for occupational safety shall be funded by the national budget and the employer.

2. National budgets shall allocate funds for occupational safety at the local level. These funds shall also be used for scientific research on occupational safety and for the development and implementation of special national or regional programs.

3. The employer or owner of an enterprise shall take working conditions, safety, and sickness and injury rates into account when allocating money and materials to occupational safety. This money may not be spent for other purposes.

4. Funding for occupational safety must be stated in the collective contract. Total annual expenditures shall be no less than two percent of the money spent on employee Salaries

5. Employees shall not contribute to occupational safety funding.

Section 221. Labour Protection Fund

1. A Labour Protection Fund shall be established at the level of the State and the enterprises.

2. The Republican Labour Protection Fund shall include:

3. An enterprise fund shall be created with funds, allotted for the protection of Labour and safety.

4. The management of the occupational safety fund and the dispersal of its funds shall be implemented in the manner stipulated in the Regulations approved by the relevant Executive Authorities.

5. The Labour Protection Fund may be used only to bring workplace conditions and safety up to the required level or to improve occupational safety at the enterprise.

Section 222. Conditions for Providing a Healthy and Safe Workplace

1. Employers shall provide a healthy and safe workplace, shall monitor dangerous and harmful production factors, and shall provide employees with information on these subjects in a timely manner.

2. Employers shall prepare and implement annual plans to improve working conditions, to ensure occupational safety, and to protect employee health.

3. The mutual responsibilities of the employer and the employee for the creation of a healthy and safe working environment shall be taken into consideration in collective and employment contracts.

4. If a production site is harmful and dangerous or if the work requires a special temperature or the employees work in a dirty environment, they shall be provided with special clothing, shoes, and other personal necessities including washing materials as required in the relevant regulations.

5. Employers, together with employee unions, shall certify compliance with occupational safety standards and regulations. Employees shall be informed of the results of certification. The employer, acting according to the certification results, shall take measures to comply with current regulations.

6. The employer shall handle services such as the storage, washing, drying, disinfecting, and repair of the special clothes and shoes and other personal protection devices given to employees.

7. In certain production areas determined by law the employer shall provide clean drinking water.

8. For employees who work outside during cold and hot seasons of the year, in closed unheated buildings or in, hot mills the employer shall provide areas to warm up and to rest. Pursuant to the law, employees shall be 'given breaks to warm up and rest, and these breaks shall be counted as time on the job.

Section 223. Labour Protection Services

1. An occupational safety service shall be created to organize occupational safety and monitor employee compliance with occupational safety laws and standards at all offices and entities in all branches of the economy.

2. Experts familiar with Labour legislation and occupational safety standards shall be included in the staff of Labour protection services. An industrial-sanitary Laboratory shall be instituted at enterprises employing over one thousand employees and a doctor's position shall be established there.

3. Occupational safety service experts shall have the right to monitor employee compliance with occupational safety standards and regulations, to order the heads of relevant units to take mandatory measures to eliminate violations, and to make recommendation to the employer with respect to the liability of any individual who violates occupational safety laws.

4. Occupational safety service experts may not be asked to perform work unrelated to their duties. They shall be liable under the law for failure to perform their duties pursuant to the law.

5. Employers may reorganize or cancel occupational safely services only with the agreement of the authority that exercises control over compliance with Labour legislation.

Division Thirty-Five- Guarantees for Implementation of Employee Occupational Safety Rights

Section 224. Occupational Safety Guarantees upon Execution of an Employment Contract

1. The terms of the employment contract shall meet the occupational safely requirements hereof.

2. An employment contract shall state the employer's commitment to provide a healthy and safe working environment for the employee and guarantees thereof shall be clearly stated.

3. When hiring an employee for a job with a high risk of job-related illness, the employer shall submit information to the employee about the possible time frame of said illness. The employment contract shall therefore' cover only that period, and at the end of that period the employee shall be given a different job with same salary.

4. Production sites and work places where employees may be taken ill with occupational disease shall be taken into account in the list indicated in Section 211 hereof.

Section 225. Employee Social Insurance and Personal Insurance against Industrial Accidents and Occupational Illness

1. Employers shall provide mandatory social insurance to employees pursuant to the law.

2. Employers must provide employees working at high-risk jobs with mandatory personal insurance against industrial accidents and occupational illness. A list of employees requiring personal insurance and the amount of the insurance coverage shall be stated in the collective agreements or employment contracts or in the agreements signed with insurance agencies.

3. Employers must insure employees who work on machinery, mechanisms, equipment, and electrical equipment, in jobs with the risk of explosion and fire, or other similar jobs, against industrial accidents. The aforesaid mandatory insurance shall be issued on the basis of die list of production or non-production sites considered extremely dangerous to human life, as stipulated in Section 211 hereof.

Section 226. Compulsory Medical Check-ups

1. An employer entering into an employment contract with employees in harmful, hazardous and harsh industries must provide a clause for an initial medical check-up and for regular, free, compulsory medical tests pursuant to the regulations established by medical authorities for the period of then-employment.

2. If an employee refuses to have a medical check-up or if he does not follow the advice of the doctor or medical commission after medical tests, the employer may dismiss him or impose relevant disciplinary action pursuant to Section 62 hereof.

Section 227. Employee Rights to Occupational Safety Information

Employees shall have the right to demand information about occupational safety in their workplaces, about the necessary occupational safety material which they should be given based on working conditions, and about concessions and guarantees. Employers shall be obliged to satisfy these requirements.

Section 228. Occupational Safety for Women and Other Employees under 18

Occupational safety for women, employees under 18, disabled employees, and employees working under harsh conditions shall be governed by this Code and relevant regulations.

Section 229. Prohibition of Activities Hostile to the Requirements of Occupational Safety Regulations

The employer or other employees and enterprises and their structural units shall not operate machinery or equipment if it fails to comply with occupational safety standards and regulations and occupational safety principles as defined herein and may pose a threat to the employee's health or life. In such cases operations shall be halted until the violations identified by relevant inspection agencies or their authorized representatives are eliminated.

Section 230. Guaranteeing Employees Safe Working Condition with Respect to Mandatory Idle Time or the Refusal to Work

1. Employee jobs, positions (professions) and average salaries shall be retained at entities or other workplaces where work is stopped as a result of the violation of occupational safety rules through no wrongdoing on the part of the employees.

2. Should the employer not provide a safe work environment and this failure create a danger to the health and lives of employees, an employee may refuse to perform his job and may go on an individual strike. Under these circumstances, the employee shall not be liable, and the Labour dispute shall be settled in the established manner.

Section 231. Transfer to an Easier Job

Should an employee need to be transferred to an easier job for health reasons, the employer, with the consent of the employee and in accordance with the medical report, must transfer the employee to an easier job on a temporary or permanent basis.

Section 232. Cases When for the Protection of His Health an Employee is Transferred to an Easier Job and His Salary Retained

1. In order to preserve an employee's health, he may be transferred to a job that does not affect his health negatively and paid a lower salary. In such cases, the employee shall retain his average salary from his previous job for one month after the transfer.

2. Employees who suffer from tuberculosis and other chronic diseases and who are transferred to a lower-paying job shall be paid the fall salary from their previous job during their temporary transfer, but for no longer than four months.

3. An employee injured in an on-the-job accident or who suffers from a job-related illness may, on recommendation of an authorized doctors' commission or medical expert commission, be transferred temporarily to an easier job and be paid the average of the salaries for his previous and current positions. The employee shall receive this average salary until he recovers or until he is declared permanently disabled.

Section 233. Cold-weather Work Interruptions and Stoppages

1. When employees work at low temperatures, outside under windy conditions, during very cold weather, or when they work in closed, unheated buildings, they shall be given breaks to warm up or else the work shall be stopped.

2. Employees shall be issued breaks in the manner established hereof when they are working at hot and open workplaces where the temperature is over 45 °C and work stopped.

3. Temperatures and wind velocity necessitating breaks or work stoppages shall be defined in Addendum Two hereto.

4. Breaks shall be counted as paid work time, and employee salary during these breaks shall be calculated on the basis of the employee's regular salary.

5. If work is stopped, wages for the idle time shall be paid on the grounds that the stoppage is not the employees' fault. Wages shall be no less than two-thirds of the employees' regular wage.

Section 234. Transfer to Another Job when Work is Stopped due to a Decrease in Temperature

If work is stopped pursuant to Section 230 and 233 hereof, the employer may transfer the employee to another job. If the employee is transferred to a lower-paying job, the employee shall keep his previous salary from his previous job.

Division Thirty-Six- Supervision of rules and regulations for protection of Labour quotas and responsibilities of employers

Section 235. Government supervision of rules and regulations for job protection and implementation applicable regulatory legal acts of Labour quotas

1. Supervision of roles and regulations for protection of Labour quotas and also requirements of Normative Legal Acts on protection of Labour are done by special government organizations carrying out state control over the observance of Labour legislation.

2. The decisions of government supervision organizations carrying out state control over the observance of Labour legislation and their authorized persons taken within their authority must unconditionally be implemented. Lawsuits can be brought against such decisions in accordance with the applicable laws.

Section 236. Public supervision of implementation of laws on job protection

1. Public supervision of enforcing of laws on job protection is done by persons authorized by Labour collectives and the representatives of trade union organizations.

2. Representatives on job protection have the right to monitor the situation in the work place in regard to job protection, to demand from the authorities the correction of shortcomings discovered, and if necessary to raise issues with the employer regarding taking legal action against the people in fault.

3. In order for the authorized person of the Labour collective and the representative of trade union organizations to be able to carry his duties the employer should give him at least two hours per week of time during the work day which are paid in average wages.

Section 237. Rights of Labour unions on supervision of implementation of laws on job protection

1. Labour unions can within their rights as specified on "The Law of the Republic of Azerbaijan on Labour Unions" participate in supervision of implementation of laws and applicable regulatory legal acts on job protection by the employer.

2. Labour Unions are to participate in preparing applicable regulatory legal acts on job protection and ways of enforcing them by mutual agreement, they have the right to protest to related state bodies enforcing of those acts which have not been prepared by mutual agreement.

3. Representatives of Labour unions can participate in work of state commissions on testing of production equipment and machinery and initiating of their use in production, investigation of unfortunate incidents in production, monitoring of enforcing of job protection laws, and inspection of creating of conditions for their improvement as specified in collective agreements. If the people with authority violate implementation of agreed measures, or hide unfortunate incidents in production Labour unions have the right to raise with state bodies the issue of prosecuting of the guilty persons.

4. When dangers for health and life of workers are created the Labour unions have the right to raise before the authority carrying out state control over the observance of Labour legislation the issue of stopping the use of any machinery which has faulty components and mechanisms which are dangerous for job safety; the production of other kinds of products, use of materials, equipment, and technology which are hazardous to human health; and also activities and decisions made by the employer which are in violation of laws on job safety.

5. Trade union organizations shall carry out control over the Labour protection standards and procedures determined by this Code and other Normative Legal-Acts through relevant employment inspection operating at their office. The rights and obligations of said inspection shall be regulated by the legislation of the Republic of Azerbaijan.

Section 238. Responsibility of Employers on creation of conditions for protection of healthy and safe work

The employer who fails to create conditions in work places for protection of healthy and safe jobs, or fails to take the measures agreed upon in collective agreements will be prosecuted for civil and criminal wrongdoing in cases and in ways defined by law.

Section 239. Material Responsibility for damage caused to employee's health or his death as a result of violation of Labour protection standards

1. The employer who is fully or partially responsible for unfortunate incidents or work related illness is to pay in full both compensation for losses or poor health of the employee, and his medical bills for curing himself, and also pay the costs of social security organizations which paid the employee pension and stipends.

2. The employee who has suffered health problems as a result of production accidents or work illnesses that were employer's fault, or family members and other dependents of an employee who has died because of the same reasons are to be paid a lump sum amount, monthly payments, and other extra fees related to the unfortunate incident as specified by law.

3. The procedures and terms on issuing compensation to employees who has suffered health problems as a result of industrial accidents or occupational disease or family members of an employee perished because of said reasons shall be defined by the relevant executive authority in the established manner.

4. The amount of compensations paid to victims as a result of industrial accidents or occupational diseases shall be indexed in the manner established by the legislation.

5. In cases stipulated herein the issuance of compensations shall not apply to employees insured mandatorily by employer at insurance agencies. The violation of procedures on protection of Labour, as well as the insurance fee to employees damaged for Labour conditions and his family members shall be paid in the manner and amount foreseen in the proper insurance agreement.

CHAPTER X- SPECIFICATIONS OF DEFINING LABOUR RELATIONS FOR WOMEN, EMPLOYEES UNDER 18 YEARS OF AGE AND AGRARIAN SECTOR

Division Thirty Seven- Labour rights of women and Guarantees to their Implementation

Section 240. Specifics of signing of Labour contracts with women who are pregnant or have children under age of three-I

1. Refusing to sign a Labour contract with a woman who is pregnant or has a child under the age of three is prohibited by law. This procedure shall not apply to the cases on refusal from hiring when employers do not have an appropriate work (position) or possesses workplaces that do not permit to hire women and involve them in work.

2. If an employer refuses to sign a Labour contract with a woman who is pregnant or has a child under the age of three has to explain to said woman in writing the reason behind his decision. For reasons of refusal from signing Labour contract 'he lady can seek justice from a court of law in order to protect her rights.

Section 241. Jobs and work places that working of women is prohibited

1. Use of women workers in Labour intensive jobs, in hazardous workplaces, and also in under ground tunnels, mines, and other underground works is prohibited.

2. In underground works involving leadership positions that continues physical work is not needed, also in socials works, sanitation and medical services jobs, or in cases involving going down to underground and coming up without doing any physical work use of women workers is permitted.

3. Use of women workers beyond the limits specified in this Section for lifting or carrying of heavy items from one place to another is prohibited.

4. Work duties of women workers can include manual lifting and carrying of only the heavy objects which their weight is within the limits specified below:

5. Putting women workers who are pregnant or have children under three years of age in the jobs specified in this Section is prohibited.

6. The list of hazardous and Labour intensive jobs, positions, or professions, and also underground jobs where use of women workers are prohibited are prepared by the related governors office.

Section 242. Limits to calling of women workers for night shift, overtime, and weekend jobs, or job related travel

1. Calling of women workers who are pregnant or have children under three years of age for work on night shift, on overtime, or weekend, or a holiday or on a day which is not work day, or sending them to job related travel is prohibited.

2. Calling of women workers who have children between ages of 3 and 14, or handicapped children up to age of 16 for work on night shift, on overtime, or weekend, or a holiday or on a day which is not work day, or sending them to job related travel is permitted only by their written consent.

Section 243. Putting of women workers who are pregnant or have children up to age of one and a half years on light duty

1. The production or service quotas for women who are pregnant according to medical verification shall be reduced, and they would be working in lighter works where hazardous side-effects of production are eliminated.

2. In case of women workers with children under the age of one year and a half if facing difficulties with doing her work and feeding or breast feeding her child on time, upon written request of the worker the employer has to transfer her to light duty work, or provide necessary conditions for feeding of her child until the child reaches age of one and a half.

3. While women workers are transferred to lighter duty work, their salary remains as the average salary for their main work.

4. It is unlawful to reduce wages of women workers due to their being pregnant or feeding their child.

Section 244. Breaks for feeding of a child

1. Women workers who have children under age one and a half year old shall be given breaks for feeding (breast feeding) of their children, in addition to their regular lunch and rest breaks. These additional breaks shall be at least 30 minutes and shall be given every 3 hours. If a woman worker has two or more children who are under age of one and a half years old the duration of such breaks shall be at least one hour.

2. Breaks given for feeding are considered as work, and the average salary of the worker stays the same.

3. Upon request of the lady the feeding breaks can be added up to the regular lunch or rest breaks, or they can be taken at the beginning of and/or end of workday (shift). If the lady would want to take her feeding breaks at the end of the work day, her work day shall be shortened by time equal to total of the feeding breaks.

Section 245. Cases of assigning part-time work for women, paying of her wages for the time spent for physician's examination

1. Upon request of women workers who are pregnant, or have children under age of 14, or have handicapped children under age of 16, or have to care for a sick family member, the employer has to give them part-time daily or weekly job with the pay based on their experience and seniority. In such cases both sides have to agree on the time of the workday or week.

2. The average wages of women workers who are pregnant, or have children under age of three stay the same on the days that they themselves, or their children have to be medically examined or seen by a doctor. The employer has to provide the necessary conditions for such examinations.

Section 246. Benefits for employees who have to raise their child without a mother

All the Labour related benefits specified in this section of this law shall also apply to all fathers, foster parents, or legal guardians who have to raise the children themselves alone and without the mother fore a particular reason (if mother of the children has died, or has been deprived other motherhood rights, or has to be away for therapy in medical institutions, or has to spent time in jail).

Division Thirty Eight- Specifications of employing of workers under 18 years of age

Section 247. Labour rights of workers under age of 18 and the specifications of such rights

1. Due to their limited work experience, and limited choices for work, and factors related to their physiological development, the specifications of employing workers under the age of 18, and the benefits that they are entitled to are outlined in this law.

2. An employer is to provide the benefits of the workers under the age of 18 as specified in this law.

3. During preparing of Labour contracts for workers under 18 years of age, in order for them to get more work and professional experience additional conditions and responsibilities for the employer.

Section 248. Guarantees for employment of persons under 18 years of age

Refusal from hiring the persons that are under 18 or due to the low level of their labour skills or professionalism shall not be permitted.

Section 249. Age limits during acceptance of employment

1. Persons who are under the age of 15 shall not be employed under any circumstances.

2. In order to provide the youth with work experience, the students of high schools, vocational schools, lyceums or medium specialty education institutions who have reached the age of 14, upon the written consent of their parents or people replacing them, can work at after school hours in light duty works which pose no hazard to their health.

Section 250. Cases where working of employees under the age of 18 is prohibited

Employment of persons younger than 18 years old in jobs with difficult and hazardous work conditions, also in underground tunnels, mines and other underground jobs, also in such places as night clubs, bars, and casinos which could be detrimental to development of his/her wisdom, and also in places where alcoholic beverages, narcotic components and toxic material are carried, kept, or sold is prohibited.

Section 251. Work where limitations on lifting of heavy loads by employees under 18 is applied

1. Using manpower of workers under age of 18 beyond the limits specified in this Section for lifting or carrying of heavy objects from one place to another is prohibited.

2. Work duties (services) of workers between ages of 16 to 18 years can include manual lifting and carrying of only the heavy objects which their total weight is within the limits specified below:

3. Girls up to age of 16 can be given works described in subsections 2 "a", "b", and "c" this Section with lifting and carrying of objects with total weight of only 1/3 of the limit specified and only with their own consent.

4. Putting girls under age of 16 to works of lifting and carrying of objects during the entire work day (work shift) is prohibited.

5. The list of hazardous and Labour intensive jobs, positions, or professions, and also underground jobs where use of workers under age of 18 are prohibited are prepared by the related governor's office.

Section 252. Medical examination of workers under age of 18

Workers under age of 18 are given employment only after passing medical examinations and until they reach age of 18 they must be medically examined every year with expenses paid by the employer.

Section 253. Concessions for Payment to Employees Under the Age of 18

1. Employees under the age of 18 who work part time, as stipulated in Section 91 hereof, shall be paid the same wages for the same kind of work as employees over the age of 18.

2. The Labour of employees under the age of 18 who are engaged in piecework shall be paid on the basis of the piece-rate pay determined for adults. Employees under 18 shall be issued additional payment according to tariff rates for the time difference between the working time shortened pursuant to Subsection 91 of this Code and the daily working time for adults.

Section 254. Prohibition on Employees under the Age of 18 Engaging in Night Work, Overtime, Work on Days off, or Taking Business Trips

1. No employee under the age of 18 shall be permitted to work at night or perform overtime work, to work on weekends, holidays, or other days off, or to be sent on assignment.

2. For employees under the age of 18, the hours of 20:00 PM till 7:00 AM shall be considered night time.

Section 255. Guarantees for Employees Under the Age of 18 When Employment Contracts are Cancelled

An employment contract with an employee under the age of 18 may not be cancelled on the grounds that he is not fit for the position (profession) he holds because of a lack of skill or profession, pursuant to Section 70, subsection c hereof.

Division Thirty-Nine- Regulation of Employee Labour Relations at Agricultural Enterprises

Section 256. Regulation of Labour Relations of Agricultural Employees

1. The issuing and regulation of employment agreements in agriculture and other agrarian sectors shall be based exclusively on regulations defined by law, by statutes of the enterprise, by the present code and by other regulations. The procedures on entering into employment contracts as established in this Code shall apply as a whole to the aforesaid enterprises as well.

2. In agriculture and other agrarian sectors, the bylaws and regulations of peasant (individual) farms, individual (family) enterprises, corporations and other legally established organizations or entities may not limit the Labour rights of employees hereunder. These documents may only consider the conditions and roles to regulate the Labour relationship in more progressive forms and styles.

3. In all agriculturally oriented enterprises, the Labour of women and persons under the age of 18 may be used only as stipulated herein.

Section 257. Governance of Working Hours and Compensation for Work at Agricultural Enterprises

1. At agricultural and agrarian enterprises, working hours are set with regard to production and other aspects of the business on the basis of their bylaws (regulations) pursuant to the standards and regulations specified herein. At these enterprises, records of working hours divided into different cycles may be kept separately for intensive or seasonal work.

2. Issues pertaining to wages for members of enterprises that produce agricultural products or provide agricultural services may be resolved through share participation in the enterprise. Salaries for employees working under employment contracts at said enterprises shall be established to be no less than the amount stipulated in this Code, pursuant to the Parties' agreement.

3. If the forms arid procedures for the payment of employees' salaries and the norms of Labour and estimation of Labour at agricultural enterprises have not been stipulated in their bylaws and regulations, then the enterprise's procedures on determining salary rates and payments shall apply. These procedures shall be adopted by majority vote in a general meeting of the enterprise. In the event that the aforesaid procedures have not been adopted, salary rates shall be determined on the basis of appropriate recommendations regarding the standards specified by the relevant executive authorities and municipal bodies.

Section 258. Employment at Individual Peasant (Farming) or Family Enterprises

1. Employment at individual peasant (farming) or family enterprises shall be regulated by the rules hereof, by the methods described in those rules, or on their basis. However, the Labour relations of said enterprises' members shall not be determined in a manner at variance with applicable legislation.

2. In special cases in family businesses, teenagers between the age of 14 and 15 may work. They may not, however, do heavy or dangerous work or work at night. At these ages, teenagers may perform only small jobs or apprenticeships.

3. Employment at individual peasant (farming) or family enterprises shall generally be regulated by a written employment contract as described herein. In such businesses, employment contracts may be concluded verbally as well. If this is the case, employment may be documented at the request of one of the parties. Employment may be documented by an order or directive of the leader (employer) of the individual peasant (fanning) or family business or by an entry in the family book (journal).

CHAPTER XI- LABOUR DISPUTES

Division Forty- Collective Labour Disputes

Section 259. Applicability of Rules for Resolving Collective Labour Disputes

1. All employers and their organizations, relevant authorities, Labour groups and trade unions shall resolve organizational and Labour disputes within the framework of rules established herein. The provisions of this Code must also be followed during a strike to resolve organizational Labour disputes.

2. Procedures for settling state employees' collective Labour disputes shall be regulated on the basis of the norms determined hereof pursuant to the appropriate Normative Legal Acts on state service.

Section 260. Enterprise Labour Disputes

1. Enterprise Labour disputes arising during regulation of the following issues shall be resolved on the basis of this Code:

2. The procedures for resolving collective Labour disputes stipulated herein, regardless of the number of employees, shall be mandatory for employers of all enterprises, relevant executive and judicial bodies, Labour collectives and trade unions.

Section 261. Parties to a Collective Labour Dispute

1. The parties to a collective Labour dispute shall be the employers and employees (Labour collective or a part thereof) or trade unions.

2. Within the authority specified by this Code and other Normative Legal Acts, trade unions shall have the right to strike, to gather together freely, as well as to take other public measures in the manner prescribed by legislation in order to settle collective Labour disputes in a legal and just manner.

3. Trade unions, employers' unions and related government authorities may participate as parties to disputes on agreements concerning employees.

Division Forty-One- Collective Requests and Their Handling

Section 262. Submitting Collective Requests

1. Collective requests to enter into collective agreements and contracts and amendments thereto shall be made pursuant to the provisions of subsection 2 below of this Section.

2. Issues of noncompliance or incomplete compliance with collective agreements and contracts and collective requests on other labour and social issues may be raised at the general meeting (conference) of employees or trade unions (union). A decision shall be made by a majority vote of the employees; trade unions shall reach decisions pursuant to their bylaws.

3. In addition to submitting collective requests, employees may chose representatives to participate at meetings with the employer on their behalf, or grant them the authority to have discussions with the trade union.

4. Demands which are not commensurate with the employer's economic capabilities shall not be permitted. If requests do not reflect the employer's economic capabilities, he shall prove this on the basis of an auditor's opinion.

Section 263. Consideration of Collective Requests

1. On receipt of a collective request, an employer must respond in writing to the employees or trade union within five working days. If the employer completely or partially ignores the collective request or delays his response to the collective request, a collective Labour dispute shall be considered to have begun.

2. The employer must inform the relevant authorities within 3 days after the collective dispute has begun.

3. A collective request shall be handled within a month.

Section 264. Ways to Solve Collective Labour Disputes

Collective Labour disputes shall be resolved in the manner indicated herein by peaceful methods and through strikes.

Division Forty-Two- Reconciliation Methods to Resolve Collective Labour Disputes

Section 265. Reconciliation of Collective Labour Disputes

1. The following reconciliation methods may be used to resolve collective Labour disputes:

2. The parties may agree between themselves to use one or all of these three methods, or to use a method other than these three methods that may help resolve the dispute faster. The agreement shall be documented and made official.

3. During the resolution of a collective Labour dispute, employees may have meetings and discussions in order to protect their interest without interfering with production and during non-working hours.

4. Representatives of the parties, the Reconciliation Commission, mediator, and Labour arbitrator shall be obliged to resolve the dispute quickly and fairly.

5. If it is necessary in order to continue the reconciliation process, the appropriate time limits indicated herein may be extended with the consent of the parties.

Section 266. Review of a Collective Labour Dispute by a Reconciliation Commission

1. A Reconciliation Commission shall be created within three working days after the collective Labour dispute has begun and been made official by the order (instruction, decision) of the employer and by the decision of employee representatives.

2. A Reconciliation Commission shall be created on the basis of equality and with the participation of an equal number of members from both sides. The Reconciliation Commission must review the collective Labour dispute within five days of its establishment.

3. When the parties come to an agreement, the Reconciliation Commission shall document this agreement. The agreement shall be binding on the parties and implemented within the time frame indicated therein. Failure to reach an agreement also shall be documented.

Section 267. Mediation of a Collective Labour Dispute

1. The mediator shall be an individual with no interest in the resolution of the problem, shall be chosen with the consent of the parties, and shall be an expert and a reputable person.

2. The mediator shall have the right to receive documents and information related to the collective Labour dispute.

3. Within five working days, the mediator shall study the entity's economic situation, the minutes of the commission created to resolve the problem, the proposals of the parties and other necessary documents, and then shall prepare different options for reconciling the positions of the parties. These options shall immediately be submitted to the parties. The parties shall discuss the proposals within five days with the participation of the mediator. If the parties agree to one of the proposals, the problem shall be considered to have been resolved on the basis of that proposal and the agreement shall be documented.

4. If none of the proposals is accepted, this disagreement shall be documented.

Section 268. Labour Arbitration of a Collective Labour Dispute

1. Labour arbitration is a temporary institution created to resolve a collective Labour dispute. It shall be created by a joint decision of the parties no later than five days after the parties agree to resolve the collective Labour dispute by Labour arbitration.

2. The membership (no less than three people), rules, place where the arbitration panel shall work on the dispute, the schedule, and technical assistance to the arbitrators shall be determined by the mutual agreement of the parties. Its members shall choose the head of the arbitration panel. Individuals who have no interest in the outcome of the dispute, representatives of authorities, municipal offices, experts on Labour and social issues and others may be members of the arbitration panel.

3. The parties may agree in advance that the decision of the arbitration panel shall be binding.

4. It shall take no more than seven working days for the arbitration panel to review the Labour dispute. The panel shall have the right to receive documents and information related to the dispute.

5. The arbitration panel shall make its decision by majority vote, and this decision shall be documented. If the parties do not agree with the decision of the arbitration group, this fact shall be indicated in an official document.

6. If the parties agree in advance that the decision of the arbitration panel shall be binding, upon the panel's decision, the dispute shall be considered resolved and shall not be allowed to continue.

Section 269. Guarantees to Individuals Participating in the Resolution of Collective Labour Disputes

1. Individuals (members of the Reconciliation Commission, arbitrators, representatives of the arbitration panel, etc.) involved in the process of resolving a collective Labour dispute, shall be protected by the guarantees cited in Section 27 hereof.

2. The employer shall create the necessary working conditions for the normal work of the Reconciliation Commission, arbitrator, or arbitration panel.

Division Forty-Three- Right to Strike in Order to Resolve Collective Labour Disputes

Section 270. Legal Basis of Strikes

1. Employees shall have the right to strike alone or together with other employees.

2. The right of employees or trade unions to strike shall originate at the time a collective Labour dispute has begun.

3. If the parties agreed to resolve the collective Labour dispute through peaceful means, a strike shall be resorted to only if the dispute cannot be resolved through those means. If the employer needlessly delays peaceful resolution or fails to fulfill an agreement reached through peaceful means, then the labour collective and trade union organizations shall have the right to strike.

4. Participation in a strike shall be voluntary. Individuals who force employees to participate or not participate in a strike shall be held accountable for their actions pursuant to the law.

5. Except in situations described in Section 275 hereof, striking employees may not be replaced by others.

6. An employer may not organize strikes or participate in strikes.

7. In relation to strikes resulting from a collective Labour dispute, no employees may be fired, nor may the jobs at the enterprise (affiliate, representation) or workplace where the collective labour dispute arose be cut, abolished, or reorganized.

8. Employees of legislative authorities, relevant executive authorities, courts, or law enforcement authorities may not go on strike.

Section 271. Making a Decision to Go On Strike

The decision to go on strike shall be made at an employees' meeting or by the trade union (organization) as provided in Section 262 hereof.

Section 272. Informing the Employer of the Decision to Strike

At least ten days before a strike, the Labour collective or the trade union agency must inform the employer in writing of the decision to go on strike.

Section 273. Warning Strike

At any stage of the resolution process, employees may organize a short (up to one hour) strike. The decision on such a warning strike shall be made pursuant to Section 262 hereof. The employer must be notified in writing at least three days before said strike.

Section 274. Group Leading the Strike

1. The strike shall be led by a strike committee elected by a general meeting (conference) or created by a decision of the trade union.

2. The strike committee shall have the right to call for a general meeting (conference) of employees, to receive information from the employer on items of interest to employees, and to use the knowledge of experts in order to arrive at an opinion on controversial subjects.

3. The employer must be notified at least three days before resumption of a strike.

4. The strike committee shall perform the following duties:

5. If the strike ends, is declared illegal, or is banned due to martial law or a state of emergency, the powers of the strike committee shall be revoked by a decision of the general meeting (conference) of the employees, or by a decision of the related trade union body.

Section 275. Duties of the Parties and Relevant Authorities During a Strike

1. During a strike, the parties must continue discussions on the collective Labour dispute.

2. The employer, the authorities, municipal agencies, the strike committee, and the trade union must do everything in their power during the strike to maintain social order, protect the property of the entity and of private individuals, and ensure uninterrupted operation of equipment and machinery to avoid endangering human life, safety and health.

3. With the consent of the parties, a minimum of necessary work (services) may be performed if a strike continues for a long time to the detriment of safety, or if there is a strike at entities vital to the interests of society as a whole.

4. If there is no agreement, the minimum necessary work (services) may be provided by the relevant authorities or municipalities.

Section 276. Guarantees to Individuals Who Refuse to Participate in a Strike

Individuals who refuse to participate in a strike shall have the right to continue to work. If this is not possible, the employees' wages shall be paid at the rate paid when an employee is idle for reasons beyond his control.

Section 277. Right of Strikers to Freely Assemble

1. Strikers shall have die right to freely assemble, discuss the progress of negotiations, hold meetings and hold other public events at workplaces or near the enterprise provided that they do not obstruct employees who are continuing to do their jobs.

2. The right of employees to freely assemble, which is stipulated in this Section, shall be implemented in the manner determined by appropriate legislation.

Section 278. Strike Funds

1. In order to fund a strike, employee groups or trade unions may create a strike fund that shall remain in effect during the strike. Employees of other entities or trade unions may create a solidarity fund or mutual assistance fund.

2. These funds shall be used and managed on the basis of bylaws approved by the employee group or the trade union. These funds shall be tax exempt.

3. Money in the strike fund may be used to help strikers and for other purposes related to a strike.

4. After the strike, the unused portion of the strike fund may be spent for purposes determined by the Labour group or trade union body.

5. Damage to an employer due to continuation of an illegal strike may be paid from the strike fond on the basis of a court ruling.

6. Government agencies, government employees, and other employers shall be prohibited from directly or indirectly funding a strike.

Section 279. Ending or Suspending a Strike

1. Should the employer accept the strikers' demands, the parties reach an agreement to resolve the dispute, or should employees refuse to continue the strike, the strike shall be considered ended.

2. If a strike is illegal or is prohibited under martial law or a state of emergency, it must stop immediately.

Section 280. Situations in Which the Right to Strike is Limited or Prohibited

1. The right of employees to strike may be limited during martial law or a state of emergency, pursuant to the laws of the Republic of Azerbaijan.

2. Strikes are not permitted for political purposes except when employees try to reconcile the principles of the state's socioeconomic policy.

Section 281. Sectors Where Strikes Are Forbidden

1. Strikes shall be prohibited in certain service sectors (hospitals, power generation, water supply, telephone communications, air traffic control and fire fighting facilities) which are vital to human health and safety. Arbitration shall be mandatory in these sectors if the parties do not resolve an organizational Labour dispute by reconciliation.

2. An obligatory arbitration panel shall be created by the relevant authority and shall function on the basis of regulations drafted by the same authority. The number of obligatory arbitration panel members shall be determined in consultation with the parties to the dispute, shall be no less than five persons, and shall be an odd number. The relevant authority shall ensure that the obligatory arbitration panel looks into the dispute promptly and decisively. The decisions of the obligatory arbitration panel shall be binding on all parties to the dispute and shall be implemented immediately.

Section 282. Illegal Strikes

1. Strikes declared and carried out in violation of the provisions hereof shall be considered illegal.

2. Upon a petition by the employer, the court of the district (city) where the strike committee is located shall investigate whether a strike is illegal.

3. A court decision declaring a strike illegal must be implemented immediately. The employees must end the strike and resume work the day after the court decision is submitted to the body heading the strike.

Section 283. Compensation of Employees Who Participate in a Strike

An employer may pay full or partial wages to striking employees for the duration of the strike. Refusal to pay wages for that period may not be grounds for a dispute.

Section 284. Right of the Employer to Declare a Lockout and Limitations of this Right

1. In the following situations, an employer may declare a lockout by giving a written notice of the entity's shutdown to his employees; trade unions and to the relevant executive authorities at least 10 days in advance:

2. Before declaring a lockout, the employer must hold discussions with employees and trade unions, and every opportunity must be taken to stop the strike and reach an agreement.

3. If the reason for the lockout exists after the deadline given to employees has expired, the employer may shut down the entity temporarily by declaring a lockout.

4. In circumstances other than those indicated in this Section, government-owned entities or entities more than half-owned by the government may not declare a lockout.

Note: When a Labour dispute begins, if the employer is incapable of meeting the demands of the striking employees on production, economic or financial ground, such a strike shall be deemed -without basis and illegally motivated in order to infringe on the rights and interests of the employer, and a lockout may be declared to shut down the entity.

Section 285. Investigation of Legality of a Lockout and Employer Liability

1. Upon the request of employees, the court shall decide if a lockout is legal and declared in accordance with law.

2. If the court decides that a lockout declared by the employer has no basis and that material and non-material damages to employees must be paid, the employer shall also be held liable for violation of other laws with respect to the lockout.

Section 286. Liability for Violation of the Rules Hereof for Resolving Collective Labour Disputes

1. As determined by the court, striking parties shall be responsible for damage to the employer as a result of their decision to continue a strike that has been declared illegal.

2. Other employers who fund the strike are liable for all damage to the employer, including lost profit.

3. Issues related to financial liability shall be handled pursuant to civil law.

4. An employer may take disciplinary action against those employees who organize to continue a strike that has been declared illegal.

Division Forty-Four- Individual Labour Disputes, Their Parties and The Condition for Their Resolution

Section 287. Individual Labour Disputes

Individual Labour disputes are disagreements between parties on the fulfilment of an employment contract, the terms of collective agreements and Labour laws and other Normative Legal Acts and shall be resolved in a manner and by the principles, methods, and provisions hereof on the basis of equality of the rights of the parties and rule of law.

Section 288. Subject of Individual Labour Disputes

This Code shall govern the settlement of individual Labour disputes created when the following issues are regulated:

Section 289. Parties to an Individual Labour Dispute

In individual Labour disputes, one party shall be an employer and the other party shall be the employee who claims his Labour rights or interests protected by the law or his legal representative in the manner determined by the law have been violated.

Section 290. Duties and Responsibilities of the Parties to Individual Labour Disputes

1. Parties to individual Labour disputes, respecting each other's rights, must comply with the law, meet their commitments under the employment agreement, and obey the rulings (decisions) of the court which decides on the Labour dispute.

2. An employer who has violated the rights and the legal interests of an employee must pay the full amount of the damage caused to an employee and determined by the court as a result of the settlement of an individual Labour dispute.

3. Employers shall bear material liability for spiritual damage caused to employees in the course of Labour relations. An employee who claims that spiritual damage has been caused to him must indicate the monetary amount of his claim in his application. The monetary amount of the spiritual damage caused an employee shall be determined by the court on the basis of the employee's application pursuant to the degree of public danger of said damage, the personality of the employer and employee, the actual arguments of the case and other objective factors for the adoption of a fair decision.

Note: The term "spiritual damage caused to an employee " used in this Section shall mean the defamation and humiliation of the employee's honour and dignity, the casting of aspersions on him, insulting his person and spreading false information to disgrace him among the members of the collective or other actions offensive to his morality, ethics, national dignity and faith.

Section 291. Compensation for Damage Caused as a Result of Unlawful Actions by State Officials

1. Parties to an employment contract shall have the right to request compensation for damage caused as a result of unlawful actions by State authorities or their officials and, consequently, the State shall be obliged to pay said damage.

2. Procedures for compensating for damage caused with respect to the firing or removal of an employee from work as a result of unlawful investigation or preliminary investigation, by the public prosecutor or judicial authorities shall be determined by the relevant Executive Authorities.

Section 292. Employee's Right to File a Claim for a Right Which Has Been Violated

1. With respect to the matters described in Section 288 hereof, if an employee proves that his rights or legal interests have been violated, he can appeal to the relevant bodies which deal with individual Labour disputes by the procedure described herein and request that his rights be reinstated.

2. In order to regain his violated rights, an employee may appeal to the court or to the relevant agency handling Labour disputes before appealing to the court, as stipulated in Section 294 hereof, or he may go on strike by himself in the manner established in Section 295 hereof.

3. In order to regain his violated rights, an employee may also appeal through his legal representative to the relevant body which handles Labour disputes. In order for the representative to defend his rights the employee should give a power of attorney to his representative, in accordance with established procedure.

Section 293. Times When Individual Labour Disputes May be Considered

1. In necessary cases, individual Labour disputes shall be considered during an employee's non-working day.

2. If consideration of an individual Labour dispute takes place during his working day, the employee's average salary shall be retained both at his primary and at any secondary places of employment.

Division Forty-Five- Resolution of Individual Labour Disputes

Section 294. Oversight for Individual Labour Disputes

1. Except in the situations indicated in Subsection 2 herein, all individual Labour disputes shall be handled by the courts.

2. In the situation indicated in collective agreements with entities, a body may be created within the framework of a trade union to look into individual disputes prior to going to court. The creation and functioning of this body may be defined by collective agreements.

3. Procedures that differ from the regulations on the settlement of individual Labour disputes and do not violate the principle of the Parties' equal rights and the employment, social and economic rights stipulated in this Code may be specified in employment contracts.

4. If the decision of the body reviewing Labour disputes before the court does not satisfy one of the parties, it may appeal to the court to resolve the dispute. The period for appealing to a court shall begin at the time of that body's decision.

Section 295. Right of an Individual Employee to Strike to Resolve an Individual Labour Dispute

1. If discussions with the employer and the response to his written request do not satisfy an employee whose rights have been violated, said employee may go on an individual strike by stopping work for a month on a temporary basis in order to resolve the individual Labour dispute and any issues pertaining to collective demands before appealing to the court and without cancelling the employment contract.

2. The employee must not exhort other employees or trade union organizations to participate in a strike he has declared to defend the demands of his individual Labour dispute. If the Labour group or trade union organizations reach the conclusion that the individual demands of the employee are valid, legal, and fair, they may independently bring forward collective demands.

3. Neither the employer nor the president of the entity may limit or prevent the employee from exercising his right to go on an individual strike.

4. An employer who considers illegal the action of the employee who declared a strike by himself may appeal to court.

5. If the court does not decide that the employee who went on a strike acted illegally, the employer may not terminate said employee's employment contract.

6. Until the strike period ends, the employee may resume work or go to court to resolve the Labour dispute. During an individual strike the employee may use arbitration methods determined by the parties.

7. The payment of salaries for the period when an employee is on strike by himself shall be carried out in the manner stipulated in Section 283 hereof.

8. If the court decides that the action of the employee who went on individual strike is illegal or has no basis, the employee may be disciplined.

Section 296. Claim Periods for Resolving Individual Labour Disputes

1. After realizing that his rights have been violated, an employee shall have three months to appeal to the body which looks into individual Labour disputes, as stipulated in Subsection 2 of Section 294 hereof.

2. Except for the case indicated in Subsection 1 of this Section, an employee may appeal in all instances to court for the settlement of an individual Labour dispute within one calendar month of determining that his rights have been violated.

3. The day on which the employee realizes that his rights have been violated shall be the day on which the related notice, order (instructions, decision), Labour book, accounting documents (book, list, check) is given and the day on which the employer intentionally violates the basic terms of the employment contract protected by this Code.

4. To resolve Labour disputes pertaining to money and other property claims and disputes pertaining to damages, an employee may appeal to a court (the body dealing with Labour disputes) within one year of the day on which his rights were violated.

5. In situations provided for hereby, an employer may appeal to the court within a month after its rights and legal interests have been violated; with respect to financial damages an employer may appeal to the court within a year after it realizes that the damage has occurred.

6. If the periods indicated in this Code have elapsed for good reason, such as the sickness of the claimant, the death of a close relative, or if he is on assignment or leave far from his place of residence or for objective reasons, the body which deals with individual Labour disputes may waive the time limit and look into the dispute.

Note: In subsection 6 of this Section the term "a close relative of the plaintiff shall be defined as the employee's father, mother, grandfather, grandmother, husband (wife), children, brothers and sisters. A delay in the term of a claim due to the death of another of the employee's relatives may be considered pardonable by the judge.

Section 297. Governance of the Resolution of Individual Labour Disputes

The ruling of the court handling individual Labour disputes shall be governed by the Civil Laws of Procedure of the Republic of Azerbaijan and by other relevant Normative Legal Acts.

Section 298. The Procedure for Paying State Duties and Court Fees when Individual Labour Disputes are Considered

1. When an employee or an employer who claims that his rights governed by this Code have been violated submits his application or claim for the consideration of an individual Labour dispute by the court state duties and court fees shall not be payable in advance.

2. While rendering an appropriate decision the judge settling a Labour dispute shall issue a judgement on the payment of state duties and court fees as determined by legislation either by the plaintiff, if it is a judgement of non-suit, or by the defendant, if it is a declaratory judgement.

Section 299. Unlimited Claims and Claim Collection

There shall be no limit on the amount of a claim and its collection in an individual Labour dispute.

Section 300. Legal Consequences of an Employer's Failure to Comply With the Rules for Terminating an Employment Contract

1. If an employer terminates employment relations with an employee in violation of Sections 68, 69, 70, 73, 74 and 75 hereof on the cancellation of employment contracts or does not comply with the provisions of Sections 71 and 76 or is in violation of the provisions of Section 79, the court which deals with Labour disputes shall, upon a petition on the claim and upon investigating the facts of the case, pass a decision on the reinstatement of said employee by retaining his salary for being away from work obligatorily or by approving the parties' reconciliation agreement. In its judgement the court also may stipulate payment by the employer of the amount of damage caused to the employee due to his claim.

2. If employee and employer manage to sign a reconciliation agreement on the basis of mutual consent during the judicial settlement of an individual Labour dispute, the judge shall pass a judgement binding the Parties to perform their obligations determined by said agreement.

Note: The term "the amount of damage caused" used in Subsection 1 of this Section shall mean the average salary of an employee during the period he was unemployed as a result of his termination, the amount of expenses incurred by an employee in hiring a lawyer (defender) for the protection of his rights at court relating to the consideration of the individual Labour dispute by the court, as well as the amount of spiritual damage requested by the employee on the basis of his application; the total amount of costs incurred by the employee from borrowing money and selling personal items as a result of his unemployment, and other expenses.

Section 301. Implementation of Decisions and Rulings Concerning Individual Labour Disputes

1. A court decision on the resolution of an individual Labour dispute must be carried out immediately on the day the decision takes effect, unless otherwise stipulated therein.

2. If the responsible party does not implement the court decision, or if the authorized individual or other private person prevents its implementation, the judge shall rule in favour of the payment of financial damages to the employee and shall initiate a criminal case pursuant to the relevant Section of the Criminal Code of the Republic of Azerbaijan.

Section 302. Limitation of Implementation in Individual Labour Disputes

1. A decision by the court which deals with individual Labour disputes in effect for six months may not be nullified against the interest of the employee.

2. A court decision (ruling) may be changed only if the decision was made on the basis of false information provided by the employee, employer or witnesses or if falsified documentation was submitted.

Note: "Changing the implementation of a decision" shall be defined as not implementing a ruling or decision of the court, as stopping a decision which has already been implemented or as nullifying the ruling or decision and restoring the relationship, interests, financial and other benefits to the time when the claim with respect to the Labour dispute was made.

Section. 303. Persons Exempt from Rules for Resolving Individual Labour Disputes Specified Herein

The rules herein on resolving individual Labour disputes shall not apply to persons appointed to a position in accordance with the Constitution of the Republic of Azerbaijan or by the President of the Republic of Azerbaijan.

CHAPTER XII- SOCIAL INSURANCE FOR EMPLOYEES

Division Forty-Six- Regulating Employee Social Insurance

Section 304. Insuring Employees

1. Social insurance is a form of guarantee in cases stipulated by relevant laws to pay employees in a predetermined fashion and amount income lost due to employment, salary, supplements to their salary, other payments and other expenses, and the measures to prevent the loss of those rights.

2. When entering into an employment agreement, in accordance with the rules established by law, the employer must provide compulsory insurance for every employee. The employment contract must provide information on whether the employee is insured and whether there is any additional insurance for him.

Section 305. Regulation of Social Insurance Through Employment Contracts

In addition to the insurance required by law for employees, an employment contract may provide more coverage, forms, rules, amounts of insurance, and sources of insurance.

Section 306. Types of Employee Social Insurance

1. Employee social insurance shall be carried out in the form of obligatory state insurance, voluntary insurance and additional forms of insurance implemented by employers.

2. Compulsory government insurance for employees is a type of social insurance provided by the employer in the manner and amount determined by law.

3. Employees may also have voluntary insurance at their own expense and in the manner determined by and on the basis of a social insurance agreement.

4. Employers and their unions may provide social insurance better than that stipulated by the law for their employees in general or each employee separately in order to satisfy the interests of the employees and provide incentives for high-quality performance and to strengthen social protection of the employees and their families.

Section 307. Regulating Employee Social Insurance Relationships

1. The principles by which social insurance is provided to employees, social insurance claims and their determination, types of payments for social insurance, the rights and responsibilities of participants in social insurance, the rate of mandatory government social insurance, conditions and rules of payment, sources of funding, types of voluntary and additional social insurance and other relationships with respect to social insurance shall be governed by this Code, the Law of the Republic of Azerbaijan on Social Insurance and other laws based thereon.

2. Foreigners who work under employment contracts at entities operating in Azerbaijan and stateless persons shall also have the right to register for social insurance by paying the appropriate fee in the manner and under the terms indicated herein.

3. An insured employee shall receive an insurance certificate (policy) prepared pursuant to the law.

4. A private individual who limits or infringes on the social insurance rights of employees shall be held liable pursuant to the law.

CHAPTER XIII- GENERAL

Division Forty-Seven- Control over Compliance with the Requirements of this Code. Liability for Violations of Labour Legislation

Section 308. Enforcement of This Code

The Office of the Public Prosecutor and the relevant executive authorities whose powers have been established by Section 15 hereof shall oversee correct and equal implementation of this Code and other standard Labour laws and compliance therewith by employers, employees, executive authorities, legal entities and physical persons.

Section 309. Public Control over Compliance with the Requirements of this Code

1. The relevant trade union organizations and employers' representative agencies shall exercise control to ensure employees' and employers' employment, social and economic rights and lawful interests in the manner stipulated in the Law of the Republic of Azerbaijan "On Trade Unions" and hereof.

2. Employers and other parties to Labour relations shall be prohibited from interfering with the implementation of trade unions' public control based on this Code and other Normative Legal Acts, as well as from non-compliance with their lawful and substantiated requirements.

Section 310. Liability for Violating the Rights Defined by This Code

Employees, employers and other physical persons shall be subject to personal, disciplinary, administrative and criminal liability as defined by this Code and other Normative Legal Acts included in the Labour Legislation System for violating the legal rights defined by this Code and other standard laws, for limiting them for any reason, for abusing these rights, or for failure to meet commitments or obligations under an employment contract.

Section 311. Disciplinary Action for Violating Labour Law

If an employee or employer infringes on the other's interests by violating their commitments, the job description defined by the employment agreement, the requirements of this Code or other standard law, he shall be called to disciplinary account pursuant to Section 186 hereof.

Section 312. Administrative Action For Violating Labour Law

An employee, employer or other private individual who violates the law shall be subject to administrative action pursuant to the cases and manner stipulated by the Law of the Azerbaijan Republic on Administrative Offenses.

Section 313. Criminal Action for Violating Labour Law

Individuals who, with socially malicious intent, violate standards for the protection of Labour as specified in legislation, or who grossly violate in any way the rights and legal interests of employees and employers or the requirements hereof shall be subject to criminal prosecution in accordance with the Criminal Code of the Republic of Azerbaijan.

Division Forty-Eight- Issues on Legal Regulation Regarding the Application of the Labour Code of the Republic of Azerbaijan

Section 314. Settlement of Legal Regulation Issues Created during the Application of this Code

1. The official interpretation of the terms and conditions of this Code shall be carried out in conformity with a special constitutional proceeding determined by the Law of the Republic of Azerbaijan "On the Constitutional Court".

2. The relevant executive authorities shall adopt respective instructions, regulations, procedures and other Normative Legal Acts within their powers in the manner specified by the appropriate executive authority in order to ensure the application of the various provisions of this Code.

3. The respective Normative Legal Acts and samples of documents ensuring the governance of Labour relations may be attached to this Code on the basis of a decision by the relevant executive authority.

Section 315. Legal Force of Employment Contract before this Code Took Effect

1. If verbal employment contracts have been entered into with employees on the basis of applicable Labour legislation prior to this Labour Code's taking effect and being legalized in conformity with employer's orders, and instructions are not drawn up in writing with the Parties' mutual consent, then these contracts shall retain their legal force unless said Labour relations are terminated.

2. Verbal employment contracts entered into with employees on the basis of applicable Labour legislation prior to this Labour Code's taking effect and being legalized in conformity with employer's orders (instructions, decisions) may not be cancelled on the grounds that they have not been entered into in writing.

Section 316. Resolving Labour Disputes During the Application of This Code

1. During the implementation of this and other standard laws, individual and collective Labour disputes between employers and employees shall be resolved by the court on the basis of the rules indicated herein and the Civil-Processual Code of the Republic of Azerbaijan.

2. In the cases described herein, individual and collective Labour disputes may be resolved on the basis of conditions agreed to voluntarily by the parties thereby avoiding the court to resolve the dispute. The right of either party to court appeal may not be limited.

Section 317. Legal Force of Text of This Code

1. This Code shall be an integral part of the legislation system determined by Section 148 of the Constitution of the Republic of Azerbaijan and shall have direct legal force throughout the territory of the Republic of Azerbaijan.

2. The provisions of this Code ensuring the protection of the rights and interests of parties to employment contracts and excepting or reducing their being called to account during the application of this Code may have retroactive force.

Legal Acts and Documents Appended to the Labour Code of the Republic of Azerbaijan

Appendix 1 to the Labour Code of the Republic of Azerbaijan

Sample Employment Agreement (Contract)

1. Information on Parties to the Employment Agreement (Contract)

2. Term of the Employment Agreement

3. The Employee 's Job Description

4. The Employee's Labour Functions

The employer shall make a commitment to implement and comply with the following labour conditions:

Compensation

Occupational Safety

Working Hours and Time Off

Vacation

Additional Conditions Decided Upon by the Parties and to Be Observed in the Collective Agreement (Contract)

Mutual Liability of the Parties When One Party Causes Damage to the Other

Social Protection

Regulation of Property Relations

8. Information Regarding Modifications and Additions to the Employment Agreement

9. Termination of the Employment Agreement

General Provisions

The Parties ' Signatures and Addresses

Note: In accordance with Section 43 of the Labour Code, when the employment agreement is being drafted, all conditions and information that are part of the employment agreement shall be disclosed by law. When the employment agreement is being executed, additional conditions that appear in the employment agreement shall be filled in based on the approval of both sides. However, in all cases the employer shall be obligated to prepare the entire employment agreement as shown in this sample. The employer shall be responsible for ensuring that a sufficient number of copies of the employment agreement are printed and that they conform to this printed sample. The blank portions of the employment agreement shall be filled in accurately either by hand or typewriter or computer; care shall be taken to protect the completed documents; they shall not be altered or soiled.

Appendix 2 to the Labour Code of the Republic of Azerbaijan

Terms for Stopping Work or Granting Breaks to Employees Working Outside or in Unheated Indoor Areas During Cold Weather

1. All types of work performed outdoors when the temperature is above 45°C or in closed premises, rooms or other indoor workplaces where air conditioning facilities are not installed shall be stopped and employees given breaks to cool down.

2. Work performed on dry land using cranes shall be stopped at force 6 or higher wind conditions.

3. In the case of construction, work shall stop under the following circumstances:

4. If at sea, the following work shall be stopped under the following circumstances:

5. All outdoor work shall be stopped or breaks granted to warm up if the temperature is at or below -10°C and wind conditions are above a force 3.

6. Where the nature of the work does not permit it to be stopped, alternating shifts shall be employed. The alternating shifts shall be defined in coordination with the employer and the trade union committee.

7. While working indoors in unheated areas in cold weather, employees shall be allowed breaks or work shall be stopped when the temperature is below+12° C.

8. Work shall be stopped or warm-up breaks be granted, and the number and length of these breaks shall be determined by a joint decision of the administration and trade union committee.

"This document shall be drafted in the form of an "Employment Contract" or "Employment Agreement" which shall carry the same legal, meaning depending on the will of the Parties.


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