AZERBAIJAN. LABOUR CODE DATED 1 FEBRUARY 1999

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:

a) military personnel;
b)judges;
c) deputies of the Milli Majlis of the Republic of Azerbaijan and persons elected to municipal bodies;
d) Foreigners signing employment contracts with a legal entity of a foreign country and fulfilling his Labour functions in an enterprise (affiliate, representation) operating in the Republic of Azerbaijan;
e) persons performing jobs under contractor, task, commission, author and other civil contracts.

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:

a) to choose employment at a place of work according to his calling, specialty, and profession;
b) to ask the employer to amend the terms of the employment contract or to terminate it;
c) to engage in activity for pay during working hours which is not prohibited by law; to not impede fulfilment of the obligations of parties to an employment contract;
d) to work under conditions which meet safety and health requirements and to exercise the right to demand such conditions;
e) to compensation no less than the minimum established by law;
f) to receive or demand extra salary for overtime;
g) to refuse to perform work or services not included in the job description defined by the employment contract and to demand additional salary appropriate for such work;
h) to receive the appropriate social allowances to improve housing and daily living for family members;
i) to work those hours established by law;
j) to work reduced hours as established by law for certain professions (positions) and fields;
k) to enjoy vacation days established by law;
l) to take annual paid leave and, when appropriate, social, unpaid, and educational leave not less than as provided herein;
m) to training, advanced training, and retraining;
n) to demand reimbursement for damage to health or property as a result of the performance of his duties;
o) to receive compulsory social insurance paid by the employer as established by law, as well as other insurance;
p) to join trade unions or other representative bodies or public organizations, and to take part in strikes, meetings, gatherings and other mass actions implemented by said organizations or by the Labour team that are not prohibited by law;
q) to appeal to a court for protection of his Labour rights;
r) to receive a pension, allowances and compensation for social protection;
s) to collect the national unemployment allowance;
t) to obtain appropriate references from his employer with respect to his place of work, position (profession), monthly salary and Labour relations.

Section 10. Basic Employee Obligations Relating to Employment Contracts

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

a) to conscientiously perform the job duties specified in the employment contract;
b) to maintain work discipline and internal enterprise discipline;
c) to meet occupational safety requirements;
d) to be liable for material damage to the employer;
e) to keep state secrets and the employer's trade secrets confidential under the rules and terms established by law;
f) to support the Labour rights and interests of his co-workers;
g) to carry out the resolutions (decrees) of judicial authorities concerning individual or collective Labour disputes;
h) to comply with Labour law requirements.

Section 11. Basic Employer Rights

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

a) to enter into employment contracts and amend their terms under the procedure prescribed herein;
b) to terminate employment contracts under the procedure prescribed herein;
c) to require that employees promptly and adequately fulfil the terms and obligations established by employment contracts;
d) to promote employees to appropriate posts (professions) in conformity with their business capabilities, job performance and professional standing.
e) to discipline employees should they violate the terms of employment contracts or internal enterprise discipline;
f) to take appropriate steps to obtain compensation for damage caused by employees to employers or owners;
g) to modify working conditions and reduce the number of employees or to terminate staff or structural divisions pursuant to the requirements of this Code and other Normative Legal Acts;
h) to enter into collective contracts with a labour collective or its representative agency and to monitor fulfilment of the obligations under these contracts;
i) to establish a blackout period during the negotiation of employment contracts under the rules and for the time established herein.

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:

a) to comply with the terms and obligations specified in employment contracts;
b) to comply with other regulations pursuant to this Code and labour law;
c) to terminate employment contracts on the grounds and pursuant to the rules established herein;
d) to comply with the terms and conditions of collective agreements and contracts and the obligations foreseen therein;
e) to enforce the resolutions (decrees) of judicial authorities concerning individual and collective labour disputes;
f) to consider employee applications and complaints within the term and in the manner established by Legislation;
g) to take necessary steps pursuant to the enterprise bylaws or collective contract to improve the working, material, and living conditions of employees.

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:

- ensuring that the parties equally and duly meet the legal requirements of Labour relations;
- providing healthy and safe working conditions;
- preventing violations of the rights of employees and employers;
- restoring the violated rights of employees and employers;
- enforcing Labour law within the scope of their authority;
- enforcing a national Labour relations policy on the basis of the principles of human rights and freedoms as defined by the Constitution of the Republic of Azerbaijan.

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:

- pass appropriate Normative Legal Acts to ensure the regulation of Labour relations within the limitations of their authority;
- implement State policy on Labour compensation and Labour relations, on the protection of Labour and the utilization of Labour resources, on Labour migration, social protection of the population and the disabled;

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:

a) Equality of the parties;
b) The freedom and ability to choose and discuss the issues constituting the substance of collective contracts and employment agreements;
c) The unacceptability of including in collective contracts and agreements terms that are not stipulated for objective reasons;
d) Guaranteed fulfilment of obligations;
e) Compliance with the law;
f) Oversight of fulfilment of obligations and liability for default;

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:

a) improving the productivity and economic performance of the enterprise;
b) defining the procedure and amount of compensation, monetary rewards, benefit payments, extra payments, and other payments;
c) the mechanism for regulating compensation based on price increases and the level of inflation;
d) employment, training, professional development, conditions for laying off employees;
e) working hours, time off, and vacations;
f) cultural and consumer services, social guarantees and benefits for employees and members of their families;
g) performance evaluation, establishment and revision of labour quotas;
h) improving working conditions for women and minors;
i) defining additional guarantees to improve occupational safety;
j) compensation for damage to employees in connection with performance of their jobs;
k) formation of a body to hear individual employment disputes and the procedure by which it shall operate;
l) definition of additional preferential terms and conditions for employee medical and social insurance;
m) consultation and coordination with the trade union if an individual employment agreement is terminated at the employer's initiative;
n) environmental safety and protection of employee health;
o) deduction of membership fees from trade union members' salaries and creating conditions for the efficient organization of trade unions' charter activities;
p) agreement on additional means for governing collective labour disputes;
q) oversight for compliance with the terms of the collective agreement;
r) liability of the parties for breach of a collective contract;
s) enforcement of Labour discipline.

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:

a) A general collective agreement shall establish the general principles for the consistent conduct of social and economic policy.
b) Industry collective agreements shall establish the principles for the social and economic development of an industry, working and compensation conditions, and social guarantees for the professional groups and employees of an industry.
c) Territory (district) collective agreements shall establish the conditions for resolving specific social and economic problems in specific regions.

Section 36. Parties to a Collective Agreement

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

a) A general collective agreement shall be executed between the relevant authority and republic associations of trade unions.
b) Industry collective agreements shall be executed between the relevant authority and trade union associations for specific professions or industries.
c) Territorial (district) collective agreements shall be executed between the relevant authority and area associations of trade unions

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:

a) identification and implementation of steps to improve the economic standing of enterprises and specific industries;
b) increasing the average wage with regard to inflation;
c) Labour quotas and Labour evaluation quotas;
d) the amount of compensation and supplements to wages (no less than those established by the government);
e) necessary occupational safety measures;
f) favourable working conditions;
g) employment assistance;
h) progressive forms and methods of doing business;
i) introduction of advanced technologies and advances in science and technology at enterprises;
j) production of competitive products;
k) environmental safety assurance;
l) prevention of massive dismissals because of enterprise closure, steps to prevent dismissals;
m) to provide special social protection for employees and members of their families;
n) benefits to enterprises that create new jobs and hire the handicapped and youth (teenagers);
o) Labour discipline.

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:

a) the full name and address of the employee;
b) the name and address of the employer;
c) the employee's workplace place of work and position (occupation);
d) the date of execution of the employment contract and the day on which the employee must start work;
e) the term of the employment contract;
f) the employee's duties;
g) the terms of the employee's Labour conditions - work and rest time, salary and adjustments to it, duration of employment leave, Labour protection, social and other insurance;
h) mutual obligations of parties on employment agreement;
i) information on other terms and conditions defined by the parties.

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:

a) the employee comes to work under influence of alcohol, drugs, narcotics, or other intoxicants or drinks or takes these substances at work;
b) the employee refuses to undergo medical examination as defined by Section 226 hereof or does not comply the recommendations provided by the medical commission as a result of an examination;
c) the employee commits administrative offenses or crimes at his place of work that are confirmed by a decision from an appropriate Executive Authority and creates a public menace during working hours.

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:

- from 100 to 500, more than 50 percent;
- from 500 to 1000, more than 40 percent;
- more than 1000, more than 30 percent by termination of employment contracts by the new owner or designated employer as determined in Sections 70, 73 and 75 of this Code.

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:

- Employees who have been wounded or disabled in military actions carried out for the defence, freedom and territorial integrity of the motherland;
- Employees who displayed courage and were awarded state medals and decorations and granted honorary titles during the protection of Azerbaijani independence and territorial integrity;
- Employees with refugee and displaced persons status who have been holding one position (profession) for less than 5 years;
- Pregnant women;
- Women on social leave until the child is three years old and who have worked for less than one year in a proper position (profession) after the aforesaid leave is over;
- Employees under 18;
- Employees who have worked in one position (profession) for less than a year;
- Employees who have been certified at least three times in his position (profession) and whose compliance with their position (profession) has been established ;
- Employees who are not certifiable as stipulated in collective employment contracts (agreements).

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:

a) the initiative of one of the parties;
b) expiration of the employment contract;
c) a change in terms and conditions of employment;
d) cases related to a change in the ownership of an enterprise (employees indicated in Subsection II of Section 63 of this Code);
e) Cases not depending on the will of the Parties;
f) Cases established by the Parties in the employment contract.

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:

a) the enterprise is liquidated;
b) there is a personnel cutback at the enterprise;
c) a competent body decides that the employee does not have the professional skills for the job he holds;
d) the employee does not fulfill his job description or fails to perform his duties as defined by the employment contract and job description as indicated in Section 72 hereof.

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:

a) is absent from work for a whole day without good reason, except in the case of his own illness or a close relative's illness or death;
b) comes to work under the influence of alcohol, drugs, narcotics, or other intoxicants or drinks or takes these substances at work;
c) causes material damage to the owners as a result of his activities or lack thereof;
d) violates the procedures on protection of Labour as a result of his guilty activity (inactivity) and causes damage to his workmates health or they perish for said reasons;
e) intentionally fails to maintain the confidentiality of state, production and commercial secrets or fails to fulfill his obligations on keeping of said secrets confidential;
f) causes serious damage to employers, enterprises or owners' lawful interests as a result of his gross mistakes or the infringement of the law during his employment activity;
g) breaches the job description a second time within six months, regardless of the disciplinary fine imposed by the employer;
h) commits administrative offenses or crimes creating a public menace during working hours and causes serious damage to employers, enterprises or the owner's legal interests, he shall be considered to have committed a gross violation of his job description.

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:

a) the employee is called for military or alternative service;
b) the person who held the job previously is reinstated by a legally valid court ruling;
c) the employee cannot perform his job for more than six months because of full and permanent disability unless the law sets a longer period;
d) a court sentences the employee to prison or corrective Labour at the place where he shall serve his sentence, or other punishment precluding his presence on the job (except in cases of conditional conviction and deferred punishment);
e) the employee's incompetence is confirmed by a court decision that has taken legal effect;
f) the employee dies.

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:

a) parties' mutual consent;
b) the opinion of a health enterprise that occupying a certain position (occupation) poses a danger to an employee's health;
c) in cases when there is a high probability of falling ill with occupational disease at a given workplace during the discharge of an employee's duties within a certain time period;
d) in cases when an employer undertakes mandatory written obligations to enter into a new employment contract with the employee after some time has passed due to a reduction in the scope of work or services rendered.
e) in other cases determined by the Parties on the basis of the requirements of this Section.

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:

- severance equalling the lowest average monthly wage;
- the average monthly wage for the second and third months after dismissal until he finds a new job.

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:

- members of families of shekhids (martyrs);
- war veterans;
- spouses of soldiers and officers;
- individuals supporting two or more children under the age of 16;
- individuals disabled on the job or who contracted job-related ailments at that enterprise;
- persons with refugee and displaced status;
- other employees as stipulated in collective agreements and employment contracts.

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

- pregnant women and women with children under age three;
- employees whose only income source is the enterprise where they work and who are bringing up children under school age alone;
- employees temporarily disabled;
- individuals because they are members of trade unions or other political parties;
- employment contracts for individuals on vacation or on a business trip or engaged in collective bargaining may not be terminated on the basis of the grounds determined in Section 70 of this Code.

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:

- the name of enterprise, legal address, number of the order (decree, decision),date, the position and name of the employer who signed it;
- the full name of employee;
- the name of employee's position as stated in the employment contract;
- grounds for terminating the employment contract;
- the relevant Section, and subsection hereof where the rules for termination of employment contract are provided;
- the day, month and year on which the employment contract was terminated;
- official documents considered as grounds for the order (decree, decision) terminating the 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 empl