Legal Intern
July 21, 2025
32 min read
This report aims to provide a comparative analysis of the current labor law legislation of the Republic of Türkiye and the Republic of Azerbaijan, focusing on the fundamental dynamics of the employment relationship. In the context of increasing economic, commercial, and investment relations between the two countries, this report serves as a comprehensive guide for employers, investors, human resources professionals, and legal consultants. The analysis covers a wide range from the establishment to the termination of the employment relationship, working conditions, protection of special groups, trade union rights, and dispute resolution mechanisms.
The analysis has been prepared based on the primary legal texts—the Labor Law No. 4857 in Türkiye and the Emek Məcəlləsi (Labor Code) in Azerbaijan—as well as relevant regulations, communiqués, current judicial decisions, and financial data for the year 2025 (minimum wage, tax, premium rates). The comparison is not limited to a side-by-side placement of legal texts; it adopts an analytical approach that also reveals the legal philosophy behind the regulations, differences in practical application, and potential risks.
This chapter examines the contract law and initial processes that form the legal basis of the employment relationship.
Türkiye: The primary purpose of the Labor Law No. 4857 is to regulate the relationship between the employee and the employer based on the "principle of protecting the employee." The law is built on fundamental principles such as the protection of the employee's personality, the obligation of equal treatment, and ensuring occupational health and safety. Furthermore, Türkiye has ratified numerous International Labour Organization (ILO) conventions, including the 8 core conventions concerning fundamental rights like freedom of association, collective bargaining, and the prevention of forced labor and discrimination. These conventions are part of domestic law in accordance with Article 90 of the Constitution.
Azerbaijan: The Emek Məcəlləsi (Labor Code) is the fundamental legal text that substantiates the constitutional right to work. According to the Constitution, everyone has the right to freely choose their type of activity, profession, and job, to work in safe and healthy conditions, and to receive wages no less than the state-determined minimum wage.
In both countries, the employment contract is defined as a contract in which the employee undertakes to perform work dependently, and the employer undertakes to pay wages in return. However, there is a significant difference regarding formal requirements.
Türkiye: According to the Labor Law, the employment contract is, as a rule, not subject to a special form. However, fixed-term employment contracts with a duration of one year or more must be made in writing. Failure to comply with this requirement does not result in the invalidity of the contract but may lead to the imposition of an administrative fine on the employer.
Azerbaijan: The Emek Məcəlləsi is based on the "principle of written form." It is a rule that employment contracts must be drawn up in writing. This approach ensures that all conditions are clearly documented from the beginning of the employment relationship, creating a higher degree of legal certainty and predictability for both the employee and the employer. In the event of a dispute, the written text serves as the primary evidence. While the more flexible structure in Türkiye allows for the rapid establishment of employment relationships, it carries the risk of uncertainty and difficulties of proof arising from verbal agreements. Therefore, a company investing in Azerbaijan must pay utmost attention to documentation and the complete preparation of contracts during the hiring process. In Türkiye, even if it is not a legal requirement, initiating all employment relationships with a written contract stands out as a strategic best practice.
Türkiye: In individual employment contracts, the probationary period is set at a maximum of 2 months. However, this period can be extended up to 4 months through collective bargaining agreements. Within the probationary period, the parties can terminate the employment contract without being obliged to observe a notice period and without compensation.
Azerbaijan: According to the Emek Məcəlləsi, the probationary period is a maximum of 3 months. Within this period, either party may terminate the employment contract by giving the other party 3 days' written notice. For an employee whose employment contract is terminated on the grounds of being found unsuitable for the job during the probationary period, the approval of the trade union of which they are a member is not required, and no dismissal allowance (termination indemnity) is paid.
In Türkiye, the employment of foreigners is subject to a permit to be obtained from the Ministry of Labor and Social Security under the International Workforce Law No. 6735. The obtained work permit also serves as a residence permit for its duration.
Applications are made domestically through the "e-Permit" system if the foreigner holds a valid residence permit in Türkiye for at least 6 months. If they do not have such a permit, the application is made from abroad through Turkish foreign representative offices (consulates/embassies) in the country where the foreigner is a citizen or legally resides.
The Ministry requires compliance with a set of criteria when evaluating applications:
Employment Criterion: For each foreign employee, at least five Turkish citizens must be employed at the workplace for which the work permit is requested.
Financial Adequacy Criterion (as of 01.01.2025): The workplace's paid-in capital must be at least 500,000 TRY, or its net sales must reach at least 8,000,000 TRY, or its export amount in the last year must be at least 150,000 USD.
Salary Criterion: The wage to be paid to the foreign personnel must not be less than certain multiples of the minimum wage, depending on their position. For example, senior executives and pilots must be paid at least 5 times the minimum wage, while engineers and architects must be paid at least 4 times the minimum wage.
For insured individuals coming from Azerbaijan to Türkiye on temporary assignment, special procedures and formularies like "TR/AZ 1" are used within the scope of the Türkiye-Azerbaijan Social Security Agreement. Of course. Here is the direct English translation of the provided text.
This chapter compares the most fundamental elements during the employment relationship: working hours, remuneration, and financial obligations.
There are significant differences between the two countries regarding working hours. While Türkiye offers a more flexible structure, Azerbaijan has stricter limits.
Türkiye: The maximum weekly working time is 45 hours. This time can be distributed equally or differently across the working days of the week within the scope of the employer's right of management. However, the daily working time can in no way exceed 11 hours. Work that exceeds 45 hours per week is considered "overtime work," and payment for each hour of overtime is made with a 50% increase on the normal hourly wage (1.5 times). The employee also has the right to use free time instead of receiving increased wages. The total annual overtime cannot exceed 270 hours. According to the case law of the Court of Cassation, work exceeding 11 hours per day or 7.5 hours in night work is also considered overtime, even if the weekly limit is not exceeded.
Azerbaijan: The maximum weekly working time is 40 hours, and the normal daily working time is 8 hours. Work exceeding these limits is considered overtime, and the wage is paid at at least 2 times the normal hourly wage. This rate, compared to the 50% increase in Türkiye (200% versus 150%), represents a significantly higher cost for employers. This situation encourages companies operating in Azerbaijan to increase operational efficiency, establish shift systems, and plan their personnel more carefully. A business model based on overtime is far from sustainable in Azerbaijan due to its high cost.
Türkiye: The gross monthly minimum wage set for 2025 is 26,005.50 TRY, and the net minimum wage is 22,104.67 TRY. This amount is a single national minimum wage applied to all employees, regardless of age or sector.
Azerbaijan: The monthly minimum wage set for 2025 is 400 AZN. However, unlike Türkiye, a differentiated structure based on age and status has been adopted. This amount, which is 400 AZN for employees aged 21 and over, is applied as 300 AZN for young people aged 18-20, and 250 AZN for apprentices and interns.
One of the most important factors determining the total cost to the employer is taxes and social security premiums. The systems of the two countries show significant differences at this point.
Türkiye:
Social Security Premiums (2025): Calculated on the gross wage. The employee's share is a total of 15% (14% Social Security Institution [SGK] + 1% Unemployment Insurance). The employer's share, if benefiting from legal incentives, is a total of 17.5% (15.5% SGK + 2% Unemployment Insurance). For retired employees, Social Security Support Premium (SGDP) rates are applied, and these rates are higher (7.5% employee, 24.75% employer).
Income Tax (2025): Wage income is subject to a progressive rate schedule based on the cumulative tax base. Tax rates start at 15% and rise to 20%, 27%, 35%, and up to 40% as income increases. The minimum wage amount is held exempt from income and stamp duty.
Azerbaijan:
Social Insurance Premium: There is a tiered structure based on the wage level. The employee's share is 3% for the portion of the monthly wage up to 200 AZN, and 10% for the portion exceeding 200 AZN. The employer's share is 22% for the portion up to 200 AZN, and 15% for the portion exceeding it.
Unemployment Insurance Premium: A fixed deduction of 0.5% is made for both the employee and the employer.
Income Tax: Compared to Türkiye, it has a simpler, two-tiered structure. A tax of 14% is levied on income up to 2,500 AZN per month, and 25% on the portion exceeding 2,500 AZN.
This structural difference produces significant results, especially in the employment of highly qualified and high-salaried professionals. While the progressive and high-bracket tax system in Türkiye reduces the proportion reflected in the net salary as the gross salary increases (the "tax wedge"), Azerbaijan's lower and less-tiered tax structure can provide a more advantageous net income for high-salaried employees. This situation can position Azerbaijan more competitively in attracting personnel from the regional talent pool.
This chapter addresses the applications of annual leave and public holidays, which are part of the employee's right to rest.
Although both countries adopt an annual leave system based on seniority, the initial durations and rates of increase differ.
Türkiye: To be entitled to annual paid leave, it is required to have worked for at least one year, including the probationary period. The leave durations progressively increase based on the employee's length of service (seniority):
For those with 1 to 5 years (inclusive) of service: 14 days
For those with more than 5 years and less than 15 years of service: 20 days
For those with 15 years (inclusive) and more of service: 26 days
Furthermore, the annual paid leave to be granted to workers aged 18 and younger, and workers aged 50 and older, cannot be less than 20 days. An additional four days are added to the leave periods of workers in underground mining operations.
Azerbaijan: The basic annual leave period is at least 21 days, regardless of seniority. This is a quite generous approach compared to the 14-day starting period in Türkiye. In addition to this basic period, additional leave days are granted based on seniority:
For those with 5 to 10 years of service: Additional 2 days
For those with 10 to 15 years of service: Additional 4 days
For those with 15 years and more of service: Additional 6 days
Türkiye: The total number of national and general holidays determined by Law No. 2429 is 15.5 days for the year 2025. As a rule, working on these days is subject to the employee's consent, and if worked, an additional one day's wage is paid on top of the normal wage (double daily wage in total). The 2025 holidays include New Year's Day, Ramadan Feast (3.5 days), National Sovereignty and Children's Day, Labour and Solidarity Day, Commemoration of Atatürk, Youth and Sports Day, Sacrifice Feast (4.5 days), Democracy and National Unity Day, Victory Day, and Republic Day (1.5 days).
Azerbaijan: The number of public holidays determined according to Article 105 of the Labor Code is approximately 20 days, which is more than in Türkiye. An important feature of Azerbaijani law is that if a public holiday coincides with a weekend rest day, the next business day is also considered a holiday. This practice further increases the actual number of holidays. If work is performed on these holidays, the wage is paid at at least 2 times the normal rate. The main holidays for 2025 are; New Year, Black January (Day of National Sorrow), Women's Day, Novruz Feast, Ramadan Feast, Victory Day over Fascism, Independence Day, Sacrifice Feast, National Salvation Day, Armed Forces Day, Victory Day, State Flag Day, and Day of Solidarity of World Azerbaijanis.
The fact that Azerbaijani legislation offers both a longer initial annual leave and a greater number of public holidays shows that it allocates more space to the employee's right to rest. This requires a company operating in Azerbaijan to consider more holidays when planning its annual production and service calendar compared to Türkiye. This difference is a factor that directly affects the total annual working hours and productivity targets.
This chapter examines the termination processes, indemnities, and job security mechanisms, which constitute the most sensitive and costly phase of the employment relationship.
Türkiye: The termination of an employment contract is divided into various categories in the Labor Law No. 4857: termination with notice, immediate termination for just cause by the employee or employer, and termination for a valid reason for employees under job security. Job security applies to employees with indefinite-term contracts who have at least 6 months of seniority in workplaces employing 30 or more workers. For the contracts of these employees to be terminated, the employer must prove that the reason for termination is "valid" (a reason arising from the employee's competence, behavior, or the requirements of the enterprise, workplace, or work).
Azerbaijan: The Labor Code adopts a much stricter approach to terminations by the employer. The grounds for termination are listed exhaustively (numerus clausus) in the law. This severely restricts the employer's right to terminate and requires the reason for termination to fully comply with one of the definitions in the law. The main grounds for termination are as follows (Az. LC. Art. 70):
Liquidation of the enterprise,
Reduction in the number of employees or cancellation of positions,
Determination of the employee's professional incompetence by a decision of a competent body,
Gross violation of work duties by the employee (limited to the cases listed in Art. 72),
Failure during the probationary period,
Reaching the age limit in institutions financed from the state budget.
Furthermore, in Azerbaijan, to dismiss a union member employee, the consent of the relevant trade union must be obtained prior to the termination. This constitutes an additional layer of protection not found in Türkiye and a significant procedural obstacle for the employer.
Türkiye: In the termination of indefinite-term employment contracts, the terminating party must adhere to notice periods determined by seniority:
Less than 6 months of seniority: 2 weeks
6 months - 1.5 years of seniority: 4 weeks
1.5 years - 3 years of seniority: 6 weeks
More than 3 years of seniority: 8 weeks
The party that does not comply with these periods pays the other party a payment in lieu of notice equal to the wage for this period. The employer has the right to terminate the contract immediately by paying the notice pay in advance. Additionally, the employer is obliged to grant the employee at least 2 hours of paid leave per day to seek new employment during the notice period.
Azerbaijan: Notice periods are also determined by seniority and have a structure similar to Türkiye but differing at higher seniorities:
Up to 1 year of seniority: 2 weeks
1 - 5 years of seniority: 4 weeks
5 - 10 years of seniority: 6 weeks
More than 10 years of seniority: 9 weeks
For terminations made by the employee, the notice period is 1 month. Unlike Türkiye, the employer's immediate termination of the contract by making an advance payment is subject to the employee's consent and requires an increased payment with certain coefficients.
Türkiye (Severance Pay): This is one of the most fundamental institutions of Turkish labor law. It is an indemnity that an employee who has worked for at least 1 year is entitled to when their contract ends under certain conditions specified in the law (termination by the employer for reasons other than just cause, termination by the employee for just cause, retirement, compulsory military service, termination by a female employee within 1 year of marriage, etc.). It is paid in the amount of 30 days' inclusive gross wage (including recurring benefits measurable in monetary terms in addition to the wage) for each full year of work. Periods exceeding one year are also calculated proportionally. Only stamp duty is deducted from severance pay, and there is an annually updated ceiling amount.
Azerbaijan (Dismissal Allowance): This payment is not in the nature of an accrued right of the employee like severance pay in Türkiye. It is paid only in two cases specified by law: the liquidation of the workplace or the reduction of the number of employees/cancellation of positions. Its amount has a structure that increases progressively with seniority:
Up to 1 year of seniority: 1 month's average salary
1 - 5 years of seniority: At least 1.4 times the average salary
5 - 10 years of seniority: At least 1.7 times the average salary
More than 10 years of seniority: At least 2 times the average salary
No tax is deducted from this allowance.
The fundamental philosophical difference between these two institutions leads to strategic consequences for employers. In Türkiye, severance pay is a potential accumulated financial liability for every employee and must be considered in financial planning. In Azerbaijan, however, this liability is a more situational cost that arises depending on strategic decisions such as restructuring or downsizing.
Türkiye: As stated, employees in workplaces with 30 or more workers and at least 6 months of seniority are covered by job security. If the termination is deemed invalid by the court, the employer must reinstate the employee within 1 month. If the employer does not reinstate the employee, they must pay the employee compensation for non-reinstatement in the amount of 4 to 8 months' wages, as determined by the court, as well as wages and other rights accrued for the period not worked, up to a maximum of 4 months, until the decision becomes final.
Azerbaijan: There is no systematic job security regime dependent on conditions such as workplace size and seniority as in Türkiye. However, protection is provided at a more fundamental level. The fact that the grounds for termination are listed exhaustively in the law leads to any termination made outside these grounds being considered unlawful. An employee whose employment contract is terminated in violation of the prohibition on termination or for a reason not in accordance with the law has the right to be reinstated by a court decision.
This chapter examines the additional protections and rights provided by the legislation for pregnant, postpartum, and disabled employees, who are considered vulnerable groups.
The Turkish Labor Law provides comprehensive protection for female employees during pregnancy and maternity.
Working Conditions: Pregnant or nursing women cannot be made to work more than 7.5 hours a day. It is forbidden for them to work night shifts for one year following childbirth. With a doctor's report, they can be assigned to lighter duties suitable for their health, and no reduction can be made in their wages in this case. Additionally, they have the right to paid leave for periodic check-ups during pregnancy.
Maternity Leave (Birth Leave): The standard entitlement is a total of sixteen weeks of paid leave, with eight weeks before and eight weeks after childbirth. In cases of multiple pregnancies, two weeks are added to the pre-natal period.
Post-Childbirth Rights:
Unpaid Leave: At the end of their maternity leave, they can take up to six months of unpaid leave upon request.
Right to Half-Time Work: After maternity leave, for the first birth for 60 days, the second birth for 120 days, and subsequent births for 180 days, they can work half of the weekly working time and receive a half-time work allowance based on their full-time salary. If the child is born with a disability, this period is applied as 360 days.
Nursing Leave: They are given a total of one and a half hours of paid nursing leave per day to breastfeed their children under one year of age. The employee herself determines how this time is used, and this period is counted as working time.
Request for Part-Time Work: One of the parents can request to work part-time until the beginning of the month following the date the child starts compulsory primary education.
Azerbaijan: In the available research materials, detailed information regarding specific protections and leave rights for pregnant or postpartum women in the Azerbaijan Labor Code could not be found. This situation limits the comparative analysis of this report on this subject.
Türkiye has adopted principles of positive discrimination to encourage the participation of individuals with disabilities in employment and to prevent them from facing discrimination in work life.
Employment Obligation (Quota): Private sector employers with fifty or more employees are obliged to employ disabled workers at a rate of three percent (3%) of their total number of employees. Employers who do not comply with this obligation are subject to an administrative fine for each disabled person not employed and for each month.
Prohibition of Discrimination: Pursuant to Article 5 of the Labor Law, an employer cannot directly or indirectly discriminate based on disability in the employment relationship.
Special Leave Rights: Employees are granted up to ten days of paid leave within a year, either in whole or in parts, for the treatment of their child who has at least a seventy percent disability or a chronic illness, based on a medical report and on the condition that it is used by only one of the parents.
Income Tax Reduction: A reduction is applied to the income tax deducted from the salaries of employees according to their degree of disability.
Azerbaijan: In the available data, there is no information regarding a comprehensive quota system or positive discrimination regulations similar to those in Türkiye. However, the İnzibati Xətalar Məcəlləsi (Code of Administrative Offenses) states that not hiring or dismissing a person because they have "multiple sclerosis" is subject to a criminal penalty. While this provision indicates the existence of protection against disability-based discrimination, it does not provide sufficient information about the scope and details of the general framework.
This chapter compares the ways in which employees exercise their collective rights and the legal guarantees for these rights.
Türkiye: Trade union rights are guaranteed by the Constitution and detailed in the Law on Trade Unions and Collective Bargaining Agreements No. 6356. Workers and employers have the right to form unions, join unions, and withdraw from membership without prior permission. Unions are established on a "branch of activity" basis and operate throughout Türkiye. It is strictly forbidden for an employee to be subjected to different treatment for being or not being a member of a union (union discrimination).
Azerbaijan: The Labor Code provides a legal basis for collective labor relations by also regulating issues such as collective bargaining agreements, strikes, and lockouts. Workers have the right to form and join unions. Notably, the requirement for the employer to obtain the union's prior consent for important decisions, such as the dismissal of a union member, shows how effectively unions are designed as a protection mechanism at the workplace level.
Türkiye: The authorized trade union has the right to conclude a collective bargaining agreement at the workplace or enterprise level. A collective bargaining agreement is a normative document that amends the provisions of individual employment contracts in favor of the employee and regulates working conditions, wages, and social rights. If an agreement cannot be reached during the collective bargaining process, workers can exercise their right to strike, provided they comply with legal procedures. The strike is the workers' most powerful collective action tool.
Azerbaijan: The historical depth of Azerbaijan in this area is noteworthy, with the first collective bargaining agreement being signed in 1904 between oil workers and industrialists in Baku. The legislation provides strong protection to workers participating in union activities by prohibiting dismissal due to membership in a union or any political party, and the termination of an employment contract while on annual leave or during participation in collective bargaining negotiations.
This section examines the legal obligations of employers to protect the health and safety of their employees.
Türkiye: The subject of occupational health and safety was given an independent legal framework with the Occupational Health and Safety Law No. 6331, which came into force in 2012. This law adopts a proactive and preventive approach. The employer's basic obligations are as follows:
Risk Assessment: To identify all hazards in the workplace, analyze the risks arising from these hazards, and decide on control measures.
Preventive Measures: To take all kinds of measures for the prevention of occupational risks, to make the necessary organization, and to provide the necessary tools and equipment.
Training and Information: To inform employees about the occupational risks they face, the measures to be taken, and their legal rights and responsibilities, and to provide their training regularly.
Health Surveillance: To have employees undergo health examinations upon recruitment, job changes, and at regular intervals according to the nature of the work.
Emergency Plans: To prepare plans for first aid, firefighting, and evacuation and to make assignments.
Assignment of OHS Professionals: To appoint an occupational safety expert, workplace physician, and other health personnel according to the hazard class of the workplace and the number of employees.
Azerbaijan: In the available research materials, a detailed and independent legal regulation regarding OHS obligations, similar to Law No. 6331 in Türkiye, was not found. However, the general provisions of the Labor Code and the constitutional principle of "everyone's right to work in a safe and healthy working environment" impose a general OHS provision obligation on the employer. Provisions such as the prohibition of making employees work excessive overtime in a way that would harm their health are part of this general obligation.
Türkiye: Law No. 6331 in Türkiye covers all employees, including apprentices and interns, without distinction between public and private sectors. The law is based on fundamental principles such as avoiding risks and combating risks at their source. Violations of the law are inspected by labor inspectors affiliated with the Ministry of Labor and Social Security and are subject to serious administrative fines.
Azerbaijan: In Azerbaijan, compliance with labor legislation is inspected by the State Labour Inspection Service (Dövlət Əmək Müfəttişliyi Xidməti).
Legal avenues exist in both countries for resolving disputes between employees and employers, but the "mandatory mediation" system introduced by Türkiye in recent years creates a significant difference.
A revolutionary change was made in Turkish labor law with the Labor Courts Law No. 7036, which came into force in 2018. It has become a "prerequisite for a lawsuit" to apply to a mediator before filing a lawsuit for employee or employer receivables and compensation based on individual or collective employment contracts, as well as for reinstatement claims. In other words, if a lawsuit is filed directly in a labor court without going through the mediation process, the case is dismissed on procedural grounds.
This system aims to encourage the parties to produce their own solutions with the help of a neutral third party (the mediator) by bringing them together. The process is much faster and less costly than court proceedings. The report prepared upon reaching an agreement in the mediation process is considered to have the force of a court verdict and is directly enforceable. However, cases with a strong public nature, such as work accidents, occupational diseases, or determination of service period lawsuits, are outside the scope of mandatory mediation.
It is understood that labor disputes are resolved through general jurisdiction courts. Workers have the right to apply to labor courts when they believe their rights have been violated. It is observed that in matters such as termination, courts can rule for reinstatement by inspecting the legality of the termination.
New ways of working, emerging with the advancement of technology, are also forcing labor law to change.
Remote work, which became widespread with the Covid-19 pandemic, has been placed within a legal framework in Article 14 of the Turkish Labor Law and the Regulation on Remote Work dated 2021. Remote work is the performance of the employee's job outside the workplace using technological communication tools. For this model to be implemented, it is mandatory to have a written "remote work contract" between the employee and the employer. This contract must specify matters such as the job description, the way it is performed, its duration, wage, and payment methods. Remote workers cannot be subjected to different treatment compared to comparable office employees unless there is a substantial reason, and they have the same social rights. The employer is also obliged to take occupational health and safety measures for the remote worker. Türkiye is continuing its work on legislative changes concerning new-generation flexible work models.
The Personal Data Protection Law (KVKK) No. 6698 also imposes significant obligations in employment relationships. The employer must comply with the principles specified in the law when processing the employee's personal data.
Explicit Consent and Obligation to Inform: As a rule, an employee's personal data (especially biometric data such as fingerprints) can only be processed by obtaining their "explicit consent." Before processing data, the employer is obliged to "inform" the employee about which data will be processed, for what purpose, for how long, and to whom it will be transferred.
Conditions for Processing: However, data can be processed without seeking explicit consent in cases where it is explicitly stipulated in the laws (e.g., identity information for Social Security notifications), is necessary for the performance of a contract, or for the employer to fulfill a legal obligation.
Purpose Limitation: The employer may only use the employee's personal data to the extent that it is relevant to the employee's suitability for the job or necessary for the performance of the service contract.
Data Security: The employer is obliged to take the necessary technical and administrative measures to ensure the security of the employee's data.
Ensuring compliance with legislation is possible through an effective auditing mechanism and deterrent sanctions.
Administrative fines to be applied in case of violation of the Labor Law No. 4857 are increased each year at the revaluation rate. Fines can be applied on a per-workplace basis or separately for each employee affected by the violation, depending on the nature of the act. The main acts that require penalties are:
Failure to report the workplace or collusive reporting.
Violation of the principle of equal treatment.
Failure to provide a written contract or work certificate.
Non-compliance with the obligation to employ disabled persons and ex-convicts (for each month).
Failure to pay wages on time and in full, or paying below the minimum wage.
Failure to pay overtime wages.
Unlawful use of annual paid leave or failure to pay its wage.
Non-compliance with working hours, night work rules, and rest breaks.
Obstructing the inspection duties of labor inspectors.
In Azerbaijan, violation of labor legislation is also subject to administrative fines under the İnzibati Xətalar Məcəlləsi (Code of Administrative Offenses). Fines are generally determined separately for "vəzifəli şəxslər" (officials/executives) and "hüquqi şəxslər" (legal entities/companies). The main actions requiring sanctions are:
Violating prohibitions on child labor (high fines are stipulated).
Unlawfully terminating an employment contract (fine between 1500 – 2000 manat).
Failure to open the employee's work record book (əmək kitabçası) on time (fine between 500 – 1000 manat).
Failure to pay compensation for unused annual leave or violating the right to leave (fine between 1500 – 2000 manat).
Türkiye: Compliance with labor legislation is audited by labor inspectors within the Labor Inspection Board Presidency, which is affiliated with the Ministry of Labor and Social Security.
Azerbaijan: The auditing authority belongs to the State Labour Inspection Service (Dövlət Əmək Müfəttişliyi Xidməti), affiliated with the Ministry of Labour and Social Protection of the Population.
The comparative analysis of the Turkish and Azerbaijani labor law systems reveals that despite the common cultural ties between the two countries, they have adopted different philosophies and approaches in regulating employment relationships. These differences lead to significant strategic implications for businesses operating or planning to operate in both markets.
Flexibility vs. Rigidity: Turkish labor law offers a more flexible structure, especially on issues like working hours and contract form, granting a wider scope to the employer's right of management. The Azerbaijani Labor Code, on the other hand, has stricter rules (40-hour week, mandatory written contract, exhaustive list of termination grounds). This requires companies that will operate in Azerbaijan to be more meticulous and rule-based in their operational planning, shift arrangements, and documentation management.
Termination Regimes and Risk Management: The termination of the employment contract is one of the most fundamental points of divergence between the two countries. While the job security system in Türkiye depends on procedural conditions such as workplace size and seniority, protection in Azerbaijan is provided by the substantive and exhaustive listing of termination grounds in the law. It is legally much more difficult to dismiss an employee in Azerbaijan than in Türkiye. Therefore, it is critically important for employers in Azerbaijan to conduct a comprehensive legal assessment before making termination decisions and to document that the reason for termination fully complies with the definitions in the law.
Cost Structures: The fact that overtime pay in Azerbaijan is at least a 100% increase, compared to the 50% rate in Türkiye, creates a significant cost difference. Similarly, Azerbaijan's more generous annual leave and public holiday policies directly affect total annual working hours and productivity calculations. In contrast, Azerbaijan's less progressive tax structure may offer a cost advantage in employing highly qualified personnel.
Indemnity Philosophy: While severance pay in Türkiye is in the nature of an accrued right as a reward for the employee's loyalty, the dismissal allowance in Azerbaijan is more of a security payment against terminations made for the employer's economic reasons. This requires employers in Türkiye to maintain a potential severance pay liability for each employee on their balance sheets.
Local Expertise: In both countries, it is essential to obtain consultancy from local labor law experts in the processes of recruitment, contract management, and termination. The strict rules of Azerbaijan and the complex case law of Türkiye, in particular, show that standard approaches can be risky.
Documentation and Procedure: Due to the principle of written form in Azerbaijan, and to prevent proof burden and potential disputes in Türkiye, it is vital that all work processes (employment contracts, warning and defense letters, leave records, performance evaluations) are documented completely and in accordance with procedures.
Cost and Budget Planning: The differences in wage, tax, premium, overtime, and indemnity costs between the two countries should be analyzed in detail when preparing investment and operational budgets. In particular, a production model based on overtime should be avoided in Azerbaijan.
Adaptation of HR Policies: Global or regional HR policies must be adapted to each country's own legal framework, especially to regulations concerning groups requiring special protection (women, disabled, young workers) and the trade union structure.
In conclusion, the strong economic ties between Türkiye and Azerbaijan offer great opportunities for the business world. However, turning these opportunities into sustainable success depends on a deep understanding of the labor law dynamics of both countries and on ensuring full compliance with these legal frameworks.
