Drafting of Labor and Collective Contracts

The drafting of labor and collective contracts reflecting the necessary provisions for legal and natural persons is made in accordance with the legislation. It is the right of labor parties to obtain professional legal services during the signing of these contracts which determine the rights and obligations of parties.

The drafting of labor and collective contracts is determined by the labor legislation of the Republic of Azerbaijan. The labor contract is concluded in written form between the employee and the employer, in not less than 2 copies. The labor contract is approved by the signature of the parties and if the employer is a legal entity it is also approved by the stamp and one copy is kept by the employee and the other copy is kept by the employer. The following basic terms and conditions are mandatory and should be indicated in the labor contract:

  • Surname, name, father’s name and address of the employee, the name of the identity document, its serial and number, the fin code, the date of issue, the name of the issuing authority;
  • If the employer is a legal entity, its name, taxpayer identification number (TIN),
  • Place of work, position (profession) of the employee;
  • Date of signing of labor contract and start of work by employee;
  • Duration of labor contract;
  • Labor duties of the employee;
  • Working conditions of the employee - working and rest time, wages and supplements, duration of leave, protection of labor, social and other insurance;
  • Mutual obligations of the parties on labor contract;
  • State Social Insurance Certificate number of employee (SIN), except for the first time employed;
  • Note that the employee's place of work is primary or secondary, and so on.

It is not allowed to reduce the level of rights and guarantees established for employees when the labor contract is concluded and also before the termination of employment relations.

The collective agreement is an act of social cooperation that is concluded outside the enterprise and covers a wider area. It is a legal act signed between social partners and reflects working conditions, employment, certain professions, areas, and social security for employees.

In accordance with the initiative set forth in Article 25 of the Labor Code, trade unions make a decision on the need to draft and conclude a collective agreement. The preparation of the collective contract is determined and formalized by the mutual agreement of the parties. To this end, the parties may establish an appropriate commission consisting of equal representatives.

Labor contract

A labor contract is a written contract that reflects the basic terms of the employment relationship between the employer and the employee, as well as the rights and obligations of the parties. According to the Constitution, labor is free in the Republic of Azerbaijan. Every citizen is free to choose their working area and profession. Citizens can exercise their labor rights in the following forms:

  • by concluding a labor contract;
  • by being elected to elected positions;
  • sending young specialists to their place of employment upon graduation;
  • personal and private business.

There are a number of features that distinguish labor contracts from other contracts. These include employment of a particular type of work (within certain qualifications, profession and positions) by the employee personally, the employee's compliance with internal rules established by the enterprise, office, organization, the organization of the employer's obligation to set work, safety and hygiene which it is necessary to create normal working conditions.

The sum of the features listed gives us the ability to differentiate the labor contract from other civil-legal contracts in each particular case.

In accordance with Article 42 of the Labor Code, anyone can act as a party to the labor contract since the age of 15. Parties can add additional provisions besides basic terms. The contract may be concluded without additional conditions.

Procedure for termination of labor contract

The procedure for termination of a labor contract is specified in the Labor Code. So, on the grounds specified by the law, such as the initiative of one of the parties, the expiration of the labor contract, the change of working conditions, the change in the ownership of the enterprise, conditions beyond the will of parties, or circumstances established by the parties.

The termination of the labor contract by the employer is based on the following reasons:

  • liquidation of the enterprise;
  • there is a personnel cutback at the enterprise;
  • a competent body decides that the employee does not have the professional skills for the job he/she holds;
  • the employee does not fulfill his job description or fails to perform his duties as defined by the employment contract and gross violation of job description as indicated in Article 72 hereof without valid reason;
  • if the employee has not justified the expectations within the probation period;
  • when an employee of a state-funded enterprise reaches the age of employment.

About collective contract

The collective contract contains all the conditions that the parties have agreed upon at the time of its conclusion. According to the Labor Code, the content of the collective contract is determined by the parties' will. However, provisions contained in the Labor Code and other normative legal acts are included in the collective contract compulsorily.

The terms, obligations and conditions, which are necessary to be included in the contract, are brought to the discussion of the commission of negotiations. The Parties may, at this time, propose to include those terms, obligations to the content in the contract as they discuss it.

In addition, more favorable terms in labor and social-economic conditions may be included in the collective contract, depending on the financial capabilities of the enterprise, as well as those set out in the Labor Code and other laws.

The right to leave (vacation)

According to Article 110 of the Labor Code, employees are entitled to leave (vacation), regardless of their job, working conditions, and length of employment. Additional workplace employees also have the right to take advantage of defined leave. Employees' entitlement to leave and rules for their use shall not be restricted by law.

In addition, the Code states that the employee will retain his or her job, position and the average salary for the duration of his or her leave and that no labor contract or disciplinary liability on the initiative of the employer is inadmissible. This period is included in the work experience of an employee as well as in the specialty.

Employees eligible for leave are provided with the following types of leave:

  • a) vacation, consisting of base and additional vacation time;
  • b) social leave;
  • c) educational and creative leave for continuing education and pursuing scientific research;
  • d) unpaid leave.

At the initiative of the employer, other types of leave may be provided for in the labor contract, including in the collective contract.

Legal services related to the conclusion of labor and collective contracts

Legal Store takes into account both parties' positions in contracts made by professional lawyers, taking into account such important issues as labor and drafting of collective contracts. Thus, these agreements, which represent the interests of both parties and reflect the obligations of the parties to each other, are developed in a manner that meets all international norms and meets the requirements of local law.

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