Azerbaijan defines new job creation procedures alongside quotas in updated Employment Law

By Nazrin Abdul

In Azerbaijan, a new procedure for creating jobs alongside established quotas has been defined, following amendments to the "Employment" law discussed at today's session of the Milli Majlis (the Azerbaijani Parliament), Azernews reports.

According to the proposed amendment, the allocation of additional job placements beyond the quota for each employer is determined by the relevant executive authority, not exceeding 15 positions per employer.

Additionally, salaries for employment contracts lasting at least two years with individuals designated by the relevant executive authority will be financed from unemployment insurance funds, as stipulated in Article 26.6 of the law.

Furthermore, the amount of salary support from the unemployment insurance fund, applicable to socially vulnerable categories facing employment challenges, will be determined based on interest rates set by the relevant executive authority, not exceeding the average monthly national salary from the previous year.

Employers selected through competitive processes by the designated executive authority will participate in targeted programs, provided they meet specific criteria: they must have been operational and tax-compliant in Azerbaijan without reducing staff or cutting jobs in the past year, and they must submit relevant vacancy bank information as per Article 18.3 of the law.

State-owned entities, municipal bodies, and entities majority-owned by the state or municipality are ineligible to compete. Preference will be given to employers creating sustainable jobs in high-demand sectors, particularly for individuals requiring social protection.

Winning employers will enter into a three-year contract with the designated executive authority outlining program specifics, rights, duties, and responsibilities, with exclusivity during this period. Funding allocations for each job created under the program will be determined based on economic sector characteristics and contractual agreements.

Azerbaijan is set to implement new employment measures aimed at assisting the unemployed. This development was also highlighted in the amendment to the "Employment" law discussed during today's session of the Azerbaijani Parliament.

Under the amendment, targeted programs will be launched as active employment measures. These programs will involve financing the creation of job opportunities through funds from unemployment insurance, specifically targeting individuals with special social protection needs and those facing challenges in securing employment.

After thorough discussions, the amendment successfully passed its third reading, marking a significant legislative stride in Azerbaijan's efforts to enhance job creation and support for the unemployed.

Following discussions, the amendments were unanimously approved in the third reading.