Author: np-post

Recent amendments to the Administrative Offences Code of Azerbaijan have proposed new administrative penalties aimed at strengthening compliance with labour and financial leasing regulations. In the employment sphere, employers may now face administrative fines for hiring or continuing the employment of individuals diagnosed as narcological patients in professions or positions for which activity restrictions have been established by the competent authority. Responsible officials may be fined 3,000 AZN  for such violations. The amendments also establish liability for employing individuals...

The Constitutional Court of Azerbaijan has issued a significant decision concerning the interpretation of Article 739.2 of the Civil Code, which requires loan agreements exceeding AZN 3,000 to be concluded in writing. The decision addresses an issue that has long created uncertainty in judicial practice. In a number of cases, courts treated the absence of a written loan agreement as a defect affecting the validity of the transaction itself. As a result, creditors who had actually transferred funds to borrowers were often required to rely on unjust enrichment claims rather than contractual...

The Civil Chamber of the Supreme Court of Azerbaijan has issued an important decision establishing a unified judicial approach regarding termination of employment contracts following a change in ownership of an enterprise. The case concerned a bank employee serving as a branch manager whose employment was terminated after changes in the bank’s shareholder structure. While the lower courts ruled in favor of the employee, the Supreme Court took a different view. The Court emphasized that Article 68 of the Labor Code grants a new owner the right to terminate employment relationships with employees...

An amendment has been proposed to the Law of the Republic of Azerbaijan “On Private International Law” clarifying the applicable law governing financial lease (leasing) agreements involving a foreign element. The amendment adds new Article 25.1.3-1 to the Law, providing that where the parties have not expressly agreed on the governing law of a financial lease agreement, the law of the country in which the lessor is established, domiciled, or principally conducts its business will apply. Article 25 of the Law sets out default conflict-of-law rules applicable in the absence of a choice-of-law...

Recent proposed amendments to the Labour Code of the Republic of Azerbaijan introduce an important development in the area of employee remuneration, reinforcing the principle of equality in the workplace.In particular, Article 154 of the Labour Code has been supplemented with a new provision establishing the obligation of employers to ensure equal pay. Under the newly added Part 3 of Article 154, employers are required to pay equal wages to employees performing the same work or work of equal value, regardless of gender. Determination of Work of Equal Value The amendment further clarifies...

Recent legislative amendments have been proposed to the Labour Code of the Republic of Azerbaijan, affecting both termination grounds of employment contracts and principles of remuneration, which are aimed at strengthening workplace safety, ensuring compliance with health requirements, and promoting equality in pay. New Grounds for Termination of Employment Contracts Amendments to Article 74 (termination of an employment contract due to circumstances beyond the parties’ control) expand the list of cases where an employment contract may be terminated. Under the newly added provisions: An...

The Ministry of Finance of the Republic of Azerbaijan has launched the “e-contract” subsystem within the “Digital Public Finance” Information System (the System). Starting from 10 April, budget-funded entities will gradually transition to executing and submitting procurement contracts for goods, works, and services exclusively in electronic form through the “e-contract” subsystem. The “e-contract” subsystem has been developed in accordance with the Law of the Republic of Azerbaijan “On Public Procurement” and enables the full digital lifecycle of procurement contracts, including the preparation,...

On 10 March 2026, the Cabinet of Ministers of the Republic of Azerbaijan adopted Decision No. 74 approving the Rules on the Refund of Administrative Fines. The new rules establish a clear procedure for the return of administrative fines that have been overpaid, incorrectly applied, or mistakenly paid. Under the Rules, an overpaid administrative fine refers to funds paid to the state budget or the accounts of the competent authority in an amount exceeding that specified in a decision on the imposition of an administrative fine, including electronic decisions and electronic protocols. A wrongly...

The President of the Republic of Azerbaijan has approved amendments to the Tax Code, the “Banks” Law, and the “Customs Tariff” Law, following their adoption by the Milli Majlis. The changes introduce important clarifications for non-residents providing electronic services or works to individuals in Azerbaijan who are not registered with the tax authorities. Under the updated Article 33.8-1 of the Tax Code, non-residents whose turnover from such electronic commerce exceeds USD 10,000 (or the equivalent in AZN) per calendar year are required to register electronically with the tax authorities...

Recent amendments to the “Rules on Registration, Re-registration and Deregistration of Individuals”, approved by the Decision of the Board of the Ministry of Taxes dated 19 May 2015, introduce important changes regarding the notification obligations of taxpayers. Under the revised provisions, the period within which taxpayers must notify the tax authorities about certain changes has been reduced from 40 days to 15 days. In particular, taxpayers are now required to inform the tax authority within 15 days if there is a change in their place of residence or location. Additionally, if any amendments...