AZE - CHANGES TO LEGISLATION

Under the recent amendments to the Labor Code of the Republic of Azerbaijan, employment contracts must be concluded electronically.  Such contracts must be executed by employer and employee via electronic signature and, in such cases, employees shall no longer be required to submit a labor book (deadline for the electronic signature of employment contracts by the employer and employee - July 01, 2025). At the same time, employment contracts with some categories of employees working for certain state bodies (such as the prosecutor’s office, judiciary, internal affairs, etc.) must be continued to be concluded in physically written format and, their employment relations are formalized with the submission of the labor book. Newly adopted Decision of the Cabinet of Ministers of the Republic of Azerbaijan dated 12 May 2025, the “Rules on the format and completion of labor books” (“Rules”) seals formalization of employment contracts with the aforementioned employees.

Some changes have been made to the Law of the Republic of Azerbaijan “On Licenses and Permits”, dated March 18, 2025. Thus, the Amendment deals with the issuance of so-called conformity documents for import into the liberated territories (by industry) of machinery, technological equipment and installations, raw materials and materials exempt from value-added tax and customs duties.  Previously, issuance of such a permit was solely applicable to residents of industrial and technology parks, their managing organizations and operators and individuals holding an investment promotion certificate. This amendment is effective retroactively from 1 January 2023 and will remain in force until 1 January 2033.

Several decisions have been approved by the Cabinet of Ministers of the Republic of Azerbaijan in respect with the implementation of the Competition Code of the Republic of Azerbaijan, such as:

1. Decision on circumstances, field of activities, and products to which the requirements of the Competition Code of the Republic of Azerbaijan do not apply or apply to a limited extent

2. Criteria for determining whether agreements comply with the conditions set forth in the Competition Code, including the exemption of agreements related to technology transfer, market research, and development

3. Criteria for assessing whether agreements have, or may have, restrictive effects on competition

4. Criteria and Rules for the calculation and imposition of financial sanctions in accordance with the Competition Code

5. Rule on determining market shares in the relevant market, as well as the product and geographic boundaries, volume, structure, and participants of the relevant market

6. Amendments to the Law “On regulation of inspections in the field of entrepreneurship and protection of entrepreneurs’ interests” in connection with the implementation of the Competition Code.