AZE - CHANGES TO ADMIN CODE

A number of amendments have been made to the Administrative Code of the Republic of Azerbaijan.  As of May 30, 2025, certain infringements related to provision of information (or failure to do so) on ultimate beneficiary/beneficial owner can lead to administrative fines.  Thus, failure to submit accurate and updated information about ultimate beneficiary/beneficial owner to the relevant state authority within the timeframes established by law or missing deadlines for provision of supporting documents related to ultimate beneficiary/beneficial owner of a legal entity, branches and representative offices of the foreign legal entities are subject to the fine ranging AZN 1,000 - AZN 2,000 (one thousand to two thousand manats) for officials/managerial staff and from AZN 2,500 – AZN 3,000 (two thousand five hundred to three thousand manats) for legal entities. Moreover, failure or delay in reporting to authorities information or documents relating to ultimate beneficiary/beneficial owner may involve fines from AZN 200 – AZN 300 (two hundred to three hundred manats) for officials/managerial staff, and from AZN 500 – AZN 700 (five hundred to seven hundred manats) for legal entities.

Also, newly implemented changes in respect with labor relations envisage quite serious financial sanctions for various infringements as follows:

• Non-conclusion of the insurance contract and failure to comply with the rules of compulsory insurance against disability as a result of industrial accidents and occupational illness at workplaces are set at AZN 1,500 (one thousand five hundred manats) for officials/managerial staff and AZN 5,000 (five thousand manats) for legal entities.
• Non-execution of binding instructions as well as non-provision or provision of inaccurate documents and information to relevant administrative authority conducting state enforcement over compliance of labour legislation, conclusion and execution of collective agreements, certification of employees and workplaces, regulation of insurance of the employees, and the norms and rules of labour protection are subject to administrative fines at AZN 1,000 – AZN 1,500 (one thousand to one thousand five hundred manats) for officials/managerial staff, and AZN 2,000 – AZN 2,500 for legal entities (two thousand to two thousand five hundred manats);
• Fines for non-provision of necessary information (documents) on compliance with labor legislation such as changes to or termination of employment contract, conclusion and execution of collective agreement, certification of labour conditions, certification of employees and workplace, documenting working and rest hours, vacation rights, vacation payment, business trip expenses, benefits and other payments, features of labour of women and minors, regulation of employee insurance, the norms and rules of labour protection, or failure to submit them in complete, correct and timely manner despite the request of relevant administrative authority are set at AZN 1,000 (one thousand manats) for officials/managerial staff, and AZN 2,000 (two thousand manats) for legal entities
• Involving of employee in overtime work in violation of labour legislation impose penalty in the amount of AZN 500 – AZN 1,000 (five hundred to one thousand manats).
• Non-reporting on availability of vacancies, or failure to report on related progress of applications (if any) may also involve penalties between AZN 300 – AZN 1,000 (three hundred to one thousand manats).