The recent request to the Constitutional Court concerned the interpretation of Articles 144.2 and 144.3 of the Labor Code of the Republic of Azerbaijan. While Article 144.2 guarantees compensation for all unused basic annual leave upon termination, Article 144.3 excludes compensation for unused additional and certain other types of leave, creating a legal contradiction. The constitutional review aimed to assess whether this restriction complies with the Constitution.
Constitutional and Legislative Framework
Labor legislation establishes that annual leave consists of both basic and additional leave, serving as a guarantee of employees’ right to rest. Basic leave is determined by the employee’s profession or position under the employment contract and represents the minimum rest period of not less than 21 or 30 days necessary for any employee. Aligning with constitutional principles of justice and equality, longer leave periods and additional leave for specific categories of employees can be provided by the law.
The Labor Code provides for the following types of additional leave:
- Additional leave for working conditions and the nature of work (Article 115);
- Additional leave for length of service (Article 116);
- Additional leave for women with children and certain family categories (Article 117);
- Additional leave for specialists working in territories liberated from occupation (Article 118-1).
Legal Nature of Additional Leave
The Court emphasized that additional leave constitutes an integral component of the constitutional right to rest and directly linked to the duration and nature of labor activity. It is not a discretionary privilege but a right earned through employment, based on principles of social justice and equality. The Court noted that monetary compensation for unused leave is not intended to replace actual rest, and employers are prohibited from denying leave. If an employee does not request leave in accordance with the approved schedule, the employer must ensure its use by providing compensation. It is a protective mechanism where an employee is unable to exercise their right to leave prior to termination of the employment contract. And depriving employees of compensation for earned but unused additional leave renders that right merely formal and illusory, particularly where the employee could not exercise the right due to circumstances beyond their control. Given loophole contradicts the principle of proportionality, which requires a fair balance between state interests and individual rights. Additionally, the Court elaborated employees are allowed to take unused leave immediately prior to termination and receive payment for that period. This creates unequal treatment:
- An employee who takes leave before termination receives payment;
- An employee who cannot take leave loses the right to compensation.
Conclusion
The Court determined that upon termination of an employment contract, employees must be entitled to compensation not only for unused basic leave but also for unused additional leave earned under the Labor Code.
This ruling introduces a significant change in labor law practice and strengthens the protection of employees’ rights in employment relations.
