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Proposed Amendments Regarding the Termination Grounds of Employment Contracts

23
Apr, 2026

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 employment contract may be terminated where it is established, on the basis of an official medical examination (medical assessment), that an employee suffers from a narcological disorder and has been employed in positions or professions for which such a condition constitutes a legal restriction. Importantly, this ground applies both where the condition is identified after the employment contract has been concluded (including during periodic or mandatory medical checks), and where it is subsequently discovered that the employee did not meet the relevant medical eligibility requirements at the time of hiring.
  • Furthermore, termination is permitted in cases where an employee is engaged in work performed under heavy, hazardous, or harmful conditions, as well as in sectors requiring heightened protection of public health (including the food industry, public catering, healthcare, trade, and similar fields), without possessing the required medical certificate confirming fitness for such work. In such cases, the law expressly prohibits the use of labour without appropriate medical clearance, and the employment relationship must be discontinued if this requirement is not met.

These changes ensure that employees working in regulated or high-risk environments undergo mandatory medical examinations and hold valid health certificates. Failure to comply may not only necessitate termination of employment but could also expose employers to regulatory liability.

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