New Administrative Liability for Employers and Financial Leasing Providers

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 without obtaining mandatory medical documentation where such documentation is required under the Labour Code. In particular, employers must ensure that the relevant medical certificate or medical examination opinion is obtained before hiring employees for positions subject to statutory health requirements. Failure to comply may result in an administrative fine of 1,000 AZN In addition, a new administrative offence has been introduced for entities engaged in financial leasing activities. Financial leasing providers (other than banks, local branches of foreign banks, and non-bank credit institutions) may be fined for failing to submit mandatory reports to the Central Bank of Azerbaijan or for submitting inaccurate reports. The applicable penalties range from 1,000 AZN to 1,500 AZN  for officials and from AZN 3,000 to AZN 5,000 for legal entities.