Introduction of the Equal Pay Principle under the Labour Code
Recent proposed amendments to the Labour Code of the Republic of Azerbaijan introduce an important development in the area of employee remuneration, reinforcing the principle of equality in the workplace.In particular, Article 154 of the Labour Code has been supplemented with a new provision establishing the obligation of employers to ensure equal pay.
Under the newly added Part 3 of Article 154, employers are required to pay equal wages to employees performing the same work or work of equal value, regardless of gender.
Determination of Work of Equal Value
The amendment further clarifies that the assessment of whether different roles constitute “work of equal value” is to be carried out by the employer. Such determination must be based on objective criteria, including:
- working conditions;
- the nature and characteristics of the job function;
- qualification requirements as set out in the unified tariff and qualification reference guides.
The criteria ensures that internal job evaluation and remuneration systems are structured in a consistent and non-discriminatory manner.
In light of this amendment, employers are advised to review their compensation frameworks, and internal policies to ensure compliance with the equal pay requirement.
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