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Deadlines for terminating fixed-term employment contracts have been changed
Deadlines for terminating fixed-term employment contracts have been changed
We present the previous and current wording of Part 1 of Article 73 of the Labor Code in one table so that the essence of the changes is fully clear to our colleagues:
Article 73. Procedure for terminating a fixed-term employment contract
Previous wording
1. A fixed-term employment contract shall be terminated upon its expiration. Taking into account Part 5 of Article 45 of this Code, if the employment relationship continues upon the expiration of the term specified in the fixed-term employment contract and none of the parties requests termination of the contract within a week after the expiration of the term, the employment contract shall be considered extended for the previously determined period.
Current wording
1. A fixed-term employment contract shall be terminated upon its expiration. If, at least one week before the expiration of a fixed-term employment contract, neither party notifies the other party in writing (on paper or via an electronic information system) about the termination of the contract due to the expiration of the term, the employment contract shall be extended for the period specified in the employment contract or, in the cases specified in Part 5 of Article 45 of this Code, shall be considered indefinite.
Now, let us clarify some points regarding Part 1 of Article 73 of the Labor Code. Before the amendment, the legislation did not provide for the employer to give the employee a warning about the termination of a fixed-term employment contract before the expiration of the term. That is, the employer could terminate the employment contract within 1 week after the expiration of the contract. After the new amendment, if the employer wants to terminate the fixed-term employment contract due to the expiration of the term, he must definitely warn the employee. Before explaining the requirements of the article with an example, let us emphasize one point: the amendment to the Labor Code has been applied in Russian practice for a long time. For your information, Russian labor legislation provides for a warning to the employee regarding the termination of a fixed-term employment contract. According to Article 79 of the Russian Labor Code, the employer must provide the employee with written notice of termination of the employment contract due to the expiration of the term of the employment contract at least three calendar days before the dismissal.
Let us explain the various cases of new changes in Azerbaijani legislation through an example.
Example: The employer signed an 8-month employment contract with the employee on January 10, 2024. The contract term should expire on September 10, 2024.
First case: On August 20, 2024, the employer warns the employee on paper that he will terminate the contract when the fixed-term employment contract expires, that is, on September 10, 2024. In this case, the employer will have waited for the requirement of at least one week before the expiration of the fixed-term employment contract in the first part of Article 73 of the Labor Code.
Second case: The employee informs the employer on August 25, 2024 that he does not want the fixed-term employment contract to be extended. Even if the employer is interested in extending the fixed-term employment contract, he must terminate it on the day the employment contract expires. Because the employee has given his warning by waiting for the notice period in accordance with the requirements of the Labor Code.
Third case: The employer sends a warning to the employee on September 8, 2024 that the term of the employment contract expiring on September 10 will not be extended. Since the employer has exceeded the notice period regarding the requirement of at least one week regarding the expiration of the employment contract, the employment contract can be extended for the next 8 months.
Fourth case: The employee notifies the employer of the termination of the fixed-term employment contract on September 7, 2024. However, the employer states that the employee has given at least one week's notice and that the fixed-term employment contract will be extended for an 8-month period. In this case, if the employee does not want to wait for the 8-month period, he may submit a resignation application in accordance with the requirements of Article 69. If the employer dismisses the employee after September 10, 2024, the termination order must state the grounds for termination as the employee's resignation at his own request, not the expiration of the contract.
Our goal in specifically noting the notice period by the employer and the employee is to ensure that our colleagues anticipate the requirements regarding the termination of the fixed-term employment contract.
We present the previous and current wording of Part 1 of Article 73 of the Labor Code in one table so that the essence of the changes is fully clear to our colleagues:
Article 73. Procedure for terminating a fixed-term employment contract
Previous wording
1. A fixed-term employment contract shall be terminated upon its expiration. Taking into account Part 5 of Article 45 of this Code, if the employment relationship continues upon the expiration of the term specified in the fixed-term employment contract and none of the parties requests termination of the contract within a week after the expiration of the term, the employment contract shall be considered extended for the previously determined period.
Current wording
1. A fixed-term employment contract shall be terminated upon its expiration. If, at least one week before the expiration of a fixed-term employment contract, neither party notifies the other party in writing (on paper or via an electronic information system) about the termination of the contract due to the expiration of the term, the employment contract shall be extended for the period specified in the employment contract or, in the cases specified in Part 5 of Article 45 of this Code, shall be considered indefinite.
Now, let us clarify some points regarding Part 1 of Article 73 of the Labor Code. Before the amendment, the legislation did not provide for the employer to give the employee a warning about the termination of a fixed-term employment contract before the expiration of the term. That is, the employer could terminate the employment contract within 1 week after the expiration of the contract. After the new amendment, if the employer wants to terminate the fixed-term employment contract due to the expiration of the term, he must definitely warn the employee. Before explaining the requirements of the article with an example, let us emphasize one point: the amendment to the Labor Code has been applied in Russian practice for a long time. For your information, Russian labor legislation provides for a warning to the employee regarding the termination of a fixed-term employment contract. According to Article 79 of the Russian Labor Code, the employer must provide the employee with written notice of termination of the employment contract due to the expiration of the term of the employment contract at least three calendar days before the dismissal.
Let us explain the various cases of new changes in Azerbaijani legislation through an example.
Example: The employer signed an 8-month employment contract with the employee on January 10, 2024. The contract term should expire on September 10, 2024.
First case: On August 20, 2024, the employer warns the employee on paper that he will terminate the contract when the fixed-term employment contract expires, that is, on September 10, 2024. In this case, the employer will have waited for the requirement of at least one week before the expiration of the fixed-term employment contract in the first part of Article 73 of the Labor Code.
Second case: The employee informs the employer on August 25, 2024 that he does not want the fixed-term employment contract to be extended. Even if the employer is interested in extending the fixed-term employment contract, he must terminate it on the day the employment contract expires. Because the employee has given his warning by waiting for the notice period in accordance with the requirements of the Labor Code.
Third case: The employer sends a warning to the employee on September 8, 2024 that the term of the employment contract expiring on September 10 will not be extended. Since the employer has exceeded the notice period regarding the requirement of at least one week regarding the expiration of the employment contract, the employment contract can be extended for the next 8 months.
Fourth case: The employee notifies the employer of the termination of the fixed-term employment contract on September 7, 2024. However, the employer states that the employee has given at least one week's notice and that the fixed-term employment contract will be extended for an 8-month period. In this case, if the employee does not want to wait for the 8-month period, he may submit a resignation application in accordance with the requirements of Article 69. If the employer dismisses the employee after September 10, 2024, the termination order must state the grounds for termination as the employee's resignation at his own request, not the expiration of the contract.
Our goal in specifically noting the notice period by the employer and the employee is to ensure that our colleagues anticipate the requirements regarding the termination of the fixed-term employment contract.