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Regulation procedure of the right to leave upon termination of employment relations
Regulation procedure of the right to leave upon termination of employment relations
According to Article 110.1 of the Labour Code of the Republic of Azerbaijan, regardless of position (profession), working conditions, or the duration of the employment contract, every employee has the right to benefit from the types of leave established by the Labour Code. Under other provisions of the legislation, employees are granted annual leave of 21, 30, 35, 42, 46, or 56 calendar days depending on their social status and length of service. This includes both basic and additional leave days.
But how is compensation for unused leave calculated when an employee leaves work? Which days are excluded from this calculation? Expert Ramin Hajiyev provides clarification on these issues.
According to the Labour Code, regardless of the duration or conditions of employment, every employee working under an employment contract has the right to annual leave. Article 112 of the Code defines the following types of leave:
• Labour leave consisting of basic and additional leave;
• Social leave;
• Educational and creative leave;
• Unpaid leave;
• Other types of leave that may be provided for in the employment or collective agreement.
Labour leave is the period of rest used by the employee at their own discretion for normal relaxation, recovery of working capacity, and maintenance or improvement of health — not less than the minimum period established by the Code.
There are two types of labour leave:
• Basic leave;
• Additional leave.
The basic leave consists of 21 or 30 calendar days:
21 days for unskilled workers;
30 days for specialists, managers, responsible public servants, employees engaged in agricultural production, administrative and academic staff of educational institutions not performing pedagogical work, heads of extracurricular institutions, researchers without academic degrees, doctors, nurses, pharmacists, etc.
Additional leave is granted depending on length of service, working conditions, to women with children, and to specialists working in territories liberated from occupation.
Now let us look at how the right to leave is regulated upon termination of employment.
According to Article 144.2 of the Labour Code, regardless of the reason or grounds for termination of the employment contract, the employee must be paid monetary compensation for all unused basic annual leave up to the date of termination, without any condition or restriction.
Articles 118, 119, 120, and 121 of the Code establish the right of employees to annual leave lasting 56, 42, 46, and 35 calendar days, respectively. In some cases, these leaves are mistakenly considered as basic, and compensation is paid based on those durations. However, upon examination of these articles, it becomes clear that such leaves are classified as labour leave, not basic leave, meaning that compensation upon termination should be calculated based only on the basic leave period.
Example 1. An employee with Group II disability working as a chief accountant at “AA” LLC has their employment contract terminated after one year. The employee has 42 unused calendar days of leave. In this case, the final settlement should include compensation not based on the disability status but on the basic leave applicable to the position — 30 calendar days.
Example 2. A 17-year-old employee working as a salesperson at “BB” LLC has their employment contract terminated after one year. The employee has 35 unused calendar days of leave. Compensation is paid not according to age but according to the basic leave for the position — 21 calendar days.
Example 3. An employee who participated in the Patriotic War and worked as an engineer at “AA” LLC has their employment contract terminated after one year. The employee has 46 unused calendar days of leave. In this case, compensation is paid not for special service but based on the basic leave for the position — 30 calendar days.
An employer, upon termination of the employment contract with an employee who is entitled to leave under Articles 118, 119, 120, and 121 of the Labour Code, may also pay compensation for the leave durations specified in those articles (42, 35, 46, or 56 days). However, it is recommended that such favourable conditions for the employee be expressly stated in the employment or collective agreement.
For information: in response to an inquiry made to the Ministry of Labour and Social Protection of the Population, it was confirmed that when the employment contracts of employees entitled to leave under the above-mentioned articles are terminated, compensation for unused leave days must be paid in accordance with the requirements of Article 144 of the Labour Code. Furthermore, pursuant to the decision of the Constitutional Court of the Republic of Azerbaijan dated 29 November 2002, monetary compensation for unused leave upon termination of employment must be paid in accordance with part two of Article 144 of the Labour Code.
According to Article 110.1 of the Labour Code of the Republic of Azerbaijan, regardless of position (profession), working conditions, or the duration of the employment contract, every employee has the right to benefit from the types of leave established by the Labour Code. Under other provisions of the legislation, employees are granted annual leave of 21, 30, 35, 42, 46, or 56 calendar days depending on their social status and length of service. This includes both basic and additional leave days.
But how is compensation for unused leave calculated when an employee leaves work? Which days are excluded from this calculation? Expert Ramin Hajiyev provides clarification on these issues.
According to the Labour Code, regardless of the duration or conditions of employment, every employee working under an employment contract has the right to annual leave. Article 112 of the Code defines the following types of leave:
• Labour leave consisting of basic and additional leave;
• Social leave;
• Educational and creative leave;
• Unpaid leave;
• Other types of leave that may be provided for in the employment or collective agreement.
Labour leave is the period of rest used by the employee at their own discretion for normal relaxation, recovery of working capacity, and maintenance or improvement of health — not less than the minimum period established by the Code.
There are two types of labour leave:
• Basic leave;
• Additional leave.
The basic leave consists of 21 or 30 calendar days:
21 days for unskilled workers;
30 days for specialists, managers, responsible public servants, employees engaged in agricultural production, administrative and academic staff of educational institutions not performing pedagogical work, heads of extracurricular institutions, researchers without academic degrees, doctors, nurses, pharmacists, etc.
Additional leave is granted depending on length of service, working conditions, to women with children, and to specialists working in territories liberated from occupation.
Now let us look at how the right to leave is regulated upon termination of employment.
According to Article 144.2 of the Labour Code, regardless of the reason or grounds for termination of the employment contract, the employee must be paid monetary compensation for all unused basic annual leave up to the date of termination, without any condition or restriction.
Articles 118, 119, 120, and 121 of the Code establish the right of employees to annual leave lasting 56, 42, 46, and 35 calendar days, respectively. In some cases, these leaves are mistakenly considered as basic, and compensation is paid based on those durations. However, upon examination of these articles, it becomes clear that such leaves are classified as labour leave, not basic leave, meaning that compensation upon termination should be calculated based only on the basic leave period.
Example 1. An employee with Group II disability working as a chief accountant at “AA” LLC has their employment contract terminated after one year. The employee has 42 unused calendar days of leave. In this case, the final settlement should include compensation not based on the disability status but on the basic leave applicable to the position — 30 calendar days.
Example 2. A 17-year-old employee working as a salesperson at “BB” LLC has their employment contract terminated after one year. The employee has 35 unused calendar days of leave. Compensation is paid not according to age but according to the basic leave for the position — 21 calendar days.
Example 3. An employee who participated in the Patriotic War and worked as an engineer at “AA” LLC has their employment contract terminated after one year. The employee has 46 unused calendar days of leave. In this case, compensation is paid not for special service but based on the basic leave for the position — 30 calendar days.
An employer, upon termination of the employment contract with an employee who is entitled to leave under Articles 118, 119, 120, and 121 of the Labour Code, may also pay compensation for the leave durations specified in those articles (42, 35, 46, or 56 days). However, it is recommended that such favourable conditions for the employee be expressly stated in the employment or collective agreement.
For information: in response to an inquiry made to the Ministry of Labour and Social Protection of the Population, it was confirmed that when the employment contracts of employees entitled to leave under the above-mentioned articles are terminated, compensation for unused leave days must be paid in accordance with the requirements of Article 144 of the Labour Code. Furthermore, pursuant to the decision of the Constitutional Court of the Republic of Azerbaijan dated 29 November 2002, monetary compensation for unused leave upon termination of employment must be paid in accordance with part two of Article 144 of the Labour Code.