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An end to compensation claims artificially exploited by employees

  • Bloq
  • 04-Feb-2026, 10:27
  • 69
An end to compensation claims artificially exploited by employees

An end to compensation claims artificially exploited by employees


One of the most recent amendments to the Labor Code concerns the right to leave, as well as the formalization and record-keeping of leave. The innovation is commented on by Altay Jafarov. Article 138 of the Labor Code regulates the formalization and recording of leave granted to employees. Paragraph 1 of the article states that, except for the case specified in paragraph 2-1 of this article, all types of leave are formalized by an order (instruction, decision) of the employer based on the employee’s written application (in paper form or through an electronic information system). Paragraph 2 of the same article specifies that the order (instruction, decision) on granting leave is issued at least five days before the start of the leave and the employee is informed thereof.

According to the newly added paragraph 2-1 of Article 138 of the Labor Code, after a written notice from the employer (in paper form or through an electronic information system), if the employee fails to comply with the leave schedule and the conditions and procedure for rescheduling the leave, and does not submit an application to the employer to use the leave (in full or in part), the employee is sent on annual leave for the relevant working year by an order (instruction, decision) of the employer. At the same time, Article 135, paragraph 1 of the Code states that, in accordance with this Code, it is prohibited for an employer to fail to grant annual leave to an employee.

In brief, the main requirements of the Labor Code regarding annual leave are as follows:

- At the end of the current year, the employer must prepare and approve a leave schedule for the following year, taking into account the opinions of employees.

- Before going on annual leave, the employee must submit the relevant application.

- The employer must issue an order and familiarize the employee with that order.

- Additionally, it is prohibited for the employer not to grant annual leave to the employee, which gives rise to administrative liability.

However, in practice, one of the situations frequently encountered is that the employee does not wish to use annual leave. As a reason, employees state that they want to work during the leave period and later claim compensation for unused leave. When the employer explains that failure to grant annual leave is prohibited and insists on mandatory leave, employees state that they have not submitted a written application to the employer expressing their desire to take annual leave.

That is, if the employee has not submitted an application, the employer cannot send the employee on annual leave.

Thus, the newly added paragraph 2-1 to Article 138 fully eliminates this gap. Now, when the time for annual leave arrives in accordance with the leave schedule and there is no application from the employee to exercise this right, the employer will issue a written notice. If the employee then fails to submit an application to use annual leave in accordance with the leave schedule or does not comply with the conditions and procedure for rescheduling the leave, the employee will be sent on annual leave for the relevant working year by an order (instruction, decision) of the employer.

In simple terms, if an employee does not voluntarily wish to use annual leave, the employer, by giving prior notice, will send the employee on annual leave on a mandatory basis. From the perspective of ensuring the rights of both employees and employers, this amendment is a very important development.

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Tax advice
22-May-2021 | Xidmətlər

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