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Self-Employment Programme

What is self-employment?

Self-employment, as stated in Article 1.1.15 of the Law of the Republic of Azerbaijan “On Employment,” is the individual’s provision of work for themselves independently or with state support.

What should individuals who wish to participate in the self-employment programme do?

Unemployed persons and job seekers who have agricultural land suitable for cultivation in their ownership and no other form of employment must apply to the local offices of the State Employment Agency under the Ministry of Labour and Social Protection of Population of the Republic of Azerbaijan or to the “DOST” centers to participate in the self-employment programme.

Can employed persons participate in the self-employment programme according to the Employment Law?

Unemployed persons and job seekers who have agricultural land suitable for cultivation in their ownership and no other form of employment have the right to participate in the self-employment programme.

What are the stages of the self-employment programme?

1) Providing consultations and information on the organization of self-employment;
2) Assisting in the selection and organization of self-employment directions;
3) Assisting in the preparation of a business plan for organizing self-employment, including conducting trainings and evaluating their results;
4) Providing materials, equipment, and other property in kind under a contract for a period of 1 (one) year for the organization of the selected self-employment direction;
5) Conducting periodic monitoring of the activity of the individual involved in self-employment for a period of 1 (one) year.

During the implementation of the programme, which categories of unemployed persons are given priority?

To the following categories:

  •    Recipients of targeted state social assistance,
  •    Persons with disabilities,
  •    Members of martyr families,
  •    Persons registered as unemployed for more than one year,
  •    Persons less than two years away from retirement age,
  •    Persons released from correctional institutions.

Who are considered employed persons that cannot be involved in self-employment?

1) Salaried employees — individuals who, in accordance with the Labour Code of the Republic of Azerbaijan, conclude an employment contract with an employer and perform work for remuneration at the relevant workplace;

2) Individuals working under civil contracts — persons who, under the Civil Code of the Republic of Azerbaijan, conclude a contract with the other party and perform work (services) for a certain fee without establishing labour relations;

3) Entrepreneurs and members of family farms;

4) Persons elected, appointed, or approved to a paid position;

5) Persons serving in the Armed Forces of the Republic of Azerbaijan;

6) Full-time students of higher and secondary specialized educational institutions engaged in paid activity;

7) Foreigners and stateless persons legally engaged in paid labour activity within the territory of the Republic of Azerbaijan;

8) Citizens of the Republic of Azerbaijan legally engaged in labour activity outside the borders of the Republic.

Can persons receiving unemployment insurance payments be involved in self-employment?

Persons receiving unemployment insurance payments cannot be involved in self-employment during the period they receive such payments.

Can persons receiving vocational education be involved in self-employment?

Persons receiving vocational education cannot be involved in self-employment during their education period.

In what form are self-employment trainings conducted?

Self-employment trainings are conducted in physical or online form.

In which cases are individuals excluded from the self-employment programme?

If it is determined that a person involved in self-employment is employed before the property for the self-employment direction is provided, a decision is made to terminate the provision of the property and assistance in organizing self-employment.

Can persons who received an unsuccessful result during the training evaluation reapply for the self-employment programme?

Persons deemed unsuitable for organizing self-employment during the evaluation process have the right to participate again in business trainings.

In what form is assistance provided to individuals involved in self-employment?

Materials, equipment, and other property in kind provided to individuals involved in self-employment are given for a period of 1 year under a contract.

Materials, equipment, and other property in kind provided to individuals involved in self-employment are given for a period of 1 year under a contract.

The activity of an individual involved in self-employment is monitored during the contract period, and if by the end of the period their activity complies with the submitted business plan, the property provided for organizing self-employment becomes their ownership. If the individual fails to use the property provided under the contract in accordance with Article 24.1.4 of the Law of the Republic of Azerbaijan “On Employment” without a valid reason within 1 (one) year, they must return the property or its value to the account of the State Employment Agency at the market value determined at the time of return.

What measures are taken if an individual involved in self-employment fails to use the provided property without a valid reason within 1 (one) year?

If an individual involved in self-employment fails to use the property provided under the contract without a valid reason within 1 (one) year, they must return the property or its value to the State Employment Agency at the market value determined at the time of return by the State Statistics Committee.

What should be done if the materials, equipment, and property provided under the self-employment programme are damaged (for agriculture) or spoiled/malfunctioning (for production-service fields)?

The relevant structural unit of the State Employment Agency under the Ministry of Labour and Social Protection of Population or the DOST Centers must be immediately informed.

If an individual applying for production and service fields does not have a place or necessary conditions to use the property at the time of application, what decision is made?

After receiving the property, the individual signs a written commitment stating that they will ensure the necessary conditions for its use.