Termination of Employment Contract

According to Article 70 of the Labour Code, the employment contract may be terminated by the employer on the following grounds:

• When the enterprise is liquidated;
• When the number of employees or positions is reduced;
• When the competent authority issues a relevant decision stating that the employee does not meet the requirements of the position due to insufficient professional level, qualification, or skills;
• When the employee fails to perform their work duties or obligations under the employment contract, or grossly violates these duties;
• When the employee fails to prove their competence during the probation period;
• When an employee of a state-funded enterprise reaches the retirement age.

Article 80 of the Labour Code of the Republic of Azerbaijan establishes the agreements upon termination of the employment contract by the employer.

Under subparagraphs (b) (when the number of employees or positions is reduced) and (c) (when the employee fails to perform their work duties or obligations under the employment contract, or grossly violates these duties in the cases listed in Article 72 of the Labour Code) of Article 70 of the Labour Code, the employment contract of an employee who is a member of a trade union may be terminated by the employer with the prior consent of the trade union organization operating in the enterprise.

An employer who wishes to terminate the employment contract of an employee who is a member of a trade union for any of the cases referred to in paragraph 1 of this Article shall submit a substantiated written request to the trade union organization of that enterprise. Relevant supporting documents shall be attached to the request. The trade union organization shall submit its substantiated written decision to the employer no later than ten days from the date of receipt of the request.

Except for the cases referred to in paragraph 1 of this Article, prior consent of the trade union organization is not required when terminating an employment contract on the initiative of the employer.