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FinanceAzerbaijan28 October 2026

Employee rights during layoffs in Azerbaijan: notice periods and severance pay

In short

Economist Emin Sattarov explains Azerbaijan's Labor Code rules on notice periods and severance payments for employees facing staff cuts.

According to economist Emin Sattarov, when a company reduces staff, the employment contract is terminated under clause “b” of Article 70 of the Labor Code, through no fault of the employee. The law requires employers to give advance written notice ranging from 2 to 9 weeks depending on the employee's length of service. During the notice period, the employee is entitled to at least one paid day off per week to search for a new job. Upon liquidation or staff reduction, severance pay equal to one to two average monthly salaries is due, depending on tenure, and this does not replace the notice period. With the employee's consent, a lump-sum payment can replace the notice period. Pregnant women, parents of children under three, and certain other categories are protected by law and cannot be dismissed on these grounds.

Employee rights during layoffs in Azerbaijan: notice periods and severance pay