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How to hire remote employees in
When you hire remotely in another country, you normally get put in a sticky situation: You’re not physically established in that country, so it’s not as easy as sending over a contract and getting things signed. At least, if you hire employees, that’s the case—below, we’ll cover the details about hiring employees or hiring contractors remotely in Azerbaijan.
If you want to successfully hire in
Azerbaijan
, you have two options:
Laws about hiring contractors are significantly more simple in
Azerbaijan
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Azerbaijan
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Azerbaijan
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Azerbaijan
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Azerbaijan
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Azerbaijan than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Azerbaijan.
PTO is calculated by:
In addition, depending on the number of years of employment, an employee is entitled to additional leave:
Annual leave can be broken down to multiple leave periods, however, one of the leave periods must be 2 weeks in length.
There are 14 public holidays in Azerbaijan.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
Women are entitled to a total of 126 days of maternity leave and can begin 70 days before the expected due date.
If the mother endured a difficult birth or the birth of more than one child, maternity leave can be extended for an additional 14 days.
Maternity leave is paid by the State Social Protection Fund.
Compensation is 100% of the average monthly salary of the past 12 months.
Fathers can take 14 days of unpaid paternity leave following the birth of a child.
In Azerbaijan, there are various stipulations for various parental rights:
Study leave- employees studying in addition to work are provided study leave in order to participate in training sessions in the relevant academic season, to take state exams, prepare a diploma project, etc. During the period of paid educational leave, an employee shall be paid an average salary.
None.
None.
In general, termination of an employment contract in Azerbaijan is strict and must be carried out with the utmost care. Labor laws for termination are in favor of the employee and any misstep can have major consequences for the employer.
For employees who are terminated based on redundancy, 3 month’s severance pay is required.
The notice period in Azerbaijan is:
When terminating an employment agreement due to downsizing, 2 months’ notice is required. During this 2 month period, the employee is able to take one day of paid time off per week for the purpose of finding new employment.
If the employee initiates the termination of the employment agreement, one months’ written notice is required.
The Severance Pay in Azerbaijan depends on:
Severance pay varies depending on the length the employee has been employed:
Termination pay– in addition to severance pay, an additional 2 months’ salary must be given if:
In the event that the employee’s employment is terminated due to death, 3 month’s allowance is given to their family members.
The probation period can last up to 3 months. During this time, either the employee or employer can cancel the employment agreement so long as 3 days’ notice is given.
A full workweek in Azerbaijan is 40 hours for employees over the age of 18.
Overtime is paid at the rate of 200% of the normal salary.
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