Article 1. Objective of the Law

1. The present Law regulates procedure of settlement of individual labour disputes arising between the employer and employee, who concluded labour agreement (contract), in an established order, when applying labour legislation and other normative-legal acts of the Azerbaijan Republic at enterprises, in companies and organisations working in the Azerbaijan Republic, irrespective of the form of property, way of carrying out business activity or organisation-legal subordination (hereinafter ´enterprisesª).
2. The present Law does not apply to officials of state bodies, military formations, law courts and procurators offices, inclusive of state bodies acting on the basis of their social by-laws (regulations). Procedure of settlement of individual labour disputes in these bodies is specified in respective legislation, providing that employees of these bodies have the right to apply to law courts to protect their rights.

Article 2. About individual labour disputes

Individual labour dispute is difference of opinions arising between the employer and employee when applying terms of labour agreement (contract), collective labour agreement, labour legislation.

Article 3. Parties in individual labour dispute

In individual labour dispute arising at the enterprise, irrespective of the form of property, way of carrying out business activity or organisation-legal subordination, one party is represented by official or competent body authorised to conclude and terminate labour agreements (contracts) with employees or change terms of these agreements (contracts) (hereinafter ´employersª) and the other party employee making a claim about violation of his/her labour rights or legal interests, or person authorised by this employee in conformity with legislation.

Article 4. Bodies on consideration of individual labour disputes

1. All individual labour disputes are considered in law courts, except special cases envisaged by legislation.
2. At enterprises, when establishing trade unions, body for consideration of individual labour disputes before the law court may be formed, if so specified by collective agreement. Procedure of formation and activity of such bodies is controlled by collective agreements; employees have the right to apply to law court for consideration of individual labour dispute if they are not satisfied with decision of the body on consideration of labour disputes before the law court proceedings.

Article 5. Subject of individual labour dispute

The present Law regulates procedure of settlement of individual labour disputes arising in connection with the following:
a) conclusion, termination of labour agreement (contract) or change of its terms;
b) determination of rate of labour expenditures and work scope;
c) change of place of work which has been specified by labour agreement (contract);
d) estimation, calculation and payment of wages and other sums to employees;
e) exercise of right for holiday;
f) imposition of administrative punishment;
g) organisation and implementation of labour protection;
h) estimation or payment of sum of financial loss caused by the employer to employee;
i) estimation or payment of sum of compensation covering losses borne by the employee or members of his/her family due to worksite accident or professional illness;
k) estimation and payment of sums paid against shares and other securities and also determination of standards related to labour relations arising in the course of privatisation and afterwards;
l) use of terms of labour agreements (contracts) and also terms of collective agreements, and other factors related to violation of labour code.

Article 6. Right of the employee for appeal about re-establishment of his/her violated rights

1. Should the employee find that his/her rights have been violated with respect to matters listed in Article 5 of the present Law, he/she will have the right to appeal to competent body responsible for settlement of individual labour disputes, in accordance with legislation, requesting that his/her rights should be re-established.
2. With the objective of re-establishment of his/her violated rights, the employee may apply to law court or respective legal body responsible for settlement of individual labour disputes. The employee may apply to such competent body for re-establishment of his/her violated rights through authorised representative. In such case the employee must provide his/her representative with power of attorney, according to legislation.
3. As a rule, individual labour disputes are investigated during non-working hours, except disputes arising due to termination of labour agreement. If individual labour dispute is investigated during normal working hours of the employee, he/she will receive his/her average wages for this period both at a place of his/her main and also additional occupation.

Article 7. Obligations and responsibility of the parties in individual labour dispute

1. In individual labour disputes, both parties mutually respecting each other, are obliged to follow requirements of legislation, responsibilities under labour agreement (contract) and rules of law court settling labour disputes.
2. If law court rejects claim of the employee concerning labour dispute, then, based on application of the employer law court can deduct from the employees wages a sum corresponding to employers expenditures.
3. Employer, having violated rights and interests of the employee, alongside with reimbursement of financial losses of the employee, is also financially responsible for moral damage, i.e. insult to honour and dignity, humiliation of the employee. Sum of moral losses incurred by the employee must be at least 25 minimum wages currently applicable, and not more than 6-month wages of the official(s) guilty in violation of the employees rights. Sum of compensation for moral losses of the employee is established by the law court according to actual situation, as specified in labour code.

Article 8. Term of appeals

1. The employee may appeal to a body dealing with settlement of individual labour disputes within 3 months, and in connection with labour disputes arising due to termination of labour contract within one month from the day when this employee knew about violation of his/her rights. The day when the employee knew about violation of his/her right is considered the day of issue of respective decree, order, labour (record) book, settlement book (sheet) and also day of deliberate violation by the employer of important terms of individual or collective labour agreement (contract), without respective recording.
2. As per labour agreement related to money claims, the employee has the right to appeal to a body dealing with settlement of individual labour disputes within one year from the day when said employee knew about violation of his/her right.
3 If above mentioned time limits were exceeded because of acceptable reason (illness of the employee, death of close relation, business trip or holiday spent elsewhere, etc.), then body on consideration of labour disputes may consider labour dispute, with re-establishment of exceeded time limits.

Article 9. Legislation concerning consideration of individual labour disputes

Procedure of consideration of individual labour disputes in law courts is controlled by the present Law, Civil-judicial Code of labour legislation and other legislative documents of the Azerbaijan Republic.

Article 10. Exemption of the employee from payment of legal costs

The employee presenting the claim about infringement of the rights is exempted from payment of legal costs.

Article 11. Absence of restrictions on a sum of claim and respective security

Sum of claim with respect to individual labour dispute and as security of claim is unlimited.

Article 12. Regulations concerning implementation of decisions and decrees on individual labour disputes

1. Decision of the law court about settlement of individual labour dispute must be implemented immediately.
2. In case of failure to implement decision of law court about settlement of individual labour dispute or obstacles preventing its implementation the judge makes decision about reimbursement of material loss and opening criminal proceedings according to respective article of Criminal Code of the Azerbaijan Republic.

Article 13. Restrictions in changes in implementation of decisions of individual labour disputes

Decision of the law court concerning individual labour dispute which came into force legally cannot be cancelled as a control measure to the prejudice of the employee, one year after such decision has been taken.

Article 14. Persons and cases which are not controlled by the present Law

1. The present Law does not apply to persons elected or appointed to their posts in an order envisaged in the Constitution of the Azerbaijan Republic, persons appointed by the President of the Azerbaijan Republic, and also persons elected to local self-governance bodies.
2. Provisions of the present Law do not apply to disputes arising between the parties carrying out their obligations under civil-legal agreements (ordinary contracts, contracts of guarantee contracts, contracts of guarantee, authors, etc.) possessing features of labour agreements, which however do not regulate labour relations between the employee and employer.

Article 15. Transition state

Respective legislative acts of the Azerbaijan Republic remain valid whenever they do not contradicts the present Law.

President of the Azerbaijan Republic
Heydar Aliyev.
Baku, 13 February, 1996.
¹ 25-IÃ

About settlement of individual labour disputes