Azerbaijan is considering a ban on replacing the mandatory minimum annual leave period with cash compensation while an employee remains on the job.
The proposed Labor Code amendment applies to the minimum 21 calendar days of annual paid leave. Its purpose is to ensure that employees actually use their guaranteed rest period rather than surrendering it for a payment.
Why the Change Is Proposed
The draft is linked to Azerbaijan’s obligations under International Labor Organization Convention No. 132 on paid holidays. Azerbaijan ratified the convention in 2016 and specified a minimum holiday period of 21 calendar days.
The legislation would also clarify when annual leave, or part of it, can be postponed to another period or the following year.
What Happens When Employment Ends?
The restriction would not eliminate compensation when an employment contract is terminated. Payment for unused basic leave would remain due upon dismissal under the exception in Article 144.2 of the Labor Code.
The measure remains a legislative proposal and is not yet an effective ban. Final rules will depend on the version approved by parliament and brought into force.
Sources: Vesti Baku; Milli Majlis draft