New approaches are emerging in the Azerbaijani labor market as officials discuss the implementation of an hourly work regime to modernize labor relations and ensure flexible work organization. Recent amendments to the Labor Code indicate that the legal framework for this model is already being established in Azerbaijan.
Under the proposed model, the primary principle involves calculating an employee's salary based on the actual number of hours worked. In this system, employment contracts will specify an hourly wage rate rather than a fixed monthly salary, with payments processed according to this metric. A written agreement between the employee and employer is a mandatory requirement for the application of the hourly regime. The contract must clearly outline the hourly wage amount, maximum weekly and monthly working hours, procedures for calculating overtime, and payment periods.
Member of the Milli Majlis (National Assembly) Vugar Bayramov provided details on the transition in a statement to the Operative Information Center-OMM. The lawmaker noted that these changes represent the formation of initial practical mechanisms within the Labor Code regarding the hourly wage system. Bayramov emphasized that the regime creates new opportunities for the workforce:
"This system can provide employees with the opportunity to cooperate with several workplaces simultaneously. An employee can work certain hours of the day at one workplace and the remaining hours at another, which can lead to an increase in their total income."
The deputy further clarified that an hourly work regime does not necessitate payments at the end of every hour. According to Bayramov, the payment frequency depends on the agreement between the parties:
"Payments can be carried out once or twice a month. The key point is that the number of hours worked will be taken as the basis during calculations."He added that mutual agreements between employees and employers are of particular importance for the effective implementation of this regime. Under this system, increased wages will still apply for work performed on non-working days, holidays, and for overtime hours, in accordance with the Labor Code of the Republic of Azerbaijan.
The modernization of the labor market in Azerbaijan aligns with broader economic reforms aimed at increasing the competitiveness of the national economy and diversifying employment opportunities. By introducing flexible working hours, Azerbaijan seeks to align its domestic labor legislation with international standards, facilitating a more dynamic environment for both local businesses and the growing gig economy. This transition is expected to particularly benefit sectors such as services, education, and information technology, where project-based and part-time work is increasingly common.
