Goals and Objectives: In order to protect employment rights the system of electronic information notification of employment contracts was introduced in Azerbaijan in follow-up to the recent amendments into the legislation.
Implementation: Under the new system, an employer is obliged to submit an employment contract notice (mandatory and for making changes to or termination of an employment contract), which is considered an electronic document, via electronic information system of Ministry of Labour and Social Protection of Population. Employers can hire the services of the portal www.e-gov.az and www.e-mlspp.gov. The employment contract shall enter into force only after the system sends back an electronic registration notice, which must be provided to the employer within one working day.
Since June 2014, the solution has been implemented throughout the country. Electronic services offered by the new system are among the most demanded e-services on the E-Government portal. From June 2014 to April 2016, the e-service "Registration of notifications of employment contracts" was requested about four million times, while "Obtaining information about employees notifications under employment contracts," about 918,000 times.
Achievements: Electronic information system notifications under labour contracts helped to build the most complete database on the labour market and labour relations between employees and employers, which allowed by the end of 2014 to provide another e-service, "Certificate of employment," proof of employment that can be used for different purposes, including a visa application. To date, this service is the most popular one in the electronic reference system; as of April 1, 2016 it was requested 278,000 times.
The establishment of the e-system and mandatory registration of all employment contracts led to formalization of and transparency in the employment relations that were previously in shadow of the official labour market. It also facilitated an increase of revenues to the state budget, increase of fees for compulsory social insurance and better protection of the rights of workers. Using this system, employers can arrange for mandatory insurance of their employees.
Other agencies benefiting from the system:
• Ministry of Education – ranks higher-education providers and tracks the employment of graduates of these institutions through this system;
• Ministry of Taxes uses this system to carry out desk tax audits of income tax payments by employers on labour contracts;
• Information on previous employment history (starting from June 2014) of a person entering the civil service;
• Verification and assignment process for TSSA and other benefits.
Replication: The solution can be replicated in the countries in need to legalize the informal labour market.
Ministry of Labour and Social Protection of Population of the Republic of Azerbaijan
Address: Salatin Askerov str, 85, Baku
Contact person: Ms. Irada Usubova
Phone: (+99412) 596 60 96