State Labor Inspectorate (SLI) and the Ministry of Taxes continue to fight against illegal employment. Entrepreneurs try to explain the resistance requirements of the law on the conclusion of individual contracts of employment high, in their view, rate social insurance contributions.
In the first two months of this year SLI and the Ministry of Labor and Social Welfare revealed facts of illegal attract about 1,900 business entities to work 3538 people. It is 7 times more than in the comparable period of 2012.
All these people were involved in the work without signing labor relations in the labor code compliance, told Turan, the press service of the Ministry.
In the first quarter of this year during the operational control measures Taxes revealed these facts in more than 1,800 private businesses that are illegally brought to the work of about 4 million people, the ministry said.
The phenomenon of engagement without signing between employer and employee labor contract is especially common in the trade, catering and construction. For example, at the end of March this year, more than 1,000 employees of LLC "Azeri Trans" went on strike in Gabala with the requirements of the labor rights, including labor contracts.
True, there are complaints from businesses who claim that the tax authorities oblige them to formally enroll in the state of additional workers to supplement the reporting on the opening of new jobs.
Azerbaijan has a Confederation of Trade Unions, which unites more than 1.2 million workers, but the work of CPS in this direction inconspicuous.
The owners claim that the high level of contributions for mandatory state social insurance (25% of the wage bill, including 22% paid by the employer) forces not to legalize workers.
Local organizations offer gentle system of deductions for entrepreneurs to stimulate not only the legalization of jobs, but also wages. - 08B-
Economics
-
On September 20, 2024, Volts Energy Ltd., an engineering company based in Abu Dhabi, and Azerbaijan’s Turan Energy LLC announced the creation of a new joint entity, TuranVoltsEnergy. This venture will focus on EPC (Engineering, Procurement, and Construction) projects in renewable energy and energy storage systems within Azerbaijan.
-
The number of passengers traveling by air from Azerbaijan has seen a significant increase in 2024, rising by 26.7% from January to September compared to the same period last year. According to the State Agency for Tourism, a total of 2,548,897 people used air transport services to travel to 40 countries during this period.
-
Azerbaijan’s prolonged border closures, approaching five years, have taken a profound toll on the labor market, particularly in border regions, where cross-border trade and services were once critical economic drivers. Official data highlights the stark disparity between the growing labor force and the lack of new job creation in these areas, underscoring the social and economic challenges faced by residents.
-
Azerbaijan’s food imports have surged to unprecedented levels, with a significant rise recorded in the first nine months of 2024, according to data from the State Customs Committee. Food imports for January-September reached USD 1.755 billion, marking an 11.4% increase over the same period last year. This represents a USD 179.7 million increase compared to 2023, setting a record for food imports in the country’s history. Over the past decade, food imports have more than doubled, rising by 2.4 times, with a notable 52.5% growth in the last five years alone.
Leave a review