Baku:An hourly wage system is set to be introduced in Azerbaijan, reflecting a proposed amendment to the Labor Code. This change is aimed at establishing hourly wages under specific circumstances, particularly for short-term and part-time employment contracts.
According to Azeri-Press news agency, the draft amendment stipulates that hourly wages will be applicable when employment contracts are less than one month at enterprises involved in economic activities listed by a relevant executive authority. Furthermore, it applies to workplaces created by individual employers and where weekly working hours are set at 20 hours or less.
The amendment ensures that hourly wages in budget-funded institutions are allowed if their remuneration systems provide for it. Employees working part-time must receive wages not lower than the proportional calculation from the minimum monthly wage. Each hour worked must be compensated at or above the minimum hourly wage, even if daily or subsequent work periods are less than an hour.
The amendment aims to ensure fair remuneration by setting the minimum hourly wage above the tariff calculated from the minimum monthly wage and stipulating timely payment as per employment contracts. This change addresses the regulation of the minimum wage, a focus for international organizations like the International Labour Organization (ILO), and aims to provide a minimum standard of living for employees.
The hourly wage system seeks to provide equal treatment for full-time and part-time employees, particularly benefiting those on short-term contracts. It introduces flexibility in wage calculations, provides a mechanism for employers, and prevents potential abuses in wage payments. This change will help ensure employees are compensated for actual hours worked, rather than a standard working week.
New provisions in the Labor Code will improve labor relations and increase wage system flexibility. The minimum hourly wage will apply to sectors determined by the Cabinet of Ministers, expected to include agriculture and public catering. This system will be applicable under specific conditions, such as short-term contracts or part-time work.
The introduction of this system is expected to enhance transparency in labor relations and align with international practices, without imposing additional financial burdens on the state budget.