05.03.2025

Plenum of the Constitutional Court of the Republic of Azerbaijan, chaired by Farhad Abdullayev, held a regular session.

At the court session was examined the constitutional case on the interpretation of part 2-3.3 of Article 7 of the Labor Code of the Republic of Azerbaijan in interrelation with Articles 49, 91, 91-2.1 and 91-2.3 of the Civil Code of the Republic of Azerbaijan.

Having heard the report of Judge C. Qaracayev, studied and discussed the reports of interested parties – request of the Narimanov District Court of Baku and the opinion of Staff of the Milli Majlis (Parliament), the conclusions of specialists – Supreme Court, Baku Court of Appeal, Center for Legal Expertise and Legislative Initiatives, State Tax Service under the Ministry of Economy of the Republic of Azerbaijan, opinion of expert – Head of the Department of Labor and Environmental Law, Faculty of Law, Baku State University, Doctor of Law, Professor A.Gasimov, the Plenum of Constitutional Court of the Republic of Azerbaijan adopted decision.

The decision states that on the basis of Articles 15 and 59 of the Constitution of the Republic of Azerbaijan, as well as Articles 49, 91, 91-2.1 and 91-2.3 of the Civil Code of the Republic of Azerbaijan, as well as Parts 2-3.3 of Article 7 of the Labor Code of the Republic of Azerbaijan, relations between a legal entity and the management body of a legal entity are mainly of a civil nature and are regulated by the relevant norms of civil law. However, in order to protect the labor and social rights of the head of the executive body of a legal entity, an employment contract must be drawn up between the founder of the legal entity and the head of the executive body, who is in an actual labor relationship.

Whereas the concept of a contract defined in Article 389 of the Civil Code of the Republic of Azerbaijan and Part 5 of Article 3 of the Labor Code of the Republic of Azerbaijan, implies the mutual expression of the will of two or more parties, then in the case if the founder of the legal entity and the head of the executive body are the same person, the appointment of this person to the position of head of the executive body must be formalized by an appropriate decision without the emergence of any contractual relations.

The decision comes into force from the date of its publication, is final, and may not be cancelled, changed or officially interpreted by any institution or official.