"Employment is a top priority. Steps are being taken in this direction. The development of entrepreneurship and the self-employment program are of these aspects,” Deputy Prime Minister, Chairman of the Commission on the Regulation and Coordination of Labor Relations Ali Ahmadov said today at a press conference on the implementation of the Action Plan “On the prevention of informal employment in the Republic of Azerbaijan".
Ahmadov noted that elimination of informal employment is one of the main directions.
"The Action Plan ‘On the prevention of informal employment in the Republic of Azerbaijan’ reflects the need for eliminating gaps in the legislation. These gaps in the legislation should be eliminated so as to prevent informal employment. Today, certain entrepreneurs do not sign labor contracts because of some gaps in the legislation. I also say that entrepreneurs shall be fined AZN 1,000 for having people involved in informal employment.
If these penalties do not produce any result and employees continue to work without a labor contract, entrepreneurs will be sentenced to three years in prison. In many countries, including some European countries, tougher penalties and sanctions are imposed. There can be a need for amendments to the legal acts during the application of penalties. A regulatory framework for accounting is expected to be created. The Action Plan also envisages propaganda and monitoring, as well as inspections, which are restricted by the legislation until 2021. However, we will try to eliminate unofficial employment more effectively without inspections including effective methods and procedures. The experience of a number of countries is being studied in this area,” he said.
The deputy minister noted that there is an impression in the society about high level of unofficial employment in the construction sector.
“But our monitoring shows that unofficial employment is more common in the trade and service spheres. For example, if an entrepreneur takes a trade area of 1,000 square meters and hires only 5 people, it will be ineffective economically. This points to the existence of other factors,” he said.
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