15:09 - 14.07.2026

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July 14, Fineko/abc.az. At today’s plenary session the Milli Majlis has adopted in the 3rd reading the draft amendments to the Labor Code, to the Civil Code, to the Laws on Currency Regulation, on Banks, on Investment Funds and on the Securities Market.

With the change in legislation, for the first time, the concept of an agreement on employee's participation plan is introduced.

This allows company's management or founder to provide employees with company shares or stocks on preferential terms or completely free of charge. The transfer of shares to employee's full ownership may depend on two specific conditions.

The first condition is based on time, meaning that the employee must have worked in the company for a certain period. The second condition is based on achieving specific business objectives, where the employee or the company as a whole must fulfill these objectives.

If an employee's employment contract is terminated due to reasons such as layoffs, the employee's own desire, or health issues, the employee may be eligible to receive a portion of the shares they have not yet fully acquired. Additionally, the company may purchase the acquired shares at a fair market value.

If the employee's termination is due to their own fault, violation of work duties, or disciplinary issues, they may lose their rights to the shares they have not yet acquired. In such cases, the company may purchase the acquired shares at a nominal or lower price.

Shares or stocks received by an employee under such agreements are not officially considered to be part of the employee's salary, and they may not be paid in lieu of salary in any case.

The Civil Code introduces important mechanisms that will simplify the regulation of startups and the investment environment.