How to stay compliant

Employer-of-Record (EOR) in Azerbaijan: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in Azerbaijan: Do You Need One?

So you want to hire someone in Azerbaijan. Problem is, your company is located somewhere else.

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Azerbaijan, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.

But there’s a catch: EOR solutions in Azerbaijan are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Azerbaijani entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Azerbaijan, and it doesn’t involve forking out huge amounts of money for an EOR.

The solution: Hire your teammates in Azerbaijan as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Azerbaijan). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Azerbaijan:

Everything you should know about using an EOR in Azerbaijan

Are you considering expanding your business to Azerbaijan and wondering about the best way to hire employees? You're not alone. In this post, we'll explore the benefits and drawbacks of using an Employer of Record (EOR) in Azerbaijan, as well as the legal and regulatory conditions specific to the country.

What is an EOR?

An EOR is a third-party company that acts as an employer for your workers in a foreign country. This means that the EOR takes care of all the legal and administrative tasks involved in hiring and managing employees, such as payroll, taxes, and benefits. As a result, you can focus on your core business activities without having to worry about compliance issues or cultural differences.

Legal and regulatory conditions in Azerbaijan

Azerbaijan has a complex legal and regulatory environment that can be challenging for foreign companies to navigate. Some of the key considerations to keep in mind when using an EOR in Azerbaijan include:

- Work permits: Foreign workers must obtain a work permit before they can legally work in Azerbaijan. The EOR can help you with the application process and ensure that your employees are in compliance with local laws.

- Taxation: Employers in Azerbaijan are required to withhold income tax and social security contributions from their employees' salaries. The EOR can handle these tasks on your behalf and ensure that you are in compliance with local tax laws.

- Employment contracts: All employees in Azerbaijan must have a written employment contract that outlines the terms and conditions of their employment. The EOR can help you draft and negotiate these contracts to ensure that they are incompliance with local labor laws.

Why hiring independent contractors might be easier

While using an EOR can be a good option for some companies, it's not always the best choice. In some cases, hiring independent contractors might be easier and more cost-effective. Here are some reasons why:

- Flexibility: Independent contractor agreements are often simpler & easier to set up than employment contracts. You and your talent can start working together, faster.

- Lower costs: Hiring independent contractors can be less expensive than using an EOR, as you don't have to pay for benefits or other employment-related expenses.

- Simplified compliance: When you hire independent contractors, you don't have to worry about compliance issues related to employment law or taxation. This can save you time and money in the long run.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

Run your global workforce on autopilot with Thera

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