Establishing Personnel accounting
Starting to build HR management
Advisory on Recruitment & Onboarding Processes
Support in structuring legally sound hiring practices.
- Local market norms for job offers, probation, and background checks
- Legal rights of candidates during hiring
- Advisory on job descriptions and advertisement content
- Recruitment workflow review (from selection to offer)
- Structuring of offer letters, job descriptions, and probation policies
- Legal checks for hiring foreign nationals or special categories
- Onboarding documentation and probationary period structuring
Employment Contract Structuring
Advisory on drafting employment contracts in line with Azerbaijani law.
- Recommended clauses and Structuring for fixed-term and indefinite-term contracts
- Templates and legal structures for permanent, fixed-term, and probationary contracts
- Guidance on legal clauses (probation, confidentiality, termination grounds)
- Language, signature, and documentation guidelines
- Recommendations on mandatory clauses, notice periods, and wage structures
- Legal review of existing contracts for compliance risks
Personnel Documentation & Record-keeping Compliance
We ensure your HR records and systems meet documentation standards required by Azerbaijani law.
- Advisory on employee files, attendance sheets, vacation schedules, and payroll registers
- Retention timelines and formatting standards
- Support with documentation required during inspections
- Advisory on maintaining and organising personnel files
- Guidance on official forms and reporting registers (e.g., time sheets, leave logs)
- Record retention rules and data protection requirements
- Storage periods and data privacy considerations under local law
- Document formats approved by the Ministry of Labor and Social Protection
HR Policy & Employee Handbook Development
Assistance in creating or revising internal HR policies and codes of conduct to reflect local legislation and best practices.
- Development of workplace rules and codes of conduct
- Disciplinary procedures and conflict resolution policies
- Leave policies (vacation, sick leave, maternity) and overtime, and benefits policies
- Anti-discrimination and grievance procedures
- Advisory on policy documentation and employee communication
Leave, Benefits, and Wage Compliance Advisory
We ensure your benefits and payroll-related practices comply with Azerbaijani law.
- Calculation and structuring of paid leave entitlements
- Guidance on leave entitlements under Azerbaijani law
- Guidance on overtime, bonuses, and holiday pay obligations
- Structuring vacation schedules and sick leave tracking
- Advisory on statutory benefits and non-cash compensation rules
- Support in bonus, overtime, and benefits policies
Compliance and Reporting
Reliable information to all related stakeholders
Labor Law Compliance Advisory
Guidance on complying with the Labor Code of the Republic of Azerbaijan, including working hours, rest periods, overtime, and employee rights.
- Reviews of employment practices for legal compliance
- Support during inspections or disputes with the State Labor Inspectorate
- Updates on legislative changes affecting employment
- Advisory on working hours, rest periods, overtime, and employee protections
- Analysis of current HR practices against Azerbaijani labor law
- Guidance on mandatory employer obligations and employee rights
Workplace Disciplinary Procedures Advisory
Advisory support on legally compliant processes for employee warnings, sanctions, and terminations.
- Frameworks for employee warnings
- Structuring internal investigation processes
- Legal steps and documentation for dismissals
- Termination risk mitigation strategies
- Frameworks for employee warnings and investigations
- Documentation and procedural advisory for terminations
- Guidance on handling employee grievances and disputes
HR Internal Audit & Diagnostics
Review and diagnostic of current HR practices and documents to identify non-compliance or inefficiencies.
- Compliance audit of contracts, policies, and processes
- HR document and process reviews
- Recommendations report with corrective actions
- Gap analysis against local labor law and international HR standards
- Follow-up support to implement improvements
- Advisory report with prioritized recommendations
Reporting to the State Social Protection Fund (SSPF)
Employers must report salary payments and social insurance contributions for all employees. We advice companies in how to prepare reports correctly in accordance os requirements of law
Typical reports include:
- Monthly payroll declaration for social fund purposes
- Employee registration and deregistration notices
- Updates to employment contracts (amendments, terminations)
Our Advisory Support:
- Explanation of SSPF reporting rules and employer obligations
- Review of reporting schedules and documentation practices
- Advisory on avoiding penalties for late or incorrect submissions
Labor Contract Notification System (LCNS)
This is an electronic government system for registering employment contracts.
Employers must:
- Register every employment contract (start, changes, termination)
- Receive confirmation through the state portal
- Comply with registration timelines (usually within 5 days of signing)
Our Advisory Support:
- Guidance on the use of the LCNS platform
- Training on registration timelines and documentation
- Legal support for corrections or appeals if reporting issues arise
Stages of a Human resources accounting services
How we conduct an HR accounting services
01
Needs Assessment & Process Mapping
Stakeholder Interviews: Understand your HR, payroll, and finance team structures, responsibilities, and current pain points.
Process Flow Documentation: Map existing workflows for time tracking, payroll calculation, benefits administration, and reporting.
Gap Analysis: Identify opportunities to tighten controls, reduce manual effort, and improve data integrity.
02
Personnel Accounting Framework Design
Chart of Accounts Integration: Define payroll- and benefits-related ledger accounts, cost centers, and reporting dimensions in line with your overall CoA.
Accrual & Provision Policies: Establish standardized policies for vacation, bonuses, social security, pension contributions, and other employee-related liabilities.
03
System Configuration Advisory
Payroll Module Setup: Recommend best practices for configuring your ERP or payroll system (e.g., naming conventions, approval workflows, security roles).
Interfaces & Data Flows: Advise on integrations between time-tracking, HRIS, payroll, and general ledger to ensure seamless posting of payroll runs.
04
Documentation & Policy Manuals
Human resources Procedures Manual: Compile clear, step-by-step procedures for payroll processing, journal entry preparation, and benefit accrual.
Roles & Responsibilities Matrix: Document who is responsible for each activity (data entry, approval, reconciliation, reporting).
05
Post-Implementation Review & Continuous Improvement
Health-Check Assessment: After initial go-live, review the accuracy of payroll postings, reconciliations, and control effectiveness.
KPI Monitoring: Define key metrics (e.g., payroll error rate, close-cycle time, number of journal corrections) to track performance.
How We Deliver the Best Advisory on Human Resources Accounting
At our firm, we provide high-quality advisory services in human resources accounting, designed to help local companies in Azerbaijan align their HR-related financial and personnel practices with both Azerbaijani labor law and international standards. While maintaining our independence as auditors, we act as a trusted advisor—empowering your internal HR and finance teams with the knowledge and structure they need.
Value We Bring
- Independence: As an audit firm, we do not perform payroll but provide trusted, unbiased guidance
- Local Expertise: We align HR accounting processes with the specific legal and tax environment in Azerbaijan
- Clarity and Confidence: We turn complex HR cost issues into clear, actionable solutions
- Compliance-Focused: We reduce your risk of penalties and audit issues through legally sound advice
Frequently asked questions
Here are some common questions about Audit services
Yes, it is compiled by us.
To all bodies that are required to submit reports according to the legislation of the Republic of Azerbaijan
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