Introduction
Wage is money being paid to the employee by the employer as the compensation for the job done also as one of the most fundamental and common sources of people income all over the world. The wage is of great importance for the economy of developed and developing countries. So that, the wage plays a key role in the creation and determination of a number of economic and legal relations. For example, the wage is the main determining factor in goods, product evaluation. In articles the wage will be approached from legal and economic aspects in light of the ILO Conventions and legislation of the Republic of Azerbaijan and foreign countries. At the same time, it should be noted that this research issue will be published in three parts in terms of its relevance, materiality and broadness. In the first article, the concept of wages and its components, and the payment of wages in special cases will be discussed.
Legal aspects of the wage
We should take a look at proposed concept of the wages in the legislation firstly, if we approach it from legal aspect. It has been defined in article 154.1 of the Labour Code of the Republic of Azerbaijan as follows: "Wages are the total daily or monthly amounts paid in cash or check by the employer to the employee for work performed (or services rendered) while carrying out his duties during the work period in accordance with the employment contract as well as supplements, bonuses, and other payments".
As it can be seen from the concept, amendments, premium and other payments are included also included to wages, not only daily or monthly amount paid to the employee at the end of the work only.
Amendments to wages is additional payment defined to - tariff (official) salary, wages of the employee in order to pay the price or to encourage.
Premium is encouraging monetary means is being paid as stipulated in payment system of wages in order to increase the interest of employees for improving the quality and quantity of work.
If we say that, wage is a broad sphere and in particular is not conditional upon a single case therefore, we need to look at other concepts as well.
Minimum wage is one of these definitions, that it is a social norm defining the lowest level of monthly wages for unskilled labor and services by legislation taking into account economic and social conditions in accordance with article 155.2 of the Labour Code of the Republic of Azerbaijan.
Average wage is a certain amount of paid wages and its incoming payments being paid to the employee for his position (duties) by the employer as stipulated by the Labour Code and other legal acts.
As a rule wages being paid at the workplace where the work is performed. Wages is being transferred to bank account at the request of the employee's or being sent to a specified address.
20 percent of wages proportionate to the kind of value with the consent of the employee can be replaced and given with other everyday consumer goods produced by the enterprise excluding alcoholic beverages, tobacco products, drugs and psychotropic substances, and other things which is not allowed in civil circulation (limited civil circulation).
In connection with certain situations payment of wages respectively is being paid in accordance with each case. Some of the cases will be mentioned below:
1. Wages imposed on special cases
2. Wages imposed on replacement
3. Payment of wages for work performed on days off, voting day, holidays and National Mourning Day that is not considered a working day
4. Payment of wages for overtime work hours
5. Payment of wages for night shift and multi-shift work regime
6. Remuneration for idle time
1. Wages imposed on special cases
So that, wages (rates) providing increases in high amounts are defined for employees working in difficult and hazardous working conditions, working at the workplace which is not suitable for work due to the climatic conditions. The increases are listed on decision no. 137 dated August 22, 2002 by Cabinet of Ministers of Azerbaijan Republic.
2. Wages imposed on replacement
The extra to the wages should be defined and paid in cases of full or partial performance of duties by the employee with other relevant professions (positions) during regular working hours along with the duties stipulated in the labor contract. The difference between tariff (official) salary of the employee who was replaced and the employee who replaced is being paid to the employee who replaced the employee that could not work temporarily for certain reasons along with performing his own work. Extra to wages shall be defined and paid if tariff (official) salary of the employee who was replaced is same or less than the salary of the employee who replaced. This extra shall be determined by mutual agreement between the employee and the employer.
3. Payment of wages for work performed on days off, voting day, holidays and National Mourning Day that is not considered a working day
In connection with the above-mentioned cases wages being paid in the following manner:
· not less than two times of the daily standard wages in timely payment system of labor;
· not less than two times of the workly standard wages in workly payment system of labor;
· not less than the daily wage as extra to wage for the employees who get monthly salary if the work done within the limits of monthly working hours, and not less than two times of the daily wage as extra to wage for the employees if the work is done more than normal monthly working hours.
We also should note that, other days off can be offered for replacing wages with the consent of an employee who worked on days off, voting day, holidays and National Mourning Day that is not considered a working day.
4. Payment of wages for overtime work hours
Wages for every hour of work is being paid to employees working overtime as follows:
· not less than two times of hourly tariff (official) salaries in timely payment system of labor;
· in the amount of extra fee of hourly tariff (official) salaries of timely employee who has relevant degree (skilled) with paying full wages in workly payment system of labor;
· additional payment to employees can be envisaged due to performed overtime work in collective agreement, in labor contract;
· It is not allowed to replace overtime work to days off.
5. Payment of wages for night shift and multi-shift work regime
Payment of wages for night shift and multi-shift work regime is being paid in high amount by the employer not less than the amount defined by the relevant executive authority. 20 percent of hourly tariff (official) salaries of the employee is being paid for each hour who work on night shift, 20 percent of hourly tariff (official) salaries of the employee is being paid for each hour who work on multi-shift regime, and extra fee 40 percent who work on night shift. The working time that at least half of it falls to night time (from 22 pm in the evening until 6 o'clock in the morning) is considered to be night shift. Work shift before night shift is considered to be evening shift regardless of the commencement and completion hours of work shift. If, at least half of the daily working hours fall to night time then this part is being reduced for an hour and is being paid taking into account of these hours fully as defined by legislation in timely payment system of labor who work on working conditions defined by the Cabinet of Ministers of Azerbaijan Republic in heavy and hazardous workplaces, as well as employees who work in special nature.
6. Remuneration for idle time
If an employee warns the employer or supervisor at workplace (foreman, team master, other officials) about launching idle time then idle time remuneration shall be not less than two-thirds of the standard tariff (official) salary set for idle time if it is not fault of an employee.
Remuneration for idle time will not be paid if it is the fault of an employee.
Economic aspects of wages
Wages plays a key role in many economic relations in the public sector. Almost every economic calculations calculated and predicted in respect of wages existing on that period. Plays a key role in determination of produced products, unemployment allowance, also the amount of pensions.
Upon considering the economic aspects the interests of the employer, the employee and society will be considered separately.
Wages for the employer and its determination is of vital importance on establishment of the employer's business and its development. Each employer or businessman who set up a new business should define wages before the employees involved in the case to be established or set up.
The determination process of wages will tell us to what extent the employer is a professional. Because wages paid appropriate and fair to work performed will lead to the work done by employees honestly, in the perfect way and a more responsibly, and the employer will be exempted from additional costs. Consequently, each employee will focus on correct implementation of the work not calculation of wages at the end of each month, and it will ultimately serve the interests of the employer. A German engineer, businessman, the founder of Robert Bosch GmbH (generally Bosch) Robert Bosch who used the eight-hour work day regime for the first time in Germany has a popular opinion on wages as follows:
"I do not pay good salaries because I have a lot of money; I have a lot of money because I pay good salaries".
Wages is of great importance for the society. Wages manifests itself in the formation of the societya and relations between people. So that, if we take a look at the countries with high wages, we can see that they have the highest values from the level of living of the population in those countries to the culture. As an example, we can mention the name of Norway, there is very high wages in this country and the proportion of this there is only one or not any criminal case in this country in a year. Or Canada, here only 1,3 % of people call police within a year.
As you can see, there is the undeniable importance of wages in our lives. As the wage is a very broad sphere, we took a look at its key points above, we discussed its legal and economic aspects. Wages payment forms and rules, wage deductions and the average monthly salary will be included in the next articles. Also, information about the minimum, average salary limits in foreign countries will be given.
Amiraslan Yusifov
The Lawyer of "BSC" LTD