On April 3, 2019 the Law on Mediation of the Republic of Azerbaijan (the “Law”) entered into force. The Law regulates the relationships in respect of organisation of mediation as an alternative dispute resolution tool, purposes, principles and realization mechanisms of mediation and status of mediators. Mediation will be applied to disputes regarding/arising from:

  • civil law and economic cases (including with foreign elements);
  • family relationships;
  • labour relationships; and
  • administrative law relationships.

The control in the field of mediation will be conducted by the Mediation Board, which is a non-commercial organization. The Mediation Board has not been established yet.

Mediation process can be taken place either based on an agreement concluded between the parties of the dispute or through initial mediation session required by the Law for certain cases.

Under the Law, parties should attend the initial mediation session before bringing economic disputes, as well as disputes arising out of family and labor relationships before relevant courts. It should be noted that this obligation of the parties shall enter into force on July 1, 2020.

Mediation can also be taken place during a court hearing. If parties agree to settle their dispute through a mediation process, then the court cancel the case. If the dispute is resolved as a result of the mediation, then the court terminate the case. Otherwise, the parties or one of them can request form the court to renew the case.

The amount of fees for the initial mediation session are approved the Decision of the Cabinet of Ministries of the Republic of Azerbaijan recently. Under the Decision, the fee structure is as follows:

No Type of dispute Amount of fee
1 Disputes arising from family relationships AZN 50
2 Disputes arising from labour relationships AZN 50
3 Economic disputes (depending on the amount of claim):  
3.1 Up to AZN 500 AZN 20
3.2 AZN 501 – 1000 AZN 40
3.3 AZN 1001 – 5000 AZN 60
3.4 AZN 5001 – 10000 AZN 100
3.5 AZN 10001 – 50000 AZN 200
3.6 More than AZN 50000 AZN 400

This article was prepared as a general information by the attorneys of Baku Attorneys & Consultants (BAC), Azerbaijani law firm. BAC is a full service law firm based in Baku and it has a strong team of highly experienced attorneys and consultants, specialized in rendering various expert services to foreign and local clients in Azerbaijan. Please, feel free to reach us via www.batco.az to further discuss your case.

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