Law of Republic of Azerbaijan on Mediation

According to the 10th and 12th items of Article 94, chapter I of the Constitution of Azerbaijan Republic this law shall regulate the public relations on administration of mediation procedures as one of the methods of alternative dispute resolution, establishes the purposes, principles and the manner of exercising of the rules of mediation process and the status of mediators.

Chapter I. General provisions

Article 1. Key terms and definitions

1.0. Following terms and definitions shall be used for the purposes of this Law:

1.0.1. mediation – mediation under this Law is a procedure, whereby the parties wish to settle their dispute through one or more mediators assisting the parties to reach an agreement;

1.0.2. parties – legal entities and natural persons (including natural persons engaged in entrepreneurial activities without establishment of legal entity) and also administrative bodies that agreed to mediation;

1.0.3. mediator – natural person, meeting the requirements of this Law, engaged by parties or mediation organization in order to implement mediation in a professional manner;

1.0.4. mediation organization – legal entity defined in the article 11.1 of this Law;

1.0.5. participants of mediation – mediator and parties;

1.0.6. other parties that engage in mediation – lawyers, representatives, translators, experts and specialists, employees of mediation organization and others engaged in on the basis of parties’ mutual consent;

1.0.7. settlement agreement – written agreement concluded between parties as a result of mediation process;

1.0.8. agreement on application of mediation procedure – written agreement in a contract in order to solve dispute (existing or future disputes) by mediation;

1.0.9. mediation clause – a contract, provisions of the contract or any oher document requiring the parties to attend the mediation process prior to filing to the court or arbitration (jury);

1.0.10. agreement on provision of mediation services – written agreement concluded between mediator or mediation organization and the parties on provision of mediation services;

1.0.11. dispute – existing (or future) controversy (conflict) defined in the article 3.1 of this Law.

Article 2. Legislation on Mediation

2.1. Legislation on Mediation consists of the Constitution of the Republic of Azerbaijan, this Law, other legislative acts and international treaties of the Republic of Azerbaijan.

2.2. Relations in the field of mediation in free economic zone of Alat are regulated in accordance with the Law of the Republic of the Azerbaijan on “free economic zone of Alat”.

Article 3. Scope of application of Mediation

3.1. Mediation shall apply to the following issues:

3.1.1. disputes arising out of conflicts that are based on civil case or economic disputes (including disputes with foreign elements);

3.1.2. disputes arising out of family relations;

3.1.3. disputes arising out labor relations;

3.1.4. disputes arising out of administrative law realtions;

3.2. Parties are required to attend initial mediation sessions before applying to the court in accordance with the articles 28 and 29 of this Law for the disputes arising from economic, as well as family and labor relations.

3.3. Mediation cannot be held if the disputes established by article 3.1 of this Law concerns the rights of third parties who are not participating in mediation, natural persons who are declared by a court as not having legal capacity or with limited action capacity . If there are such cases mediator(mediation organization), the parties or one of them shall refuse from mediation process.

3.4. If the settlement agreement has not been concluded between the parties as a result of mediation process, the issue of exemption from state duty for a party that paid his / her part of the costs associated with the mediation process or a party paid mediation costs in accordance with the article 36.2 of this Law shall be regulated by the law of the republic of Azerbaijan on State Duties. If the settlement agreement shall be concluded between the parties after the submission of application to the court, paid state duties shall be returned in accordance with the Civil Procedure Code of Azerbaijan Republic.

3.5 Information boards about mediators, mediation organizations and the places of their activities should be placed on the premises of courts or the places that are close to them. The Mediation Council should ensure that the information contained in the information boards is regularly updated by the relevant courts as new changes occur in the Register of Mediation.

Article 4. Purpose and principles of Mediation

4.1. The purpose of mediation is decrease the rate of conflict and to solve the dispute in a manner in which all of the parties are satisfied.

4.2. Mediation shall be held on the basis of the following principles:

4.2.1. voluntariness;

4.2.2. collaboration and equality of parties;

4.2.3. impartiality and independence of mediators;

4.2.4. inadmissibility of interference into the mediation process;

4.2.5. confidentiality.

Article 5. Voluntariness

5.1. Mediation is voluntary (in accordance with the articles 28 and 29 of this Law) in nature and the parties are free on assignment of mediators.

5.2. Mediation (in accordance with the article 21.1 of this Law) shall be implemented on the basis of a contract on “application of mediation process” concluded with the mutual consent of the parties.

5.3. During the mediation process the parties may at their discretion use their substantial and procedural rights, to increase or decrease the amount of their claims and to refuse mediation at any of its stages in accordance with articles 28 and 29 of this Law.

Article 6. Equality of parties and collaboration

6.1.During mediation process parties use equal rights and carry equal obligations in all matters, as well as in appointing mediator.

6.2.Parties must collaborate for the purposes of mediation and interact with each other.

6.3.Mediation is based on cooperation, communication and negotiations between the parties.

Article 7. Independence of Mediators, impartiality and inadmissibility of interference into the Mediation process

7.1. During mediation process mediator must be independent and impartial. Mediator must not be dependent on the parties, local and governmental bodies, legal entities and natural persons and during process the above - mentioned bodies and persons are not permitted to interference with the mediator’s activity.

7.2. Mediator must hold mediation in the interest of both parties, provide the equal presence of both parties and create equal opportunities for both parties to submit their request during mediation process. Mediator must refuse to hold mediation if there is any circumstance that impedes her or his impartiality.

Article 8. Confidentiality

8.1.Unless otherwise agreed by parties, mediation shall be held confidentially.

8.2.Except where an additional condition agreed by the parties, as well as the approval and enforcement of the settlement agreement required, confidentiality of all the information (in addition, request of one of the parties to initiate mediation, approval to the mediation and alternative dispute resolution, suggestions or opinions of one of the parties or mediators on alternative dispute resolution, statements or confessions made by one of the parties during the mediation, documents prepared for the purposes of mediation etc.) shall be protected by the parties and other participants of mediation.

8.3.The parties or other participants of mediation are not allowed to disclose or refer to any information known to them during the mediation process in court or arbitration (jury) or in any other instance (except where the party express written consent exists) and such persons may not act as witnesses related to such information.

8.4.The articles 8.2, 8.3 and 8.5 of this Law shall not apply to the matters of obtaining information about serious and especially serious crimes revealed during mediation process, and also disclosing information related to the mediation during criminal proceedings by court decision.

8.5.The protection of the confidentiality of the information obtained during the mediation should be ensured even after the right of mediator and mediation organization to carry out its activities has been suspended or withdrawn from the Mediation Council.

8.6.Breach of the confidentiality obligation provided by the article 8 of this Law by the parties or other participants of mediation shall entail liability pursuant to the legislation of Azerbaijan Republic.

Article 9. Rights and obligations of the parties

9.1. Parties have the following rights:

9.1.1. Rights provided by the articles 5 and 6.1 of this Law;

9.1.2. To appoint and dismiss a mediator or mediation organization;

9.1.3. Participating personally or on the basis of power of attorney by representative at mediation process;

9.1.4. To obtain information about mediation process and its possible outcome;

9.1.5. Other rights provided by this Law.

9.2. According to this Law parties can independently decide the terms of application, realization and conclusion of mediation process on the basis of mutual agreement.

9.3. Parties have the following obligations:

9.3.1. to provide the execution of settlement agreement;

9.3.2. to protect the confidentiality of the process;

9.3.3. other obligations provided by this Law.

Chapter II. Mediator’s activity

Article 10. Requirements for Mediator

10.1. The natural person who wants to get the title of mediator must meet the following requirements:

10.1.1. must have a higher education degree;

10.1.2. must not be younger than 25;

10.1.3. must have at least 3 years of work experience;

10.1.4.by completing training on mediators' initial preparation program and obtaining the certificate provided in the article 14.2 of this Law;

10.1.5. if the cases provided in the article 17.5 of this Law exist, the relevant time limit should be expired.

10.2. The following natural persons cannot be mediator:

10.2.1. natural persons who are declared by a court as not having legal capacity or having limited action capacity;

10.2.2. persons about whom there is a decision of court which has become final on providing him / her with compulsory medical measures;

10.2.3. persons whose previous conviction is not removed or extinguished.

10.3. If the cases provided in the article 10.2 of this Law do not exist, natural persons who meet the requirements provided in the article 10.1 of this Law shall gain the right of operating as a mediator from the moment of admission to the membership of Mediation Council.

10.4. Mediator can engage in any activity that has not been prohibited by Law.

Article 11. Mediation organization

11.1. Mediation organization is a legal entity that in order to facilitate development and improvement of mediation, implements marketing of mediation services, sets rules on payment of fees and other expenses of mediators pursuant to the civil-law or labor contracts and also facilitates negotiation process and appojnts mediators in the cases provided by this Law or the mutual agreement of the parties as well as performs other actions aimed at provision of effective activity of mediators.

11.2. Legal entity that is registered in the State Register of a Legal Entity according to the “Law on State Registration of Legal Entites” can be mediation organization.

11.3. As soon as legal entity is admitted to the membership of Mediation Council t, it acquires the right to operate as mediation organization. In order to get admitted to the membership of Mediation Council, legal entity must meet the following requirements:

11.3.1. it must conclude a labor agreement with at least 2 mediators (at least one of them must have a university degree in law);

11.3.2. must have a set of rules on evaluation of mediation services provided by mediators;

11.3.3. must have an office consists of at least two rooms;

11.3.4. if the cases provided in the article 11.8 of this Law exist, the relevant time limit should be expired.

11.4. The right of mediation organization to engage in mediation shall be suspended in the following cases:

11.4.1. if an application has been submitted by mediation organization (additionally, in the case of suspension of the activity of mediation organization as a legal entity);

11.4.2. if mediation organization does not follow the decision of Mediation Council on preventing breach of requirements of this Law (from 1 month to 6 months, taking into account the period necessary for the elimination of the violation).

11.5. Mediation organization shall be withdrawn from the membership of Mediation Council in the following cases:

11.5.1. if there is a relevant application submitted by mediation organization;

11.5.2. if mediation organization was abolished;

11.5.3. if there is a relevant court decision on invalidation of the registration of legal entity because of violation of legislation at the time of its establishment;

11.5.4. if false information is discovered in documents submitted in order to get admitted to the membership of Mediation Council;

11.5.5. if mediation organization does not submit written notification to the Mediation Council on rectification of violations within 1 working day prior to expiration of period for the termination of the right to engage in mediation activity;

11.5.6. if mediation organization does not pay membership fee for more than six months without any grounds.

11.6. Termination of the right to engage in mediation activity or withdrawal from the Mediation Council shall be carried out by the decision of Mediation Council (excluding the cases provided in the articles 11.5.5 and 11.5.6 of this Law, where only the legally enforced decision of the court is required) and relevant records shall be made at the register of mediation from the date that such decisions come into force.

11.7. When conditions which caused the suspension of the right of mediator to engage in mediation activity in accordance with the article 11.4.2 of this Law cease to exist, on the basis of a written application of the mediation organization within the time limit provided by the article 11.5.5 of this Law, the Mediation Council within 5 days shall adopt a decision on restoration of activity of mediation organization.

11.8. A legal entity or other legal entity that founded by the founder of the first legal entity withdrawn from the membership of Mediation Council under the articles 11.5.4 and 11.5.6 of this Law may appeal to the Mediation Council in a manner prescribed by this Law in order to restore its membership within 1 year after the date of this decision come into force.

Article 12. Rights and obligations of Mediator

12.1. Mediator has the following rights:

12.1.1. carry out mediation services on a voluntary basis or through a mediation organization;

12.1.2. to get remuneration for services, which is agreed with the parties;

12.1.3. to meet with parties jointly or separately during the mediation process;

12.1.4. to inform public about his/her activity complying with the confidentiality principle at the same time;

12.1.5. to contact with the party through informing his / her representative;

12.1.6. other rights provided by this Law.

12.2. Mediator has the following obligations:

12.2.1. to comply with the obligations provided by this Law;

12.2.2. attend the retraining courses that are held at least once every two years and receive the relevant certificate

12.2.3. to act only with the consent of the parties during the mediation process;

12.2.4. to explain to the parties the purposes of mediation and their rights and obligations;

12.2.5. to give back the documents that parties gave him / her during the mediation process;

12.2.6. to follow the rules provided by the article 20.1.5 of this Law;

12.2.7. to perform the decision adopted by Mediation Council pursuant to this Law;

12.2.8. to fulfill the obligations that are provided by this Law.

12.3. Mediator cannot provide legal or other services to the parties and cannot represent any of the parties at court procedure or arbitration (jury) and act as an arbitrator (jury) on the subject of mediation process.

Article 13. Objection to the Mediator

13.1. During the mediation process the parties, on the basis of mutual consent can substitute the mediator with another one.

13.2. If there are conditions restricting mediation process under the principles provided by this Law, mediator must object to her or his appointment.

13.3. Mediator can terminate the mediation process on the basis of mutual agreement of the parties or refuse to carry out the mediation process, if he / she comes to the conclusion that continuation of mediation process will not end in resolution of the dispute.

Article 14. Initial training and requalification of Mediators

14.1. The initial training of those who want to get the title of a mediator, as well as the requalification of mediators, is carried out by the mediation training authority

14.2. The Mediation Training Authority shall issue the appropriate certificate for graduates who have completed the initial training of mediators as well as mediators who have completed requalification course.

14.3. The training in mediation training authority is carried out in accordance with the training rules on training and requalification of mediators

14.4. The requirements of the articles 11.2 and 11.4 - 11.8 of this Law shall apply to the mediation training authority. The mediation organization may also act as Mediation Training Authority, if it meets the requirements of the article 14.5 of this Law.

14.5. From the moment of admission to the membership of the Mediation Council, the legal entity shall be entitled to engage in mediation training. To be admitted as a mediation training authority to the membership of the Mediation Council, a legal entity must meet the following requirements:

14.5.1. It must have the labor or the relevant civil - law contract with at least two of the following categories of persons:

14.5.1.1. with at least one mediator who has mediated at least 10 mediation cases during the last two years;

14.5.1.2. with one trainer who has at least 2 years of pedagogical experience in mediation (including the part of the subject of alternative dispute resolution) for the last 6 years or with at least 1 mediation trainer who operated at least 2 trainings within international projects for the last three years;

14.5.1.3. at least 1 trainer with relevant certificate about him / her participating in a training of mediation trainers organized by international mediation authorities.

14.5.2. must have a detailed program of initial training and requalification courses for mediation.

14.5.3. if the cases provided in the article 11.8 of this Law exist, the relevant time limit should be expired.

14.6. The issue of recognition of work experience or certificates acquired in foreign countries pursuant to the articles 14.5.1.1 - 14.5.1.3 of this Law shall be governed by the rules of register of mediation.

Article 15. Register of Mediation

15.1. The Mediation Council carries out mediation registrations for the purpose of determining the list of mediation organizations, mediators and mediation training authorities.

15.2. Mediators, mediation organizations and mediation training authorities should inform the Mediation Council about the changes of their information at the register of mediation within 30 days from the date those changes occurred.

15.3. The procedure for including the information about mediation organizations, mediators and mediation training authorities into the register of mediation, making changes to this data, as well as the procedure of conducting the register of mediation, which includes the matters provided in the article 14.6 of this Law, shall be determined by the body (s) established by the relevant executive authority.

15.4. The register of mediation is open and posted on the official website of Mediation Council and the information is constantly updated.

Article 16. Mediator’s disciplinary action

16.1. Mediator is liable for violation of his obligations under the articles 12.2 and 12.3 of this Law. The information on mediator’s disciplinary action shall be included into the register of mediation and kept for 6 months from the date of inclusion.

16.2. The following disciplinary actions shall be taken about mediator depending on the severity of the violation:

16.2.1. warning;

16.2.2. reprimand;

16.2.3. suspension of the right of operating as a mediator for a period from 1 to 6 months.

16.3. Disciplinary actions against mediator shall be taken by the decision of Mediation Council. Disciplinary actions against mediator shall be taken within 1 year from the date that violation takes place. The procedure for disciplinary proceeding shall be determined by Mediation Council.

16.4. Mediator shall not be liable for non-settlement of the dispute on the basis of mutual consent of the parties or for non - performance of settlement agreement.

16.5. Disciplinary action shall not release the mediator from civil, administrative or criminal liabilities for damages caused as a result of violations his / her obligations provided by this Law and also the disciplinary actions imposed by mediation organization that he/she operates within.

Article 17. Suspension of the right of mediation activity or withdrawal of mediator from Mediation Council

17.1. The right of mediation activity shall be suspended under the following reasons:

17.1.1. if mediator voluntarily submitted such application;

17.1.2. if he has not followed the decision of Mediation Council on rectification of violation of obligations provided by this Law (from 1 month to 6 months, taking into account the period necessary for the elimination of the violation);

17.1.3. in the cases provided by the article 16.2.3 of this Law.

17.2. Mediator shall be withdrawn from Mediation Council for the following reasons:

17.2.1. if mediator submitted voluntarily submitted such application;

17.2.2. if there is a court’s convictional judgment or decision that entered into legal force or enforced court decision on application of compulsory medical measures;

17.2.3. if natural persons are declared as not having legal capacity or with limited action capacity by court;

17.2.4. if mediator dies;

17.2.5. if declared as deceased or missed by court;

17.2.6. if mediator did not pass the requalification course pursuant to the article 12.2.2 of this Law;

17.2.7. if disciplinary actions provided by the article 16.2 of this Law have been applied more than three occasion in a year;

17.2.8. if the false information has been appeared in the documents and data submitted in order to get admitted to the membership of Mediation Council;

17.2.9. if mediator has not submitted written notification to the Mediation Council on rectification of violations within 1 working day prior to expiration of period for the termination of the right to engage in mediation activity;

17.2.10. if he does not pay his / her membership fee for more than 6 months without any grounds.

17.3. Suspension of the right of mediation activity or withdrawal from the membership of Mediation Council shall be implemented under the decision of Mediation Council (excluding the cases provided in the articles 17.2.7, 17.2.9 and 17.2.10 of this Law, where only the legally enforced decision of the court is required) and it will be noted at the register of mediation after this decision comes into force.

17.4. When the cases provided by the article 17.1.2 of this Law caused the suspension of the right of mediation activity abolished, decision by Mediation Counsel on restoration of that right shall be adopted with expiration of time limit provided by the article 16.2.3 of this Law within 5 days pursuant to the written application of mediator that submitted within time limit that provided by the article 17.2.9 of this Law.

17.5. Natural person who has been withdrawn from the membership of Mediation Council pursuant to the articles 17.2.2, 17.2.7, 17.2.8 and 17.2.10 of this Law may appeal for restoration of his / her membership in a manner provided by this Law within 1 year (in cases provided by the article 17.2.2 of this Law, with the condition that previous conviction is removed or extinguished) from the date of that decision comes into force.

Chapter III. Mediation Council’s activity

Article 18. Mediation Council

18.1. Mediation Council is a non - profit legal entity created on the basis of mandatory membership of mediation organizations, mediators and mediation training authorities in order to implement the functions provided for in the article 20.1 of this Law, on the principle of self - governance.

18.2. Mediation Council shall be established and operated in accordance with this Law, its charter and other legal acts.

Article 19. Property of Mediation Council

19.1. Mediation Council may have property in its possession that not prohibited by Law.

19.2. The property of Mediation Council consists of membership fees, grants, donations and other financial sources that are not prohibited by Law.

19.3. The amount of membership fees for the members of the Mediation Council, the duration and terms of payment of this amount are determined by the Charter of the Council.

Article 20. Functions of Mediation Council

20.1. Mediation Council performs the following functions:

20.1.1. implementing regulation and supervision in the field of mediation;

20.1.2. taking measures for development of mediation, organizing or participating in preparation of state programs and legal acts in this field;

20.1.3. taking measures on implementing the initial training for those who want to get title of mediator and requalification courses for mediators;

20.1.4. keeping the registration of mediators, mediation organizations and mediation training authorities;

20.1.5. preparing proposals on procedures of training and requalification of mediators, rules of the registration of mediation, ethics of the professional behaivour of mediators and the manner of holding mediation procedure and introduce them to the body that established by relevant executive authority;

20.1.6. prepare and approve the samples of documents that related to the mediation process including protocol and reports;

20.1.7. collecting and analyzing the statistical information from mediators, mediation organizations and mediation training auhorities;

20.1.8. analyzing the effectivenes of mediation system once in 3 years, giving relevant suggestions and taking other measures;

20.1.9. conducting conferences and campaigns in the field of mediation;

20.1.10. reviewing the applications about the activity of mediators, mediation organizations and mediation training authorities;

20.1.11. adopting decisions on rectification of violations of obligations by mediators, mediation organizations and mediation training authorities under this Law;

20.1.12. adopting decisions on taking disciplinary actions against mediators;

20.1.13. adopting decision on withdrawal of mediators, mediation organizations and mediation training authorities from the membership of Mediation Council and commencing a case in circimstances provided by the articles 11.6 and 17.3 of this Law;

20.1.14. determines the manner of implementation of disciplinary action;

20.1.15. publishes informational and statistical news on mediation activity and introduces it to the public once in a quarter;

20.1.16. performing other functions under this Law and its charter.

20.2. Mediators, mediation organizations and mediation training authorities may commence a case at court from the decisions and other actions and inactions of Mediation Council.

Charter IV. Mediation process

Article 21. Basis for application of Mediation process

21.1. Mediation process shall be performed on the basis of agreement on “application of mediation process” concluded between parties or participating in initial mediation process in accordance with the articles 28 and 29 of this Law.

21.2. The agreement on “application to the mediation process” may be applied before the submission of the statement of claimant to the court between parties or during litigation at court.

21.3. Either one or both of the parties may initiate entering into an agreement on “application to mediation process”. Courts, authorities that carrying out administrative or criminal prceeding (officials) also have a right to suggest to solve the dispute by mediation. In the cases provided by the article 3.2 of this Law, relevant authorities explain the parties their obligation to attend the initial mediation session in accordance with the articles 28 and 29 of this Law.

21.4. Conclusion of the agreement in a manner provided by this Law on application to mediation process shall cause the suspension of civil and economic disputes and also criminal or administrative proceedings about the dispute between the parties at court.

21.5. Mediation process shall take place at the time of submission of the proposal provided by the article 21.6 of this Law and in the absence of such proposal, in the cases provided by the articles 28 and 29 of this Law, from the moment the parties shall attend the initial mediation session and in other cases, from the moment of signing the contract on “application of the mediation process” which is provided by the article 22 of this Law.

21.6. One of the parties shall send the proposal on application of mediation process with information provided by the article 22 (excluding articles 22.1.1, 22.1.4, 22.1.7 and 22.1.8) of this Law and also the name of mediator or mediation organization that parties agreed to if there is not any, the suggestions that indicating the candidates, to the other party. In the absence of any other rule among the parties, the proposal referred to in the first sentence of this article shall be submitted to the Party no later than 5 days prior to the date of the mediation session.

21.7. Except as provided for in the article 21.8 of this Law, if the proposal sent in accordance with the article 21.6 of this Law is not answered within 10 days the mediation process shall be terminated under the article 32.1.4 of this Law, if the same proposal has been rejected in any form within 10 days the mediation process is automatically terminated under the article 32.1.3 of this Law.

21.8. The party may apply to the mediator or mediation organization within 10 days of sending offer provided by the article 21.6 of this Law and if the offer is unanswered or rejected party may apply to the mediator or mediation organization defined in mediation clause between the parties. If after submitting the information provided by the article 22 of this Law (excluding the article 22.1.1) and the notification stating the date, time and the place of mediation session, the parties or one of them have not accepted to attend the mediation process with a written notification or are not present during the session or have not agreed to conclude the agreement on “apllication of mediation process”, the mediatior will issue a certificate of “Failure of attendance at the mediation session” that states the name of the persons present and introduce it to the parties. Unless otherwise agreed between the parties the notification, provided by the second sentence of this article, must be introduced to the parties 5 days before holding the mediation session.

21.9. Courts will leave the claim without hearing if the parties do not comply with one of the following requirements:

21.9.1. in cases provided by the articles 28 and 29 of this Law, the party does not attach the relevant protocols and reports to his / her application to the court that provided by the article 29.7 of this Law;

21.9.2. if the protocol provided by the article 32.2 of this Law has not been attached to his/her apllication to the court in the case of agreement on “application of mediation process” has been concluded between parties;

21.9.3. if the mediation process under the mediation clause concluded between the parties is not terminated in the manner prescribed by the article 21.7 of this Law, where the mediation process is initiated in connection with the submission of the proposal referred to in the article 21.6 of this Law;

21.9.4. if in the cases provided by the article 21.8 of this Law, a party does not attach the report defined by the same article to his/her application to the court;

21.10. Contrary to the provisions of the agreement on “application of mediation process” or mediation clause, the failure to attend the mediation process with lame excuse shall entail liability under the Law.

Article 22. Agreement on application to mediation process

22.1. Agreement on application to mediation process shall be made in writing, and such agreement shall specify the followings:

22.1.1. date, time and the place in which the agreement has been concluded;

22.1.2. names and details of the parties;

22.1.3. subject of the dispute;

22.1.4. information about mediator (mediators) or mediation organization;

22.1.5. rules and conditions of payments concerning mediation process;

22.1.6. unless otherwise agreed between the parties obligation of the parties on confidentiality of mediation process and liabilities for breaching that obligation;

22.1.7. duration of mediation process;

22.1.8. the manner of holding mediation process;

22.1.9. other terms under Civil Code of the Republic of Azerbaijan, this Law and other legislative acts.

22.2. On the basis of mutual consent of the parties amendments and revisions can be made to the agreement on the application to mediation process.

22.3. Agreement on the application to mediation process may be concluded by representatives, and may be amended and revised. Authorities provided by the articles 22.1 and 22.2 of this Law shall be specially specified on the power of attorney granted to the representative.

Article 23. Appointing mediator or mediation organization, the place and time of mediation process

23.1. Parties shall appoint one or several mediators on the basis of mutual consent in order for implementation of mediation process. Parties may request an mediation organization for appointing mediator.

23.2. While requesting a mediation organization for appointing mediator, mediation organization shall suggest the parties candidacy of one or several mediators or it shall appoint mediator (mediators) itself, in the cases provided by agreement on implementation of mediation process concluded between the parties or by second sentence of the article 28.3 of this Law .

23.3. Mediator or mediation organization must explain to the parties the purposes of mediation and their rights and obligations free of charge before the agreement on application to mediation process is concluded.

23.4. Relationships between the parties and mediator or mediation organization shall be regulated by the agreement on mediation services performance. Agreement on mediation services performance shall include the provisions on the rights and obligations, liabilities of the parties, mediator or mediation organization, confidentiality, costs of mediation and other provisions that provided by this Law and the Civil Code of the Republic of Azerbaijan.

23.5. Mediator shall decide the place and time of mediation on the basis of parties’ mutual consent.

Article 24. The rules on implementation of mediation process

24.1. Mediation process shall be implemented in a manner provided by this Law,procedure of mediation proces and internal rules of mediation organization (if applicable) established in accordance with this procedure and ethics of the professional behaivour of mediators.

24.2. During mediation process mediator may collaborate, meet all of the parties together or separately and give written and oral reccomadations. In this case mediator must not allow the actions putting one of the parties in an upper position or limiting the rights and obligations of one of the parties.

24.3. Taking into account the articles 28 and 29 of this Law, parties may refuse mediation at any stage of mediation process.

24.4. Parties may attend the mediation personally or through a representative. Parties at mediation process may use services of lawyers, translators, experts and specialists in the relevant field. Parties may also agree on participation of others in the mediation process.

24.5. Parties at mediation process state their suggestions related to their position and resolution of dispute in writing or orally. Parties in mediation process reach an agreement on terms of dispute resolution.

24.6.The mediator may propose an oral or written proposal that does not stipulate an obligation for the parties to resolve the dispute, at any stage of the mediation process. The settlement agreement is issued by the parties’ mutual consent.

24.7. Total duration of mediation process may last no more than 30 days pursuant to the article 21.5 of this Law. Due to complexity of the dipute, duration of medition process may be extended for another 30 days with parties’ mutual consent. The exact duration of mediation process shall be determined by agreement on application of mediation process with taking into account the general term.

Article 25. Features of mediation on disputes arising from civil cases or economic disputes

25.1. Any civil cases or economic disputes (including disputes with foreign elements) that are solvable with mutual consent of the parties can be solved by mediation.

25.2. The procedure for the training and requalification of mediators in the field of protection of consumers' rights shall be approved as agreed with the body (s) established by the relevant executive authority.

Article 26. Features of mediation arising from family relations

26.1. The following disputes arising from family relations can be solved by mediation according to this Law:

26.1.1. conditions of continuatuion of marriage;

26.1.2. the manner of performing parenting rights and obligations;

26.1.3. establishing the residence of child;

26.1.4. conditions of taking care of child and other disabled family members;

26.1.5. other disputes arising from family relations .

26.2. Provisions related to mediation can be included into the marriage agreement.

26.3. The mediator may obtain a reference from body established by relevant executive authority on disputes arising from family relations affecting child’s interest.

26.4. If the disputes arising from family relations involve matters that may damage child’s growth and development and her or his interests or if there is likelihood of occurance of such cases, the mediator is obliged to inform body established by relevant executive authority and mediator may refuse to mediate dispute.

26.5. Parties are obliged to submit to the body established by relevant executive authority the settlement agreement which affects child’s growth, development and her or his interests.

26.6. Procedurefor training and requalification of mediators on disputes arising from family relations shall be confirmed as agreed with body established by relevant executive authority.

Article 27. Features of mediation on disputes arising from labor relations

27.1. According to this Law the following disputes arising from employment disputes may be solved by mediation:

27.1.1. individual labor disputes;

27.1.2. collective labor disputes.

27.2. Procedure for training and requalification of mediators on disputes arising from labor relations shall be confirmed as agreed with body established by relevant executive authority.

Article 28. Attendance in initaial mediation session on economic disputes and also disputes arising from family and labor relations

28.1. Parties should attend the initial mediation session before commencing a case on economic disputes, as well as disputes arising out of family and labor relations.

28.2. The initial mediation session on the disputes referred in the article 28.1 of this Law shall be mediated by the mediator or mediation organization agreed by both of the parties.

28.3. If the request of the party on application mediation process defined in the article 21.6 of this Law has not been accepted within 10 days after its sending or the parties can not agree on mediator or mediation organization in accordance with the article 28.2 of this Law, initial mediation session shall be held by the mediation organization applied first by one of the parties in the same district or city with the court having jurisdiction over the dispute or if there are not any mediation organizations in that district or city, then (taking into account the article 28.4 of this Law) the one that is the closest to administrative territorial unit of that district or city. In such case, if the parties fail to agree on the mediator, mediation organization shall appoint the mediator.

28.4. If mediation organization is not available in the same city or district with court or the case cannot be mediated at this mediation organization, the court that having jurisdiction over the dipute may appoint a mediator in order to hold the initial mediation session upon a request of any of the parties.

Article 29. Initial and subsequent mediation session on economic disputes and also disputes arising from family and labor relations

29.1. Mediator explains the essence, advantages and rules of the mediation process to the parties attend the initial mediation session, jointly and separately. On the same day or at the request of the parties, the other day designated by the mediator, the parties should decide whether they want to attend the subsequent mediation sessions.

29.2. If after submitting the information provided by the article 22 of this Law (excluding the article 22.1.1) and the notification stating the date, time and the place of initial mediation session, the parties or one of them have rejected to attend the initial mediation process in a written form or are not present during the session, the mediation organization will issue a certificate of “Failure of attendance at the initial mediation session” that states the name of the persons present and introduce them to the parties. Unless otherwise agreed between the parties the notification, provided by the first sentence of this article, must be introduced to the parties 5 days before holding the initial mediation session.

29.3. If one or both parties do not agree to continue the mediation process, as well as mediator refuses to proceed the mediation process under the articles 3.3 and 26.4 of this Law, the mediator shall terminate the mediation process and issue a certificate of “Failure to proceed after the initial mediation” and introduce it to the parties.

29.4. The failure of a party to attend the initial mediation session without valid excuse shall entail the liability as prescribed by law.

29.5. If the parties decide to continue the mediation process, agreement on application of mediation process shall be concluded between the parties and mediation process shall be carried out in accordance with the article 24 of this Law.

29.6. If the parties fail to conclude a settlement agreement at the end of the mediation process, as well as mediator refuses to proceed the mediation process under the articles 3.3 and 26.4 of this Law, the mediator shall terminate the mediation process and issue the relevant protocol and introduce it to the parties.

29.7. Upon receipt of the report or protocol referred to in the articles 29.2, 29.3 and 29.6 of this Law, the party may apply to the court or arbitration (jury). The relevant report or protocol should be attached to the application.

Article 30.Features of mediation on disputes arising from administrative law relations

The disputes on adoption, performance or termination of administrative acts by administrative bodies or disputes arising from other actions or inactions under the Law of Republic of Azerbaijan on “Administrative Proceeding” (except for the disputes referred in the article 4.3 of the same Law (including territorial disputes between administrative territorial units in accordance with the Law of the Azerbaijan Republic “On Territorial Structure and Administrative Territorial Division”)) can be solved by mediation.

Article 31. Judicial mediation

31.1. At any stage of the proceedings, the court may, at its own discretion and with the consent of the parties, or upon a request of the party and with the consent of the other party, suggest parties resolve the dispute through meditation. In such case the court shall suspend the proceeding until the settlement agrement and the protocol on results of mediation process concluded.

31.2. The parties may agree on a mediation organization or mediator to decide the dispute on the basis of mutual agreement. In the absence of such consent, the mediation organization competent to administer the process is the one in the same district or city with the court or if there are not any mediation organizations in that district or city, then (with taking into account third sentence of this article) the one that is the closest to the administrative territorial unit of that district or city. In such case, if the parties fail to agree on the mediator, mediation organization shall appoint the mediator. If mediation organization is not available in the same city or district with court or the case cannot be mediated at this mediation organization, the court having jurisdiction may appoint a mediator in order to hold the initial mediation session upon a request of any of the parties.

31.3. If once the parties involved in the mediation but have not had positive results, either both or one of them filed the dispute with the court with submitting a protocol on the results of the mediation process, the suspended proceedings shall be resumed and the case shall be heard by the court.

31.4. If a dispute has been settled through the mediation, a settlement agreement or a protocol related to the results of the process issued by the mediator shall be submitted to the court. The Court shall terminate the proceedings with the consent of both parties at their meeting in that regard.

31.5. During evaluating the activities of the judge, the number of cases directed to the mediation (except as provided in the article 28.1 of this Law) and the number of court cases terminated on the basis of the conclusion of a settlement agreement in accordance with this Law shall be taken into account.

Article 32. Terminating mediation process

32.1. Mediation process shall be terminated in the following cases:

32.1.1. if settlement agreement concluded between parties;

32.1.2. if a mediator decides it is impossible to resolve the dispute by a mutual agreement of the parties to the dispute;

32.1.3. one or both of the parties refused to mediate;

32.1.4. term of the mediation has been expired according to the article 24.7 of this Law, if the parties have no requests for extension;

32.1.5. when the party who is natural person diesand the legal entity is suspended or liqudated;

32.1.6. if one of the parties declared as deceased or missed by court;

32.1.17. if one of the parties declared by a court as not having legal capacity or having limited action capacity;

32.1.8. if the mediator or mediation organization is withdrawn from the membership of the Mediation Council, and also when mediator or mediation organization refuses from mediation process (for the dissputes under the article 28.1 of this Law refusal from only the subsequent mediation session);

32.1.9. if the reference defined by the articles 21.8, 29.2 and 29.3 of this Law has been provided.

32.2. A mediator shall prepare and sign a protocol on termination of mediation process within 3 days from the date the conditions provided by the articles 32.1.2 - 32.1.8 of this Law are known to the mediator. The protocol on termination of mediation process shall be within 1 day submitted to the parties (representatives). The protocol cannot include confidential mediation information. The form of a protocol shall be established by Mediation Council.

32.3.Copies of the Protocol shall be issued in accordance with the number of parties and the bodies (s) that are going to be submitted. A copy of the protocol to be submitted to the relevant body (institution) shall be submitted by one of the parties within one working day from the date it has been obtained.

32.4. The mediation process is terminated from the following day:

32.4.1. from the day the settlement agreement has been signed;

32.4.2. from the date of submission of the report provided by the article 32.1.9 of this Law and the protocol referred in the articles 29.6 or 32.2.

32.5. Mediation process can be restored according to the article 21 of this Law.

Article 33. Settlement agreement

33.1. Settlement agreement shall be concluded between the parties in writing. The following issues shall be regulated in the settlement agreement:

33.1.1. date and place of the conclusion of the agreement;

33.1.2. information about the parties;

33.1.3. subject of the dispute;

33.1.4 information about mediator (s) and about mediation organization if mediation process is implemented by mediation organization;

33.1.5. conditions on resolution of the dispute that parties have agreed and method and periods for fulfilling them;

33.1.6. consequences of not performing or poorly performing the provisions of settlement agreement;

33.1.7. other issues in accordance with this Law, the Civil Code of the Republic of Azerbaijan and other legislative acts.

33.2. Settlement agreement shall be signed by the mediator and the parties. Copies of the agreement shall be issued in accordance with the number of parties and the bodies (s) that are going to be submitted.

33.3. Settlement agreement must not contradict the provisions of legislation in force, the first sentence of the article 3.3 of this Law..

33.4. Settlement agreement shall be submitted to the parties. A copy of the settlement agreement to be submitted to the relevant body (institution) shall be submitted by one of the parties within one working day from the date it has been obtained.

Article 34. Performance of settlement agreement

34.1. Unless otherwise agreed, settlement agreement shall be binding for the parties from the moment of signing. If otherwise has not agreed between the parties settlement agreement must be performed voluntarily within 10 days it has been signed.

34.2. Deviation from voluntary performance of the settlement agreement shall cause the liability specified under the settlement agreement according to the Civil Code of the republic of Azerbaijan.

34.3. If a voluntary performance of settlement agreement has been refused, the party (including a party to the court proceedings) may apply to a court or notary for the compulsory performance of the settlement agreement.

34.4. Settlement agreement is duly authorized by the court or notary for the performance (subject to the requirements of the article 34.5 of this Law).

34.5. If the settlement agreement is contrary to the provisions of th article 33.3 of this Law, it shall be refused to authorize.

Article 35. Suspention of period of limitation

35.1. Implementation of mediation process shall cause suspention of period of limitation on disputes as provided by law .

35.2. If settlement agreement has not been concluded between the parties as a result of mediation process, period of limitation shall be considered as restored from the dates as provided by the article 32.4.2 of this Law.

Article 36. Costs of Mediation

36.1. Costs of mediation include:

36.1.1. fee of mediator or mediation organization, including the award paid to mediator or mediation organization when the dispute is resolved through mediation;;

36.1.2. expenses incurred by mediator or mediation organization in relation with implementation of mediation including costs for travel, stay and food.

36.2 The amount of fee and other expenses for the provision of mediation services during initial mediation session under the article 28 of this Law, shall be determined by body established by the relevant executive authority.

36.3. Mediator or mediation organization shall implement mediation on a paid basis. The mediator or the mediation organization may also hold mediation on a unpaid basis.

36.4. The amount of fee that shall be paid to the mediator or mediation organization until the mediation session (in the cases provided for in the articles 28 and 29 of this Law, until the subsequent mediation session with taking into account the article 29.5 of this Law) shalll be established in the agreement concluded between the parties and mediator or the mediation organization in a manner provided by the article 23.4 of this Law.

36.5. Unless the agreement on “application of mediation process” or mediation clause stipulates otherwise or unless the other party pays all mediation costs because of his / her failure to attend the initial mediation session, the incurred expenses for mediation shall be divided equally between parties. Contrary to the provisions of agreement on “application of mediation process” or mediation clause a party that fails to attend mediation or initial mediation session due to the unreasonable ground must pay all mediation costs incurred by the other party

36.6. The money paid to the mediator shall be reimbursed to the parties (deducting actual expenses) if the mediator refuses to mediate due to circumstances affecting her / his impartiality.

36.7. Mediation costs of any party that does not have enough financial conditions to cover mediation costs shall be covered by the state budget. The procedure of payment of mediation costs at the expense of the state budget is determined by body (institution) determined by the relevant executive authority.

36.8. After signing the settlement agreement, the mediator reports on costs incurred by the parties and returns them unspent amount.

Chapter V. Final provisions

Article 37. Liability for violating this Law

Mediators, mediation organizations, parties and other persons attending mediation, shall carry disciplinary, civil, administrative and criminal liabilities for violating the provisions of this Law under this Law, Civil Code, Criminal Code and Code of the Republic of Azerbaijan on Administrative Offenses.

Article 38. Transitional provisions

Prior to the admission of the first mediation traning authority to the membership of Mediation Council, the mediator meets the requirements of the articles 10.1.1 - 10.1.3 and 10.2 of this Law, as well as the mediation organizations that meet the requirements of the articles 11.2 and 11.3.1 - 11.3.3 of this Law may provide mediation services in accordance with this Law.

Article 39. Entry of this Law into effect

The articles 3.2, 28 and 29 of this Law and the provisions relating to those articles come into force on 1 July 2020.


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