Employment Contracts in Armenia

In Armenia, various types of employment contracts are available:

• Indefinite Employment Contract: This contract type has no fixed end date and continues until terminated by either party.

• Fixed-Term Employment Contract: This contract is established for a specific duration and ends when the agreed period concludes.

Typically, the probation period should not exceed three months. However, Armenian regulations allow for an extension of up to six months in certain cases. During this probationary phase, either the employer or employee can terminate the contract with a written notice of three days.

Additionally, there are Civil Contracts, including:

• Civil (Service Provision) Contract for a Fixed Term: Used for specific services over a predetermined period.

These contract types ensure flexibility and clarity in employment arrangements.

Standard Working Hours in Armenia

In Armenia, the typical workweek should not exceed 40 hours, with a daily limit of eight hours. When including overtime requested by the employer, the total working hours should not surpass 48 hours per week or 12 hours per day.

Overtime and Night Work Regulations in Armenia

Overtime work in Armenia is subject to strict regulations, particularly for young workers, individuals with disabilities, those with family responsibilities, and employees working under hazardous conditions (Article 144 of the Labour Code). Overtime should be limited to a maximum of four hours over two consecutive working days and 120 hours annually (Article 146 of the Labour Code).

Night work, defined as work performed between 10 p.m. and 6 a.m., is regulated under Article 148 of the Labour Code. 

Annual Paid Leave Regulations in Armenia

In Armenia, the minimum annual paid leave is set at 28 days (Article 159 of the Labour Code). Employees working under hazardous conditions or experiencing significant intellectual or emotional stress may be entitled to extended paid leave, ranging from 35 days up to 48 days in exceptional cases. The Government of the Republic of Armenia determines the professions and positions eligible for this additional leave (Articles 160 and 161 of the Labour Code).

Annual leave can be divided into parts by mutual agreement. However, at least one segment of the leave must be a minimum of 10 working days for a five-day workweek, or 12 working days for a six-day workweek.

The minimum paid annual leave days depend on the employee’s workweek structure. Employees working five days a week are entitled to 20 working days of annual leave, while those working six days a week receive 24 working days of annual leave.

Sick Leave Entitlement in Armenia

In Armenia, employees are eligible for paid sick leave starting from the first day of illness. For the first five days, the employer covers 80% of the average salary. From the sixth day onward, sick leave is paid by social insurance. Employees can receive full benefits if their sick leave does not exceed 120 consecutive days or 140 days within a year. The Social Insurance Scheme also covers sick leave for work-related injuries or illnesses. Employees may return to work once they are fit to do so.

Employees are required to inform their employer on the first day of their absence and must provide a sick leave confirmation from a medical institution upon returning to work.

Maternity, Parental, and Paternity Leave in Armenia

According to Article 172 of the Labour Code, women in Armenia are entitled to paid maternity leave as follows:

– 140 days: 70 days before and 70 days after childbirth.
– 155 days: 70 days before and 85 days after childbirth in cases of complicated delivery.
– 180 days: 70 days before and 110 days after childbirth for multiple births, such as twins or triplets.

Employees may request childcare leave until their child reaches the age of three. This leave can be taken by the father, stepmother, stepfather, or any other relative responsible for the child (Article 173 of the Labour Code).

Pregnant women and those caring for a child under one year of age can only be assigned business trips with their consent (Article 209 of the Labour Code). Additionally, pregnant women and those caring for children under one year old are prohibited from working in hazardous conditions, as specified by the Government of Armenia (Article 258 of the Labour Code).

Parental Leave

Within the first month following the birth of a child, employees can request up to 5 days of paid parental leave. Parental leave, which can be taken before the child turns three, is available to the mother, stepmother, father, stepfather, or any other family member actively raising the child, including guardians. This leave can be taken as a continuous period or in separate segments and may be used flexibly as needed.

Unpaid Leave Policies in Armenia

Unpaid leave is permitted for various events as outlined in Article 176 of the Labour Code. Specifically:

– Marriage or Family Funeral: Employees are granted three days of unpaid leave for marriage or the funeral of a family member.

Unpaid leave may also be requested for the following circumstances:

1. Maternity or Paternity Leave: Employees on maternity leave or the spouse of a woman on maternity leave may receive up to two months of unpaid leave.

2. Disability or Family Care: Disabled employees or those caring for a sick family member, based on medical recommendations, are entitled to unpaid leave for up to 30 calendar days per year.

3. Marriage: Three calendar days of unpaid leave are granted for marriage.

4. Funeral: At least three calendar days of unpaid leave are provided for the funeral of a family member.

For other reasons, unpaid leave may be granted according to the terms set out in the collective agreement. Employees can arrange non-paid leave by mutual agreement, with the duration specified by the parties involved. Additionally, civil servants and employees of local government bodies and other state services may be granted up to 30 days of unpaid leave per year, as stipulated by law.

Common Employee Benefits

The most frequently offered employee benefits include:

– Medical Insurance: Coverage for healthcare services and medical expenses.
– Travel Insurance: Protection for employees during business or personal travel.
– Communication Expenses: Reimbursement for mobile phone and internet costs.
– Car Expenses: Compensation for vehicle-related expenses.

Reasons for Terminating an Employment Contract

An employment contract may be terminated for the following reasons:

1. Mutual Agreement: Both parties agree to terminate the contract, typically with a seven-day written notice.
2. Contract Expiry: The contract naturally ends when its fixed term concludes.
3. Employee Initiative: An employee can terminate the contract by providing a written notice, with a minimum of 14 days for indefinite contracts and for definite-term contracts prior to their expiration.
4. Employer Initiative: An employer may initiate termination under specific conditions.

Notice Periods:

– Employee Resignation: Typically requires a 30-day notice, unless a collective agreement specifies a longer period.
– Employer Termination:
– During probation: 3 days’ notice.
– Less than 1 year of service: 14 days’ notice.
– 1 to 5 years of service: 35 days’ notice.
– 5 to 10 years of service: 42 days’ notice.
– Over 10 years of service: 60 days’ notice.

Severance pay is determined based on the reason for termination:

1. Company-Related Termination: In cases such as company liquidation, reduction in staff, or rehiring of the employee in a previous role, severance pay is equal to the employee’s average monthly salary.

2. Employee-Related Termination: For terminations due to reasons such as long-term disability, retirement, significant changes in working conditions, or compulsory military service, severance pay is calculated based on the employee’s length of service:

– Less than 12 months: 10 times the average daily salary
– 1 to 5 years: 25 times the average daily salary
– 5 to 10 years: 30 times the average daily salary
– 10 to 15 years: 35 times the average daily salary
– More than 15 years: 44 times the average daily salary