Armenia
Armenia, known for its ancient history, rich culture, and skilled workforce, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in Armenia, offering comprehensive solutions for building your contingent workforce.
Fixed-Term Contracts are permissible for workers who perform temporary work, defined as work that will be completed in two months or less. A fixed-term contract is also allowed if labour relations cannot be defined for an indefinite period considering the conditions or the nature of the work to be done, unless otherwise envisaged by the Labour Code. There is no limit to the number of times a contract can be renewed if there is a justified reason. A 10-day notice prior to the end date of the contract is required to be given to Workers to avoid penalties. If a Worker continues work beyond the end date without a new agreement then the contract will automatically convert into an indefinite term.
Probationary periods of up to 3 months are allowable but Workers are entitled to all statutory benefits from the start of the contract. There are limited circumstances, defined by legislation, in which probationary periods can be extended for up to an additional 3 months. Workers in the probationary period are entitled to 3 days’ notice of termination.
In Armenia, Workers receive 12 paid holidays. Some of these holidays are multiple days in duration. No work is to be performed on a public holiday, however, if work is performed the pay rate is twice the Worker’s standard rate.
Workers with a 5-day work week are entitled to receive 20 working days of vacation annually. Workers with a 6-day work week are entitled to vacation of 24 working days. Annual vacation leave can be used once the Worker has completed six months of service. Any unused vacation leave can be carried over year to year.
Paid sick leave is paid for and provided to the Worker from the 1st day of leave through the 5th day of leave. Starting on the 6th day of leave, the Worker may be covered by social insurance. The sick leave allowance is calculated based on 80% of the Worker’s average daily salary. The maximum amount of sick leave is 180 days per calendar year however, job protection for sick leave only covers absences of 120 successive days or 140 total days in 12 months.
A standard workweek is 40 hours per week, eight hours per day. A standard working day includes a mandatory unpaid rest break of at least 30 minutes and not longer than 2 hours after 4 hours from starting work. Work performed on rest days is paid at a rate of 200% of the worker’s salary. Workers are entitled to no less than 35 hours of uninterrupted rest per week. Nighttime work is considered between the hours of 10:00 p.m. and 6:00 a.m. and paid at a rate of 130% of the worker’s salary.
Overtime is only allowed under specific circumstances and written consent must be obtained from the Worker. Overtime is permitted for a maximum of 4 hours per day or 8 hours per week. There is a limit of 180 hours per year of overtime and is paid at a rate of 150% of the Worker’s salary.
13th or 14th Month pay is not mandatory or customary.
Workers may only be terminated for a reason outlined in the Armenian labor laws. For most termination reasons the notice period varies 14-days to 60-day based on the Worker’s tenure. For termination due to redundancy or company dissolution the notice period is 60 days. Any unused vacation leave must be paid out during termination.
Workers are required to provide prior written notice of 30 days and have a period of three business days to withdraw a resignation. However, if resignation is due to Worker’s illness or disability then a 5-day notice period is allowed.
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