Armenia Labor Law and Employment Policy Overview

Employment Law Overview

• Key Laws and Regulations:
  • Labor Code of Armenia
  • Social Security Law
  • Tax Code
• Legal Characteristics:
  • Aims to protect employee rights and promote a fair employment environment.
  • Regulates areas such as minimum wage, working hours, leave, severance pay, and social security benefits.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts (maximum 5 years)
  • Indefinite-term contracts
• Contractual Terms:
  • Must include provisions on job description, remuneration, working hours, leave, and benefits.
  • Must be written in Armenian and use Armenian Dram.
• Language and Currency:
  • Armenian
  • Armenian Dram (AMD)

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day.
• Rest Days and Breaks: Minimum of 24 hours of rest per week, including Sunday.

Leave Policy

• Annual Leave: Minimum of 20 days of paid annual leave per year.
• Public Holidays: 12 statutory public holidays.
• Special Leave:
  • Sick Leave: Up to 120 days of paid sick leave per year.
  • Maternity Leave: 140 days of paid maternity leave, including 70 days before and 70 days after childbirth.
  • Paternity Leave: 5 days of paid paternity leave.

Employee Severance and Contract Termination

• Notice Periods:
  • Employee Resignation: 30 days' notice.
  • Employer Termination:
    • Probationary period: 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:
  • Severance pay amount depends on termination reason and years of service.
  • Minimum severance pay is one month's average salary.
  • Maximum severance pay is 44 times the average daily wage.
• Unfair Dismissal Protection:
  • Employers cannot dismiss employees arbitrarily.
  • There must be valid reasons, such as poor performance or business needs.

Tax Laws

• Personal Income Tax:

  • Salary Range	Tax Rate
    0 - 30,000	0%
    30,000 - 45,000	10%

• Social Security Contributions:
  • Employee: 5% to 10% of monthly income.
  • Employer: 1.5% of monthly income.

Health Insurance

• Insurance Policy:
  • Healthcare is state-funded, and employers are not required to provide private health insurance.

Compensation and Benefits

• Minimum Wage: AMD 75,000 per month.
• Salary Structure:
  • Base salary
  • Bonuses
  • Allowances

Work Permits and Visas

• Permit Requirements:
  • Foreigners require a work permit to work in Armenia.
• Application Process:
  • Applicants must submit an application to the Armenian Migration Service.
  • Application must include an employment contract, passport, and visa.

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Armenia.
• Common Provisions:
  • Confidentiality clauses: Prohibit employees from disclosing confidential information.
  • Non-compete clauses: Restrict employees from working for competitors for a certain period.

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skills development training to employees.
• Government Support:
  • Government provides funding and incentives to support employee training.

Workplace Diversity and Inclusion

• Legal Requirements:
  • Discrimination based on race, gender, religion, or other protected characteristics is prohibited.
• Enforcement Measures:
  • Employers must establish policies and procedures to prevent discrimination.

Remote Work Policy

• Legal Framework:
  • Remote work is legal in Armenia.
• Tax and Insurance Implications:
  • Tax and social security implications of remote work depend on specific circumstances.

Authoritative Website Addresses

• Ministry of Labor and Social Affairs of Armenia: https://www.minjust.am/en/