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Written Agreements

Armenian Labor Code requires all employment contracts to be made in writing. The contract must be concluded in 2 copies, signed by both employees and employers. They must contain the following information:

• Date of beginning the job
• Employee's full name
• Name of the organization or the name and surname of the individual employer
• Workplace or the structural unit (if it exists)
• Name of the position and work functions
• Amount of salary and the way of determining it
• Supplements, additional payments, etc. given to employee in the prescribed manner
• Term of employment contract (if necessary)
• Duration of the trial period, if included
• Working hours
• Position, name, and surname of the person signing the agreement

Oral Agreements

There are no regulations on oral employment contracts in Armenia as it is mandatory to conclude employment contracts in writing.

Implied Agreements

There are no regulations on implied contracts in Armenia as it is mandatory to conclude employment contracts in writing.

The normal length of working time cannot exceed 40 hours per week or 8 hours per day. The maximum duration of working time, including overtime, cannot exceed 12 hours per day and 48 hours per week. The duration of daily working time (including rest and meal breaks) of an employee with 2 or more employment contracts with different employers or the same employer cannot exceed 12 hours per day. Shorter working hours are prescribed for the following categories of employees:

• For employees aged 14 to 16 – 24 hours per week
• For employees aged 16 to 18 – 36 hours per week
• For employees working in dangerous regions or with hazardous materials – 36 hours per week

After the end of half of the working day, but no later than 4 hours after the start of work, employees must be given a break of no more than 2 hours and no less than 30 minutes for rest and food. This break is not included in the working time, and the employees can use it at their own discretion.

On the eve of non-working holidays and memorial days, the length of the working day is reduced by 1 hour for all employees, except those working part-time or under shorter working hours.

Employees and employers can agree upon a probationary period at the beginning of employment. The terms of probation are determined in the employment contract. A probationary period cannot exceed 3 months, except under certain circumstances where the law permits probationary periods of up to 6 months.

The probationary period cannot be established for employees under 18 years of age, those who have cleared a qualification examination for the job, those who have been transferred to other jobs by mutual agreement of employers, and other cases stipulated by law.

Employees have all the rights granted by law during the probationary period. If the employer finds that the employee does not meet the set requirements based on the performance during probation, they can dismiss the employee before the expiration of the probationary period by notifying them in writing 3 days in advance. During the trial period, the employee also has the right to terminate the employment contract by notifying the employer in writing 3 days in advance. If the employment relationship continues after probation, the employee is considered to have passed the probationary period, and the employer can dismiss them only for fair reasons.

Notice Period

In Armenia, notice for dismissing an employee must be given in writing and it must mention the basis and reason for dismissal. In case of terminating an employment contract on the grounds of liquidation of the organization or technological or organizational changes, employers must give a notice of at least 2 months.

In case of terminating the employment contract on the grounds of essential work changes, or non-compliance of an employee with the position held or work performed, long-term incapacity of the employee, and retirement of the employee, the employer is obliged to notify in writing as follows:

• Employees with up to 1 year experience – 14 days
• Employees with 1 to 5 years’ experience – 35 days
• Employees with 5 to 10 years’ experience – 42 days
• Employees with 10 to 15 years’ experience – 49 days
• Employees with over 15 years’ experience – 60 days

Employees must be given free time to look for new jobs during their notice period. The duration of the time off may not be less than 10% of the working time included in the notice period. Notice of termination is invalidated if more than 5 days have passed after the expiration of the notice period and the employer has not terminated the contract.

Severance Benefits

Employers are liable to give severance pay equal to 1 month’s average salary to employees if the employment relationship is terminated due to liquidation of the company, reduction in staff due to production changes or technical and organizational changes, or reinstatement of the employee in previous job. In case of termination due to the employee being deprived of their legal rights, or in case of death of the employee, as well as in case of change in essential conditions of employment, the severance is paid as follows:

• If the employee has worked for up to 1 year – Average daily salary worth 10 days
• If the employee has worked for 1 to 5 years – Average daily salary worth 25 days
• If the employee has worked for 5 to 10 years – Average daily salary worth 30 days
• If the employee has worked for 10 to 15 years – Average daily salary worth 35 days
• If the employee has worked for 15 years or more – Average daily salary worth 44 days

Minimum Wage

The minimum wage is determined by law. The amount of the employee's hourly wage or monthly salary cannot be less than the determined minimum wage. The current minimum wage is set at AMD 75,000 (Armenian Drams) per month, or AMD 450 per hour for a 40-hour work week, AMD 750 per hour for a 24-hour work week, and AMD 500 for a 36-hour work week, effective from January 1, 2023.

Overtime, Holiday & Vacation Pay

Overtime work is allowed only under exceptional circumstances, such as breakdowns, accidents, natural disasters, urgent work, etc. Overtime hours must not exceed 4 hours in 2 consecutive days and 180 hours during the year. For each hour of overtime work, a premium of 50% percent of the hourly rate is paid in addition to the hourly rate. If employees are required to work on weekends (or weekly days off), holidays, and memorial days, they must be paid at least twice the hourly wage rate or compensated with a day off.

Visas

Entry visas can be a single entry (21 days stay or up to 120 days stay), or multiple entries (up to 60 days of stay with 120 days’ validity or up to 120 days stay with 1-year validity). Entry visas can be extended for a maximum of 60 days. There are single-entry and multiple-entry transit visas as well.

Work Permits

There are the following 3 types of residence permits issued in Armenia:

• Temporary residence permit – issued to foreign nationals who want to stay in Armenia for a period of 1 year or more for the purposes of study, employment, family union, business, etc.
• Permanent residence permit – issued to foreign nationals if they prove the existence of a spouse or close relative who is a citizen of Armenia or has special residence status and has resided in Armenia for at least 3 years. It is also issued to persons who have their business in Armenia or are Armenian by nationality. This permit is issued for a period of 5 years, with the possibility of extending it for the same period each time.
• Special residence permit – issued to foreign nationals of Armenian origin, as well as to those carrying out economic or cultural activities in Armenia. The status of special residence is granted by order of the Prime Minister for 10 years.

In order to be employed in Armenia, foreign nationals must apply for a work permit through their employer. Employers submit an application to obtain a temporary residence permit for their employees. Based on this residence permit, the foreign employee can apply for a work permit with the Ministry of Labor and Social Affairs, submitting documents related to their employment, education, etc.