Labor Relations in Armenia
1. Labor relations in the RA are regulated by the following legal acts:
- Labor Code of the RA,
- Other legal acts.
2. The employment shall be executed by concluding Labor Contract, or issuing the corresponding employer’s internal order.
An employment agreement may be signed for either a specified or non-specified period of time.
Fixed time labor contracts are allowed where employee cannot be hired for a non-specified period of time. The nature of the work and the conditions of doing the work are also important.
Armenian Employers shall have the right to sign employment agreements with foreign citizens as well and to make use of their work based on the work permits issued to the Employees by the relevant state authorities, unless otherwise specified by the laws.
The work permits shall be issued by the authorized state body taking into consideration the needs and developments of the local labour market. The Employers shall first try to hire the RA citizens. The employers may find a foreign citizen and apply to the authorized state body for a work permit, if candidates, fit for their (employers’) requirements, were not offered by the republican employment agency within the set period of time. There are persons who are entitled to work in Armenia without a work permit. The persons entitled to work in Armenia without a work permit are:
- founders, directors and authorized persons of the companies with foreign capital,
- persons working in the regions adjacent to the state borders,
- persons working in the representative offices of commercial organizations of foreign countries located in Armenia,
- holders of permanent and special residency statuses,
- holders of temporary residency statuses (in the cases prescribed by the law).
The work permit is issued for a term which shall not be in excess of one year. It may be renewed only once and for the same term.
To this date no work permit has been issued as there is still no law regulating the procedure for applying for work permits.
3. Normally, duration of working hours cannot exceed 40 hours weekly and 8 hours daily.There shall be five business days and two days off in a work week or, in special cases, six business days and one day off in a work week. There shall a break during the work day. A working day before public/national holiday is shortened for an hour.
As a rule, an overtime work is not allowed. The cases where employees may be engaged in an overtime work are set out in the Labor Code.
In general, it is prohibited to work during on the fixed days off and on the official holidays/mourning days. There cases where employees may be engaged in work on such days are set out in the Labor Code.
4. Employee's salary cannot be smaller than the minimum wage prescribed by the laws.
There is no limitation on the maximum amount of the salary.
Salary shall be paid at least once a month. The salary shall be paid before the latest of the 15th of the next month.
There are established minimum amount of remuneration (mark-up to employee’s rate) for the overtime work, the night work and the work done under dangerous conditions, the work done on the days off and Public/National holidays/mourning days.
5. Employee is entitled to an annual paid leave of at least 20 business days. Certain categories of employees are entitled to additional leaves with pay.
Leaves are earned after 6 months of uninterrupted work. Leaves may be taken at the time agreed upon by the parties.
Payment for an annual leave with pay shall be made at least three days in advance.
Payment of compensation for unused leaves is in general prohibited. The cases where compensation can be paid for unused leaves are set out in the Labor Code.
Non-official information (updated as of 1st of January, 2013)