Prior to signing an employment agreement an employer shall ask the employee to provide an identification document (for example, a passport or a national ID document) as well as a social security number (SSN). 

Where the employee is not an Armenian national a work permit may be needed if the work will be performed in Armenia. Nationals of certain countries (e.g. Russia, Belarus, Kazakhstan) are exempted from work permit requirements. Work permit exemptions are also available to certain specialists educated in natural sciences, information technologies, finances, management, etc. 

The employment agreement (or the employer's decision to hire the employee) shall contain information on the duties of the worker, the place of work, the term of the agreement (for a fixed or indefinite term, etc.), start date, probation period (if any), salary, bonuses and other compensation, working hours, annual leave, etc. If the worker is a foreigner the agreement shall also clarify who will bear the costs related to transportation to/from Armenia, accommodation, insurance, address registration, etc. 

Electronic signatures are allowed in Armenia. 

Armenian tax laws require employers to electronically notify the tax office of any new hires of employees or individual service providers. 

In general, early termination of an employment agreement is not allowed without cause. This limitation does not apply to services agreements which can be terminated pursuant to the terms of such agreements.  

An employee can terminate the agreement by notifying the employer in writing at least 30 days in advance. Employer can terminate the agreement for cause, for example

1. Two months notice in case of dissolution of employer; layoffs caused by production necessity  or changes in 1) volumes of production; 2) economic conditions; 3) technological conditions; 4) conditions of labor organization;
2. 14-60 days notice (depending on employee’s length of service) in case of a failure to meet the requirements for the position to be held or the work to be performed (due to health issues or incompetence); long-term disability of employee (120 consecutive days or 140 days in a year); employee reaching the age of retirement;
   
3. Without notice, in case of regular failure by employee to perform his/her duties without a valid reason; loss of confidence in employee; employee reporting to work under influence of alcohol or drugs; employee's absence from work for a whole working day (shift), without a valid reason.

Severance payments (10-44 days' wages) may also be due if the agreement is terminated due to reasons listed under 1 and 2.

Armenia has 12 public holidays, namely, January 1-2 (New Year Days); January 6 (Christmas Day); January 28 (Army Day); March 8 (International Women's Day); April 24 (Armenian Genocide Remembrance Day); May 1 - International Workers' Day; May 9 - Victory and Peace Day; May 28 - Republic Day; July 5 - Constitution Day; September 21 - Independence Day; December 31 - New Year Day.

Employees are generally entitled to an annual leave of 20 business days. Unused portions can be deferred to the following years but must be used within 18 months. 

An employee shall be given at least a 30-minute lunch break after completing 1/2 of the working hours for the day but not later than after 4 hours of work.

Employees have to provide a medical certificate (normally issued by a local polyclinic or other medical institution) to document the sickness. The first five business days of sickness are covered by the employer (at 80% of the normal rate) while the excess period is financed by the government in the form of tax credits.

Maternity leave normally lasts 140 days (70 days before and 70 days after the delivery). The payment of the benefits is done via the employer with government financing by means of granting an income (withholding) tax credit to the employer equal to the amount of the benefits. 

Fathers are entitled to a paid leave of 5 business days which they can take within 30 days after the birth of the child.

Overtime work is allowed in certain situations where, for example, the discontinuation of the work will result in material damages to the employer or a breach of its contractual obligations. The maximum duration of overtime work is limited to 4 hours every two days and to 180 hours in a year. The total duration of the work (regular and overtime) shall not exceed 12 hours per day or 48 hours per week. Restrictions on overtime work are not applicable to those holding managerial positions specified in the internal rules of the employer.

An employee may be required to work on a non-working day or during non-working hours (on-call work), but not more frequently than once a week and no longer than 8 hours per day. If the duration of on-call work exceeds these limits the employee can request time-off in the next month or that time be added to his/her annual vacation or monetary compensation.

Higher rates of compensation are required in the following cases:

• Overtime work - premium of 50%
• Night work (10 PM to 6 AM) - premium of 30%
• Work on public holidays and other non-working days - premium of 100% (or an extra day off)

In general, the law does not require the employer to provide any benefits to employees such as medical insurance. Many companies offer their employees medical insurance on a voluntary basis. Health insurance is offered by all insurance companies licensed in Armenia. There are currently 6 of them. The rates are normally between $300 - 600 per year per employee.

• SIL Insurance
• Rosgosstrakh-Armenia
• Nairi Insurance
• Ingo Armenia
• Reso
• Armenia Insurance

Please note that annual payments of up to around $270 made by employers are not considered taxable income for employees. However, payments in excess of that amount will be taxable at the standard rate.

Monthly salaries shall be paid via bank transfer not later than the 15th day of the following month. In general,  the payments in Armenia shall be made in local currency, Armenian drams. 

As of 2022, the average monthly salary in Armenia is around $500. However, salaries in the IT industry are higher and normally start at $700 for junior positions and are between $1,500-$3,500 for mid-level and senior positions. 

As of 2022, the minimum monthly salary in Armenia is AMD 68,000 ($142). Minimum hourly wages are AMD 406 ($0.85), AMD 454 ($0.95) and AMD 680 ($1.42) for 40-hour, 36-hour and 24-hour work weeks respectively. 

If an employee is on probation it is possible to terminate the agreement by giving a 3-day notice. The period of probation shall be indicated in the employment agreement and generally cannot exceed three months. 

Fixed-term agreements are generally allowed if an indefinite-term agreement is not suitable because of the nature or the conditions of the work. In addition, agreements for a specific term can be used 1) for seasonal works; 2) for temporary works of up to two months; 3) to replace another temporarily absent employee; 4) to hire a foreign worker for the duration of his residence permit; 5) to hire an employee who has reached the age of retirement. There is a presumption that a fixed-term agreement is automatically converted into an indefinite agreement if it is extended or if a new agreement is signed within one month following the expiration of the previous one. However, this presumption still does not apply if the nature or the conditions of the work make it impossible to sign an agreement for an indefinite term.

The following immigration requirements are generally applicable to foreign workers:

1. Obtain a visa. Nationals of practically all European and post-Soviet countries, US, China, Iran, Korea, and many other countries are exempt from visas. Other foreigners can easily apply for an e-visa online. Only nationals of certain African and Asian countries still have to obtain embassy-issued sticker visas. More information on visas is available here. 
2. Obtain a work permit. A work permit is normally required prior to performing any work in Armenia for an Armenian employer. Nationals of EAEU countries (Russia, Belarus, Kazakhstan, Kyrgyzstan) are exempt from work permit requirements. Such exemptions also exist for specialists educated in information and communication technologies, management and administration, food technology, finances, agriculture, etc.  More information on work permits is available here. 
3. Obtain a residence permit. Since 2022 employment-based residence permits and work permits are issued in the form of a single document (residence card). If the employee is exempt from work permit requirements an application for a residence permit is normally necessary if the stay in Armenia will exceed 180 days. More information on residence permits is available here. 
4. Register a local address. Foreigners who obtain an Armenian residence permit are required to register their address with the local police office within 15 days. By virtue of an international treaty between Russia and Armenia Russian nationals are allowed to register their address and stay in Armenia indefinitely (as long as the Russian passport is valid) even without having a residence permit. 
5. Obtain a social security number. A social security number is normally issued together with the employment-based residence permit. Foreigners who do not need a residence permit can obtain a social security number from a local police office. EAEU nationals are required to have an SSN before they can start working in Armenia for an Armenian employer. 
6. Obtain residence permits for family members. If the foreign employee is accompanied by family members they may also need a residence permit for an extended stay in Armenia. Normally such applications are filed after the main applicant obtains his residence permit (by exception, EAEU nationals and their family members can apply for residence cards simultaneously).

There are various options for registering an entity in Armenia:

• Subsidiary owned by a foreign company
• Branch office of a foreign company
• Individually-owned company, such as a limited liability company (LLC) or a joint-stock company (JSC). 

There are generally no restrictions on foreign ownership. The incorporation process is straightforward and normally takes from a few days to a few weeks. We recommend checking the incorporation page for more details.