Terminating an Employee in Armenia: Lawful Grounds, Notice, Severance, and Paperwork Checklist

Dismissals in Armenia must fit a legal ground listed in Article 113 of the Labour Code and follow strict notice, severance, and paperwork rules; otherwise they are unlawful.

Typical lawful grounds include liquidation, staff reduction, unsuitability, repeated misconduct, loss of trust, and long-term incapacity; protected categories (e.g., pregnancy, union activity) cannot be dismissed on those grounds.

Notice requirements range from immediate (serious misconduct) to 2 months (liquidation/collective redundancy), with tenure-based notice from 14–60 days for several no-fault grounds; employers can pay in lieu if permitted.

Severance applies where dismissal is not the employee's fault: one month's average pay for redundancy/liquidation; otherwise a scaled benefit of 10–44 days by service length.

Final wages, unused leave, severance, and any pay in lieu of notice are due on the last working day, with proper orders and handovers to avoid reinstatement and penalties.

Procedural mistakes in dismissals are costly in Armenia. To dismiss an employee lawfully, employers must select the correct legal ground, apply the right notice and severance, and complete mandatory paperwork on time. This guide distills Armenia labor law termination rules—notice periods, Armenia severance, and documents—so you can dismiss an employee in Armenia compliantly.

Legal Grounds For Termination Under The Armenian Labour Code

Armenia is a "closed list" jurisdiction: an employer may dismiss only on the statutory grounds set out in Article 113 of the Labour Code. Examples include company liquidation; workforce reduction/reorganization; the employee's unsuitability for the position; repeated failure to perform duties (discipline); loss of trust; long-term incapacity; and other enumerated cases such as end of a fixed-term contract or failed probation. Dismissing outside these grounds is unlawful.

Who Is Protected: Prohibited Reasons And Safeguarded Employee Categories

Dismissals for prohibited reasons are void. The Labour Code prohibits termination for union activity or other protected grounds and bans dismissal during pregnancy and maternity/parental leave, among other protections. Courts typically reinstate unlawfully dismissed employees with back pay; where reinstatement is not feasible, compensation of roughly 1–12 months' average salary can be awarded.

Notice Periods, Written-Form Requirements And Immediate Dismissals

Notice depends on the ground and the employee's tenure:

• Collective redundancy or liquidation: at least two months' written notice.
• Unsuitability, long-term incapacity and similar no-fault grounds: tenure-based notice generally ranges from 14 to 60 days; employees with more than 15 years' service are entitled to 60 days.
• Urgent statutory cases (e.g., loss of a required permit): three days' notice.
• Serious misconduct (gross breach): termination may be immediate—no notice is required.

Notices must be in writing and state the legal ground and facts; employers who shorten notice must pay compensation for each day of the shortfall (i.e., "pay in lieu of notice").

Written-Form Requirements And Immediate Dismissals

Form matters. The Labour Code requires written notice identifying the precise legal basis and the facts supporting it. Best practice is to deliver the notice personally against signature or by registered mail/courier with delivery confirmation, and to maintain service logs.

Immediate dismissal is lawful for specified serious grounds (e.g., repeated failure to perform duties, gross misconduct, or other bases allowed by Article 113), but the employer should document the violation(s), prior disciplinary measures (if required), and the investigation record to withstand scrutiny.

How To Lawfully Dismiss An Employee: Step-By-Step

1. Confirm a statutory ground under Article 113 and collect objective evidence (e.g., reorganization decision, performance records, medical opinion).
2. Check for prohibitions (pregnancy, maternity/parental leave, union activity) and any internal policies/collective agreements that add safeguards.
3. Calculate the correct notice and decide whether to serve it or pay in lieu; document the calculation by tenure and ground.
4. Prepare and serve written notice stating the legal clause and facts; log service and start the notice clock.
5. Draft the termination order (decree) citing Article 113, the effective date, and the amounts due (final wages, unused leave, severance, and any pay in lieu of notice).
6. On the last working day, settle all payments in full and hand over employment records (including updating and delivering the labor book/record if applicable).
7. If part of a mass layoff, notify the State Employment Service and employee representatives at least two months before dismissals take effect.
8. Collect company property, revoke access, execute handover acts, and archive the file (notice, order, delivery proofs, calculations) for potential inspection or litigation.
9. Final settlement: All amounts—final wages, overtime, unused annual leave pay, severance, and any compensation in lieu of notice—must be paid on the last working day; withholding documents or delaying pay can trigger fines and claims.

Severance Pay: Entitlements, Calculation By Length Of Service And Exceptions

Severance is owed when termination is not the employee's fault. Employees dismissed due to redundancy or liquidation receive at least one month's average salary as severance. For other no-fault dismissals (e.g., long-term incapacity, unsuitability), the Labour Code prescribes a scaled dismissal benefit by length of service.

No severance is payable for voluntary resignation or for dismissals based on serious misconduct where the employee is at fault.

Calculation By Length Of Service And Exceptions

Where the scaled dismissal benefit applies (no-fault, non-redundancy grounds), minimum amounts are tied to continuous service with the employer:

• Less than 1 year: 10 days' average salary
• 1–5 years: 25 days' average salary
• 5–10 years: 30 days' average salary
• 10–15 years: 35 days' average salary
• More than 15 years: 44 days' average salary

Exceptions to severance:

• No severance for serious misconduct dismissals or voluntary resignation.
• Redundancy/liquidation follows the "one month average salary" rule, not the scaled table above.

Quick Matrix: Notice And Severance By Typical Ground

Ground	Notice	Severance
Liquidation / staff reduction	2 months	1 month average salary
Unsuitability / long-term incapacity	14–60 days by tenure (60 days if >15 years)	10–44 days by tenure
Serious misconduct	Immediate (no notice)	None (fault-based)

Collective Redundancies And Mass-Layoff Procedures

Armenian law treats as a mass layoff the dismissal of at least 10 employees, or more than 10% of the workforce, over a two-month period, triggering additional procedural duties.

State Employment Service Notification

In mass layoff situations, the employer must notify the State Employment Service and employee representatives at least two months before the dismissals take effect, providing the reasons, numbers and categories affected, and the timeline, to enable mitigation and redeployment efforts.

Paperwork Checklist (Before You Deliver Notice)

• Draft termination order citing the exact Article 113 ground and facts.
• Written notice stating ground, facts, and effective date; service plan (hand delivery or registered mail).
• Evidence file: org charts/reduction plan; performance records; medical conclusions; prior disciplinary acts (if any).
• Calculations: notice entitlement or pay in lieu; severance (one month or 10–44 days by tenure); unused leave and final wages.
• Handover acts and asset return list; access removal plan; labor book update and delivery on the last day.
• If mass layoff: draft notifications to the State Employment Service and employee representatives (two months ahead).

Template Considerations (What To Include)

• Header with employee details, position, and employment dates.
• Legal basis: cite the exact clause of Article 113 and summarize the facts.
• Notice terms: length served or pay in lieu with calculation.
• Payments due: final wages, unused leave, severance entitlement and amounts.
• Effective date; return-of-property and handover instructions; delivery and acknowledgment lines.

Related resources to help structure your HR and payroll in Armenia: set up your business, plan payroll taxes, and manage visas and residency for foreign hires.

Conclusion

To dismiss an employee in Armenia lawfully, you must anchor the decision to Article 113, respect the Armenia notice period rules, calculate Armenia severance accurately, and complete final pay and records on time. A pre-notice legal review of grounds, evidence, timelines, and amounts reduces the risk of reinstatement and penalties.