4/3 Pirumyanner, 4th Floor, Suite 12 , Yerevan, 0054, Armenia
+37499001167
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Examine the procedure for getting a work permit for foreign employees in Armenia.
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Investigate procedural aspects of employment, encompassing considerations such as internal policies, work schedules and compensation.
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Explore the regulations for employment termination, disputes as well as penalties in our dedicated section.
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In Armenia, holding a valid visa alone does not grant the right to work unless accompanied by a work permit. However, certain categories of foreign workers, such as highly skilled specialists, business owners, and executives, are exempt from the work permit requirement. Work permits are typically issued for the duration of an employment contract, up to a maximum of one year.
Work permit requirements do not apply to the following groups of foreign nationals:
Employees retained by foreign companies (remaining on the foreign entity's payroll) are generally exempt from work permit requirements.
Unless exempt, employers must apply for a work and a residence permit on behalf of foreign employees. The process involves assessing the Armenian job market to determine if qualified Armenian workers are available. The employer may be required to interview Armenian candidates referred by the Migration Service. If no suitable candidates are found, the employer can apply for a work permit for a specific foreign worker, allowing them to commence work in Armenia.
The issuance of a work and temporary residence permit typically takes approximately 2 months. Government fee for obtaining a work and a temporary residence permit is AMD 105,000 (approximately USD 271).
The following documents must be submitted by the employer to the Migration Service:
Failure to obtain a work permit or residence permit may result in fines ranging from AMD 100,000 to 150,000 (approximately USD 258 to 387). Overstaying a visa or violating immigration status may incur fines ranging from AMD 50,000 to 100,000 (approximately USD 129 to 258).
If, after obtaining a work permit, the employer fails to provide the position for which the permit was obtained, they may be responsible for covering the return travel costs, living expenses, and personal property transportation expenses for the employee and accompanying family members.
An employment agreement in Armenia is a crucial document that outlines the terms and conditions of employment. Here are key points to consider when drafting such an agreement:
1. Written Form: The employment agreement must be in writing and provided in duplicate—one copy for the employee and one for the employer. It should adhere to all labor laws and regulations, ensuring that the employee's rights are not restricted. Any regulatory improvements benefiting the employee should be promptly incorporated into the agreement.
2. Essential Information: The agreement should include the following essential information:
3. Special Terms for Foreign Employees: If the employment agreement pertains to foreign employees working under a work permit, additional terms may include:
4. Registration: The employer is responsible for electronically registering the newly hired employee with the tax office on the first day of work. All processes related to the employee (hiring, termination, etc.) must be documented through internal acts, such as orders or decrees.
5. Fixed-Term vs. Indefinite-Term Agreements: Employment agreements can be for a fixed term or indefinite term. Normally, agreements are indefinite, while fixed-term agreements are permissible under specific conditions, including seasonal work, temporary work up to two months, temporary replacement of another employee, hiring foreign workers with work or residence permits, or employing individuals who have reached retirement age. If extended or renewed within one month, a fixed-term agreement may be presumed to convert into an indefinite one, except when the nature of the work dictates otherwise.
6. Restrictive Covenants: The enforceability of restrictive covenants, such as non-compete and non-solicitation clauses, in Armenia is not clear. Courts have upheld such restrictions for independent contractors, and they may be enforceable against employees if reasonably necessary to protect the employer's business interests.
7. Personal Data and Privacy: Collection and processing of employee personal data require the employee's express written consent. If video surveillance is employed, it is advisable to adopt a formal policy explaining the legitimate need for such surveillance and include an express provision in the employment agreement.
8. Volunteer Work and Apprenticeship: Volunteer work is not extensively regulated in Armenia, except for certain provisions in charity and public association laws. Volunteers enter into agreements for volunteer work and are not subject to work permit requirements. Apprenticeships, lasting up to six months, are allowed under the Labor Code, and apprentices should be paid at least the minimum salary.
According to the Labor Code in Armenia, employers are obligated to establish various internal rules and policies to govern employment practices and ensure the well-being of employees. These internal rules and policies include:
1. Anti-Discrimination Policy: This policy must encompass the hiring (recruitment) process and guarantee equal pay for both men and women. It's designed to prevent discrimination based on various factors (Art. 3.1 and 180).
2. Work and Rest Schedules: Employers must define work and rest (shift) schedules, including guidelines for handling overtime and on-call work, lunch breaks, additional and special breaks. This ensures that employees' working hours and rest periods are clearly outlined (Art. 5, 142, 144(5), 152, 153, 218).
3. Essential Rights and Obligations: Employers must document the essential rights and obligations of both employers and employees, along with the consequences of non-compliance (Art. 218).
4. Annual Leave Policy: Policies regarding annual leave, including eligibility and entitlements, should be clearly detailed (Art. 159(3)).
5. Hiring and Firing Rules: Employers should establish rules governing the hiring and termination of employees, including recruitment procedures (Art. 86, 218).
6. Disciplinary Rules: These rules lay out the disciplinary procedures for addressing employee misconduct (Art. 5, 218).
7. Employee Qualification: Policies related to employee qualification, training, and development (Art. 88).
8. Rewards and Incentives: Guidelines for employee rewards and incentives (Art. 178, 218).
9. Work Safety and Fire Safety: Policies addressing workplace safety and fire safety, including safety equipment and procedures (Art. 217, 248).
10. Employee Health and Safety: Measures for ensuring employee health and safety, including medical checks (Art. 248, 249, 253, 258).
11. Emergency Action Plan: Plans for responding to emergencies and ensuring the safety of employees (Art. 250).
12. Internal Investigations: Procedures for conducting internal investigations, particularly in cases of employee misconduct (Art. 261).
13. Personal Data Collection and Processing: Policies governing the collection and processing of employee personal data (Art. 132, 134).
14. Record-Keeping and Document Archiving: Requirements for maintaining records and archiving documents relevant to employment (Art. 5, 89, 142, 261).
It is the responsibility of employers to inform employees about all internal policies, including disciplinary rules, working conditions, work safety, and fire safety regulations.
Safety and Health: The Labor Code mandates several safety and health requirements:
If employees work with chemicals, employers must meet specific requirements regarding labeling, employee training, measuring equipment, alert systems, and collective protection systems.
In cases requiring medical checks (e.g., for minors, night shift workers), employers must have agreements with medical institutions. Pregnant women are entitled to additional time off for medical checks, with a list of prohibited tasks for minors and pregnant women established by government decree.
Work Week Duration in Armenia
In Armenia, the regular work week consists of five working days, typically from Monday to Friday. However, employers have the option to implement a six-day work week, which usually spans from Monday to Saturday. If business operations necessitate work during weekends, employees are entitled to an alternative day off in exchange. Regardless of whether the employer chooses a five-day or six-day work week, the duration of work per week should not exceed 40 hours.
There are circumstances where a shorter work week may be mandated by law, such as for minors or in conditions deemed hazardous. Alternatively, a shorter work week can be agreed upon by both the employer and the employee, often seen in part-time work arrangements.
In cases of concurrent employment with two different employers or holding two positions under the same employer, the maximum daily work duration should not exceed 12 hours. However, some exceptions apply, especially for employees in educational and medical institutions, as well as energy suppliers, where extended shifts (up to 24 hours) are permitted, subject to specific regulations.
Overtime and On-Call Work
Overtime work in Armenia is only allowed under specific circumstances. These circumstances include emergencies, natural disasters, or situations where discontinuing work could result in significant financial losses for the employer or a breach of contractual obligations. Furthermore, overtime must be carried out with the written consent of the employee.
Overtime hours should not exceed 4 hours within a two-day period or 180 hours annually. When considering both regular and overtime hours, the total daily work duration should not exceed 12 hours, and the weekly limit should not surpass 48 hours. Notably, managerial roles are exempt from these overtime restrictions.
Special provisions exist for overtime and night shifts concerning minors and pregnant women to safeguard their well-being.
Employees may be required to work on their designated days off or outside standard working hours, a practice known as on-call work. However, such on-call work should not occur more than once a week and should be limited to 8 hours daily. In cases where on-call work exceeds these limits, employees have the right to request compensatory time-off during the following month, additional annual leave, or appropriate financial compensation.
Internal Rules and Record-Keeping
Employers are responsible for establishing internal rules that outline work and rest schedules, rules for overtime and on-call work, lunch breaks, and other relevant policies. Additionally, they must maintain detailed records of employee attendance to ensure compliance with labor regulations.
Annual Leave in Armenia
Employees in Armenia are entitled to an annual leave lasting for 20 working days. If the employer implements a six-day working week, this entitlement extends to 24 working days. Certain categories of workers, such as those engaged in hazardous or stressful roles, may be eligible for extended or additional holidays.
The annual leave can be taken in parts, but at least one portion of it should consist of a minimum of 10 working days. Typically, employees become eligible for annual leave after completing six months of employment. Some workers may have the flexibility to choose the timing of their annual leave. Any unused annual leave can be carried over to the following years but must be used within 18 months. Generally, it is not allowed to receive monetary compensation in lieu of taking the annual leave. An exception exists when the employment relationship is terminated, at which point compensation for any unused leave must be provided.
Maternity Leave
Maternity leave in Armenia spans 140 days, with 70 days allocated before the child's birth and the remaining 70 days following delivery. Mothers have the option to take unpaid maternity leave for up to three years after their child's birth while retaining their position in the workplace.
Lunch Break and Rest Between Shifts
Employees are entitled to a lunch break after completing half of their daily working hours but no later than after 4 hours of work. The duration of the lunch break is determined by the employer but should not be less than 30 minutes or exceed 2 hours. Specific legal requirements mandate additional breaks for various groups, including minors, nursing mothers, workers exposed to extreme temperatures, and those engaged in hazardous or stressful work.
There should be a minimum of 11 hours of rest between two working days (shifts). Additionally, the standard weekend rest, covering Saturday and Sunday, should generally be no less than 35 hours.
Special Leaves
Apart from annual and maternity leave, the Labor Code of Armenia provides for several other types of leave:
Public Holidays
Armenia observes several public holidays when employees are not required to work. These public holidays include:
Minimum Salary in Armenia
Effective as of 2023, the minimum monthly salary in Armenia is AMD 75,000 ($194). When considering hourly wages, the rates are as follows for different workweek durations:
These figures represent net (after-tax) amounts. Employers are responsible for grossing up these amounts to cover taxes. Therefore, the minimum gross (before-tax) salary for full-time employment, which includes the net salary, the 20% income tax, the 5% social payment, and the flat military tax, is AMD 104,000 ($268).
Overtime and Premium Payments
Salaries and wages in Armenia must be paid through bank transfers, with the deadline for payment being the 15th of the following month. Employers who fail to make timely payments are subject to a daily interest penalty of 0.15%. Employers can opt to make advance payments if they choose to do so.
Employees are entitled to enhanced compensation under various circumstances:
Business trip allowances are required to meet or exceed the minimum thresholds set by the government. These allowances take into account various expenses related to the trip, including daily stipends, accommodation costs, travel fares, visa expenses, telecommunication charges, and other similar expenses. Similar compensation standards apply to fieldwork assignments.
Employees planning to take annual leave should receive their average salary payment at least three days before their scheduled departure.
Employer Liability in Armenia
Employers in Armenia generally bear liability for work-related injuries, including occupational illnesses, sustained by their employees. Compensation for such injuries is determined following the standard rules outlined in the Civil Code. Typically, this compensation covers lost earnings and expenses related to medical treatment, which may include medication, prosthetics, nursing care, supplemental nutrition, and other related costs. In cases where the injury results in the death of the employee, the employer is responsible for funeral expenses and providing compensation to the deceased employee's family members, particularly those who were dependent on the deceased. However, it's important to note that punitive damages and moral damages are not typically awarded in Armenia. Furthermore, Armenia does not mandate worker's compensation or similar insurance schemes.
Employers are also generally held responsible for any damages caused by their employees (and sometimes even individual contractors) when such damage occurs during the performance of the employee's work duties, a concept known as vicarious liability. Employers who compensate for damages typically have the right to pursue a recourse claim against the responsible employee.
Employee Liability
Employees in Armenia may be held liable for any damage, including lost profits, resulting from the destruction, neglect, mishandling, or other forms of damage to their employer's property. They may also be held liable for intentionally committed offenses. However, there are certain limitations to employee liability:
Limitation of Liability: As a general rule, an employee's liability is limited to triple the amount of their average monthly salary. This limitation does not apply in cases of damages caused intentionally, as a result of a criminal offense, or due to the loss of tools, materials, or equipment, or if the damage was caused under the influence of alcohol or drugs.
Agreement on Full Material Liability: An employee may be held fully liable if they voluntarily sign an agreement on full material liability. Such an agreement should be in compliance with the Labor Code.
Withholding from Salary: If the employer decides to withhold amounts owed by the employee due to damages, they must notify the employee of this decision within one month after the damages are detected. The withholding should not exceed 50% of the employee's monthly salary, and the remaining amount should not fall below the minimum salary mandated by law.
Armenia upholds a strong commitment to equal pay and anti-discrimination laws. The following key principles and regulations are in place to ensure equal treatment and non-discrimination in the workplace:
In Armenia, employers have the authority to apply specific disciplinary measures when employees fail to meet expected standards of behavior or performance. These measures are designed to maintain order and discipline in the workplace. Here are the key disciplinary measures and procedures in Armenia:
Warning: An employer can issue a written warning to an employee who has violated workplace rules or standards. This warning serves as an official notice of the issue and informs the employee that further violations may result in more severe disciplinary actions.
Strict Warning: In cases of more serious or repeated violations, an employer can issue a strict warning. This is a stronger form of disciplinary action and signals the employer's concern about the employee's behavior or performance.
Termination of Employment: In the most severe cases, where an employee's actions or conduct seriously undermine the employment relationship or company interests, the employer may terminate the employee's employment contract. Termination should be considered a last resort and should be supported by valid reasons.
Before imposing any disciplinary measure, the employer is required to follow specific procedures:
Offer for Explanations: The employer must offer the employee the opportunity to submit written explanations regarding the incident or violation. This step allows the employee to provide their perspective on the matter.
Consideration of Explanations: The employer is obligated to thoroughly consider the employee's written explanations, along with all other relevant circumstances related to the incident or violation.
Written Decision: If, after considering the explanations and circumstances, the employer determines that disciplinary action is warranted, they must issue a written decision. This decision should clearly outline the reasons for the disciplinary measure and specify whether it is a warning, strict warning, or termination of employment.
Timing: The written decision regarding disciplinary action should be made within one month from the detection of the action or inaction that led to the incident. In general, this decision should not be delayed beyond six months after the initial incident or violation.
Terminating employment in Armenia involves specific procedures and conditions based on the type of employment agreement and the party initiating the termination.
Termination by Mutual Agreement: Employment can be terminated by mutual agreement between the employer and the employee. The party receiving the termination offer has seven days to accept or reject it. Inaction within this period is considered a rejection. Termination must be documented in a formal agreement specifying the terms and conditions, including the end date and compensation.
Termination of Fixed-Term Employment: Fixed-term employment agreements end on the specified date. Either party must provide at least a 10-day advance notice to terminate the agreement. If the employee fails to report to work on the day following the end date, employment is considered terminated. If employment continues beyond the end date without a new agreement, it automatically converts into an indefinite-term agreement.
Employee's Unilateral Termination: An employee can unilaterally terminate their employment agreement (fixed-term or indefinite-term) by giving a 30-day notice. A five-day notice is sufficient in cases of the employee's illness or disability that makes employment impossible or if the employer violates laws or agreement terms. The Labor Code includes a "cooling-off" period of three business days during which the employee can withdraw the termination notice.
Termination by the Employer for Indefinite-Term Employment: Employers can initiate termination for indefinite-term employment if legal grounds for termination exist (see table below).
Legal Basis for Termination | Advance Notice | Severance Pay | |
|---|---|---|---|
Dissolution of the Company (Employer) | Two months | One month's wages | |
Layoffs caused by "production necessity" (i.e. urgent and unpredictable circumstances) or changes in 1) volumes of production; 2) economic conditions; 3) technological conditions; 4) conditions of labor organization | |||
Employee does not 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 the employee (120 consecutive days or 140 days in a year) Employee reaching the age of retirement (63 or 65 years), if provided by employment agreement | Employment duration: | ||
Less than 1 year | 14 days | 10 days' wages | |
One to five years | 35 days | 25 days' wages | |
Five to ten years | 42 days | 30 days' wages | |
Ten to fifteen years | 49 days | 35 days' wages | |
More than fifteen years | 60 days | 44 day's wages | |
Regular failure by employee to perform his/her duties without a valid reason (two disciplinary measures in the past) | N/A | N/A | |
Loss of confidence in the employee (material damage, disclosure of secrets) | |||
Employee reports to work under influence of alcohol or drugs | |||
Employee's absence from work for a whole working day (shift), without a valid reason | |||
Employee's refusal to undergo compulsory medical examination | |||
Termination Due to Economic Conditions or Employee's Inability to Meet Requirements: In cases where employment is terminated due to economic conditions or the employee's inability to meet job requirements, termination is possible if the employer offers the employee another position that aligns with their abilities, qualifications, and health. However, this requirement does not apply if the employer cannot provide an alternative position. Additionally, termination is generally not allowed if the employee is on annual leave, temporary disability leave (sick leave), pregnant, or on strike.
Termination Due to Changes in Essential Terms: An employer can terminate the employment agreement if it offers to change essential terms of the agreement, such as those related to production volumes, economic conditions, technological conditions, or labor organization. The employer must provide advance notice of these changes, and if the employee rejects the new terms, the agreement can be terminated.
Mass Layoffs: In cases of "mass layoffs," defined as the termination of more than 20% of the total number of employees (with a minimum of 10 employees), the employer is required to provide a two-month notice to the Employment Agency.
Probation Period Termination: During the probation period, either party can terminate the employment agreement with at least a 3-day notice.
Other Termination Scenarios: Employment agreements may also come to an end if:
In Armenia, labor disputes are typically handled through legal processes and can be brought before the courts of general competence. Here are key aspects of resolving labor disputes in Armenia:
Court Proceedings: Labor disputes are usually addressed in the general courts. For cases involving employment agreement termination, amendments, or disciplinary measures, expedited proceedings lasting up to three months may apply.
Arbitration: An arbitration clause can be included in the employment agreement, allowing disputes to be resolved through arbitration. However, the employee still has the option to choose the court for dispute resolution unless they agreed to arbitration after the dispute arose.
Mediation: Mediation of labor disputes can also be provided with the assistance of a certified mediator. In some cases, the court may mandate mediation sessions to attempt to reach a resolution.
Statute of Limitations: There is a general three-year statute of limitations for labor dispute claims. However, certain exceptions apply:
In Armenia, the enforcement of labor law regulations is overseen by the Health and Labor Inspection Service. This government agency plays a crucial role in ensuring compliance with labor laws and regulations. Here are some key points regarding the enforcement of labor law regulations in Armenia:
Thank you for your excellent work and highly competent approach to execute the process both on the spot and remotely. I am glad I have chosen your company to handle the application and the process of obtaining my Armenian passport by descent. Everything was done promptly and with appropriate reaction and solution when the circumstances changed (due to law changes in the country). Shnorhakalut’yun!
Worked with them for over 3 years now. Always professional, excellent service and communication, the staff all speak English. Highly recommend, particularly for foreigners doing business in Armenia.
After my research on a reliable lawyer who could follow my request for residency in Armenia, I selected the firm Vardanyan & Partners. The website made an excellent impression on me, complete with all the information. I contacted them and they then resolved my doubts within a few days. Furthermore, they also offer a guarantee on their service. I was very satisfied and happy with my choice.
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The company is the great team of professional specialists. They have formally defined mature processes, that helps to serve client's requests clearly, on time, without red tape and bureaucracy.
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It is always daunting when dealing with immigration, visas in a foreign country. The team at Vardanyan & Partners made the process for registering the business and applying for residency so much easier. I had no worries at all. The team overall really went out of their way to accommodate and assist us.
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The team of Vardanyan & Partners led us through the whole process seamlessly by navigating the bureaucracy end to end. Extremely professional yet personal and friendly service.
Over 10 years of specialized experience in immigration and business setup.
Our team of locally licensed, English-speaking attorneys specializes in immigration, incorporation, and compliance matters, providing bespoke legal strategies for each client.
We prioritize your concerns with a 24-hour response policy and communicate effectively in both English and Russian.
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Maintaining residency in Armenia does not require physical presence; remote application is possible.
The residency application usually takes about 80 days and only a valid passport is required.
Residents can sponsor extended family for residency (parents, siblings, grandchildren, etc.)
After living in Armenia for three years, citizenship can be obtained. Dual citizenship is allowed.
Managing Attorney
LL.M., Georgetown University
Licensed Attorney, Armenia: License no. 903
Licensed Attorney, New York: License no. 5148945
Our firm's reputation rests on more than just legal expertise. We pride ourselves on the values of honesty, transparency, and an unwavering commitment to client care. We recognize the unique opportunities and challenges Armenia presents, and we are here to guide you through them.
For inquiries or to schedule a consultation, you may contact us at [email protected] or +374.99.00.11.67. I look forward to collaborating with you on your journey in Armenia.
Nestled in the heart of the Davtashen district in Yerevan, our office is a stone's throw away from the Migration Service building, ensuring seamless coordination on immigration matters. If you refer to the map above, you will pinpoint our exact location. For those journeying from the city center, anticipate a brief 20-30 minute taxi ride to reach us. We look forward to welcoming you and addressing your legal needs.
4/3 Pirumyanner, 4th Floor, Suite 12 , Yerevan, 0054, Armenia
+37499001167
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