Termination of Employment Contract and Protection of Employees’ rights In Armenia

1. What are the grounds for termination of employment contract in Armenia?

According to the Labor Code of Armenia (hereinafter also referred as “The Code”): The employment contract is terminated:

1. by the agreement of the parties.
2. at the initiative of the employee.
3. at the initiative of the employer.

2. How is an employment contract terminated by mutual agreement of the parties?

When terminating an employment contract by mutual agreement, one party to the employment contract submits a written proposal to the other party to terminate the contract. If the other party agrees to the proposal, they must notify the proposing party of their consent within seven days.

If the parties agree to terminate the contract, they conclude a written agreement specifying the date of termination of the contract and other terms (including compensation, etc.).

If the party that received the proposal to terminate the contract does not notify its consent to terminate the contract within the seven-day period, the proposal to terminate the employment contract shall be deemed rejected.

3. Can the employer terminate an open-ended employment contract?

The employer has the right to terminate an open-ended employment contract with the employee, as well as a fixed-term employment contract before the expiration of its term, in specific cases established by law.

4. Are there legitimate reasons for an employer to terminate an employment contract in Armenia?

According to the Code: The employer has the right to terminate the employment contract in the following cases։

1. Liquidation (termination of activity) of the employer,
2. When the number of employees is reduced.
3. Non-compliance of the employee with the position held or the work performed.
4. Reinstatement of the employee to the previous job.
5. Regular non-fulfillment by the employee of the duties assigned to him by the employment contract or internal disciplinary without a valid reason.
6. Loss of trust in the employee.
7. Long-term incapacity of the employee (if the employee has been temporarily incapacitated for more than six months in a row or for more than 180 days during the last twelve months, excluding days of pregnancy and maternity leave).
8. The employee being at the workplace under the influence of alcohol, drugs, or psychoactive substances.
9. Non-appearance of the employee during the entire working day (shift) due to a disreputable reason.
10. An employee’s refusal or avoidance of mandatory medical examination.
11. The foreigner’s residence status is revoked or invalidated.
12. an employee fails to perform his work duties for more than 10 working days (shifts) in a row or during the last three months for more than 20 working days (shifts) as a result of not being allowed to work in case of non-submission by the employee of the documents that are a necessary condition to attend work during the state of emergency declared due to infectious diseases in the Republic of Armenia or the prescribed quarantine.

5. What conditions must an employer meet before terminating an employment contract in Armenia?

Employers are required to provide advance notice to employees before dismissal in situations outlined within the Labor Code.

In the case of termination due to the liquidation (termination of activity) of the employer or when the number of employees is reduced, the employer must provide employees with two months of prior notice.

In the cases of non-compliance of the employee with the position held or the work performed, reinstatement of the employee to the previous job or when the number of employees is reduced the employer may terminate the employment contract if, within the scope of available opportunities, they have offered the employee alternative work that matches their professional qualifications, skills, and health condition, and the employee has refused the offered work.

If the employer does not have any relevant opportunities, the contract is terminated without offering the employee alternative work.

In case of non-observance of the notice period, the employer is obliged to pay the employee damages for each overdue day of notice, which is calculated based on the employee’s average daily wage.

6. Under what circumstances can an employer terminate an employee without prior notice?

The employer is entitled to terminate the employment contract without giving notice to the employee in instances specified by the Code. These include the following cases:

1. Reinstatement of the employee to the previous job.
2. Regular non-fulfillment by the employee of the duties assigned to him by the employment contract or internal disciplinary without a valid reason.
3. Loss of trust in the employee.
4. The employee being at the workplace under the influence of alcohol, drugs, or psychoactive substances.
5. Non-appearance of the employee during the entire working day (shift) due to a disreputable reason.
6. An employee’s refusal or avoidance of mandatory medical examination.

7. Are there any notification requirements?

According to the Code, In the notice of the termination of the employment contract, the following are mentioned:

1. the basis and reason for dismissal,
2. in the case of offering another job to the employee, the name of the position, the amount of salary or the lack of possibility to offer another job.
3. year, month, date of dismissal.

8. Are there any mandatory severance payment provisions upon the termination of employment?

In accordance with the Code, employees have the right to receive severance payments upon termination in these cases:

1. Liquidation (termination of activity) of the employer.
2. When the number of employees is reduced.
3. Non-compliance of the employee with the position held or the work performed.
4. Reinstatement of the employee to the previous job.
5. Long-term incapacity of the employee (if the employee has been temporarily incapacitated for more than six months in a row or for more than 180 days during the last twelve months, excluding days of pregnancy and maternity leave).

9. How would you define a labor dispute and how can they be resolved?

A labor dispute is a disagreement between an employee or a former employee, who has previously had an employment relationship with a given employer, and the employer, which arises or has arisen during the fulfillment of rights and obligations set by labor legislation, other normative legal acts, internal legal acts, or the individual or collective labor contract.

Labor disputes are subject to examination in court. Labor disputes may also be subject to mediation.

10. May labor disputes be referred to resolution by an arbitral tribunal?

Labor disputes may be referred to an arbitral tribunal for resolution if an agreement has been concluded between the employee and the employer, or if a collective agreement provides for the possibility of referring the dispute to arbitration.

An arbitration agreement does not limit the employee’s right to refer a dispute arising from the employment contract to a court, except where the arbitration agreement was concluded after the dispute arose and the parties unconditionally agreed to submit the dispute to resolution by an arbitral tribunal.

11. In what cases and within what time limit does an employee have the right to apply to the court?

If the employee disagrees with the modification of working conditions or the termination of employment relations, the employee has the right to apply to the court within two months from the date of receipt of the individual legal act on the modification of working conditions or dismissal, and, in cases prescribed by law, within two months from the date on which the employment contract is deemed terminated by operation of law.