- Overview: Armenia
- Global HR Compliance
- Global PEO and payroll
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Armenia
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Armenia Guide below will help you understand the nuances of labor legislation in the country.
Companies hire international workforce for various reasons but in most cases they are:
- entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
- hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.
Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.
If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Armenia, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Armenia and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.
We are experts in global workforce employment in , and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Armenia.
Hiring and Firing Workforce in Armenia Guide
# Employment contracts
Employment relations in Armenia are established with a written contract. Contracts of employment must be drawn up in duplicate and a copy of which signed and provided to the employees before their commencement date at work. Employment contracts shall include the information about conditions of employment, job position, function and qualifications, place of work, start date, right and responsibilities of both parties, remuneration and contract expiration date. Otherwise specified in a contract, employees shall commence work a day following the day their contracts were concluded.
# Minimum statutory employment rights
# Hours of work
Normal work day in Armenia comprises of 8 working hours and employees cannot work more than 40 normal working hours a week. Employees are entitled to at least 30 minutes break per day if they have more than 6 hours workday. Employees should be allowed to take at least one day off in every workweek. Shift workers are entitled to at least 11 hours of undisturbed rest or 14 hours (if they are under 16) before every new shift.
# Probation period
A probation period may be allowed at the initiative of either of the parties of employment. Probation may be set at a maximum period of 3 months or 6 months, subject to the provision of the country’s legislation. When applicable, the terms and conditions of a probation period shall be specified in a contract of employment.
# Annual leave
All employees are entitled to a minimum of 28 days of paid annual leave. Employees who work in dangerous conditions are entitled to an extended annual leave of up to 35 days, or even up to 48 days in some exceptional circumstances. Payment in lieu of annual leave is not allowable except during an employee’s termination.
# Parental leave
Employees are entitled to 70 days of paid maternity leave before childbirth and 70 days after childbirth for childbirth. Employees shall be given an extra paid leave of 15 days after childbirth in the event of complicated labor and of 40 days if they have multiple births. Employees shall be provided with childcare leave on request until their children have reached the age of 3. Employees on maternity leave cannot be terminated.
# Sick leave
Employees enjoy guarantees when they are on medical leave. If the temporary loss of functional capacity is not a result of an injury at work or a work-related disease, the employee shall retain his or her position and duties if he or she is absent from work for no more than 120 successive days or no more than 140 days within the past 12 months.
During the period of temporary functional loss, the employer pays the employee benefits for the relevant working days.
Overtime limit is set at 4 hours per 2 consecutive days and 120 days per year. Based on this rule, employees are permitted to work no more than 12 hours per day or 48 hours per week, inclusive of overtime. Overtime shall be compensated for at 150 percent of normal wage.
# State minimum salary
Employees are entitled to a minimum wage of 55,000 drams in each month of service. Employers are obligated to pay their employees no later than the 15th of every month.
# Employment termination
The party initiating the termination of an employment contract is required to provide the other party with prior notice before terminating the contract. Employees are entitled to different notice period as follows if they are to be terminated for reasons of redundancy:
- 5 days of notice for employees with one year of service
- 6 days of notice for employees with up to 5 years of service
- 7 days of notice for employees with up to 10 years of service
Employees are entitled to a prior notice of at least 2 months if their contracts are to be terminated for reasons of liquidation, production/technological/organizational/economic changes.
Employees shall be provided with one-month severance pay if they are terminated for redundancy, liquidation or because of change in production/technology/organization/economy or other industrial exigencies.
Employees shall be terminated with notice and provided with severance pay if they are absent from work for more than 140 days in a 12-month period owing to their inability to do their jobs. Nearing retirement age, employees must be notified about their termination with a prior notice, which varies from 14 days to 60 days and a severance pay of up to 44 days of average daily pay, all subject to their number of years of service.
Employees may not be given any severance payment if they are terminated because of their incompetence in carrying out their jobs.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Armenia by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.