Armenia Employment Guide

Armenia is located in the South Caucasus region, bordering Azerbaijan to the east, Georgia to the north, and Turkey to the west, with a strategically significant geographical location. It has a population of approximately 3 million, and its economy is dominated by mining, energy, agriculture, manufacturing, and information technology. Yerevan, the capital, serves as the political, economic, and cultural center. Armenia’s labor laws require employment contracts to be in writing, with a standard 40-hour workweek. Employers are obligated to provide a minimum wage, social insurance, and paid leave. Dismissals must comply with legal procedures and include financial compensation for employees. The country’s labor relations system is gradually improving, and it provides certain support for foreign-funded enterprises.

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Currency

Armenian Dram (AMD)

Capital

Yerevan

Official language

Armenian

Salary Cycle

Monthly

Our Employment Guide in Armenia

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Navigating Employment Termination in Armenia: A Professional Guide

Terminating employment relationships in Armenia requires careful adherence to complex legal frameworks and country-specific regulations. The separation process must be handled collaboratively between employers and key stakeholders, often involving special considerations and mandatory procedures depending on the termination circumstances.

Valid Grounds for Employment Termination

Armenian labor law does not permit arbitrary dismissal. Employers must demonstrate legitimate justification when ending employment relationships. Acceptable termination scenarios include:

Voluntary resignation by the employee
Mutual agreement between parties
Employer-initiated termination based on:
- Probationary period assessment
- Objective business reasons
- Disciplinary violations
- Performance inadequacy or role incompatibility
Natural contract expiration

Notice Period Requirements

Armenia mandates minimum notice periods that escalate with employee tenure. The statutory framework requires:

Years of Service	Notice Period
Less than 1 year	14 days
1-5 years	35 days
5-10 years	42 days
10-15 years	49 days
Over 15 years	60 days

Severance Pay Obligations

Severance compensation in Armenia varies by termination type and employment duration. Employees dismissed due to organizational restructuring, workforce reduction, or significant operational changes qualify for one month's average salary as severance.

Additional compensation structures apply for terminations involving military conscription, long-term disability, retirement, or substantial workplace modifications. These scenarios trigger severance calculations ranging from 10 to 44 working days based on tenure.

Mitigating Termination Risks

Global employers often face unexpected financial exposures during separations. SailGlobal addresses this through proactive severance accruals integrated into all Armenian employment agreements. Our methodology combines statutory requirements with local best practices, drawing from extensive cross-border litigation management experience. Unused accruals are returned if employees resign or become ineligible for severance.

Consider a recent case where a technology firm underwent restructuring in Yerevan. By implementing SailGlobal's severance accrual system, the company avoided significant unplanned liabilities while maintaining full compliance with Armenian labor regulations.

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