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Employment in Armenia is governed by labour laws that define minimum wage, a maximum number of hours worked per week, paid time off, paid sick days, and termination procedures. Specific regulations must be followed when hiring and managing staff.
As soon as you have decided on a candidate, you should have them sign a written employment contract outlining the terms and conditions of the job, including salary, benefits, and working hours. Armenians value close friendships and honest dealings.
Your staff’s loyalty and dedication will significantly increase if you take the time to develop meaningful relationships with them. It is also essential to be aware of cultural differences and customs when communicating with your team.
Armenia offers a high quality of life and is safe and stable. There are many things to see and do, and everyone is friendly and hospitable. Because of this, it is a desirable choice for workers.
Armenia’s workforce is highly educated and competent. The nation boasts one of the highest tertiary education rates in the world, which implies that great employees can be found everywhere.
Finally, workers from Armenia are renowned for their dependability and diligence. They have a strong work ethic and are frequently ready to put in extra time to finish the project. This is ideal for businesses needing to complete work quickly and efficiently.
If you aren’t familiar with the Armenian job market, knowing where to start can be difficult. With Native Teams’ Employer of Record solutions, you can get guidance and support from hiring and onboarding to paying and managing your team, directly, with one provider only.
With our team by your side, you can ensure that your business always works in compliance with all the Armenian laws and regulations, without any middlemen involved in the process.
Hire your first Armenian employee with Native Teams.
When hiring in Armenia, employers need to comply with certain legal requirements to ensure a compliant hiring process.
Employment relationships in Armenia are primarily governed by the Labour Code of the Republic of Armenia, which regulates the rights and interests of both employees and employers and aims to ensure fair working conditions.
Under the Labour Code, an employment contract is an agreement whereby the employee performs work under the employer’s management and control, while the employer pays wages for the work performed.
Employment contracts may be concluded for an indefinite or fixed term. Indefinite contracts have no specified end date, while fixed-term contracts have a predetermined duration and are subject to specific requirements regarding their duration and permitted grounds. Fixed-term contracts may be terminated before expiry in certain circumstances, including mutual agreement, employee resignation, or dismissal by the employer for valid reasons.
The Labour Code also provides for full-time, part-time, and temporary employment contracts, with specific rules applying to working hours, wages, and other employment conditions.
The Armenian Labour Code provides for fixed-term, indefinite-term, and temporary employment contracts, each with different conditions regarding duration and the nature of the employment relationship.
Fixed-term contracts specify a predetermined duration and may be concluded for a set period, until a specific calendar date, or for the duration of particular work. They typically set out the employee’s salary, benefits, responsibilities, and other employment conditions. Continuous fixed-term employment is generally not maintained beyond five years, as longer or repeatedly renewed contracts may be treated as indefinite employment.
Indefinite-term contracts establish an ongoing employment relationship without a specified end date. They generally include provisions concerning termination, notice periods, and severance pay, as well as the rights and obligations of both parties.
Temporary employment contracts are used for short-term or seasonal work, typically for specific projects or tasks with a defined duration. These contracts may be renewed but are subject to restrictions under labour law intended to prevent the misuse of temporary employment arrangements.
Employment contracts in Armenia must include specific information to clearly establish the terms of the employment relationship and the rights and obligations of both parties.
The contract must specify the year, month, date, and place of its acceptance and conclusion, as well as the full address where it was concluded.
It must also include the employee’s full name and the employer’s organisation name or full name in the case of an individual employer. Patronymic names may also be included. Where the employee works within a specific structural subdivision of the employer’s organisation, this must also be stated.
The employment contract must specify the employment commencement date, the employee’s position or job title, and their job-related functions, clearly defining when employment begins and the responsibilities associated with the role.
Download a free employment contract for Armenia through Native Teams.
In Armenia, employment contracts may take the form of oral, written, or electronic agreements. However, from 1 January 2026, the establishment, amendment, and termination of employment contracts must be carried out through a state digital platform using electronic signatures.
From this date, paper-based contracts will no longer be legally recognised for new employment relationships. Employers are also generally expected to migrate existing paper contracts to the electronic system during the applicable transitional period.
Oral employment contracts have traditionally been legally valid but provide less legal certainty, as there is no formal record of the agreed terms and they can be more difficult to prove in disputes. Their practical use is further reduced by the move towards mandatory digital contracting.
Written employment contracts have traditionally been the most common form and must set out essential employment terms, including job duties, salary, working hours, leave entitlements, and termination provisions, with both parties signing the agreement. However, their use for new employment relationships is replaced by electronic contracting from 1 January 2026.
Under the updated framework, electronic employment contracts become the primary legally enforceable form, supporting greater transparency and compliance with employment, tax, and social reporting obligations.
The standard working week in Armenia is 40 hours, typically spread across five days, with a standard working day of eight hours.
The Labour Code permits alternative working arrangements where agreed between the employer and employee, including part-time work, flexible working hours, and shift work. Part-time employees work fewer than 40 hours per week, with their pay adjusted accordingly.
Work performed beyond standard working hours is considered overtime and must be paid at no less than 1.5 times the regular hourly rate. Overtime must be consensual and is subject to statutory limits.
Total working time cannot exceed 48 hours per week or 12 hours per day. Overtime must also not exceed four hours over any two consecutive days or 120 hours per year.
In Armenia, night work is defined as work performed between 10:00 PM and 6:00 AM and is subject to additional protections due to the potential health and social effects of working during these hours.
Employees performing night work may be entitled to increased pay, health monitoring, and limitations on the duration of night shifts. Employers must take these requirements into account when scheduling night work.
Employees must be informed in advance if their role involves night work. The employment contract should specify the night working hours, applicable rate of pay, and any additional benefits or compensation provided for night work.
Employees in Armenia are entitled to mandatory breaks during the working day. Where the working day exceeds six hours, employees must receive a rest break of at least one hour for meals and relaxation. These breaks are generally unpaid unless otherwise provided in the employment contract or a collective agreement.
Employees are also entitled to a continuous rest period of at least 11 hours between two working days or shifts and at least 35 consecutive hours of weekly rest.
The Labour Code provides a minimum of 20 working days of paid annual leave per year. This entitlement may increase based on seniority and certain types of work. Employees may also qualify for extended or additional annual leave, including in circumstances involving hazardous working conditions or significant family responsibilities.
Employees in Armenia are entitled to paid annual leave. Generally, employees become entitled to annual leave after completing at least six months of continuous employment with the same employer.
The minimum annual leave entitlement is 20 working days for employees working a five-day week and 24 working days for those working a six-day week. The minimum entitlement is generally not based on length of service, although additional leave may apply depending on seniority and other factors.
Annual leave must be scheduled and approved by the employer in advance, taking into account both operational requirements and the employee’s preferences. Employers must consider employees’ requests and provide reasonable accommodation where possible, and cannot unreasonably withhold approval or interfere with an employee’s right to take annual leave.
Salaries in Armenia must be agreed upon in the employment contract and must meet or exceed the minimum wage established by the government.
The salary may be determined based on factors such as the nature of the role, the employee’s qualifications and experience, and economic conditions within the industry.
Employment contracts must clearly specify the employee’s base salary and any additional compensation, including bonuses, overtime pay, and other forms of financial remuneration. They must also state the frequency of salary payments, which is typically monthly but may vary by mutual agreement.
To calculate the salary and taxes in Armenia, click here.
Employees in Armenia are entitled to sick leave when they are unable to perform their duties due to illness or injury. Employees must provide a medical certificate from a recognised healthcare provider confirming the illness and the expected period of incapacity.
During sick leave, employees are entitled to compensation. For the first five days, the employer is responsible for payment. From the fifth day onwards, compensation is covered by the State Social Security Service and is typically 80% of the employee’s average salary, although the rate may vary depending on specific circumstances and legislative amendments.
Employers generally cannot terminate an employee’s contract during sick leave. Dismissal due to illness is considered unlawful unless the incapacity exceeds the maximum period established by law, typically 120 consecutive days or 140 days within one calendar year.
The employment contract should also specify the sick leave notification procedure and requirements for submitting medical certificates. Employers must maintain accurate records of employees’ sick leave and comply with the applicable legal requirements.
Female employees in Armenia are entitled to paid maternity leave, which is calculated as a total period and granted in full.
The duration depends on the circumstances of childbirth:
If childbirth occurs earlier than expected, unused prenatal leave is transferred to the postnatal period.
During maternity leave, employees receive payment in accordance with the legislation of the Republic of Armenia.
Employment contracts in Armenia may be terminated on several grounds, including mutual agreement, resignation by the employee, or termination by the employer.
Termination by mutual agreement requires both parties to agree to end the employment relationship. The agreement must be in writing and specify the termination date and any other relevant conditions.
Employees may terminate their employment by providing written notice to the employer. The notice period is typically one month, although a shorter period may apply in certain circumstances, including where the employee cannot continue working for health reasons.
Employers may terminate employment for reasons including redundancy, unsatisfactory performance, or serious misconduct. Employers must follow the applicable legal procedures, including providing written notice, meeting relevant deadlines, and paying severance where applicable.
In Armenia, ordinary dismissal refers to termination initiated by the employer for reasons unrelated to employee fault or misconduct. Grounds may include redundancy, company liquidation or reorganisation, or the employee’s inability to perform their duties due to objective circumstances, such as medical conditions or loss of required qualifications.
For dismissals due to reorganisation, liquidation, or redundancy, the employer must provide at least two months’ written notice. The notice must specify the grounds for dismissal, the effective termination date, and any severance pay due. Employees remain entitled to their full salary and other benefits during the notice period.
Severance pay is generally mandatory in cases of ordinary dismissal, except in specific circumstances such as retirement. Depending on length of service, it ranges from one month’s average salary for less than one year of service to six months’ average salary for ten or more years of service.
In Armenia, the standard notice period for dismissal is two months, unless otherwise provided in the employment contract or collective agreement. During the notice period, employees remain entitled to their regular salary and benefits.
Employers must comply with both contractual and statutory notice requirements. Any deviation from the agreed notice period without mutual consent may render the dismissal unlawful.
Grounds for dismissal include redundancy, lack of qualification, and health-related reasons. The required notice must be provided for each applicable ground, except in cases of severe misconduct, where immediate dismissal may be permitted.
Employees have the right to challenge a dismissal they consider unjust or contrary to their contractual or legal rights. They may file a complaint with the State Labour Inspectorate or pursue legal action in court. Failure to comply with notice requirements may affect the legitimacy of the dismissal.
In Armenia, unemployment support forms part of the social security system, funded through mandatory contributions made by both employers and employees. These contributions help provide financial assistance and related services to individuals during periods of unemployment.
Employers are required to make regular contributions to the State Social Security Fund, with employees also contributing a portion of their wages. Contribution rates are determined by the government as a percentage of the employee’s salary.
Employers must withhold and remit the required contributions on behalf of employees. Failure to comply may result in penalties and other legal consequences.
Unemployment benefits are calculated based on the contributions made and the employee’s work history. They are intended to replace a portion of lost income while unemployed individuals seek new employment.
In Armenia, employers are required to provide severance pay in certain termination circumstances, particularly where employment ends for reasons beyond the employee’s control, such as organisational changes, redundancy, or health issues that prevent the employee from performing their role.
Employment contracts may specify the conditions, amount, and payment process for severance pay, while the calculation must comply with the Labour Code.
The amount is generally based on the employee’s average salary and length of service. For example, employees dismissed due to redundancy are entitled to one month’s average salary for each year of service.
Employers must provide severance pay promptly upon termination. Failure to meet this obligation may result in legal disputes and penalties.
In Armenia, a probationary period may be agreed between the employer and employee to assess the employee’s suitability for the role and the employment relationship. It must be explicitly stated in the employment contract.
The probationary period may last for a maximum of three months, although the parties may agree to a shorter period. If no probationary period is specified in the employment contract, the employment is considered not subject to probation.
The employment contract should clearly define the duration and evaluation criteria for the probationary period. During this period, either party may terminate the employment contract with shorter notice than applies to regular employment termination.
In Armenia, intellectual property rights are governed by the Labour Code, Civil Code, and specific intellectual property laws.
By default, the employer owns the IP rights to work created by an employee within the scope of their employment, including inventions, software, designs, literary works, and other creations. However, the employer and employee may agree to different ownership arrangements.
The employment contract should clearly specify ownership of IP created during employment. If the contract does not address ownership, the default legal rules apply, and the employer owns the rights.
Employees who create inventions or other works during their employment may be entitled to additional remuneration separate from their salary. The amount is generally determined by agreement between the employer and employee or through collective bargaining.
Employee data privacy in Armenia is governed by the Labour Code and the Law on Personal Data Protection, which regulate the collection, storage, and processing of employees’ personal information.
Employers must maintain the confidentiality and security of personal data and protect it against unauthorised access or misuse. Employment contracts typically specify the types of data collected, the purposes for processing it, and the measures used to protect it.
Personal data includes any information relating to an identified or identifiable individual. Employers must obtain explicit, informed, and voluntary consent from employees before collecting and processing their personal data, and inform employees how their information will be used.
Employers must also implement appropriate technical and organisational security measures, such as access controls, data encryption, and regular security audits. Failure to comply with data privacy requirements may result in legal penalties.
The Armenian Labour Code does not explicitly regulate non-compete agreements or post-termination restrictions. There are no specific provisions that either limit or permit these arrangements.
However, the Labour Code recognises freedom of contract, allowing employers and employees to include terms that are not expressly prohibited by law. As a result, non-compete clauses may generally be included in employment contracts, provided they do not unduly restrict the employee’s right to work.
Remote work in Armenia is regulated by the Labour Code following amendments introduced in November 2023. It is defined as work performed outside the employer’s premises using information and communication technologies.
Remote work may be full-time or part-time and can be agreed either at the beginning of employment or during an existing employment relationship.
The employer and employee must establish the remote working arrangement through a written agreement, which should specify:
Under the Armenian Labour Code, remote work arrangements must be supported by a written agreement between the employer and employee.
The agreement supplements the employment contract and should clearly define the remote working arrangement and the responsibilities of each party, helping ensure clarity and compliance throughout the remote employment relationship.
Employers in Armenia are responsible for ensuring the health and safety of employees working remotely, regardless of where the work is performed.
Employers must conduct a risk assessment specific to the remote working environment to identify potential hazards, including ergonomic issues, electrical safety risks, and fire hazards.
Based on the assessment, employers must take appropriate measures to mitigate identified health and safety risks and ensure suitable working conditions for remote employees.
Hiring employees from Armenia presents several advantages compared to other countries. In terms of cost-effectiveness, labour expenses in Armenia tend to be lower than in many Western countries, making it an appealing option for businesses seeking to reduce costs without compromising quality.
Armenia’s favourable time zone (GMT+4) enables overlapping working hours with both European and Asian countries, facilitating real-time communication and collaboration.
Many Armenians are multilingual and proficient in languages such as English, Russian, and Armenian. This linguistic diversity can be advantageous for businesses with global operations or clients, facilitating effective communication across borders.
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