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The employment relationship

Country specific laws What laws and regulations govern the employment relationship? The employment relationship is governed by the Constitution and the following main specific laws

  • the Labour Code;
  • the Civil Code;
  • the Law on Employment;
  • the Law on the Minimum Monthly Wage;
  • the Law on Employers’ Union; and
  • the Law on Trade Unions.

In addition, several decisions of the government and injunctions issued by the minister of labour and social issues have set precedents, and certain international treaties apply which have priority over national legislation.

Who do these cover, including categories of worker? The Labour Code covers the rights of all workers without exception, as well as employers’ and employees’ rights and termination of the labour contract. If there is no regulation dealing with a specific employment relationship under the Labour Code, the Civil Code applies. Other specific laws cover special labour relationships.   

Misclassification Are there specific rules regarding employee/contractor classification? The Labour Code sets out no specific rules in this regard. However, by examining the relevant legislation employees can be classified as public sector employees and non-public sector employees. The Civil Code covers contractual relations in regard to independent contractors, but these are not considered to be employment relations.    

Contracts Must an employment contract be in writing? The employment contract is valid only if it is executed in writing.

Are any terms implied into employment contracts? The employment contract must accord with the requirements of existing legislation. According to the Labour Code, the following information must be included in the employment contract:

  • the name and surname of the worker (and optionally, his or her father’s name);
  • the name of the company or the name and surname of the physical entity (ie, the employer and, optionally, his or her father’s name);
  • the structural sub-division (where available);
  • the date on which employment starts;
  • the position and/or official duties;
  • the basic salary and method of payment;
  • any bonuses, additional payments or premiums granted to employees;
  • the validity period of the employment contract (if necessary);
  • the duration of the probation period on which the parties have agreed; and
  • the worktime duration, where incomplete working time is set.

The employment contract should also specify the date and place where the contract was concluded. The parties can also agree to include other information. 

Are mandatory arbitration/dispute resolution agreements enforceable? The dispute between the employee and the employer can be submitted to the arbitration tribunal for resolution by an agreement between the parties though the latter doesn’t restrict their right to lawsuit.

There is a dispute resolution stage in the collective employment disputes, which is the Conciliation Commission and is mandatory.

How can employers make changes to existing employment agreements? An employer can make changes to the essential conditions of the existing contract by notification to the employee in written form, in terms defined in the Labour Code. The changes must also be made by written agreement between the employer and employee. 

Foreign workers Is a distinction drawn between local and foreign workers? A foreign worker has the same legal standing as an Armenian citizen, unless the law provides otherwise.

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