▷ Note on the 2020 amendments: Several amendments were made to the Labour Code in 2020. The most notable is Law HO-236-N of 29 April 2020, which introduced a new provision on remote work (§ 106.1 LC) and temporary rules related to the state of emergency (absences, forced downtime, and unpaid leave). This law further adds subsections 5 and 6 to section 114 LC on the prohibition of termination of employment.
Other 2020 laws (HO-49-N, HO-76-N, HO-287-N, HO-415-N and HO-460-N) introduced only minor or technical adjustments.
▷ None of the above-mentioned amendments modified the substantive or procedural rules on termination of employment, fixed-term contracts, notice periods, severance pay, collective dismissals, or avenues for redress. The EPLex indicators therefore remain identical to those applicable in 2019.

▷ There is no general exclusion of enterprises from the scope of the Labour Code based on size.
▷ However, section 116 of the Labour Code defines collective (mass) dismissals for economic reasons as dismissals concerning at least 10 workers or more than 10 % of the workforce within a period of two months. As a result, the special collective-dismissal procedure does not apply in practice to enterprises employing fewer than 10 workers.

▷ The Labour Code applies generally to all employment relationships falling within its scope. No broad categories of workers are excluded from the Code itself, although specific categories (in particular certain public servants) may be regulated by special laws that prevail in case of conflict.
▶ Labour Code (LC)
→ Section 7 LC provides that:
1. The labour legislation and other regulatory legal acts containing norms of labour law shall apply to employment relations having arisen in the territory of the Republic of Armenia, irrespective of the fact whether the work is performed in the Republic of Armenia or in another state upon the assignment of the employer.
2. Provisions of the labour legislation of the Republic of Armenia and of other regulatory legal acts containing norms of labour law shall be mandatory for adherence by all employers (citizens or organisations), regardless of their organisational and legal form and form of ownership.
3. Employment relations arising at the time of performing work in vessels or aircrafts (flying vessels) shall be regulated by the labour legislation of the Republic of Armenia and other regulatory legal acts containing norms of labour law, where these vessels sail or the aircrafts (flying vessels) fly under the flag of the Republic of Armenia or bear the image of the coat of arms of the Republic of Armenia.
The labour legislation of the Republic of Armenia and other regulatory legal acts containing norms of labour law shall be applied at the time of performance of work in other means of transport, where such means of transport owned by the employer are under the jurisdiction of the Republic of Armenia.
4. Where the employer is a foreign state or its diplomatic representation, a foreign entity or a foreign person, the labour legislation of the Republic of Armenia and other regulatory legal acts containing norms of labour law shall cover the employment relations having arisen with the employers permanently residing in the Republic of Armenia to the extent that the diplomatic immunity is not violated.
5. The labour legislation of the Republic of Armenia and other regulatory legal acts containing norms of labour law shall not cover the employment relations having arisen between foreign employers and employees not residing permanently in the Republic of Armenia, irrespective of the fact that the employees perform work upon the instruction of the employer in the Republic of Armenia.
6. Where it is approved through judicial procedure that employment relations are actually regulated by a civil law contract concluded between the employer and the employee, provisions of the labour legislation and of other regulatory legal acts containing norms of labour law shall apply to such relations.
7. Employment (service) relations of persons holding public positions and of public servants, as well as of the employees of the Central Bank of the Republic of Armenia shall be regulated by this Code, unless otherwise provided for by appropriate laws.
8. This Code does not regulate employment relations involving citizens serving their sentence in correctional institutions, except for the relations with respect to working time and rest-time regulations, remuneration for work, safety and health of employees.
→ Section 44 LC on "Peculiarities of the application of norms in Part 2 of this Code" provides that:
1. The norms in Part 2 of this Code [COLLECTIVE EMPLOYMENT RELATIONS] established by law for state and local self-government bodies, as well as employees of the Central Bank of the Republic of Armenia shall be applied in the manner prescribed by this Code.
2. The norms prescribed by Part 2 of this Code [COLLECTIVE EMPLOYMENT RELATIONS] shall not apply to the employment relations between the officers of the armed forces, police, national security body and persons holding public positions (except for discretionary positions).

▶ Labour Code (LC)
→ Section 95 LC provides that:
1. An employment contract shall be concluded for a fixed time limit, where the employment relations may not be determined for an indefinite time limit, taking into account the nature of the work to be performed or the conditions for its completion, unless otherwise provided for by this Code or laws.
2. An employment contract concluded for a fixed time limit may be concluded for a fixed time period or by setting a calendar period or by defining the completion of works provided for by the employment contract.
2.1. If the term of the employment contract concluded for a fixed time limit for the same work with the same employer is prolonged, or a new employment contract for the same work with the same employer is concluded with the same employee after an interruption that does not exceed one month, the employment contract shall be considered concluded for an indefinite time limit. This provision does not apply to the cases provided for by parts 1 and 3 of this section. (added by Law HO-183-N)
3. Employment contracts for a fixed time limit shall also be concluded with:
(1) employees hired to elective offices for a selected time period;
(1.1) employees appointed for a term established by law;
(2) Repealed by the Law HO-183-N of 3 October 2019[those performing combined jobs];
(3) those performing seasonal work;
(4) those performing temporary work (for a time period of up to two months);
(5) an employee substituting a temporarily absent employee;
(6) foreigners, in the period of permission to work or validity period of the right to residence;
(7) persons entitled to age pension and having attained the age of sixty-three or persons not entitled to age pension and having attained the age of sixty-five, on the ground of assessment of the professional skills of the person in the position or work offered by the employer.

▶ Labour Code (LC)
→ Section 95 LC provides that:
1. An employment contract shall be concluded for a fixed time limit, where the employment relations may not be determined for an indefinite time limit, taking into account the nature of the work to be performed or the conditions for its completion, unless otherwise provided for by this Code or laws.
2. An employment contract concluded for a fixed time limit may be concluded for a fixed time period or by setting a calendar period or by defining the completion of works provided for by the employment contract.
2.1. If the term of the employment contract concluded for a fixed time limit for the same work with the same employer is prolonged, or a new employment contract for the same work with the same employer is concluded with the same employee after an interruption that does not exceed one month, the employment contract shall be considered concluded for an indefinite time limit. This provision does not apply to the cases provided for by parts 1 and 3 of this section.(added by Law HO-183-N)
3. Employment contracts for a fixed time limit shall also be concluded with:
(1) employees hired to elective offices for a selected time period;
(1.1) employees appointed for a term established by law;
(2) Repealed by the Law HO-183-N of 3 October 2019 [those performing combined jobs];
(3) those performing seasonal work;
(4) those performing temporary work (for a time period of up to two months);
(5) an employee substituting a temporarily absent employee;
(6) foreigners, in the period of permission to work or validity period of the right to residence;
(7) persons entitled to age pension and having attained the age of sixty-three or persons not entitled to age pension and having attained the age of sixty-five, on the ground of assessment of the professional skills of the person in the position or work offered by the employer.
→ Section 101 LC provides that:
1. A temporary employment contract shall be an employment contract concluded for a period of up to two months.
2. Employees having concluded a temporary employment contract may be engaged in work on rest days and non-working days, i.e. holidays and commemoration days. The work performed on non-working days — holidays and commemoration days — shall be remunerated at least double the hourly (daily) pay rate or task rate.
3. (part repealed by HO-117-N of 24 June 2010)
4. The employee or the employer shall have the right to rescind the temporary employment contract before the expiry of the validity period thereof by notifying each other thereon in writing at least three days in advance. In case the temporary employment contract is rescinded, the employee shall not be paid a dismissal benefit.

▷ There is no numerical limit on the number of successive fixed-term contracts.
▷ However, since the entry into force of Law HO-183-N of 3 October 2019, a conversion rule applies: successive fixed-term contracts for the same work with the same employer (with an interruption of no more than one month) are converted into an indefinite-term contract (§ 95(2.1) LC). This conversion does not apply to the specific cases listed in § 95(1) and § 95(3).
▶ Law HO-183-N of 3 October 2019
→ Section 1 of Law HO-183-N indicates that: In section 95 of the Labour Code of the Republic of Armenia of November 9, 2004, add the following section 2.1:
"2.1. If the term of validity of an employment contract concluded for a fixed term with the same employee for the same work with the same employer is extended, or an employment contract is concluded for a second time with the same employee for the same work with the same employer, the interruption of which does not exceed one month, then the employment contract shall be deemed to have been concluded for an indefinite term. The provision set forth in this part shall not apply to the cases provided for in Parts 1 and 3 of this section."
2) Part 3 shall be supplemented with the following content: “1.1) with employees appointed for a period of time specified by law.”
3) Part 3, point 2 shall be declared invalid.

▷ There is no statutory maximum cumulative duration for successive fixed-term contracts in general.
▶ Labour Code(LC): Situation under the amendment made by Law HO-183-N of 3 October 2019
▷ The conversion rule under section 95(2.1) LC (introduced in 2019) applies instead of a hard time limit when successive contracts concern the same work with the same employer. (see above the unofficial translation of the amendment made by Law HO-183-N of 3 October 2019).

Under the Labour Code, the probationary period cannot exceed 3 months. However, the probationary period may be up to 6 months for certain categories of workers.
▶ Labour Code (LC)
→ Section 92 LC provides that:
1. The time limit of the probation period shall not be more than three months, except for the cases provided for by paragraph 2 of this section.
2. The probation period for a time period of six months may be set in cases provided for by the legislation of the Republic of Armenia.
3. The probation period shall not include the following time periods when the employee is absent from work:
1) the time period envisaged by the collective agreement or the employment contract;
2) the time period of leave (including unpaid) upon the consent of the parties;
3) the time period of the employee’s temporary inability to work;
4) the time period of performing obligations imposed on the employee by state or local self-government bodies;
5) the time period of lawful strike where the employee participates in the strike in the manner prescribed by law.

▷ During the probationary period, the ordinary rules on protection against dismissal do not fully apply. Either party may terminate the employment contract with short notice.
▶ Labour Code (LC)
→ Section 93(1) LC provides that: Where the employer finds that the employee — based on the current results of the probation period set for evaluating the suitability of the employee for the envisaged job (position) — does not meet the prescribed requirements, he or she may dismiss the employee from work before the expiry of the time limit of the probation period by notifying him or her thereon in writing three days in advance.
→ Section 101(4) LC (temporary contracts up to two months) and the general regime applicable during probation allow termination with short written notice (commonly three days).

▶ Labour Code (LC)
→ Section 114 LC provides that:
1. Rescission of the employment contract upon the initiative of the employer shall be prohibited:
1) in the time period of temporary incapacity of the employee for work, except for the cases provided for by point 7 of part 1 of section 113;
2) during the leave of the employee:
(2.1) in the case of pregnant women, from the day of submitting a reference to the employer until one month after the maternity leave;
(2.2) in the entire period when the person, actually taking care of the child and not on leave, takes care of the child under one, except for the cases provided for by points 1, 5, 6 and 8 and 10 of part 1 of Section 113 of this Code; [CHANGED 2020: the exceptions no longer include point 3 (unsuitability) or point 9 (absence for a full day)]
3) after a decision on calling a strike is adopted and during the strike where the employee participates in this strike in the manner prescribed by this Code;
4) during the period of fulfilling the obligations imposed on the employee by state or local self-government bodies, except for the cases provided for by part 1 of section 124 of this Code.
5) during the period of prevention of natural disasters, technological accidents, epidemics, accidents, fires and other events of an emergency nature or the immediate elimination of their consequences, if, due to these events, the employee did not report to work;
6) during the period of unplanned transfer or unplanned provision of vacations for educational (including preschool) institutions, if the employee did not report to work in order to organize the care of a child under the age of twelve.
2. Where an employee fails to come to work upon expiry of the time periods provided for by part 1 of this section, the employer may rescind the employment contract on the grounds provided for by this Chapter.
3. The restrictions provided for by part 1 of this section shall not apply when rescinding the employment contract due to liquidation of an organisation (termination of the activities of an individual entrepreneur).
4. The following shall not be deemed as a lawful reason for the rescission of the employment contract:
1) membership in a trade union or participation in the activities of a trade union during nonworking hours, and upon consent of the employer — also during working hours;
2) being the employees’ representative at any time;
3) filing claims to the employer for violation of laws, other regulatory legal acts or the collective agreement;
4) gender, race, nationality, language, origin, citizenship, social status, belief, marital status and family status, convictions or views, affiliation to political parties or non-governmental organisations;
5) the age, except for cases defined by law.
▷ Union membership and activities
→ Section 119(1) LC provides that: The employees elected to representative bodies of employees may not be dismissed from work during the implementation of their powers under section 113 of this Code without the preliminary consent of the state labour inspector, except for the cases specified in clauses 1, 2, 5-7 of section 1 of Section 113 and section 1 of Section 123 of this Code without prior consent of the labour inspector.
▷ Occupational injury or disease
→ Section 118 LC states that:
1. The workplace and position of the employee having lost his or her capacity for work due to occupational disease or maiming shall be retained until his or her recovery or determination of the disability group. The employer may rescind the employment contract on the grounds provided for by this Chapter unless his or her working capacity is recovered and the disability group has been determined.
2. Employees who have temporarily lost their capacity for work in cases not provided for by part 1 of this section, shall retain their workplace and position, where they have not come to work due to temporary incapacity for work not more than 120 successive days or for not more than 140 days within the last 12 months, unless laws and other regulatory legal acts define that in case of certain diseases the workplace and position shall be retained for a longer period.
▷ Special purpose leave
→ Section 171 LC stipulates that: Special purpose leave shall be:
(1) pregnancy and maternity leave;
(2) leave granted for taking care of a child under the age of three;
(3) study leave;
(4) leave being granted for fulfilment of state or social duties;
(5) unpaid leave.
During the period of special purpose leave, the employee’s position shall be retained, with the exception of cases envisaged by section 113(1)(1).

▷ Pregnancy and maternity/family responsibilities
→ Section 114 LC provides that termination of an employment contract upon the initiative of the employer is prohibited: […]
(2.1) with pregnant women — from the day of submitting a certificate of pregnancy to the employer until the expiration of one month after the end of pregnancy and maternity leave;
(2.2) a person who is actually taking care of a child and is not on leave, for the entire period of taking care of a child under one year of age, points 1, 5, 6 and 8 and 10 of part 1 of Section 113 of this Code; [CHANGED 2020: the exceptions no longer include point 3 (unsuitability) or point 9 (absence for a full day)].
▷ Workers’ representatives
→ Section 119(1) LC provides that: Employees elected to representative bodies of employees (trade unions) may not be dismissed from work under section 113 of this Code during the period for which they fulfil their authorizations without the preliminary consent of the state labour inspector, except for the cases specified in the clauses 1, 2, 5-7 of paragraph 1 of the section 113 and paragraph 1 of section 123 of this Code.
▷ Temporary work incapacity / occupational disease or injury
→ Section 114(1) LC prohibits termination during the period of temporary inability of the employee to work (with limited exceptions).
→ Section 118 LC provides that the workplace and position of an employee who has lost capacity for work due to occupational disease or maiming shall be retained until recovery or determination of the disability group; for other temporary incapacity, the workplace is retained for up to 120 consecutive days or 140 days within 12 months (unless a longer period is prescribed for certain diseases).

▶ Labour Code (LC)
→ Section 115(1) LC provides that: In case of rescinding the employment contract on the grounds provided for by points 1 and 2 of part 1 of section 113 of this Code, the employer shall be obliged to notify the employee thereof in writing not later than two months in advance.

→ Section 115 LC provides that:
1. In case of rescinding the employment contract on the grounds provided for by points 1 and 2 of part 1 of section 113 of this Code, the employer shall be obliged to notify the employee thereof in writing not later than two months in advance.
▻ If the employment contract is rescinded on the grounds provided for by points 3, 7 and 11 of part 1 of section 113 of this Code, as well as in the cases defined in part 2 of section 105 of this Code, the employer shall be obliged to provide a written notification to the employee:
‣ no later than 14 days in advance for employees who have been working for up to one year,
‣ no later than 35 days in advance for employees who have been working for up to five years,
‣ no later than 42 days in advance for employees who have been working for five to ten years,
‣ no later than 49 days in advance for employees who have been working for ten to fifteen years and no later than 60 days in advance for employees who have been working for more than fifteen years.
▻ Collective agreements and employment contracts may define longer time limits for notification as compared to the time limits envisaged by this part.
2. In case the time limits provided for by part 1 of this section, as well as part 1 of section 93 and part 2 of section 111 of this Code are not observed, the employer shall be obliged to pay a fine to the employee for every overdue day of notification which is calculated based on the average daily salary rate.
3. Notification on rescission of the employment contract shall include:
(1) ground and reason for dismissal from work and, in case of offering another job to the employee, also the title of the position, the amount of the salary or the absence of possibility to offer another job;
(2) year, month, day of dismissal from work.
4. […].
5. […].

▶ Labour Code (LC)
→ Section 116 LC provides that:
1. In case of liquidation of an organisation or reduction in the number and/or staff positions of employees, the employer shall be obliged to submit data on the number of dismissed employees (in accordance with profession, age and gender) to the authorised state administration body of the Government of the Republic of Armenia in the field of employment and to the representative of the employees not later than two months prior to rescinding the employment contracts, where it is envisaged to dismiss more than ten percent of the total number of employees, but not less than 10 employees during two months (mass dismissals).
2. Cases of dismissals of employees working under an employment contract concluded for a fixed time limit and under a seasonal employment contract shall not be deemed mass dismissals where they were dismissed from work without violation of the time limits specified in the contracts.
Note: In 2020, the HO-49-N of 21 January 2020 (in force 22 February 2020) only deletes the word “administration” from the name of the body in § 116(1).

▷ Section 116 LC requires the employer to inform the representative of the employees, but does not impose a formal obligation to consult or negotiate with a view to reaching an agreement.

▶ Labour Code (LC)
→ Section 116 LC provides that the employer shall submit the information about the number of dismissed employees to the authorised state administration body of the Government of the Republic of Armenia in the field of employment […] not later than two months in advance.
Note: in 2020 the HO-49-N of 21 January 2020 (in force 22 February 2020) only deletes the word “administration” from the name of the body in § 116(1).

▶ Labour Code (LC)
→ Section 116 LC provides that the employer shall submit the information […] to […] the representative of the employees […] not later than two months in advance.

▷ No approval by the public administration or judicial bodies is required for collective dismissals.

▷ No approval by workers’ representatives is required for collective dismissals.

▷ No statutory priority rules based on social considerations, age or job tenure were found for the selection of employees in collective dismissals.

▷ No statutory priority rules for re-employment of workers dismissed for economic reasons were found in the examined provisions.

▶ Labour Code (LC)
→ Section 113(3) LC provides that: The employer shall have the right to rescind the employment contract based on the grounds provided for by points 2, 3 and 4 of part 1 of this section, where the employer, within his or her possibilities, has offered the employee another job corresponding to his or her professional competence, qualification, health state, and where the employee has rejected it.
Where the employer does not have a possibility to offer another job, the employment contract shall be rescinded without offering other job to the employee.

▷ Two regimes apply:
▻ One average monthly salary for liquidation, reduction of the number/staff positions, and reinstatement in the previous position (§ 113(1)(1), (2) and (4)).
▻ Tenure-based scale (10 / 25 / 30 / 35 / 44 average daily salaries) for the other listed non-fault grounds.
▶ Labour Code (LC)
→ Section 129 LC provides that:
1. In case of rescinding the employment contract on the grounds provided for by points 1, 2 and 4 of part 1 of section 113 [liquidation, economic reasons or reinstatement], of this Code, the employer shall pay dismissal benefit to the employee in the amount of his or her average monthly salary, whereas in cases provided for by points 3, 7 and 11 of part 1 of section 113 [inaptitude, incapacity or retirement], as well as point 9 of part 1 of section 109 [change in conditions of employment] and section 124 [military services], where the employment contract is rescinded, the employer, taking into consideration the continuous work experience of the employee, shall pay the employee a dismissal benefit:
(1) where the employee has worked for up to one year — in the amount of ten-fold of the average daily salary;
(2) where the employee has worked from one to five years — in the amount of twenty-five-fold of the average daily salary;
(3) where the employee has worked from five to ten years — in the amount of thirty-fold of the average daily salary;
(4) where the employee has worked from ten to fifteen years — in the amount of thirty-five-fold of the average daily salary;
(5) where the employee has worked for up to fifteen years and more — in the amount of forty-four-fold of the average daily salary.
Payment of dismissal benefit may be envisaged for a longer period and/or in a larger amount in accordance with the collective agreement or employment contract.

▶ Labour Code (LC)
→ Section 129 LC (see full text above).
▷ In cases of liquidation or reduction of the number of employees (§ 113(1)(1)–(2)), the dismissal benefit equals one average monthly salary. There is no separate redundancy payment distinct from this amount.