Termination of Employment in Armenia

1) What types of employment termination are there?

The termination of an employment contract may occur by mutual agreement of the parties, at the initiative of either the employee or the employer, due to changes in essential working conditions, expiry of employment contract or under other circumstances as provided by Labour Law of the Republic of Armenia.

2) What are the legal grounds for termination initiated by the employer?

The legal grounds for termination of the employment contract by the employer are cases where the organization is liquidated, staff is reduced due to financial or technological reasons, or the employer loses trust in the employee. Termination may also occur if the employee fails to fulfill or improperly fulfills their job responsibilities, is found to be under the influence of alcohol/drugs during working hours, is absent for an entire working day without valid reason, or is deemed unsuitable for the position they hold  or under other circumstances as provided by Labour Law.

3) What are the legal procedures required for terminating an employee?

The law stipulates various mandatory requirements for specific cases of employment termination. However, the general obligations include providing prior notice and, where possible, offering the employee an alternative position within the organization, severance pay (if the employee is entitled), final settlement.

4) What are the mandatory notice periods for termination?

The notice period varies depending on the legal grounds for termination and the duration of the employee’s service with the company. It generally ranges from a minimum of 3 days to a maximum of 60 days.

5) What severance pay and compensation are employees entitled to?

Upon termination, the employee is entitled to severance pay, compensation for unused vacation days, and a final settlement of all financial obligations.

6) How should employers handle termination due to poor performance or misconduct?

The law grants the employer the right to terminate the employment contract if the employee fails to meet the requirements of the position held or the work performed, or if the employee fails to fulfill or improperly fulfills their duties. The employer is responsible for assessing the employee's suitability for the position or the work assigned. However, in practice, a certification or qualification examination is often conducted to establish strong legal grounds for termination. In such cases, the employer must issue prior written notification to the employee. When termination is based on failure to fulfill or improper fulfillment of duties, the employer is obligated to adhere to the rules governing disciplinary liability.

7) What legal recourse is available to employees in case of unlawful termination?

The employee has the right to challenge any unlawful decision in court.

8) What is the procedure for terminating an employment contract with foreign nationals?

There are no specific requirements or procedures outlined for the termination of contracts involving foreign nationals.

Author: Hasmik Martirosyan