Armenian employment law governs the relationship between employers and employees, ensuring that both parties have rights and obligations that must be respected. As an employee, it is important to understand your legal rights and responsibilities to ensure that you are protected and treated fairly in the workplace. (If you don’t think that your rights are protected, then it’s a good idea to hire a lawyer). In this article, we will explore the key aspects of Armenian employment law and what you need to know as an employee.
Employment Contracts in Armenia
In Armenia, an employment contract is a legally binding agreement between an employer and an employee. You must understand the terms and conditions of your employment contract, as this sets out your rights and obligations as an employee. Under Armenian law, an employment contract must include the following information:
- The name and address of the employer and employee
- The date of commencement of employment
- The job title and description of duties
- The place of work
- The duration of the contract (if it is a fixed-term contract)
- The hours of work and rest periods
- The amount of remuneration and method of payment
- The length of the notice period required for termination of employment
Employment contracts can be written or verbal, but it is recommended that you always have a written contract to avoid any confusion or misunderstandings in the future.
Corporate Law in Armenia
Corporate law in Armenia governs the formation, organization, and management of corporations, as well as the rights and responsibilities of shareholders and directors. The law seeks to create a favorable environment for businesses to operate and attract investment into the country. The key aspects of corporate law in Armenia are:
Incorporation of a Company in Armenia
To incorporate a company in Armenia, the following steps must be followed:
- Reserve a company name with the State Register of Legal Entities.
- Prepare the company’s Articles of Association, which must include details such as the company’s name, address, objectives, and share capital.
- Submit the Articles of Association to the State Register of Legal Entities, along with other required documents such as identification documents for the directors and shareholders, and the payment of incorporation fees.
- Obtain a registration certificate from the State Register of Legal Entities.
Shareholders and Share Capital
In Armenia, a company can have one or more shareholders, who are the owners of the company. The Articles of Association of the company must specify the number of shares and the amount of share capital of the company.
Shareholders have the right to attend and vote at general meetings, receive dividends, and transfer their shares to other individuals or entities. However, the Articles of Association may contain provisions limiting the transferability of shares or other rights of shareholders.
Directors and Management
The management of a company in Armenia is vested in its board of directors, which is responsible for the overall direction and management of the company. The Articles of Association of the company will set out the powers and duties of the board of directors.
Directors have a fiduciary duty to act in the best interests of the company and its shareholders. They must exercise their powers and duties with care, diligence, and skill, and avoid conflicts of interest.
Corporate governance is an important aspect of corporate law in Armenia. The country has implemented various regulations and guidelines to ensure that companies operate in a transparent and responsible manner.
The Central Bank of Armenia has issued guidelines on corporate governance for banks and other financial institutions. The guidelines set out principles such as the separation of the roles of the chairman of the board and the CEO, the composition of the board of directors, and the establishment of committees to oversee risk management and audit.
Corporate Governance
The Armenian Stock Exchange has also developed a code of corporate governance for listed companies. The code contains provisions on the composition of the board of directors, the responsibilities of directors, the rights of shareholders, and the disclosure of information.
Working Hours and Overtime
The standard working week in Armenia is 40 hours, and employees are entitled to at least one day off per week. Overtime work is permitted, but it must be at most four hours per day or 180 hours per year. Employers must pay overtime at a rate of at least 150% of the employee’s normal hourly rate.
Minimum Wage and Benefits
The minimum wage in Armenia is set by the government and is adjusted periodically. As of 2021, the minimum wage is 68,000 AMD per month. Employers must pay their employees at least the minimum wage, and failure to do so can result in legal action.
Employers must also provide certain benefits to their employees, including:
- Social security contributions
- Health insurance
- Paid vacation leave
- Sick leave
- Maternity and paternity leave
- Public holidays
Armenian employment law prohibits discrimination based on race, gender, age, religion, political beliefs, disability, or any other grounds. Employers must provide equal opportunities to all employees and ensure that they are not discriminated against in any way.
Harassment of any kind is also prohibited under Armenian law, and employees have the right to a workplace free from harassment. This includes sexual harassment, bullying, and any other form of harassment that could be considered offensive or intimidating.
Termination of Employment
Under Armenian law, both employers and employees have the right to terminate an employment contract. Employers must give their employees notice of termination, the length of which depends on the length of service. The minimum notice period is one month for employees with less than two years of service, and two months for employees with more than two years of service.
Employees can also terminate their employment contract by giving notice to their employer. The length of the notice period depends on the terms of the employment contract.
Armenian employment law provides a framework of rights and obligations for both employers and employees. It is important that you understand your legal rights and responsibilities to ensure that you are protected and treated fairly in the workplace. This includes understanding the terms and conditions of your employment contract, your entitlements to working hours, minimum wage, benefits, and your rights to a workplace free from discrimination and harassment. By understanding these key aspects of Armenian employment law, you can be confident in your rights and responsibilities as an employee.
If you have any kind of problem at your workplace or outside your workplace, and you think that your rights are violated, you should find help from the legal support service team. All problems are easy to solve with and in the law.
