Procedure for Concluding and Grounds for Terminating an Employment Contract

Employment relations between an employee and an employer arise based on a written employment contract concluded in accordance with the procedure prescribed by labor legislation or an individual legal act on employment.

Employment Contract

An employment contract is an agreement between an employee and an employer under which the employee undertakes to perform certain work for the employer, while the employer undertakes to provide the employee with the work specified in the contract, pay the agreed salary for the work performed, and ensure the working conditions prescribed by law. The contract must specify, among other things, the amount of the basic salary and/or the method for determining it, the working time schedule, the type and duration of annual leave, and other relevant conditions.

When hiring an employee, the employer is obliged to conclude an employment contract with the employee. An employment contract must also be concluded with employees undergoing a probationary period (the probationary period may be up to 3 months and in cases prescribed by the legislation of the Republic of Armenia, up to 6 months).

Conclusion of an Employment Contract

An employment contract is drawn up in two copies, one of which the employer must provide to the employee within three days after signing the contract. As a rule, an employment contract is concluded for an indefinite period, unless the nature or conditions of the work to be performed make it impossible to establish the employment relationship for an indefinite period.

Grounds for Termination of an Employment Contract

An employment contract may be terminated by mutual agreement of the parties, at the initiative of the employee or the employer, as well as on other grounds established by the Labor Code.

At the initiative of the employer, an employment contract may be terminated, for example, in cases of liquidation of the organization, staff reduction, or the employee’s failure to report to work without a valid reason for the entire working day (shift).

An employer may not dismiss an employee during the employee’s period of temporary incapacity for work or while the employee is on leave, except in the event of liquidation of the organization.