Hiring in Armenia just got a lot clearer. In 2026, it’s not enough to pick a contract type; you also have to record it properly in the new digital system. The days of “we’ll formalize it later” are over.
This matters because the types of agreements with employees in Armenia determine pay, benefits, working time, probation, termination, and what inspectors see. The Labor Code of Armenia is still the rulebook, but now every choice is time-stamped and visible, which rules out bad intentions in not registering employees.
If you’re a startup or a foreign company hiring locally, getting the structure right on day one saves you from forced conversions to indefinite contracts, back-payments, and messy disputes.
What this article covers: how to choose between employment and contractor agreements, when to use indefinite vs fixed-term, rules for part-time/remote work, internships and probation, the new mandatory digital contract process, and clean termination/renewal hygiene, so your hiring is compliant and audit-proof.
Under the Law of the Republic of Armenia On Amendments and Supplementations to the Labor Code, adopted on December 4, 2024 (Article 2, Part 1, Paragraphs 3 and 4), the origin, modification, and termination of employment relationships must be carried out through a digital system (for example, CoSign). According to Article 17 (Final and transitional provisions), this rule comes fully into force on January 1, 2026.
According to the Law of the Republic of Armenia on Amendments and Supplementations to the Labor Code, adopted on December 4, 2024 (Article 2, Part 1, Paragraphs 3 and 4), the creation, modification, and termination of employment relationships must take place through a digital system, such as CoSign. This requirement officially applies from January 1, 2026, as outlined in Article 17 and the transitional provisions of the same law.
From 2026 onward, backdating employment contracts is no longer allowed. Any attempt to register a contract with a retroactive start date will be treated as a violation, and the system timestamps will make it immediately visible.
The CoSign service is available exclusively for foreign citizens. To get it, you need to email your documents to EKENG at [email protected]. The electronic signature certificate and the signing service are issued for a period of 3 years, and the fee is 30,000 AMD.
Employment relationships are governed by the Labor Code and are now executed inside the SRC digital platform. The contract, working hours, workplace, job duties, leave, and notices are recorded and time-stamped. This makes an employment contract in Armenia visible and auditable end-to-end.
Contractor agreements follow the Civil Code and are not signed in the SRC system. They still show up through taxation in Armenia (invoices, withholding, reports), so patterns of control can be detected. With digital HR data on employees sitting next to tax data for contractors, misclassification is easier to catch.
If the person’s duties, schedule, workplace, and supervision by the employer are clearly defined and registered in the SRC system, then this relationship is treated as an employment relationship under the Labor Code of Armenia.
If, instead, the agreement is only about delivering a specific result, the person works independently (choosing their own time, place, and method) and handles their own taxes, then it’s considered a civil-law relationship, not employment.
With accounting services and accounting services in Armenia, Profin Consulting designs clean documentation and payroll/tax flows so the types of agreements with employees in Armenia match reality and pass inspections.
Under the Labor Code, the safe starting point for an employment contract in Armenia is indefinite. A fixed-term deal is the exception and must be justified (project, seasonal work, substitution, or another lawful ground). This matters for types of agreements with employees in Armenia because benefits, probation period in Armenia, and notice period in Armenia all hinge on the contract type.
The SRC platform now requires you to select the contract type and, for fixed-term, enter a clear validity period or completion condition. That makes silent rollovers visible. If you keep re-entering fixed-term contracts for the same role without a lawful reason, the relationship can convert to indefinite by law, and the digital logs make this easy for inspectors to see.
Repeated fixed-term renewals, short gaps between contracts, or continuing work after the stated end date are all captured by timestamps. For Armenian SMEs and foreign employers, that means tighter renewal hygiene: decide early to close or properly justify and renew.
It’s still employment.
Part-time, flexible, and remote roles are created and managed inside the SRC platform like any other employment contract in Armenia. The system asks for the workplace, working-time regime, and duty description (attach the job-duties appendix).
Part-time staff get the same protections – paid leave and benefits, pro-rated by hours. Overtime and rest-time rules under the Labor Code Armenia still apply; the digital record helps show you followed them.
Use timekeeping and attendance verification tools, keep internal policies up to date, and store manager approvals and decisions in the system. If an inspection is triggered by SRC data, these records show that working hours and leave are handled correctly.
Define clear responsibilities (who approves what), and bring all employee leave documents into the system, including approved leave requests, dismissal orders, and attendance records. Maintain a systematic, easy-to-find record of all actions.
When time, attendance, and leave are recorded and validated correctly, you can prove legally transparent work practices, even if an audit or inspection happens unexpectedly or there’s a dispute.
Internships in Armenia are limited (≈ 2 months, one-time per intern, and about 10% of the workforce). A written agreement is required under the Labor Code Armenia, defines learning goals, supervisor, tasks, and working hours in Armenia.
Internships aren’t automatically employment, yet written form + digital HR records are strongly recommended to avoid misclassification. If control over time/place/duties looks like staff work, it can be treated as employment, bringing rights like paid leave, and payroll obligations.
Stricter rules apply to under-18s. Employees under the age of 18 are not involved in overtime work.
With employees now in the SRC platform, the Labor Inspectorate can cross-check intern logs against digital employee contracts. If an “intern” mirrors an employee’s schedule/duties, reclassification can happen quickly.
Separate intern tasks from employee duties, keep an intern register, store evaluations/certificates, and set clear start/end dates. An accounting firm in Armenia, like Profin Consulting, offering accounting services, can align stipends, taxes, and documentation so your setup fits the types of agreements with employees in Armenia.
You can end the relationship faster than usual, but it’s not “fire at will.” You must:
The platform records who sent what and when; this becomes your proof in a dispute.
“Work for a few weeks, we’ll sign later” is no longer possible. If someone works without a contract/probation entry (which is illegal), you’re effectively running a normal employment relationship, and the system logs will expose the gap.
You can’t set a probation period for:
If in doubt, skip probation and proceed with standard terms.
This approach keeps you predictable, fair, and defensible; your decisions are clear in writing and backed by system time stamps.
Terminations must rely on legal grounds set by the Labor Code. Some old bases are no longer valid (e.g., retirement age). Use the SRC system to issue the act and keep the timing/wording precise—your entries are time-stamped.
Employee resignations are typically 30 days’ notice (may drop to 5 days for illness or other cases allowed by law). Employer-initiated terminations require the correct ground, sequence, and documents in the system. Late or misworded notices are easy for inspectors to spot.
Severance depends on the ground and tenure. Calculate correctly, pay on time, and log delivery of the decision and acceptance of documents. The digital trail (sent, received, signed) is your proof.
For fixed-terms, plan the end date well in advance. Either:
Avoid rolling extensions with short gaps, those patterns can convert the relationship to indefinite.
Be ready for HLIB inspections, mediation, or court. Keep contracts, notices, meeting notes, and payroll proof aligned with what’s in the SRC system. Consistency wins disputes.
We build termination playbooks, draft notice and severance packets, prepare amendment/renewal bundles for fixed-terms, and represent you during HLIB inspections and disputes, making sure every step matches the Labor Code and your SRC digital record.
Starting January 1, 2026, every employment contract in Armenia has to live inside the SRC system, created, signed, amended, and terminated there.
Use employment when you control the work (hours, place, tools) and civil/contractor when you buy a result. Default to indefinite; use fixed-term only with a lawful reason, and manage renewals on time in the system. Part-time, flexible, and remote are still employment, capture hours, workplace, and duties. Keep internships short, documented, and distinct from employee roles. Probation must be in the contract and in the system; notices and timing still matter. For terminations, follow lawful grounds, issue digital notices, and pay severance correctly; your SRC log is your proof. Without a valid digital contract, an employee may lose entitlement to state social guarantees (such as paid leave, maternity benefits, etc.).
If you set the right structure and document it cleanly in the digital platform, you avoid reclassification, back-payments, and disputes, and you make audits straightforward.
Profin can help: picking the right agreement, drafting digital-ready templates, onboarding flows, renewals/terminations, and building an audit-proof record that matches the Labor Code and the SRC system.
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