When it comes to hiring employees, having the right agreement in place is crucial. Understanding the types of agreements with employees in Armenia can help both employers and workers avoid disputes, ensure compliance with labor laws, and establish a solid working relationship from the start.
Armenian labor law is designed to protect the rights and interests of both parties, setting clear guidelines on employment conditions, benefits, and termination procedures. However, poorly drafted contracts—or worse, the absence of a proper agreement—can lead to legal complications, financial risks, and misunderstandings.
That’s why it’s essential to be aware of the different types of employment agreements and ensure they are legally sound. Whether you’re an employer looking to hire or an employee reviewing your contract, professional legal guidance can make all the difference in safeguarding your rights and responsibilities.
Now, let’s explore the various types of agreements with employees in Armenia and what each entails.
Employment agreements in Armenia are primarily regulated by the Labor Code, which outlines the rights and responsibilities of both parties, covering everything from working hours to termination procedures. In addition, the Civil Code plays a role when it comes to non-employment agreements—such as service contracts—where the relationship is more independent rather than employer-employee.
Several government bodies oversee labor regulations, including the Labor Inspectorate, which monitors compliance with labor laws, and the courts, which handle disputes if conflicts arise.
Not all work agreements are the same. In Armenia, the two main types of contracts are:
Every work agreement comes with responsibilities for both sides:
When looking at the types of agreements with employees in Armenia, it’s important to understand the key differences between employment contracts and civil law (self-employment) contracts. While both define a working relationship, they have very different legal implications.
Employment contracts fall under the Labor Code, meaning employees benefit from paid leave, social security contributions, and legal protections. These contracts regulate not only the final outcome of work but also the process—such as working hours, job responsibilities, and employer supervision.
Civil law contracts, on the other hand, are regulated by the Civil Code and are typically used for freelancers, consultants, or project-based work. These agreements focus on the final product or service rather than the way the work is performed. They do not provide labor law protections like paid vacation, sick leave, or social security contributions.
Several factors help determine whether a person is truly self-employed or actually an employee under the law:
Classifying a worker correctly is crucial, as misclassification can lead to legal and tax complications. To make the right determination, UK law provides key assessment criteria, including the COFIRM and FAST methods. Learn more about these assessment methods here.
In Armenia, it is illegal for an employer to hire someone under a self-employment (civil law) contract if the person is actually working under employment conditions—such as being required to work from the employer’s office, follow a schedule, and receive hourly wages. Misclassification can lead to legal consequences for the employer, including fines and penalties.
For both businesses and workers, it’s essential to use the right type of contract to stay compliant with Armenian labor laws and avoid potential disputes.
When hiring or accepting a job in Armenia, it’s important to choose the right type of employment contract. Each has its own rules, benefits, and potential pitfalls. Here’s a breakdown of the most common ones:
This is the most common type of employment agreement, with no fixed end date. It provides long-term job security and includes key terms like job role, salary, working hours, benefits, and termination conditions.
Termination Rules:
Common Disputes: Wrongful termination and unclear notice period rules.
ProFin Tip: Make sure your contract clearly outlines termination conditions and performance expectations to avoid legal issues.
These contracts are set for a specific time period or until a particular task is completed.
When to Use:
✔️ Project-based roles
✔️ Seasonal work
✔️ Maternity or sick leave cover
Legal Limits:
Common Disputes: Employers misclassifying permanent roles as temporary, leading to legal issues.
ProFin Tip: Clearly define the contract duration and scope of work to prevent misunderstandings.
Part-time contracts are for employees working fewer hours than a full-time position but still entitled to labor law protections.
Employee Rights:
Common Issues: Employers misclassifying part-time employees as contractors to avoid benefits.
ProFin Tip: Always ensure part-time contracts clearly state working hours and benefits to stay compliant with labor laws.
Temporary employment contracts are used when a company needs extra help for a specific, short-term need—such as a major project, an event, or covering for an absent employee. These contracts are common in industries like agriculture, tourism, and retail during peak seasons.
Duration Limits:
Employee Rights:
✔️ Same protections as full-time employees (on a pro-rated basis).
✔️ Eligible for social security contributions and labor law protections.
Termination Rules:
ProFin Tip: Clearly define the temporary scope in the contract to avoid confusion and legal issues.
Internships provide young professionals or first-time job seekers with practical skills and hands-on experience in a real work environment. Unlike regular employees, interns are there to learn, not just work.
✔️ Interns receive a certificate confirming the skills acquired.
✔️ May be unpaid, but this must be agreed upon in advance.
✔️ Employers must sign a written civil-legal contract (not an employment contract).
✔️ Internship duration is capped at 2 months and cannot be renewed.
✔️ The number of interns cannot exceed 10% of the company’s workforce.
✔️ Special protections apply to interns under 18.
ProFin Tip: Clearly outline the intern’s role, responsibilities, and learning objectives to avoid confusion or misclassification as an employee.
An Independent Contractor Agreement is a civil law contract used for non-employee relationships, where the focus is on delivering a final result rather than following a specific work process.
✔️ Contractors work independently and are not under direct employer supervision.
✔️ They pay their own taxes and social security contributions.
✔️ No entitlement to paid leave, benefits, or labor law protections.
Misclassification—treating an employee as a contractor—can result in fines and legal penalties.
ProFin Tip: Always ensure the contract clearly defines the scope of work, deadlines, and payment terms to prevent disputes.
The probation period allows employers to evaluate a new hire’s performance before confirming long-term employment. At the same time, employees get a chance to assess the work environment and decide if the job is the right fit.
✔️ Full labor law protections apply (working conditions, wages, and benefits remain the same).
✔️ Easier termination process for both sides, but a written notice is required.
ProFin Tip: Always clearly define probation terms in the contract, including expectations and evaluation criteria, to prevent misunderstandings.
When discussing the types of agreements with employees in Armenia, it’s important to understand how contracts can be terminated or renewed under the law.
An employment contract can be legally ended in several ways:
ProFin Tip: Clearly define termination conditions in all types of agreements with employees in Armenia to prevent misunderstandings and ensure compliance with labor regulations.
When dealing with the types of agreements with employees in Armenia, legal disputes can arise if contracts are unclear or not properly followed.
Disputes can be addressed through:
ProFin Tip: Seeking legal consultation before terminating a contract or making major employment changes can help avoid costly disputes and ensure compliance with Armenian labor laws.
Creating a solid employment contract is essential for both employers and employees to avoid misunderstandings and legal issues. When drafting any of the types of agreements with employees in Armenia, it’s crucial to ensure clarity and compliance with labor laws.
✔ Job Title & Duties – Clearly define the role and responsibilities.
✔ Salary & Payment Schedule – Specify the amount, frequency, and method of payment.
✔ Working Hours & Leave Policies – Outline work schedules, breaks, and vacation entitlements.
✔ Termination Conditions – State notice periods, grounds for dismissal, and severance pay rules.
✔ Confidentiality & Non-Compete Clauses (if applicable) – Protect company information and prevent unfair competition.
Vague job descriptions – Leads to disputes over responsibilities.
Missing termination clauses – Can create legal uncertainty during disputes.
Misclassification of employment type – Using civil law contracts instead of employment agreements can result in fines.
ProFin Tip: Always have a legal expert review the contract before finalizing to ensure compliance with Armenian labor regulations and to prevent costly disputes.
No, internships can be unpaid if both the intern and employer mutually agree. However, employers may choose to offer compensation.
If a fixed-term contract is repeatedly renewed without a valid reason, it may be legally reclassified as an indefinite-term contract under Armenian labor law.
No, employment contracts must be in writing to be legally enforceable. The only exception is short-term jobs (under 30 days), where verbal agreements may be valid.
The standard probation period is up to 3 months, but it can be extended to 6 months for specific roles. Certain absences (e.g., sick leave, unpaid leave) do not count toward the probation period.
Navigating the types of agreements with employees in Armenia can be complex, but Profin Consulting is here to make the process seamless and legally compliant. Our team of experts specializes in Armenian labor laws and can help both employers and employees avoid costly mistakes.
✔ Drafting & Reviewing Agreements – Ensuring contracts are clear, legally sound, and tailored to your needs.
✔ Conflict Resolution & Legal Compliance – Helping resolve disputes and ensuring compliance with Armenian labor regulations.
✔ Tailored Advice – Providing guidance on internships, civil law contracts, and employment agreements for international companies.
With our expertise, we help minimize legal risks, prevent disputes, and ensure compliance with Armenian labor laws.
Need expert advice? Contact us today for personalized support on drafting, reviewing, or managing your employment agreements.
At the end of the day, having a clear and legally compliant employment agreement isn’t just about paperwork—it’s about protecting yourself, whether you’re an employer or an employee. A well-structured contract prevents misunderstandings, protects rights, and keeps everything running smoothly.
If you’re an employer, having the right agreement in place means fewer headaches down the line. And if you’re an employee, knowing your rights gives you peace of mind.
Either way, why take chances with something this important? Let Profin Consulting handle the legal details so you can focus on what truly matters—building a successful and stress-free work relationship.
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