Learn about the legal processes for employee termination and severance in Armenia
In Armenia, the Labor Code outlines the notice periods required for employment termination. These periods vary depending on who initiates the termination and the length of service of the employee.
When an employer decides to terminate an employee's contract, they are required to provide written notice in advance. The duration of this notice period depends on the reason for termination:
It's important to note that the specific notice periods for service under one year might be subject to different interpretations. It's recommended to consult a legal professional for such cases.
Employees have the right to terminate their employment contract with a notice period of at least one month. There's no requirement to specify a reason for resignation.
In Armenia, employees are entitled to severance pay under specific termination scenarios as outlined in the Labor Code.
If an employer terminates an employee's contract due to company-related reasons such as liquidation, bankruptcy, or employee reduction, the employee is entitled to a severance package equivalent to one month's average salary.
When an employee retires, they receive severance pay equivalent to two weeks' pay, calculated based on their average daily wage.
There is no general statutory requirement or standard practice for severance pay in Armenia in the following situations:
The severance pay entitlements mentioned above are the minimum under the Law. Employers may offer a more generous severance package at their discretion or as per collective bargaining agreements.
The termination process of employees in Armenia is governed by the Labor Code of the Republic of Armenia. Here's a simplified breakdown of the process:
When an employer initiates the termination of an employment contract, they must provide written notice of termination to the employee. The notice period depends on the reason for termination and employee seniority (Labor Code Article 126). On the other hand, employees wishing to resign must provide at least one month's written notice to the employer (Labor Code Article 125).
The employer should provide a detailed termination letter explaining the grounds for termination (if applicable). Employers must also provide a certificate of employment detailing the employee's start and end dates, position held, and salaries. The final paycheck should cover any owed wages and unused vacation days.
Employers can terminate an employee with just cause, such as serious misconduct or consistent poor performance. In these cases, severance pay may not be required. Certain categories of employees, like pregnant employees or those engaged in trade union activities, have extra protections against unlawful dismissal. In case of disputes regarding termination, employees can refer complaints to the Labor and Social Inspection Body of the Republic of Armenia or seek resolution in labor courts.
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