Doing Business In... 2025

ARMENIA LAW AND PRACTICE Contributed by: Aram Orbelyan, Narine Beglaryan, Artur Hovhannisyan, Lilit Karapetyan, Sarkis Knyazyan and Shushanik Stepanyan, Concern Dialog

4.2 Characteristics of Employment Contracts The Labour Code mandates that employment contracts should be concluded or issued in writ - ing and should contain specific terms, such as: • the date, month, year and location of adopt - ing an individual legal act or concluding an employment contract; • the employee’s first and last name, as well as their patronymic name; • the name of the organisation or, if applicable, the first and last name of the employer as an individual, and their patronymic name; • the place of work; • the organisational unit within the company, if applicable; • the date, month and year when the employ - ment begins; • the job title and/or job responsibilities, or a reference to the document defining the func - tions stemming from the position; • the base salary amount (including taxes, social payments, or other mandatory pay - ments stipulated by law) and/or the method used to determine it (hourly, daily, piecework, or monthly rate); • additional allowances, bonuses, subsidies, etc, which are/shall be provided to employees according to established procedures; • the duration of validity for the individual legal act or employment contract if required; • the duration and conditions of the probation - ary period (where applicable); • the work schedule (normal working hours, part-time, reduced working hours, or cumula - tive working time) and the weekly duration (excluding cumulative working time); • the type and duration of annual leave, includ - ing minimum, additional or extended vaca - tion;

ties between parent and daughter or dependent companies (subsidiaries). The daughter compa - ny must not be liable for the obligations of the parent company, but the parent company must bear joint and several liabilities with the daugh - ter company if the parent company (i) has the right to give binding instructions to the daughter company and (ii) transactions are concluded in pursuance of that instruction. Other shareholders of a daughter company also have a right to claim from the parent company compensation for any damages caused to the daughter company by the fault of the parent company – ie, when the damage is caused by the execution of binding instructions given by the parent company. The parent company must bear subsidiary liabil - ity for the debt of the daughter company in the case of bankruptcy of the latter if the bankruptcy is caused by the fault of the parent company – ie, when the damage is caused as the result of the execution of binding instructions given by the parent company. 4. Employment Law 4.1 Nature of Applicable Regulations The primary sources regulating labour relations in Armenia are the Labour Code and relevant international treaties. Specific regulations of the Civil Code and legislation regulating different types of state service (civil service, military and diplomatic service, etc) regulate particular types of labour relations. Finally, specific aspects of labour relations are regulated by the Law on Foreigners, the Law on Labour and Collective Agreements, and internal and individual legal acts of the employer.

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