ARMENIA Law and Practice Contributed by: Narine Beglaryan and Anahit Aloyan, Concern Dialog
up to several thousand times the minimum wage, depending on severity), public apology or publica - tion of court rulings, with the right to additionally recover related property or economic losses. 4.4 Implied Terms Armenian law does not explicitly recognise “implied terms” in the same way as common law jurisdictions. However, the Civil Code establishes that obligations must be performed properly, in accordance with the contract terms, the law and other legal acts. Where specific contractual terms or legal requirements are absent, performance must comply with customary business practices or generally accepted standards. 4.5 Data Protection and Cybersecurity As mentioned in 2.3 Restrictions on Data Processing or Data Security , currently Armenia does not have a dedicated national law on cybersecurity. However, the country is a party to the Budapest Convention on Cybercrime. Cybersecurity crimes are defined under the Criminal Code of Armenia. 4.6 Performance Measurement and Management In Armenia, the most common contractual clauses that allow a customer to manage and measure a supplier’s performance in technology and outsourc - ing agreements are typically derived from the gen - eral rules governing contractor agreements under the Civil Code. These include obligations on the contrac - tor to perform work in accordance with the contract and applicable quality standards, with liability for any defects or delays in delivery. For instance, contrac - tor agreements usually set out clear timelines for the completion of work, including interim milestones where appropriate, and provide the customer with the right to inspect the work at any stage without interfer - ing in the contractor’s methods. Payment provisions are linked to proper performance and acceptance of work, with mechanisms for advance payments, adjust - ments for additional work, or withholding in case of non-performance. Contractors are required to notify the customer of any obstacles, defective materials, or circumstances that could affect the timely or proper completion of the work, and the customer is entitled to direct remedial actions, including correction of defects or termination of the contract if necessary. Subcon -
tracting is permitted, but the contractor remains fully liable for performance. Additional clauses often cover the proper use and safekeeping of customer-provided materials and equipment, confidentiality of technical and commercial information, and warranties over the quality of the delivered work. Together, these provi - sions provide a framework for the customer to moni - tor, assess and enforce supplier performance in a structured and legally enforceable manner. 4.7 Digital Transformation Generally, the contractual terms governing cloud- based technology or outsourcing do not differ sub - stantially from traditional arrangements, and the prin - ciples under the Civil Code still apply. However, in the context of cloud services, particular attention is typically given to: • the safety of the transfer and the location of the data centre; • the reversibility provisions; and • security provisions. Under Armenian law, there is no specific regulation on employee transfers in the context of outsourcing. Instead, the matter is governed by the general provi - sions of the Labour Code, which defines an employ - ee’s essential employment conditions. These include the workplace, salary and the method of its determi - nation, benefits, working hours and rest regime, job classification and titles, job functions, and the type of employment contract. Such conditions may only be changed by the employer in cases of changes in workload, or in economic, technological or organisa - tional circumstances. Any such change requires prior notice to the employee, and if the previous essential conditions cannot be maintained and the employee does not give written consent to continue under the new conditions, the employment contract must be terminated in accordance with the procedures of the Labour Code. 5. Employment Matters 5.1 Employee Transfers Employee transfers may also arise in cases of legal succession. In the event of a corporate reorganisation
16 CHAMBERS.COM
Powered by FlippingBook