Armenia is fast becoming an emerging market for U.S.-based tech companies that are in search of remote talent to add to their team. With a deep talent pool, cost-effective labor, lower taxes for employers, an emphasis on STEM education and tech-focused education, a rapidly growing economy, and familiarity with Western work culture, Armenia provides hiring companies with a competitive advantage in hiring.
When you consider building a team with remote workers in Armenia, it is important to know and understand the labor laws in Armenia. Tech companies that do not adhere to the local labor laws may be subject to compliance fines and restrictions that can impact your business — which makes an employer of record in Armenia a valuable asset.
Contact Truss today to learn more about our end-to-end global hiring solution!
READ MORE: The Competitive Benefits of Hiring Remote Teams in Armenia
A Guide to Growing Your Team and Labor Laws in Armenia
The employment laws in Armenia are governed by the Labour Code of the Republic of Armenia and have been put in place to protect the rights of workers in the country — including remote workers. These guidelines establish a set workweek, minimum wages, paid leave guidelines, restrictions for hiring and firing employees, overtime restrictions, and more employee protections.
Here is a better look at the different aspects of labor laws in Armenia:
Employment Contracts and Termination for Remote Workers in Armenia
When U.S.-based tech companies hire remote software developers and engineers in Armenia, it is important that they remain compliant with the local labor laws, and it starts with employment contracts. Armenia mandates that tech companies provide digital employment contracts when hiring in the country that must be registered with the State Revenue Committee. Remote tech employees in Armenia will have a standard probation period of three months based on the current labor laws. To better protect workers, employment laws in Armenia provide a long list of lawful reasons for termination and employers cannot terminate employees without just cause.
Work Hours, Overtime, and Leave in Armenia
Armenian labor laws have established a standard 40-hour work week based on five 8-hour days. When employees are asked to work overtime and extra hours, they cannot work more than 12 hours per day under the current employment laws and cannot work more than 48 hours per week. Remote employees in Armenia will receive 20 – 28 days of paid leave per year that is based on employment conditions and is in addition to 12 paid public holidays.
List of Paid Holidays in Armenia
- New Year – January 1 and January 2
- Christmas and Epiphany – January 6
- Remembrance Day and National Army Day – January 27 and January 28
- International Women’s Day – March 8
- Armenian Genocide Remembrance Day – April 24
- Labour Day – May 1
- Victory and Peace Day – May 9
- First Republic Day – May 28
- Constitution Day – July 5
- Independence Day – September 21
- New Year’s Eve – December 31
Employee Compensation and Benefits in Armenia
Employee pay and benefits are important aspects of hiring for U.S.-based tech companies to understand. The Labour Code of the Republic of Armenia has established a minimum monthly wage for employees that stands at 75,000 Armenian Dram (AMD) and is equal to about $205 USD per month. When employees are asked to work overtime, it is paid for at a premium rate that is typically 2x the standard hourly wage.
Additional employee benefits in Armenia include sick leave and maternity leave that are used to protect the employee’s job. The Armenian labor laws ensure that an employer must keep an employee’s position for up to 120 consecutive days — or 140 total days in a year — when absence is due to a non-work related illness, and employees will continue to receive statutory benefits. Female employees receive 140 days of paid maternity leave — 70 before birth and 70 after birth — that can be extended when there are complications.
READ MORE: Things You Need to Know About Hiring in Armenia
Benefits of Hiring Truss as Your Employer of Record in Armenia
Peace of Mind. That is the primary benefit of partnering with an employer of record when you hire remote employees in Armenia.
U.S.-based tech companies that hire in Armenia need to be familiar with and remain compliant with the labor laws in Armenia — which can be complicated. An employer of record takes on the legal responsibility of managing remote employees in different parts of the world, and Truss has an established legal entity in Armenia, that makes us a valuable partner for hiring companies.
Truss has years of experience in Central Asia, Eastern Europe, and the Caucasus finding, recruiting, hiring, onboarding, and managing remote employees. We will build a list of qualified candidates based on your list of skill and salary requirements for you to choose from. When you find the right fit for your team, Truss will onboard your remote employees and will manage global payroll. Truss as your employer of record in Armenia will ensure that you remain compliant with local labor laws and avoid potential fines.
Contact Truss today to learn more about how we can help you build your team in Armenia!
