The probation period allows the employer to find out whether or not a new hire is right for the job, and the employee can find out whether the position, work environment, and overall working conditions are suitable for them. Probation period terms may vary, but it is important to keep in mind that they are regulated by Armenian labor law.

Definition of a Probation Period in Armenia

Probation period in Armenia is a period of time that is determined in the Armenian Labor Code and an employment contract. It allows an employer or an employee to unilaterally terminate the contract under certain conditions. 

In addition, according to the Labor Code, the period must be stated in the contract from the very beginning, and the absence of this condition means that the period of the employment contract will be permanent from the very first day of hire. 

It’s important to know that the probation period is not a training period or temporary employment, but a fixed period established by the contract and conditions of its termination.

Lengths of Probationary Periods in Armenia

Article 91 of the Armenian Labor Code states that the probation period can be set for a certain period, with the maximum period being 3 months. The probation period for most jobs can be found within the labor code. 

Employers can set a longer probation period than 3 months in some special cases, such as highly specialized jobs, but they will have to comply with legal limitations and properly justify the extension. If the extension of the period is not properly documented, it is assumed to be 3 months or less.

Permanent or Indefinite Contracts

The probation period can be included in the contract even if it is a permanent or indefinite one. In this case, it will still be no more than 3 months. After the probation period has expired, the employee becomes a permanent worker unless terminated during this period for other reasons in compliance with the law.

Fixed-Term or Definite Contracts

Probation may also be included in a fixed-term labor contract, but it is uncommon. In this case, the probation period should be proportional to the period of the fixed-term contract.

For example, three months of probation on a six-month contract is a more realistic and fair period than one of three months. The start and end of a probation period should be clearly stated in the employment contract. The probation period ends automatically if the employment ends.

Legal Considerations for Probation Periods in Armenia

The Armenian Labor Code states that the probation period is not valid unless it is stated in the employment contract. If the contract has no mention of a probation period, the law presumes that it does not exist. This serves as both a worker’s protection and an employer’s reminder to properly formalize employment terms.

Probationary periods in Armenia do not take away basic Labor protections from the employees. This includes the right to fair working conditions, protection from discrimination, and a safe working environment.

Probationary terms cannot be used to rotate through temporary or seasonal workers without offering job security. Misuse can result in legal problems and penalties under Armenian employment law.

Pay and Working Conditions

Employees on probation in Armenia get the same salary and working conditions as other staff members in equivalent roles. The law does not allow for a reduced wage or fewer hours just because an employee is in the probation phase.

If the employer wishes to make changes in compensation, working hours, or job responsibilities, they must be mutually agreed upon and documented in the contract. For example, if an employer wants to offer training-related duties during the probation period, those duties must be clearly stated in the contract.

Probation does not give employers the right to delay or reduce benefits such as overtime pay, social security contributions, or rest periods. Employees must be registered with the State Revenue Committee, and all relevant tax and social payments must be made from day one.

Termination and Notice

The most important aspect of the probation period in Armenia is the simplified termination. The probation may be terminated by either the employer or the employee without reason if three days’ written notice is given.

This short notice period is an exception to the strict labor regulations on the termination of an employment contract. No severance pay is required, and the employer is not required to comply with formal termination procedures.

It is still illegal to terminate the probationary period due to gender, race, religion, or other beliefs. If the employer terminates the contract on a discriminatory basis, this can result in serious legal consequences.

Expiration of the probationary period without any action by either party results in an automatic continuation of the employee’s work under the general terms of the contract.

Vacation / Holidays

Probation employees in Armenia are entitled to vacation with pay and holidays as well. They have the same rights as other employees.

However, annual paid leave is usually available after six months of employment, meaning that probationary employees do not typically take paid vacation during the first three months. 

If the probationary employee is terminated before six months of work, they may get compensation for unused vacation time during that period. Calculations are based on the actual days worked and paid in accordance with the official wage structure.

Benefits of Probation Periods in Armenia

The probation period in Armenia is beneficial for both the employer and the employee. It allows an employer to test a new employee and gives the employee the opportunity to see if the job is right for them.

  • For Employees

The probation period gives employees time to test the role and see if it matches their career goals, work style, and preferences.

It allows employees to experience the company culture and decide if the workload and management style are acceptable.

Armenian labor law offers strong protection for employees, with legal support available for any violations.

Completing probation can lead to an indefinite contract, which is especially important for young professionals or those entering a new industry.

  • For Employers

The probation period allows employers to assess potential employees in a real work environment.

It helps reduce the risk of hiring the wrong person by observing performance and suitability for the role.

If an employee’s performance is unsatisfactory, the employer can terminate the contract during probation.

Employers are still required to act fairly and must not discriminate against the employee during the probation period.

Conclusion

Hiring employees in Armenia can be a straightforward process, and the probationary periods can benefit both you and potential employees. To make sure you handle probationary periods correctly, get in touch with us at Remote People today. 

Frequently Asked Questions

No. The probation period is not mandatory. Both the employer and the employee must agree on a probation period, and it must be clearly stated in the employment contract. Otherwise,  it does not apply.

The maximum legal probation period is 3 months. However, in exceptional cases, and with the written agreement of both the employer and the employee, it can be extended.

Yes. An employee on probation has the right to be paid the same salary as any other employee in the same position under the Armenian Labor Code.