What happens if you do not conclude an employment contract with an employee?

To officially register an employee means to draw up an act of employment and an employment contract, as well as submit an application for registration of a new employee.

Contents

1. No employment contract
2. There is no contract and/or application for registration of a new employee
3. What will happen if you do not formalize foreign employees?
4. What if the — employee is a citizen of an EAEU country?

No employment contract

Fine — 50 times the base rate (1,000 drams) for each employee without a contract.

If you fail to register employees again within a year, the fine doubles for each violation.

Things you need to conclude an employment contract, see in RA Labor Code. The minimum salary is 75,000 AMD. You cannot go below this salary.

There is no contract and / or application for registration of a new employee

The application should be submitted to the tax office. The order depends on when the employee starts working:

1. On or after the day after hire: Application must be submitted no later than the end of the day before the actual start of work.
2. On the day of reception: until 14:00 of that day.

If the application is not submitted, then the employer is fined in the amount of 250,000 drams for each unregistered employee.

What happens if you do not formalize foreign employees?

Here is the procedure for registering an employee:

1. Register on the platform workpermitto get a work permit.
2. Complete the application to grant a foreign candidate temporary residence status on a work basis.
3. Register your vacancy within 15 working days. After this, the Department of Labor and Employment will confirm the application and status of the employee’s residence permit.
4. Attach your employment contract. After this, an employee, a citizen of another country, automatically has an account on this platform. Here he can fill out an application for extension of status if he works for the same employer.

If you conclude an agreement without a residence permit, the employer faces a fine of 50 times the base rate (1,000 drams) for each employee.

If you do not register a foreign employee on the Workpermit platform, then the fine — is 50 times the base rate (1,000 drams). If the same offense is repeated within a year, the fine will double.

What if the employee is a citizen of the EAEU country?

A work permit is not required, but an employee should register on the Workpermit platform to receive a certificate confirming the legality of his residence in the country. On the same platform family members of an employee from the EAEU countries can confirm the legality of their residence in Armenia.

The other steps are the same as when the citizen of the Republic of Armenia applies for a job.

May be useful:

Move2Career — platform for personnel search + job portal

Article “Work and employment contract in Armenia: how to legalize and not be deceived?”