How do you terminate an employee in Armenia in 2026?

Protected categories add a further constraint: the Labour Code prohibits dismissal of pregnant employees, employees on maternity or parental leave, employees on sick leave, and trade union representatives (except on liquidation). Dismissing an employee who falls into a protected category on any other ground is void regardless of whether the underlying reason would otherwise be lawful.

The five procedural steps below apply to most cause-based dismissals. Gross misconduct (theft, assault, substance use on premises) may result in summary dismissal under a separate Article, but documentation and a written order are still required.

Probation is the exception: during the 3 months probation period (the Labour Code Article 92 ceiling, which a contract cannot lengthen), either party may end employment with just 3 days written notice and no severance obligation.

1. Establish a lawful ground

   Anchor the dismissal to one of the Labour Code's closed list of grounds: redundancy, liquidation, unsuitability, health incapacity, refusal to accept changed conditions, or gross misconduct. Terminations outside these grounds are void.

2. Issue written notice

   Serve written notice under Article 115. On redundancy or closure it is two months, whatever the employee's tenure. On other no-fault grounds it is banded by service, from 14 to 60 days.

3. Document the grounds

   Prepare a written dismissal order citing the specific Labour Code article and the facts supporting the ground. For performance or unsuitability, an evaluation record should predate the order.

4. Notify relevant parties

   Where a mass dismissal threshold is met, notify the State Employment Service and employee representatives within the required period before dismissals take effect.

5. Settle final pay on the last day

   Pay all sums due, including severance, accrued annual leave, and any outstanding salary, on the employee's last working day under Article 130. Late payment is a Labour Code breach.

Redundancy notice is stated in months, not days: two months at any tenure. Contractual notice may be longer; it cannot be shorter than these statutory floors.

During probation the notice obligation for both parties compresses to 3 days. Once probation ends without a decision to terminate, the employee moves automatically to full permanent status and the full notice schedule applies from that date.

No statutory cap on total severance is prescribed by the Labour Code for the standard bands. The amounts above are minimums; collective agreements or individual contracts may provide higher entitlements. Final pay, including severance, accrued annual leave payout, and any salary in lieu of notice, is due on the last working day.

The dual trigger, both the percentage and the headcount threshold, means smaller employers are not automatically caught by the collective rules simply because they dismiss a large share of a tiny workforce, and large employers are not caught by a single redundancy. Both conditions must be satisfied within the two-month window.

On receiving the notice, the State Employment Service coordinates with the employer on redeployment options and may support affected employees with placement services. The two-month advance notification period matches the two-month redundancy notice, so in practice the two run concurrently when a mass dismissal is implemented on the statutory minimum timeline.

Each dismissed employee keeps their individual right to redundancy severance of one month's average salary, whether the dismissal is individual or part of a mass event.

A well-drafted mutual termination agreement in Armenia typically covers the termination date, a payment in lieu of the statutory notice period, any enhanced severance the parties negotiate, settlement of accrued annual leave, and a clause confirming the employee's consent is freely given. Unlike a unilateral employer dismissal, a mutual agreement does not require the employer to establish lawful grounds.

Employees retain the right to challenge a mutual agreement if they can demonstrate duress, though in practice this is rare where the agreement sets out fair commercial terms. The agreement should be signed before the termination order is issued.

The mutual route is often preferred for senior exits, performance situations where gathering documentation would be protracted, or where the employer wants certainty and the employee wants speed. Because final pay is due on the last working day under Article 130, the payment schedule in the agreement should be consistent with that deadline.

Wrongful dismissal claims may be pursued by an employee who believes their termination was unlawful. Under Article 265(1), the filing window is two months from the dismissal date. Reinstatement is the primary remedy; back-pay for the period of unlawful exclusion is also available.

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The split of responsibilities under EOR for Armenia terminations:

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Key sources: Labour Code of the Republic of Armenia, official English translation (ARLIS), articles 92, 115, 116, 129 and 130, and Vardanyan and Partners on termination law requirements.