---
title: "Armenia Termination and Severance 2026"
description: "Armenia 2026: cause required from day one, banded notice up to 60 days, 1 month salary severance on redundancy, final pay due same day."
canonical: https://www.teamed.global/country-hiring-guides/armenia/termination-and-severance
---

Armenia · Termination child

Served by Teamed vetted partner-entity network in Armenia

# How do you *terminate an employee in Armenia* in 2026?

Armenia owes every permanent employee severance from their first day of service: one full month's salary on redundancy, no qualifying period. That zero-threshold rule, backed by a cause-required dismissal regime and banded notice running up to 60 days, makes Armenia one of the more protective labour markets in the South Caucasus.

Last reviewed 12 June 2026 · Armenia guide

![A view of Mount Ararat framed by Yerevan rooftops at dusk, warm amber light across the city.](/images/country-guides/armenia-termination-severance.webp)

Illustration · Yerevan, Armenia

Answer.cite this

You must have a lawful reason to dismiss any permanent employee in Armenia. Notice is banded by tenure under [Article 113](https://armenian-lawyer.com/business-immigration/armenia-termination-procedures-notice-severance-protections/). It starts at 14 days for under one year of service. It rises to 35 days for one to five years, 42 days for five to ten years, 49 days for ten to fifteen years, and 60 days for fifteen or more years or redundancy.

On redundancy or liquidation, every employee gets 1 month average salary, no matter how long they have worked. On unsuitability or health grounds, a banded formula applies instead. It pays 10 days average daily salary for under one year of service and rises to 4 months average salary for fifteen or more years.

Protection against unfair dismissal starts on the first day of permanent employment. There is no qualifying period. All final pay, including severance and accrued leave, must be paid on the last working day (Article 130).

![A stone archway inside a traditional Armenian monastery courtyard, dappled afternoon light.](/images/country-guides/armenia-termination-polaroid-1.webp)

Protected from day one

## What grounds permit termination in Armenia?

Armenia does not allow dismissal without a reason. The [Labour Code](https://armenian-lawyer.com/business-immigration/armenia-employment-termination-laws-requirements/) sets a fixed list of lawful grounds. A dismissal outside that list is not valid from the first day of permanent employment.

The main lawful grounds are redundancy, company liquidation, employee unsuitability (confirmed by evaluation), health incapacity, refusal to accept a material change to working conditions, and gross misconduct.

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 standard probation period (up to 6 months for managerial or specialist roles by written agreement), 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 the correct banded notice in writing, calculated from the table under Article 113. For redundancy, the notice period is the same regardless of tenure.
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.

## How much notice must you give an employee in Armenia?

Notice is banded by how long the employee has worked, for non-disciplinary terminations ([Article 113](https://armenian-lawyer.com/business-immigration/armenia-termination-procedures-notice-severance-protections/)). Redundancy and liquidation are different. They always require 60 days notice, whatever the employee's tenure.

An employee resigning from a permanent contract must give at least 30 days written notice. They can withdraw that resignation within three days of submitting it (Article 110).

| Continuous service | Employer notice (non-disciplinary) |
| --- | --- |
| Under 1 year | 14 days |
| 1 to 5 years | 35 days |
| 5 to 10 years | 42 days |
| 10 to 15 years | 49 days |
| 15 years or more | 60 days |
| Redundancy or liquidation (any tenure) | 60 days |

Notice for redundancy is the same as the cap for long-service non-disciplinary dismissals: 60 days. 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.

## How is Armenian severance pay calculated?

The severance amount depends on the reason for dismissal ([Article 129](https://profin.am/en/termination-of-employment-agreement-in-armenia/)). Redundancy or liquidation is straightforward: every employee gets 1 month average salary, regardless of how long they have worked.

For dismissals on unsuitability, health incapacity, or refusal to accept changed conditions, the amount depends on tenure. It ranges from 10 days average daily salary for the shortest service up to 4 months average salary for the longest.

| Ground for dismissal | Continuous service | Statutory severance |
| --- | --- | --- |
| Redundancy or liquidation | Any tenure | 1 month average salary |
| Unsuitability, health, or changed conditions | Under 1 year | 10 days average daily salary |
| Unsuitability, health, or changed conditions | 1 to 5 years | 1 month average salary |
| Unsuitability, health, or changed conditions | 5 to 10 years | 2 months average salary |
| Unsuitability, health, or changed conditions | 10 to 15 years | 3 months average salary |
| Unsuitability, health, or changed conditions | 15 years or more | 4 months average salary |
| Probation dismissal | Any | None |

Armenian Labour Code · Article 129 (Severance)

Severance applies from the first day of permanent employment on qualifying grounds. The 1 month redundancy payment is the minimum floor; employers may agree enhanced terms. All severance, unused leave compensation, and final salary must be settled on the employee's last working day under Article 130.

Source: [Vardanyan and Partners, Armenian Employment Termination Guide](https://armenian-lawyer.com/business-immigration/armenia-termination-procedures-notice-severance-protections/)

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.

## When do mass dismissal rules apply in Armenia?

Mass dismissal rules apply when you plan to dismiss more than 10% of your total workforce and at least 10 employees within 60 days. Both conditions must be met at the same time.

You must notify the State Employment Service and employee representatives at least 60 days before the dismissals take effect.

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 60 days 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 60 days advance notification period is the same as the flat redundancy notice period, so in practice the two run concurrently when a mass dismissal is implemented on the statutory minimum timeline.

Bankruptcy is an exception: if a court issues a bankruptcy judgment, the employer must notify within three days of that order rather than the standard 60 days.

Each dismissed employee retains their individual right to the 1 month average salary redundancy payment regardless of whether the dismissal is individual or part of a mass event.

## Mutual termination as a clean exit in Armenia

The Labour Code lets both parties end employment by mutual written agreement at any time. No notice period is required. There is no minimum severance beyond what you both agree.

A mutual agreement removes the need to show a lawful ground. It also removes the risk of a wrongful dismissal claim. The agreement must be genuinely voluntary and in writing.

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. The filing window is disputed in sources, with references to one month and two months from the dismissal date. Employers should assume the shorter window is the safe reference point. Reinstatement is the primary remedy; back-pay for the period of unlawful exclusion is also available.

## How Teamed runs Armenia terminations

Teamed is your legal [employer of record](/lp/employer-of-record) in Armenia for [**from $599 per employee per month**](/pricing). There is **zero FX mark-up** in any currency. The termination process, documentation, and final-pay settlement all run through Teamed's Armenia operations.

We calculate notice, apply the severance formula, prepare the lawful-grounds documentation, and run final payroll on **one platform**. The decision to dismiss, on what grounds, and on what terms is always yours.

**Real HR and legal experts** manage your Armenia hires from the first offer letter through every payroll run and statutory filing. **An actual person** handles your account, not a bot queue. There is **no setup fee** and **no exit fee**, and employer cost **passes through at cost, itemised** on every invoice.

The split of responsibilities under EOR for Armenia terminations:

| What Teamed handles | What the client decides |
| --- | --- |
| Banded notice calculation against the Labour Code schedule | Whether to dismiss, on which grounds, and when |
| Severance formula applied to the correct grounds and tenure band | Whether to offer enhanced severance above the statutory minimum |
| Lawful-grounds documentation and written dismissal order | Performance standards and whether grounds are met |
| Mutual termination agreement drafting where applicable | The commercial terms of any agreed settlement |
| Final payroll: severance, accrued leave, salary, all settled on the last working day | Communication with the wider team and the employee |
| State Employment Service notification for mass dismissal events | Business rationale for any workforce reduction |

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. An Armenia contractor who converts to payroll keeps their record, and that same employee can **graduate** from EOR to your own Armenia entity without switching systems. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see when the model flips. EOR is the right model for a first Armenia hire, **until it isn't**. Start from the Armenia hiring overview.

Key sources: [Vardanyan and Partners termination guide](https://armenian-lawyer.com/business-immigration/armenia-termination-procedures-notice-severance-protections/), [Profin Consulting Article 129 analysis](https://profin.am/en/termination-of-employment-agreement-in-armenia/), and [Vardanyan and Partners on termination law requirements](https://armenian-lawyer.com/business-immigration/armenia-employment-termination-laws-requirements/).

## Frequently asked questions

Does Armenia require a reason to terminate an employee?

Yes. Armenia does not permit at-will termination for permanent employees. The Labour Code sets a closed list of lawful grounds, including redundancy, liquidation, unsuitability, health incapacity, and gross misconduct. A dismissal outside these grounds is void, and the employee may claim reinstatement. Unfair dismissal protection applies from the first day of permanent employment with no qualifying period.

How much notice must an employer give in Armenia?

Notice is banded by tenure for non-disciplinary terminations: 14 days for under one year of service, 35 days for one to five years, 42 days for five to ten years, 49 days for ten to fifteen years, and 60 days for fifteen or more years. Redundancy and liquidation carry a flat 60 days notice at any tenure.

Who is entitled to severance pay in Armenia?

All permanent employees dismissed on redundancy or liquidation grounds are entitled to 1 month average salary, with no minimum service requirement. On unsuitability, health, or changed-conditions grounds, the entitlement ranges from 10 days average daily salary for under one year of service to 4 months average salary for fifteen or more years. No severance is owed for dismissals during the probation period.

When must final pay be made in Armenia?

All final payments, including salary, severance, accrued annual leave compensation, and any pay in lieu of notice, must be made on the employee's last working day under Article 130 of the Labour Code. There is no grace period beyond the final day; late settlement is a statutory breach.

When do mass dismissal rules apply in Armenia?

When an employer proposes to dismiss more than 10% of its workforce and at least 10 employees within a 60 days period, both conditions must be satisfied. The employer must notify the State Employment Service and employee representatives at least 60 days before the dismissals take effect. Each affected employee retains their individual severance entitlement.

What is the probation notice period in Armenia?

During probation, either party may end employment with 3 days written notice and no severance obligation. The standard probation maximum is 3 months, extended to 6 months for managerial or specialist roles by written agreement. Probation cannot be extended once fixed, and the employee automatically gains permanent status when probation ends without a termination decision.

Teamed Legal Operations

Armenia's zero-threshold severance rule catches many first-time hirers off-guard. There is no two-year qualifying period, no grace window. The moment an employee completes probation, a redundancy carries a full month's salary severance liability from the next day of service.

A note from Tom Price-Daniel

Armenia owes severance from day one of permanent employment. One month on redundancy, no qualifying period.  
Notice runs from 14 days to 60 days by tenure. Final pay is due on the last working day.  
Get the grounds right and document them. Miss a step and reinstatement is the remedy.

Tom Price-Daniel · Co-founder, Teamed

## Related Armenia guides

- Hiring in Armenia, overviewparent
- Georgia termination and severanceneighbour
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [EOR vs Entity Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)tool
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Armenia's Labour Code sets minimum standards; individual contracts and collective agreements may provide higher entitlements. Verify current requirements with the Ministry of Labour and Social Affairs of the Republic of Armenia or a qualified local employment lawyer before relying on any specific figure or procedure. Filing deadlines for wrongful dismissal claims are disputed in published sources; assume the shorter window applies until confirmed by qualified counsel.