Legal Alert – August 2024 Amendments to the Labor Code of Armenia:

Introduction of Work-Based Learning Provisions

Overview of the Amendment

On 24 June 2024, the Law on Amendments to the Labor Code of the Republic of Armenia was enacted, marking a significant update to the Armenia's employment regulations.

Key Provisions of the Amendment

The amendment introduces a new Article 101.1 to the Labor Code, which outlines the framework for employment contracts under work-based learning programs. These contracts are designed to bridge the gap between professional education and practical employment. Key aspects include:

  1. Duration of Employment Contracts: Contracts are to be signed for the duration of the work-based learning program.
  2. Compensation: Employees will be compensated based on the hours worked or the tasks completed.
  3. Nature of Work: Employees must engage in tasks that are relevant to their practical training program.
  4. Regulatory Framework: These employment relationships are further governed by the Law on Professional Education and Training, adopted on 22 May 2024.

Additional Amendments to the Labor Code
Changes have also been made to other sections of the Labor Code to align with this amendment:

  • Article 17 (1.1) now recognizes work-based learners as employees.
  • Article 91 specifies that no probation period is required for work-based learning contracts.
  • Article 95 mandates that such contracts be for a definite period.
  • Article 201.1 allows employers to fund up to five months of professional training, compensating learners with a monthly scholarship equivalent to the minimum wage.

Special Provisions for Young Learners
The amendments address specific needs of learners aged 16-18, ensuring their health, safety, and ethical treatment are prioritized:

  • Employers must provide appropriate work conditions and supervision by qualified personnel.

Background and Impact

Prior to this amendment, the relationship between employers and student learners was unregulated, leading to potential disputes with the authorities over unregistered employment. This amendment clarifies the legal framework, defining clear roles and responsibilities for both parties and facilitating a smoother transition from education to employment.

Conclusion
These amendments to the Labor Code are designed to foster a structured and beneficial environment for learners, aligning educational outcomes with business needs and enhancing the integration of professional education into the labor market.