Probationary periods and performance management via EOR in Armenia: Labor code framework
- Natia Gabarashvili
- Nov 17
- 17 min read
Table of contents
TL;DR
Probation in Armenia isn’t a formality; it’s a legal process defined by the Labor Code.
Every new hire must have a written probation clause, in Armenian and English, registered with the State Revenue Committee before work begins.
The standard duration is up to three months (six for senior roles).
During this time, employers must hold written reviews, share clear performance goals, and provide fair feedback.
Employees on probation receive full pay, benefits, and protections, including paid holidays and pension contributions.
Termination requires a written three-day notice, a reasoned explanation, and payroll closure through official filings.
Skipping any of these steps can trigger labor inspection penalties or reclassification of the employee as permanent.
Team Up’s Employer of Record (EOR) in Armenia handles it all, bilingual contracts, performance tracking, payroll registration, and legal filings, so your probation process stays compliant, documented, and risk-free.
Introduction
Hiring in Armenia feels straightforward until you start reading contracts line by line.
Under the EOR probationary period law in Armenia, probation isn’t a handshake or a “wait-and-see” period. It’s a legally defined employment condition governed by the Labor Code of the Republic of Armenia.
Done properly, probation gives you room to evaluate a new hire without long-term risk.
Done poorly, it locks you into full employment status before you’ve had a chance to assess fit.
Armenia’s labor market is open and flexible, but the law expects discipline. Every employment relationship must start with a written agreement, in Armenian, registered with the State Revenue Committee. If you skip those steps, probation doesn’t exist, and compliance unravels.
That’s why global companies expanding into Armenia often rely on an Employer of Record (EOR).
Team Up handles contracts, payroll filings, and legal documentation through its Armenian entity, giving employers full compliance coverage while they focus on performance and team culture.
Probation is more than risk control. It’s clarity, knowing what you can expect from your team and what your team can expect from you.
Let’s dive in.
Understanding probation periods under Armenian labor law
In Armenia, the probationary period isn’t an optional phase of employment; it’s a legally defined clause that sets the rules for how new hires are evaluated.
The term is outlined in Article 91 of the Labor Code of the Republic of Armenia, which treats probation as a temporary condition of employment where both sides, employer and employee, can test the working relationship within strict legal boundaries.
It’s not an informal “trial run.” It’s a binding legal agreement that determines how performance, suitability, and conduct are assessed before an employee becomes permanent.
What the Labor Code says
Under Armenian law, probation serves one purpose:
to verify whether a new hire meets the qualifications and expectations required for their position.
To make it valid, the clause must:
Be written into the employment contract before the employee’s first working day.
Specify the length of the probationary period and the criteria for evaluation.
Be signed by both parties and filed with the State Revenue Committee alongside other employment documents.
If a probation clause is missing or signed after the start date, the law considers the employee fully hired, meaning the company loses the right to end employment without full notice and compensation.
Standard probation limits
The standard probationary period in Armenia lasts up to three months.
For managerial or technical positions, it can be extended to six months, but only if both parties agree in writing.
This flexibility allows employers to assess more complex roles, like engineers or finance managers, where results take longer to measure.
According to the Ministry of Labour and Social Affairs, roughly 58% of Armenian private-sector employers include a probation clause in new contracts, with an average duration of two and a half months. Most are concentrated in Yerevan’s growing service, technology, and logistics sectors, where international employers are most active.
What this means for EOR-managed employment
When hiring through an Employer of Record (EOR) in Armenia, the probation clause isn’t a formality; it’s the first proof of compliance. Team Up structures and registers every probation agreement according to Article 91 requirements: bilingual (Armenian + English), time-bound, signed before onboarding, and documented for inspection.
That structure protects both sides: the employer gains a clear window for performance review, and the employee gains transparency around expectations, rights, and notice terms.
In short, probation in Armenia is the law, not policy. It’s your compliance foundation, and it’s where every legitimate employment relationship begins.
Why probationary periods matter when hiring through an Employer of Record (EOR)
Remote hiring in Armenia as a foreign company isn’t difficult, but it’s precise work.
Every contract, clause, and signature has to line up with the Labor Code of the Republic of Armenia and be filed correctly with the State Revenue Committee.
That’s where an Employer of Record (EOR) becomes not just useful, but necessary.
An EOR acts as your local legal employer, managing every compliance step on your behalf while you retain full control over who you hire and how they perform.
This structure makes probation simple to manage and impossible to mishandle.
How an EOR manages compliance in Armenia
When you hire through Team Up’s EOR, probation isn’t left to interpretation.
Every element of the onboarding process is handled under Armenian law, in the Armenian language, and within the state’s reporting framework.
That includes:
Bilingual employment contracts — drafted in Armenian and English, with Armenian text taking legal precedence in any dispute.
Registration with the State Revenue Committee — so that salary, pension, and income tax filings are automatically tied to the employee’s record.
Written probation clauses — defining the duration, goals, and termination rights in accordance with Article 91 of the Labor Code.
Record keeping — all contracts and performance files stored locally for audits or labor inspections.
This level of compliance ensures your probation periods hold up under Armenian labor scrutiny, not just in principle, but in practice.
Why probation protects both sides
Probation isn’t one-sided.
It protects the employer, who gains flexibility to assess performance, and the employee, who gains clarity on expectations and legal security during evaluation.
For employers, it means the ability to terminate early with written notice if the hire doesn’t meet agreed standards.
For employees, it guarantees fair pay, documented feedback, and the right to full employment if they pass the period successfully.
Probation only works when both rights are balanced.
That’s the legal foundation Team Up’s EOR structure is built on: flexibility for business, transparency for people.
EOR vs DIY hiring in Armenia
Managing probation directly as a foreign employer means setting up a legal entity, registering with the State Revenue Committee, and hiring a local legal representative to sign contracts in Armenian.
You’ll also need to maintain payroll systems, pension submissions, and quarterly labor reports.
It’s doable, but slow, costly, and easy to get wrong.
Through an Employer of Record services in Armenia, those obligations shift to a local expert team.
Team Up already operates a registered Armenian entity, so your employment contracts, tax filings, and probation clauses are fully compliant from day one.
The difference is practical:
With an EOR, your first hire in Armenia can start within two weeks.
On your own, it can take months to establish an entity and clear labor registration.
Probation becomes one less thing to worry about, structured, local, and lawful from the start.
Structuring a legally compliant probation period via Employer of Record (EOR) in Armenia
If a probation clause isn’t written, filed, and time-bound, it’s not valid under Armenian labor law.
The Labor Code of the Republic of Armenia is clear: probation must be documented before the first working day, and it must include the exact terms of evaluation, notice, and duration.
This is where Team Up’s EOR framework turns a complex legal process into a reliable system. Every probation clause we manage in Armenia is bilingual, state-registered, and backed by local legal review.
How Team Up structures compliant Armenian contracts
Each employment contract under Team Up’s Armenian entity is drafted in compliance with Article 91 of the Labor Code and structured to protect both parties.
Written clause: Probation is included as a legally binding part of the contract, never as an appendix or verbal agreement. The clause explicitly defines the start date, purpose, and legal conditions of the probationary period.
Defined duration: The standard probationary period is 90 days. For senior specialists, it can be extended to six months, but only through mutual written consent. No open-ended terms, no ambiguity.
Objective criteria: The clause specifies measurable factors used for evaluation, such as project delivery timelines, communication quality, and role-specific KPIs. Armenian law expects transparency in how performance is judged.
Clear termination rules: Either party can end employment during probation with a three-day written notice. Team Up ensures that notice letters are bilingual, signed, and logged for legal proof.
Armenian + English bilingual format: All contracts are written in Armenian and English, with the Armenian version holding legal authority in case of a dispute. This dual-language format guarantees full comprehension and enforceability.
State registration: Every employment agreement, including its probation clause, is filed with the State Revenue Committee before onboarding. That filing activates payroll registration, pension contribution tracking, and tax reporting.
With these steps, probation becomes part of a documented, state-recognized employment record, not a vague “trial period” that could collapse under inspection.
EOR vs direct hire in Armenia
Process Area | Team Up EOR Model | Direct Hire by Foreign Company |
Contract Language | Bilingual (Armenian + English) reviewed by legal counsel | Requires certified translation and notarization |
Tax Registration | Automatically handled through Team Up’s local entity | Must register directly with State Revenue Committee |
Probation Clause | Pre-drafted and compliant with Article 91 | Must draft independently; risk of invalid clause |
Filing & Storage | Filed before start date; stored locally for audits | Manual submission required; higher chance of delays |
Payroll & Pension | Processed and reported monthly via EOR system | Separate setup for income tax, pension, and social contributions |
Termination During Probation | Three-day bilingual notice issued and filed by Team Up | Requires manual filing and local HR/legal representation |
Legal Liability | Handled by Team Up’s Armenian entity | Full liability rests on foreign company |
Time to Hire | 1–2 weeks | 4–6 weeks minimum |
Team Up’s structure eliminates every common mistake foreign companies make when hiring in Armenia, missing clauses, untranslated contracts, and unfiled terminations.
By embedding compliance into every stage, from offer letter to payroll, Team Up makes the probation period a tool for assessment, not a legal risk.
Performance management during the probationary period
In Armenia, performance management isn’t a buzzword; it’s a legal expectation.
Under Article 94 of the Labor Code, employers must evaluate an employee’s performance during probation through documented, objective, and transparent methods.
It’s not about deciding whether someone “feels like a fit.” It’s about proving, with evidence, whether they met the agreed standards.
When managed correctly, performance evaluation protects both the company and the employee. It shows that hiring decisions were fair, consistent, and compliant, not arbitrary.
What does performance management mean under Armenian law
Performance management in Armenia refers to a structured evaluation process conducted within the probationary period. The law expects every employer, including those hiring through an Employer of Record, to define, measure, and record how an employee performs against the role’s defined requirements.
That process should include:
Written expectations in the employment contract or accompanying job description.
Regular feedback and at least one formal written review during probation.
Documented outcomes, confirmation, extension, or termination, based on clear evidence.
Probation is a controlled period of employment, not a loophole for risk-free dismissal.
Employees under probation are still protected by the same statutory rights as permanent staff: equal pay, safe working conditions, paid leave, and lawful notice procedures.
Employer obligations during probation
Employers, whether operating directly or through an EOR, must treat probation as a documented process. That includes:
Regular written reviews: Probation typically includes two to three evaluation checkpoints: after 30 days, mid-probation, and at the end. Each review must be written, signed, and acknowledged by both sides. The absence of records can lead to disputes, because in Armenia, silence counts against the employer.
Clear communication of performance goals: Armenian courts expect evidence that the employee understood their role and expectations. Vague standards don’t hold legal ground. Team Up’s EOR contracts define these expectations at onboarding, linking them to measurable outcomes like project deadlines or sales targets.
Fair, documented feedback: Employers must provide written feedback if performance falls short. That feedback, dated and signed, becomes proof that the employee was informed and given a chance to improve.
Failing to record these steps can expose employers to wrongful termination claims, even during probation.
How Team Up manages performance through its EOR platform
Team Up, as your EOR provider in Armenia, embeds performance management directly into its compliance framework.
Every probationary hire is tracked through a structured, automated workflow that mirrors Armenia’s legal standards.
Here’s how it works:
Probation milestones — the system logs the start and end dates automatically upon contract registration.
Evaluation reminders — both the client and local HR receive alerts before each scheduled review, ensuring no step is missed.
Performance documentation — feedback, meeting notes, and signed evaluations are uploaded to a secure HR file stored within Armenia.
Legal oversight — every document is bilingual (Armenian + English) and formatted according to local inspection requirements.
That’s how Team Up keeps every probationary period in Armenia audit-ready, structured enough for compliance, flexible enough for real management.
Probation ends when there’s proof, not assumption. And proof is what Team Up builds into every file.
Termination during or after the probation period (EOR rules)
Ending employment during probation in Armenia isn’t a matter of preference — it’s a matter of procedure.
The Labor Code of the Republic of Armenia sets clear boundaries for how probationary terminations must be handled. Even within this flexible window, employers are expected to act lawfully, document every step, and close payroll correctly.
An Employer of Record (EOR) services provider in Armenia, like Team Up ensures this process is carried out exactly as the law requires, written, justified, and filed.
How lawful termination works under Armenian labor law
During the probationary period, both parties — the employer and the employee — have the right to terminate the employment agreement. The law allows it, but not without structure.
To meet legal standards, the process must include:
Written notice: Termination must be communicated in writing, typically with a minimum of three calendar days’ notice. The notice should clearly state the reason for termination, usually linked to documented performance outcomes or organizational fit.
Reasoned feedback: The employer is expected to provide brief, factual feedback explaining why the employee’s performance or qualifications didn’t meet expectations. A vague statement like “unsatisfactory performance” isn’t enough if challenged. The reasoning must align with prior feedback shared during probation.
Final payroll and tax closure: Once the notice period expires, the employer must settle all outstanding wages, unused vacation pay, and social contributions. These payments must be reported to the State Revenue Committee and reflected in the employee’s official income record.
Failure to follow these steps can reclassify a “probationary termination” as a wrongful dismissal. If that happens, the employer may be ordered to pay back wages, reinstate the employee, or cover fines imposed by the Labor Inspection Body of Armenia.
How Team Up manages terminations through its EOR model
In Armenia, the technical side of termination, filing paperwork, calculating payroll, and notifying authorities, is what exposes most companies to risk.
That’s exactly what Team Up’s Employer of Record model handles automatically.
Here’s how it works in practice:
Bilingual notice letters are prepared and delivered to the employee, signed by both parties.
Payroll and pension filings are calculated and submitted to the State Revenue Committee on the day of termination.
Termination certificates are issued, confirming lawful completion of employment under the probation clause.
Employee records, including performance notes, feedback, and payment receipts, are stored in a secure local HR file, ready for inspection if needed.
This structure removes every weak link in the process.
Employers get flexibility to act quickly when a hire doesn’t fit.
Employees get a lawful, documented exit with full pay and closure.
And Team Up ensures that both sides stay compliant, right down to the last signature.
Employee rights during probation in Armenia
Probation doesn’t strip away a worker’s protections. It simply defines how performance is evaluated at the start of employment. Under the Labor Code of the Republic of Armenia, employees on probation enjoy the same legal rights as permanent staff from their first working day.
That means fair pay, social protection, and full access to Employer of Record employee benefits in Armenia. Probation only affects how employment can end, not how employees are treated while it lasts.
What probationary employees are entitled to
Full salary and social contributions: Employees on probation must receive their agreed wage in full, paid on schedule, with proper income tax, pension, and social security contributions made through the State Revenue Committee. The employer can’t reduce pay or delay benefits because of probation. Any shortfall is considered a labor violation under Articles 180 and 181 of the Labor Code.
Paid leave and national holidays: Armenia’s public holidays apply equally to probationary and permanent staff. Employees are also entitled to proportional paid annual leave if their contract continues beyond the probation period. Skipping public holiday pay or requesting unpaid work during these days without written consent can lead to fines during inspection.
Equal treatment and anti-discrimination protection: Article 3 of the Labor Code prohibits any discrimination based on probationary status, gender, age, nationality, or other personal factors. Employers must evaluate performance objectively and document reasons for any termination; otherwise, the decision can be challenged as discriminatory.
Safe working conditions: Even during a three-month probation, the employer is responsible for providing a safe workspace, proper equipment, and compliance with occupational health standards. This requirement applies equally to remote and on-site roles.
Labor Inspection trends and compliance
According to the Labor Inspection Body of Armenia, around 40% of employer violations recorded in 2024 involved improper documentation or misclassification of probationary workers, mainly missing contracts, unreported payroll, or unpaid benefits. The inspection office has increased random audits for companies employing foreign staff or operating through remote structures.
That’s where a compliant Employer of Record (EOR) structure makes the difference.
By ensuring every probationary hire is legally registered, fully paid, and covered by social security, Team Up shields global employers from the fines and disputes that still catch many newcomers off guard.
How EORs like Team Up track performance legally
Probation only works if you can prove how it was managed.
Under Armenian labor law, every evaluation, review, and termination must be documented, not discussed informally.
That’s where Team Up’s EOR platform gives employers a real edge.
Every stage of the probation period, from the first review to final confirmation, is captured through a structured employer of record compliance in Armenia designed for Armenian regulations.
Here’s how it works in practice:
Automated HR documentation keeps every employee’s probation file complete, job description, review notes, and manager feedback in one place.
Timestamped records ensure that each review or feedback exchange has a verifiable date and signature.
Legal archiving keeps all documents stored within Armenian jurisdiction, meeting the State Revenue Committee’s record retention standards.
Nothing is left to email threads or private notes. Everything is auditable, in Armenian, and legally valid.
This approach means your team can focus on performance, not paperwork, while Team Up ensures that every action taken during probation is defensible under Armenian labor law.
Common mistakes foreign employers make in Armenia
Even experienced companies can stumble over Armenia’s labor procedures. The mistakes are small on paper, but expensive when inspected.
The most common are:
English-only contracts: Armenian authorities only recognize the Armenian version of a contract. An English-only document carries no legal weight if challenged.
Undefined probation duration: A missing end date means there is no probation; the employee is permanent from day one.
No written feedback or reviews: Without documentation, any termination can be classified as unlawful. Armenian labor courts expect written reasoning and employee acknowledgment.
Misclassifying full-time staff as contractors; Hiring full-time employees under contractor agreements to “skip” probation or payroll taxes in Armenia is a direct Labor Code violation.
Team Up’s EOR model prevents all of these.
Every contract is bilingual, every probation clause is dated and filed, and every review is timestamped inside a local HR system.
That means your employment structure holds up under audits, not just in theory.
Transitioning from probation to full employment
In Armenia, the end of probation isn’t a reset, it’s a continuation. Once the probationary period ends without termination, the employee automatically becomes permanent under the same contract.
That shift triggers a few legal and administrative updates:
The employee’s status is updated in Team Up’s payroll and HR system.
Pension and tax contributions continue seamlessly under the same registration.
A confirmation letter is issued, acknowledging successful completion of probation.
The State Revenue Committee record is updated automatically through Team Up’s filings.
There’s no re-signing, no new paperwork, and no risk of a missed deadline.
Team Up’s EOR model handles the entire transition quietly in the background, ensuring compliance stays uninterrupted.
It’s a simple, legal handoff, from probation to full employment, with zero administrative noise.
Scaling performance management beyond probation
Probation may end, but documentation doesn’t. Under Armenian labor standards, performance records remain essential if they’re tied to salary adjustments, promotions, or eventual terminations.
That’s why Team Up keeps the same structure running after probation ends. Each employee’s HR file remains active with:
Ongoing review templates for annual or semi-annual evaluations.
Audit-ready document storage in Armenian jurisdiction.
Legal monitoring to ensure that future changes in job scope or pay are recorded properly.
For growing teams, this becomes a compliance safety net, the same legal consistency applied across multiple roles, projects, or offices.
And because Team Up operates regionally, employers expanding across Georgia, Armenia, and Azerbaijan work under one integrated compliance model that keeps records aligned across borders.
Why Team Up’s EOR model fits Armenia’s compliance culture
Armenia’s labor environment is transparent, but strict. Inspectors don’t look for intent, they look for paperwork. Even compliant employers can fail audits if documentation isn’t complete, bilingual, and time-stamped.
Team Up’s EOR framework fits this reality. It was built around precision, documentation, and regional coverage, the same standards applied in Georgia and Azerbaijan.
That’s what makes Team Up the most reliable EOR partner in the Caucasus. Our Armenian entity manages hundreds of compliant employment contracts, all backed by proper labor registration and local legal oversight.
Every clause, review, and payroll record meets national inspection standards, so nothing falls through the cracks.
Final takeaways
Probation in Armenia is not a flexible concept.
It’s a legal structure that governs how new hires are tested, evaluated, and confirmed, and it comes with real documentation duties.
Here’s what matters most:
The probation clause must be written, bilingual, and registered before work begins.
Employees keep full rights to pay, benefits, and protections during probation.
All reviews and feedback must be recorded in writing to stay compliant.
Team Up’s EOR model ensures each step, from the first day of probation to permanent employment, is lawful, traceable, and inspection-ready.
If you’re hiring in Armenia, compliance isn’t an afterthought; it’s your competitive advantage.
Team Up helps you build that advantage from the start, ensuring every hire, every review, and every decision stands on firm legal ground.
Hire in Armenia through Team Up’s EOR model, and make compliance the easiest part of growth.
Frequently asked questions
1. What is a probationary period under Armenian labor law?
A probationary period in Armenia is a legally defined evaluation phase — typically up to three months — under Article 91 of the Labor Code of Armenia. During this time, the employer assesses the employee’s suitability for the role while both sides retain full rights and obligations under Armenian employment law.
2. How long can the probation period last in Armenia?
The probation period in Armenia generally lasts up to three months. For managerial or technical positions, it can be extended to six months, but only by mutual written agreement before employment starts.
3. Is a probationary period mandatory for all employees in Armenia?
No. A probationary period is optional but must be clearly stated in the employment contract. If not mentioned in writing, the employee is automatically considered permanent from the first working day.
4. What rights do employees have during the probationary period in Armenia?
Probationary employees in Armenia enjoy the same rights as permanent staff, including:
Full salary and social contributions
Paid public holidays and proportional annual leave
Protection from discrimination and arbitrary dismissal
Coverage under Armenia’s labor safety and health standards
5. Can an employer terminate an employee during probation in Armenia?
Yes, employers can terminate employment during probation, but only through a written notice (usually three days). The employer must also provide documented feedback and pay all wages, taxes, and benefits up to the termination date.
6. How does Team Up’s EOR model handle probation in Armenia?
Team Up’s Employer of Record (EOR) service manages all probation compliance steps:
Drafting bilingual (Armenian + English) contracts
Filing with the State Revenue Committee
Logging reviews and performance milestones
Managing payroll, taxes, and legal filings automatically
This ensures every probation clause and decision meets the Labor Code’s requirements.
7. What is performance management under the Armenian Labor Code?
Under Article 94, performance management means a structured evaluation of an employee’s results during the probation period. Employers must hold regular written reviews, communicate performance expectations clearly, and document all feedback fairly.
8. What are common mistakes foreign employers make during probation in Armenia?
The most frequent compliance errors include:
Using English-only contracts is not recognized by local authorities
Leaving probation duration undefined
Failing to record feedback in writing
Misclassifying full-time workers as contractors to avoid probation rules
Working with an EOR in Armenia, like Team Up, prevents these mistakes through full legal documentation and registration.
9. What happens after a probation period ends in Armenia?
If the employee passes probation, the employment automatically continues as permanent. Team Up updates payroll and pension filings, issues a confirmation letter, and keeps all records in compliance with Armenian labor inspection standards.
10. Why should companies use an Employer of Record for probation and performance management in Armenia?
Because an EOR in Armenia removes compliance risk entirely. Team Up ensures that probationary periods, evaluations, and terminations are conducted within the law using automated HR documentation, timestamped records, and bilingual contracts. It’s the fastest and safest way for global employers to hire and manage teams under Armenia’s labor code.
