
Transition to digitalization of employment contracts
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In brief
The RA Labor Code was supplemented with Chapter 13.1 "Digital system of concluding employment contracts". New amendments to the labor legislation envisage not only the digitalization of signing, amending and termination of new employment contracts, but also extend to the digitalization of previously concluded employment contracts and any agreements attached to them. This comprehensive approach ensures that both current and past employment agreements are integrated into the new digital framework.
In detail
The HO-525-N law, adopted by the National Assembly of the Republic of Armenia on December 4, 2024, regulates the digital system for concluding employment contracts. The implementation of this system will occur in phases.
Phase 1: Starting July 1, 2025, the digital system will be voluntary, allowing individuals and employers to choose whether to sign employment contracts electronically.
Phase 2: Beginning January 1, 2026, the digitalization of employment contracts will become mandatory. From this date forward, all employment contracts must be signed electronically, requiring the use of an electronic signature for both parties involved.
This transition aims to streamline the process of concluding employment contracts and ensure greater efficiency and security in the labor market.
The new digital system will be developed by the State Revenue Committee of RA and it is planned to be integrated with current tax reporting systems aiming at reducing administrative burdens and improving data accuracy across the systems.
The Inspectorate body and Tax authorities will have access to the data for the verification of employment contracts and tax control, and the Migration and Citizenship Service of the RA Ministry of Internal Affairs will have access only to the data of foreign employees to ensure the administrative processes related to immigration and labor compliance.
The employment contract will be available to the employee through the universal declaration system for individuals with the electronic signatures of the parties. It is important to note that for the employees under the age of 16, the employment contracts can only be signed by their parents, adoptive parents, or guardians, who must also use an electronic signature.
How effective these changes will be in achieving their intended goals remains to be seen. Meanwhile, one thing is clear: every working citizen should acquire an electronic signature as soon as possible, and employers should equip themselves with the necessary tools and systems to adapt to these upcoming changes.
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