Legislative Changes: Digitalization of Employment Agreements

Recent legislative amendments in Armenia have introduced a framework for handling employment agreements through a centralized digital system. 

The new procedures establish a standardized digital approach for documenting employment contracts, which will be introduced step by step over the next two years.

System Implementation Timeline.

According to the Labor Code amendments, the digital employment contract system will be implemented in two phases:

• Starting July 1, 2025, employers will have the option to sign, amend, or terminate employment agreements through the new digital system on a voluntary basis.

• Starting January 1, 2026, the use of the system will become mandatory for all employers and employees.

Digital Contract Signing Process.

1. Data Entry Phase.

The contract preparation begins with the employer logging into the Electronic reporting system of the RA State Revenue Committee (“SRC”). Required fields specified by the Labor Code must be filled out, including:

• Employee’s first name, last name, patronymic;

• Position;

• Place of work;

• Work commencement date;

• Base salary or method of its calculation;

• Work schedule;

• Probation terms, if applicable.

2. Inclusion of Additional Terms.

In addition to the main terms, the employers may include supplementary clauses and appendices in the contract, such as those relating to remote work, liability, confidentiality, or intellectual property rights.

3. Signing.

The completed contract generated by the system is first signed electronically by the employer or their authorized representative.

The signed document will then appear on the relevant page of the SRC’s Unified electronic service platform for individuals (https://self-portal.taxservice.am), which RA citizens can access via the national identification platform “Եսեմ” (using an ID card or mobile e-signature). Foreign nationals will access it using a taxpayer identification number and the login-password provided by the SRC.

If the employee has no objections to the content of the contract, they must sign it with a digital signature no later than the business day prior to the contract’s effective date.

Thus, both employers and RA citizen employees will be required to have either an electronic digital signature embedded in their ID card or a mobile electronic signature. Foreign employees will need another form of digital signature (e.g., CoSign).

What happens after signing?

Once the contract is signed by both parties:

• The system automatically generates a registration request;

• The employer reviews and submits the request to the SRC;

• Relevant data is recorded by the tax authority.

Similar procedure applies to contract amendments or terminations, provided there is a relevant agreement, or a legal act issued by the employer.

Access of the Parties and Supervisory bodies.

According to a Government decree, only the parties and bodies defined by law will have access to the system:

What actions can be taken by the employer?

Before the mandatory phase of employment contract digitalization begins, employers may consider the following actions:

• Ensure that all signing personnel have digital signatures;

• Review and adjust contract templates to align with the system structure;

• Establish internal procedures for entering, monitoring, and circulating contracts.

It is also important to note that all active employment contracts not concluded through the digital system must be digitized by December 31, 2026.