TK Alert 43
MORE OPPORTUNITIES FOR REMOTE WORK
On November 25th 2023, a legislative amendment will enter into force, which establishes new regulations in relation to remote work in the Armenian Labor Code.
Within the framework of the current regulations, remote work is allowed only in special periods - periods of prevention of natural disasters, technological accidents, epidemics, accidents, fires and other cases of an emergency nature or immediate elimination of their consequences.
With the new regulations, remote work can also be organized outside of special periods. According to those, remote work is carried out by mutual consent of the employee and the employer, if the nature of the work allows it to be performed remotely.
The new legislative amendment, also sets the following regulations:
- the procedure and conditions for remote work, including issues of reimbursement of related expenses, will be determined by the internal regulations of the employer, a written agreement of the parties or a collective agreement (if any),
- during the period of remote work duties, the employee shall ensure accessibility for the employer, as well as properly perform his/her work duties: failure to comply with this requirement by employee’s fault may be considered as an employment violation,
- the requirement to have a residence permit will no longer apply to foreigners working remotely outside the Republic of Armenia.
Find more here.
REGULATIONS THAT WILL ENTER INTO FORCE IN THE LABOR LEGISLATION
On November 30th of this year the last of the large-scale legislative changes adopted in May in the Armenian Labor Code will enter into force.
Among the changes entering into force are the following regulations:
- obligation to register collective agreements with the relevant inspection body,
- the possibility of providing an employee with “compulsory” annual leave for the employer if the employee avoids or refuses to use the annual leave or part of it for two and a half consecutive working years without submitting an application for annual leave (except in cases provided for by law),
- a new opportunity – “organization by the employer of professional training of the employed person”. The employer, prior to hiring a person, can organize at its place or in another place (including in another organization) professional training of the employed person for up to 5 months, paying the employee a remuneration in the course of training, at least in the amount of the minimum monthly wage established by law,
- another new opportunity - organization of an “internship” by the employer. The employer will have the right to organize an internship with a person, by concluding an agreement no more than once for 2-months period (without the right to extend).
Find more here.
A PLATFORM FOR LAUNCHING A STATE PROGRAM FOR THE PROMOTION OF A HIGHLY QUALIFIED SPECIALIST
A new platform has been launched within the framework of the state support program of attracting highly qualified professionals, adopted by the Armenian Government in 2022, where it is planned to compensate organizations for 20-70% of the monthly salary (equal fees) of a highly qualified specialist, according to the established criteria. Through this platform, organizations will have the opportunity to check the specialist’s eligibility with the established criteria, as well as find a detailed explanation of acceptable applicants, the application process and the necessary documents.
PERMISSIBLE NEW TYPE OF ACTIVITY FOR INVESTMENT COMPANIES
The Board of the RA Central Bank at a meeting on September 22nd 2023 approved a draft pn amendments and additions to Decision 332-Ն of the Board of the RA Central Bank “On admission of investment companies to additional types of activities and the establishment of requirements for their implementation”.
According to these amendments and additions, investment companies providing services for the management of a package of securities, as an additional type of activity closely related to the activities of an investment company, are also allowed to carry out activities for the management of a non-public fund.
Find more here.
NOTIFICATION IS NOW REQUIRED FOR THE IMPLEMENTATION OF TRUST MANAGEMENT OF SHARES
Under the previous provisions of civil legislation, engaging in trust management of shares was considered an activity open to any legal entity or individual entrepreneur[1] without requiring additional registration or permits.
Nevertheless, recent changes in legislation limit the engagement in trust management of shares to particular legal entities or individual entrepreneurs (and, as determined by law, also individuals). Before initiating such activities, these entities (individuals) must inform the appropriate authorized body and pay the state duty. It's noteworthy that the current legislation does not explicitly identify the specific state body for notification, and the requirement for notification will only come into effect upon legislative clarification.
Furthermore, the amended legislation introduces a new obligation to report information regarding trust management of shares to the State Register of Legal Entities of the Republic of Armenia.
AMENDMENTS IN THE SPHERE OF TRUST MANAGEMENT OF SECURITES
According to the law On the Securities Market, managing a portfolio of securities is categorized as an investment service. In the prior version of the law, it was specified that only licensed or authorized entities could offer investment services, excluding those entities outlined in Article 30 of the same law. Notably, this article exempted entities engaged in the trust management of securities within the authorized capital of a commercial organization owned by a public servant or high-ranking official.
However, recent legislative revisions have eliminated these exceptions. Presently, trust management of securities owned by a public servant or high-ranking official can only be entrusted to entities possessing the requisite authorization to provide investment services.
Find more here.
THE LAW ON VOLUNTARY WORK WAS ADOPTED
Henceforth, legal aspects concerning volunteer activities and voluntary work will be governed by the newly enacted Law on Voluntary Work.
I This recently approved legislation specifically addresses matters pertaining to voluntary labor. it establishes principles related to voluntary work, outlines the participants in voluntary labor, elucidates their primary objectives, rights, and obligations, and delineates the legal foundations and other characteristics of engaging in voluntary labor.
A noteworthy aspect of this law is the clarification of entities authorized to engage volunteers. These entities include public authorities, such as state or local government bodies, state or municipal non-profit organizations, or other legal entities not driven by profit motives (including public organizations, foundations, parties, etc.) or institutions as well as for profit legal entities owned by the state. The mentioned specification enables the distinction between volunteering and another aspect, namely internship, which falls under the regulation of labor legislation. This differentiation helps in comprehending the nature of the work carried out within the scope of volunteering.
For an in-depth understanding of the provisions of this law, we will delve into further details in our upcoming Client Alerts.
Find here.
[1] In cases established by the RA Law "On Public Service", also by an individual.