Employment Contract or Order / Individual Legal Act/

Frequently, employees raise the following question - how to regulate legal relations with an employee - to conclude a contract or to prepare an order, or is it the same as an individual legal act, or is the presence of both necessary simultaneously?

Although there are certain discrepancies regarding the above question, in our opinion, it is sufficient to have only an employment contract or an individual legal act (an order or directive regarding employment), meaning either one of the two, while having both simultaneously is the employer's right, not an obligation.

This assertion is substantiated by Article 14 of the Labor Code of the Republic of Armenia, according to which, the employment relationship between the employee and the employer arises from a written employment contract concluded in accordance with the procedure established by labor legislation or an individual legal act regarding employment.
That is, either a contract or an individual legal act, thus the choice is up to the employer, and in the presence of either one, the legally established necessary legal basis is ensured.
According to part 2 of the same article, if an individual legal act has been concluded, meaning the employer has decided not to conclude an employment contract but has adopted an order regarding the employee's employment, then the same provisions of the Labor Code apply to the legal relations between them as those that apply to the employer and employee who have concluded an employment contract. As stated, there is no legal difference when the employer makes a choice, and it is up to them to decide whether to use a contract or an order.
Moreover, according to part 1 of Article 102 of the Labor Code of the Republic of Armenia, work performed without a written employment contract concluded in accordance with the procedure established by labor legislation or an individual legal act regarding employment is considered illegal. Thus, it becomes clear that in the presence of either an order or a contract, the work cannot be considered illegal, as the term OR is used.

The main conditions that must be present in both the employment contract and the individual legal act are the same. Article 84 of the Labor Code defines what mandatory conditions must be provided in both the contract and the individual legal act.
If the written employment contract is concluded in two copies (one of which is handed over to the employee), then the employee is simply informed about the order.

According to Article 18 of the Labor Code, the employer is the participant in the employment relationship who uses the work of citizens based on the employment contract and/or in accordance with the procedure established by law.
This formulation provides for two options for using a citizen's work, an employment contract and other methods established by law, with the possibility of simultaneous implementation of both.
The employer's individual legal act regarding the employee's employment is adopted in the form of an order or directive. The internal and individual legal acts adopted by the employer come into force from the moment the relevant persons are duly informed about that act, unless a different term is provided by those legal acts.

Chapter 12 of the Labor Code relates to the Employment Contract, and Article 83 defines it as an Agreement between the employee and the employer, according to which the employee undertakes to perform work of a certain specialty and qualification for the employer while maintaining the established work discipline at the workplace, and the employer undertakes to provide the work specified in the contract, pay the agreed salary for the work performed, and ensure the working conditions provided by the legislation of the Republic of Armenia, other normative legal acts, collective agreements, and the working conditions agreed upon by the parties.

It should be noted that whether it is an employment contract or an order, if it provides for less favorable conditions for the employee than those existing in the legislation, then the relevant parts have no legal force.