Electronic Employment Contracts in Armenia: How the System Works and Why Foreign Nationals May Encounter Challenges

On July 1, 2025, Armenia launched its electronic employment contract system through the State Revenue Committee (SRC). The reform was initially designed to make digital contracts mandatory for all employers.

However, the mandatory transition to electronic employment contracts has been postponed until July 1, 2027.

1. Until that date, employers may legally choose between electronic and paper-based employment contracts.
2. During this transitional period, no penalties apply for the absence of a digital contract.
3. The electronic platform itself remains active and fully functional. Still, for foreign nationals, the digital format may create practical difficulties – primarily due to electronic signature requirements and migration-related status issues.

This is not a rollback of the reform. It is a transitional phase intended to allow full alignment of the identification and legal infrastructure before digital contracts become compulsory.

Why the Digital Transition Was Deferred: AFM Analysis

The postponement is not due to technical failures of the platform. The system operates as intended.

The core issue lies in infrastructure synchronization – specifically, the lack of seamless integration between key identification and compliance mechanisms.

Three components are involved:

1. The electronic identification system (national ID cards)
2. The electronic signature framework
3. Migration procedures applicable to foreign nationals

For Armenian citizens, these elements function in coordination.

For foreign nationals, however, inconsistencies between these systems create legal and procedural gaps. These gaps became the primary reason for deferring mandatory digitalization until 2027.

Current Rules for 2026-2027

Until July 1, 2027, employers are free to determine the contract format.

Option 1: Electronic Contract

The process remains straightforward:

1. The employer generates the contract within the SRC system.
2. The employer signs it using a qualified electronic signature.
3. The employee signs it using their own electronic signature.
4. The system automatically registers the employee.
5. The contract is considered legally effective once both parties have signed.

Option 2: Paper Contract

Until the transition period ends, employers may:

1. Conclude employment contracts in paper form
2. Register employees without requiring the employee’s electronic signature

Importantly, employers who conclude paper-based contracts from January 2026 onward will not face administrative liability.

This eliminates the risk of fines for choosing a non-digital format during the transitional period.

Why Non-Citizens Face Challenges Under the Electronic Format

The postponement of mandatory digitalization did not eliminate the core issue of electronic identification. It simply introduced flexibility.

If an employer chooses the electronic format, the structural challenges remain.

1. Electronic Signature

Armenian citizens typically use:

1. A national ID card with built-in electronic signature functionality
2. Mobile identification tools

Non-citizens do not automatically have access to this integrated infrastructure. To sign an employment contract electronically, the signature must be officially recognized and technically compatible with the system.

If an electronic signature is unavailable, cannot be issued, or is not compatible with the platform, the contract cannot be executed electronically.

2. Migration Status

To obtain a recognized electronic signature, a non-citizen must confirm lawful residence in Armenia.

However, in many cases, formalizing legal status requires an already concluded employment contract.

This creates a circular dependency:

1. No legal status – no electronic signature
2. No electronic signature – no electronic contract

The deferral until 2027 allows employers to use paper contracts as a practical solution. However, if the electronic format is selected, the underlying procedural conflict remains.

3. Physical Presence Requirement

In some cases, obtaining a qualified electronic signature requires the non-citizen to be physically present in Armenia.

For remote employment arrangements, this may lead to:

1. Delays in the employee’s start date
2. Additional administrative and travel expenses
3. The need to visit Armenia solely for identification purposes

While the electronic system is operational, these procedural constraints can complicate the onboarding of non-citizen employees under the electronic format.

Procedural Differences: Resident vs. Non-Resident

Employment rights for residents and non-citizens in Armenia are legally equal.

However, in practice, the contract execution process differs due to variations in identification systems and migration requirements.

The comparison below focuses strictly on administrative and technical aspects of onboarding – not on legal employment rights.

Important: These differences are not related to employee rights. They stem from technical and administrative infrastructure requirements.

Practical Step-by-Step Guide for Employers

If you are onboarding an employee in 2026–2027, follow a straightforward and structured approach.

1. Confirm Status First – Then the Contract

Determine whether the individual is an Armenian citizen or a non-citizen.

If the employee is a non-citizen, verify:

1. Whether they have valid documentation confirming lawful residence
2. Whether a tax identification number has been issued

Without this preliminary check, the process may stall at a later stage.

2. Verify Electronic Signature Availability

Confirm whether a recognized electronic signature is available.

If a valid signature is in place, the electronic format can be used.

If there is uncertainty, or if the migration status is still being formalized, avoid initiating an electronic contract prematurely.

Launching the process without confirming technical readiness may result in delays or procedural deadlocks.

3. Choose the Contract Format Deliberately

Until July 1, 2027, paper-based contracts remain legally permissible.

Using a paper contract during the transitional period does not constitute a violation and does not trigger administrative penalties.

The format should be selected based on practical feasibility rather than formal preference.

4. Build in Sufficient Time

For Armenian citizens, the process typically takes one business day, provided that:

1. A valid national ID card is available
2. The electronic signature is active

For non-citizens, timelines may be extended due to migration-related procedures and identification requirements.

Planning Timelines

When hiring, it is important to account for realistic processing time.

For Armenian citizens, an electronic employment contract is typically completed within one business day, assuming the employee holds a valid ID card and an active electronic signature.

For non-citizens, timelines depend on migration status.

If legal residence is already confirmed, the process may take approximately one to two weeks.

If status has not yet been formalized, the procedure may extend to several weeks, as lawful residence and eligibility for an electronic signature must first be resolved.

These timeframes represent practical guidance rather than statutory deadlines. Actual duration may vary depending on document readiness and the chosen contract format.

Why the Core Issue Is Identification

The main barrier to the electronic format is not the employment contract itself. It is the employee’s identity verification through an electronic signature.

In Armenia, an electronic signature is directly linked to the state identification system.

The condition and readiness of this infrastructure directly affect how electronic employment contracts function in practice.

For this reason, the issue of employment contracts cannot be analyzed separately from broader identification reform.

Connection to the ID Card and Biometric Passport Reform

The postponement of mandatory digitalization is directly tied to the personal identification infrastructure.

The launch of the new biometric passport and ID card issuance system in Armenia has been rescheduled to autumn 2026.

This implies:

1. Existing identification documents remain valid until their expiration date
2. The transition to new documents will be voluntary
3. Online appointment booking and pre-submission of data are expected to be introduced
4. Updated service centers are being developed

While the identification system remains in a transitional phase, the electronic signature continues to be a limiting factor for certain users – primarily non-citizen employees.

This infrastructure misalignment was one of the key reasons behind postponing the mandatory implementation of electronic employment contracts until 2027.

Key Questions Answered

Are electronic employment contracts currently mandatory?

No. Until July 1, 2027, employers may use paper-based contracts.

Will there be penalties for using a paper contract in 2026?

No. Administrative liability does not apply to employers who conclude paper contracts starting from January 2026.

Can a non-citizen be hired without an electronic signature?

Yes. During the transitional period, this can be done through a paper-based contract.

Does the electronic system remain operational?

Yes. The system continues to function and may be used on a voluntary basis.

Conclusion

The postponement of mandatory electronic employment contracts until July 1, 2027, does not represent a reversal of the reform. It is a technical pause aimed at aligning the identification and electronic signature infrastructure.

Until that date:

1. The electronic format remains fully valid
2. Paper contracts are a lawful alternative
3. No liability applies for the absence of a digital format

For businesses, the key issue is not choosing between “paper or electronic,” but ensuring a manageable and predictable hiring process.

If the employee is an Armenian citizen with a valid ID card and active electronic signature, the electronic format is efficient and typically fast.

If the employee is a non-citizen, it is essential to verify in advance:

1. Migration status
2. Availability of a tax identification number
3. Eligibility for an electronic signature
4. Expected processing timelines

A practical approach in 2026-2027 is to select the contract format based on the employee’s technical readiness, rather than a formal commitment to digitalization.

The electronic system is operational. However, until full infrastructure synchronization is achieved, employers should act pragmatically and account for realistic administrative timelines.