YEREVAN, MARCH 30, ARMENPRESS. Changes will be made in the Labor Code of Armenia which will exempt small business from certain functions.

The draft over expected changes in the Labor Code is already ready and has been submitted to the Government’s discussion. The Government’s 2017 program served a base for the development of the draft.

Tadevos Avetisyan – Chief Adviser to Minister of Labor and Social Affairs on Labor and Employment, told Armenpress the draft was discussed in the Republican trilateral commission which includes organizations presenting employers interests, as well as trade unions confederation. The draft was discussed with all concerned sides.

Avetisyan said the Government planed a number of steps as a result of which small business will be free of some functions. The first change relates to problems revealed from legal practice.

“For instance, there were a number of applications from small enterprises that said it is quite difficult for them to fully apply the provisions set under the Labor Code. Moreover, in many cases such regulations are unnecessary for them. For example, a company having one or two employees, must have an internal regulatory rules, must adopt internal legal acts. And in order to be able to ensure this documentary, administrative part, they have to hire accountants and lawyers. In these circumstances they make additional expenses from their scarce resources”, he said.

Tadevos Avetisyan said the international experience shows that in separate countries the Labor Code contains flexible approaches for small enterprises. For example, this is typical of Russia, Kazakhstan, changes are expected to be made also in Ukraine, Lithuania.

The next important issue concerns allowances that are designed for night, overtime, holiday work.

“50% supplement is set under the Law for overtime work, and working during the holidays the employee must be paid double. Such restrictions sometimes hinder small companies since they are working in the conditions of greater risk and competition. Such companies are closed for at least 5-6 times more and new ones are established”, he said.

Another expected change is to define an exemplary sample of labor contract for small enterprises which will include the minimum requirements. This will be useful for the employer, the already ready contract will be amended, and there will be no need to hire additional specialists, make payments for preparing contracts.

All these changes will concern only small enterprises. After the draft is discussed in and approved by the Government, it will be submitted to the Parliament.