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Protection of Workers' Claims (Employer's Insolvency) Convention, 1992 (No. 173) - Armenia (RATIFICATION: 2005)

Article 6 of the Convention. Protection of workers’ claims by means of a privilege. Further to its previous comment, the Committee notes the Government’s reference to several legal texts that seem to suggest that the term “wages” includes also holiday pay and sick-leave pay. The Committee observes, however, that whereas section 82(1)(c) of the Bankruptcy Act of 2006 refers generally to claims arising out of an employment contract, which may thus be deemed to include claims for holiday pay or claims for other type of paid absence, section 83 of the same Act refers to other salary-related claims. The Committee therefore considers that in the interest of legal clarity, the types of workers’ claims and the conditions and the limits within which such claims are granted preferential treatment should be clearly set out in the relevant provisions of bankruptcy legislation. The Committee accordingly requests the Government to further clarify the respective wage claims protected under section 82(1)(c) and (h) of the Bankruptcy Act. It also invites the Government to consider the possibility of specifying the coverage of the privilege along the terms prescribed by Article 6 of the Convention.

Articles 9–13. Protection of workers’ claims by a guarantee institution. The Committee notes the Government’s indication that consultations have been launched with a view to establishing a wage guarantee institution. The Committee also notes, however, the comments of the Confederation of Trade Unions of Armenia according to which no such consultations have as yet been initiated. Recalling that the Government may draw upon the technical assistance of the Office, if it so wishes, the Committee requests the Government to keep the Office informed of any progress made in the process of setting up a wage guarantee institution in accordance with the provisions of Part III of the Convention.