Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

Armenia

Protection of Wages Convention, 1949 (No. 95) (Ratification: 2004)
Minimum Wage Fixing Convention, 1970 (No. 131) (Ratification: 2005)
Protection of Workers' Claims (Employer's Insolvency) Convention, 1992 (No. 173) (Ratification: 2005)

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, Convention No. 131 (minimum wage) and Conventions Nos 95 and 173 (protection of wages), the Committee considers it appropriate to examine them together.

The Committee notes the observations of the Confederations of Trade Unions of Armenia (CTUA) on Convention No. 131, Convention No. 95 and Convention No. 173, communicated with the Government’s reports.

Minimum wage

Minimum Wage Fixing Convention, 1970 (No. 131)

Articles 3 and 4 of the Convention. Criteria for the determination of the minimum wage level and consultations for the operation and modification of the system of minimum wage. The Committee notes that, in reply to previous observations of the Republican Union of Employers of Armenia (RUEA) and the International Organisation of Employers (IOE) concerning the absence of consideration of economic factors in the determination of the minimum wage level and the absence of full consultation of the employers’ organizations, the Government indicates that, following the adoption of the National Collective Agreement for 2015–18 by the Republican Tripartite Commission, a new methodology for the determination of the minimum wage has been developed in consultation with the CTUA and the RUEA. The Committee notes that the methodology transmitted by the Government in its report takes into account the criteria listed in Article 3. It also notes the Government’s indication that the draft modifications of the minimum wage level are communicated to the social partners for comments. Finally, it notes that, following a request from the Government in May 2017, the country is receiving technical assistance from the Office on the application of the Convention. The Committee requests the Government to provide information on developments in this respect.

Informal economy. In its observations, the CTUA indicates that the methodology for the determination of the minimum wage does not address the extensive problem of the informal economy. The Committee requests the Government to provide its comments in this respect.

Protection of wages

Protection of Wages Convention, 1949 (No. 95)

Article 2 of the Convention. Application to public officials and public servants. The Committee notes that section 181 of the Labour Code provides that the procedures and conditions of remuneration of public officials and public servants shall be prescribed by law. The Committee also notes the adoption of Law HO-157-N of 12 December 2013 on the remuneration of persons holding public offices, which is not available in English. The Committee therefore requests the Government to indicate whether provisions of this Law ensure that public officials and public servants benefit from the protection of the Convention, and if this is not the case, how effect is given to the Convention for this category of workers.

Article 3(1). Prohibition of payment in a form other than legal tender. The Committee notes that pursuant to section 192(2) of the Labour Code, the payment of wages in the form of securities or commitments is prohibited, except in the cases prescribed by law. The Committee requests the Government to provide information on the cases, if any, in which the law authorizes the payment of wages in the form of securities or commitments.

Articles 6 and 7. Freedom of workers to dispose of their wages. The Committee notes the Government’s indication that these Articles of the Convention are directly applicable to the national legal order by virtue of the ratification of the Convention.

Article 14(a). Information of workers in cases of changes in their wages. The Committee notes that section 194 of the Labour Code – pursuant to which the employer was requested to notify the workers in writing before changes in their conditions or remuneration occurred as a result of changes in the law or in collective agreements – was repealed by Law HO-96-N of 22 June 2015. Therefore, the Committee requests the Government to provide information on whether measures have been taken to ensure that workers are informed in cases of changes in their wages, in accordance with Article 14(a) of the Convention.

Article 15(d). Wage records. In its previous comments, the Committee requested the Government to adopt measures to ensure that adequate wage records are maintained in an approved form and manner. It notes the information provided by the Government that under Government Decision No. 1676-N, workers may request an excerpt from their individual account in the database of the Personal Registration of Income Tax and Social Payments. These excerpts include the information that employers are required to provide to the tax authorities on the workers’ income, and on the tax and social contributions applied. Recalling that the maintenance of wage records also serves to facilitate the work of labour inspectors, the Committee requests the Government to indicate whether and how labour inspectors have access to wage records.

Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173)

Article 6 of the Convention. Protection of workers’ claims by means of a privilege. In its previous comments, the Committee requested the Government to clarify whether the privilege for wage claims provided for under the Bankruptcy Act of 25 December 2006 covered all the claims listed under Article 6. The Committee takes note of the Government’s indication that the list of claims covered by the privilege is found in Government Decision No. 853-N of 8 August 2013, which includes all the claims listed in Article 6.

Articles 9–13. Protection of workers’ claims by means of a guarantee institution. In its previous comments, the Committee requested the Government to provide information on the progress made for the establishment of a wage guarantee institution. In its observations, the CTUA indicates that the absence of a wage guarantee institution increases poverty and fosters the development of the informal economy. The Committee takes note of the Government’s indication that the establishment of a wage guarantee institution would be inappropriate under the country’s current phase of socio-economic development, as it would excessively burden the employers’ financial capacity and undermine employment creation. The Committee invites the Government to take advantage of the technical assistance that the country is receiving from the Office in order to make progress towards the creation of a wage guarantee institution, in accordance with the Convention. It requests the Government to provide information on progress made in this respect.

Enforcement

Sanctions and labour inspection. With reference to its comments under the Labour Inspection Convention, 1947 (No. 81), the Committee requests the Government to provide specific information on the measures taken to inspect compliance with the national provisions on minimum wage and protection of wages, and on the sanctions adopted in cases where violations have been identified, if any. It also requests the Government to provide information on the provisions of the national legislation which contain the possible sanctions in this respect.