Observation (CEACR) - adopted 2021, published 110th ILC session (2022)

Workmen's Compensation (Accidents) Convention, 1925 (No. 17) - Armenia (Ratification: 2004)

The Committee notes the observations of the Confederation of Trade Unions of Armenia (CTUA), communicated with the Government’s report.

Article 11 of the Convention. Compensation of industrial accidents in the event of the insolvency of the employer or insurer. Since 2013, the Committee has been drawing the Government’s attention to the case of workers employed by companies liquidated after 2004 who, following the adoption of Governmental Decision No. 1094-N of 2004, had not been paid compensation in cases of industrial injuries. In its previous comments, the Committee urged the Government to provide compensation for the workers currently seeking it, and for similarly situated workers henceforth, and to provide information concerning measures taken or envisaged in this regard.

The Committee notes the reply provided by the Government, indicating that the procedure for work-related injury compensation, in case of liquidation of companies, is set out in Governmental Decision No 914-N of July 23, 2009. In such cases, the capitalization of assets of the employer or company responsible for the payment of compensation to victims of work-related injuries is undertaken in accordance with the Civil Code. The current legislation does not make provision for cases where the capitalization of assets, pursuant to the above-mentioned procedure, would not be sufficient to provide the compensation that is due to victims, which, according to the Government, does not constitute a legal gap. In this connection, the Government indicates that, in its view, the State has the discretion to choose the policy deemed most appropriate with respect to existing socio-economic conditions.

The Committee further notes the observations of the CTUA in this regard, which considers that the approach taken by the Government results in discrimination for persons injured in workplace accidents in different years. The CTUA also maintains that injured workers employed in organizations which have been liquidated since August 2004 have been deprived of the right of social protection in the event of accidents and occupational diseases at workplace, while it is the state’s duty to provide equality and social justice among its citizens and secure their right of social protection.

While taking note of the Government’s position, the Committee recalls that by ratifying the Convention, it has undertaken to ensure that workers who suffer personal injury due to an industrial accident, or their dependants, shall be compensated, by virtue of Article 1 of the Convention. This obligation is related to that of Article 11 of the Convention, which requires the State to make such provision as, having regard to national circumstances, is deemed most suitable for ensuring in all circumstances, in the event of the insolvency of the employer or insurer, the payment of compensation to workers who suffer personal injury due to industrial accidents, or, to their dependants in case of death of the worker. In this regard, the Committee underlines that the consideration of national circumstances within the meaning of Article 11 of the Convention only refers to the choice of means that the Government may take for its implementation, and not to the objective of this provision, which consists in ensuring the comprehensive protection of employees in the event of insolvency of the employer or insurer.

In view of the above, the Committee once again urges the Government to provide, without further delay, compensation to victims of work injury who have not received compensation due to the liquidations that have taken place between 2004 and 2009 and for similarly situated workers henceforth.

The Committee further requests the Government to take the necessary measures to ensure the due and effective compensation of injured workers and their dependents in the event of the insolvency of the employer or insurer and requests the Government to provide information on any measures taken or envisaged in this regard.

The Committee has been informed that, based on the recommendations of the Standards Review Mechanism Tripartite Working Group (SRM Tripartite Working Group), the Governing Body has decided that member States for which the Convention is in force should be encouraged to ratify the more recent Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980] (No. 121), or the Social Security (Minimum Standards) Convention, 1952 (No. 102), and accept the obligations in its Part VI (see GB.328/LILS/2/1). Conventions Nos 121 and 102 reflect the more modern approach to employment injury benefits. The Committee once again encourages the Government to follow up the Governing Body’s decision at its 328th Session (October–November 2016) approving the recommendations of the SRM Tripartite Working Group and to consider ratifying Convention No. 121 or Convention No. 102 (accepting its Part VI) as the most up-to-date instruments in this subject area.