The final pay and deductions from wages

Jul 12th 2015, 19:50 in Employment Law
What are the rules applicable to final pay and deductions from wages in the Armenian legislation?


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ELL Partnership CJSC

Jul 12th 2015, 19:53
In case of rescinding an employment contract the employer shall be obliged to make a full final settlement with the employee on the day of rescission of the employment contract, unless other procedure for final settlement is provided for by the Labor Code, the law or upon agreement between the employer and the employee. If the employee moves to another work at the same employer, the employer doesn't make a full final pay with the employee.
The employer must pay the employee his/her wage and other payments on the day of final settlement, fill out and hand in the employee’s employment record book in the prescribed manner.
For the purpose of covering the arrears to the employer, the following deductions or charges from salaries shall be made:
1. the advance payment of the salary paid to the employee; 2. the excess payments made as a result of mechanical errors of calculation; 3. the part of the advance payment provided to an employee for a business trip or a shift to another workplace or for performance of specific tasks, which was not spent and not returned appropriately; 4. the amount of compensation for damage caused to an employer by the employee.
In cases mentioned above when the employee’s debt does not exceed his average wage for one month, the employer has the right to make deductions if he has issued a corresponding legal act on deductions made not later than within one month after the expiration of the defined period for return of the prepayment, overpayment made as a result of mechanical errors during calculations, returning the amount of the prepayment, which was not spent and not returned in time and identification of the harm caused by the employee.

It is not permitted to recover the wage overpaid and computed as a result of incorrect application of law, with the exception of cases of the computation mechanical errors. Deductions cannot exceed the fifty percent of the monthly wage of the employee.

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