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

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

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.

Observation (CEACR) - adopted 2020, published 109th ILC session (2021)

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. In its previous comments, the Committee requested the Government to take the necessary measures, without further delay, to ensure that the 800 injured workers employed by companies liquidated after 2004 who, following the adoption of Governmental Decision No. 1094-N of 2004, had not been paid compensation, be duly compensated. The Committee notes the indication by the Government that there are currently around 210 employees of liquidated companies who are entitled to compensation for a work-related accident but who have not yet been compensated, because of the non-existence of the subsequent proprietors of the liquidated companies. The Committee further notes that, according to the Government, new measures are under discussion, with a view to implementing the right to compensation of the persons concerned. In this regard, the Committee notes the indication by the CTUA that the Ministry of Labour and Social Issues has submitted for public discussion a draft law on amendments and changes to the Civil Code, that would provide for the payment of compensation out of the State Budget for workers who have not received any compensation following a work-related accident or occupational disease. Recalling that it has been raising this issue since 2013, the Committee urges the Government to provide compensation for the above-mentioned workers currently seeking it, and for similarly situated workers henceforth. In this connection, the Committee expects that the Government will soon report on the adoption of measures necessary 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 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 therefore 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 (Part VI) as the most up-to-date instruments in this subject area.

[The Government is asked to reply in full to the present comments in 2021.]

Observation (CEACR) - adopted 2018, published 108th ILC session (2019)

The Committee notes the observations of the Confederation of Trade Unions of Armenia (CTUA) and of the Republican Union of Employers of Armenia (RUEA) communicated with the Government’s report. In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on Workmen’s Compensation, the Committee considers it appropriate to examine Convention No. 17 (Accidents) and Convention No. 18 (Occupational diseases) in a single comment.

Workmen’s Compensation (Accidents) Convention, 1925 (No. 17)

Article 11 of the Convention. Compensation of industrial accidents in the event of the insolvency of the employer or insurer. In its previous comments, the Committee made reference to the observations submitted by the CTUA in June 2013, describing the issue of about 800 workers employed by companies liquidated after 2004 who, following the adoption of Governmental Decision No. 1094-N of 2004, had been paid no compensation in case of employment accidents or occupational diseases which had occurred between 2004 and 2009. The Committee notes that, in its report, the Government states that this issue is under its attention, and it is envisioned to elaborate mechanisms that guarantee adequate compensation for persons who have a right to, and who have not, received compensation for the injuries caused by industrial accidents and occupational diseases. Recalling that, under the Convention, compensation to workers in the event of the insolvency of the employer or insurer must be paid in all circumstances, the Committee requests the Government to take the necessary measures without further delay to ensure that the workers concerned are duly compensated and to provide information in this regard.

Workmen’s Compensation (Occupational Diseases) Convention, 1925 (No. 18)

Application of the Convention in practice. The Committee notes the information provided by the Government, which answers the points raised in its previous direct request. The Committee requests the Government to provide up-to-date statistical information on the number of workers that were affected by the three types of occupational diseases (poisoning by lead, poisoning by mercury and anthrax infection) covered by the Convention.

The Committee has been informed that, based on the recommendations of the Standards Review Mechanism Tripartite Working Group (SRM TWG), the Governing Body has decided that member States for which the Conventions are 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) (Part VI) (see GB.328/LILS/2/1). Conventions Nos 121 and 102 reflect the more modern approach to employment injury benefits and occupational diseases. In this regard, the Committee notes that in previous reports the Government had expressed the intention of introducing a mandatory social insurance scheme for occupational accidents and diseases. The Committee therefore encourages the Government to follow up the Governing Body’s decision at its 328th Session (October–November 2016) approving the recommendations of the SRM TWG and to consider ratifying Conventions Nos 121 and/or 102 (Part VI) as the most up-to-date instruments in this subject area.

[The Government is asked to reply in full to the present comments in 2020.]

Observation (CEACR) - adopted 2015, published 105th ILC session (2016)

Article 1 of the Convention. Establishment of the employment injury compensation scheme. The Government states in its report that the draft concept of the system of mandatory social insurance against occupational accidents and diseases is still at the stage of elaboration and discussion, and attaches a communication of the Republican Union of Employers of Armenia (RUEA). Considering that the current provision contained in section 234 of the Labour Code (employers’ material liability) is not sufficient to ensure effective compensation in case of occupational accidents, the RUEA calls on the National Tripartite Committee of Social Partnership to finalize a draft concept paper and establish reasonable deadlines for the development and adoption of the employment injury concept law. Recalling the availability of the technical assistance of the Office, the Committee hopes that the Government will be able to indicate progress in the development of the modern employment injury scheme based on the principles established by ILO standards in its next regular report due in 2017.

Article 11. Compensation of industrial accidents in the event of the insolvency of the employer or insurer. In reply to the previous observation concerning lack of compensation for about 800 victims of occupational accidents which occurred between 2004 and 2009, following the adoption of Governmental Decision No. 1094-N of 2004, the Government limits itself to making reference to the legislative provisions applicable in case of liquidation or bankruptcy of legal entities responsible for the damage caused to life or health, while nevertheless attaching the letter dated 25 July 2014 of the Confederation of Trade Unions of Armenia (CTUA) stating that no measures have yet been taken by the Government. The Committee once again requests the Government to indicate how effect is given to this provision of the Convention in the abovementioned cases.

Direct Request (CEACR) - adopted 2013, published 103rd ILC session (2014)

Article 1 of the Convention. Establishment of a new employment injury compensation scheme. Referring to its previous comments, the Committee notes the Government’s indication that the elaboration by the Ministry of Labour and Social Affairs, together with the Central Bank, of a draft concept paper for introducing a system of mandatory social insurance against occupational accidents and diseases is still ongoing. The Government is discussing with the Central Bank the best model, given the national context and the implementation schedule, taking into account the state and the perspectives of the macroeconomic development of the country. The final draft will then be circulated officially in accordance with the national legislation. The Committee also notes that, in comments received on 9 July 2013, the Republican Union of Employers of Armenia (RUEA), referring to the above process, states that, on the occasion of a meeting with the Central Bank, the RUEA made a number of suggestions aimed at amending the concept paper in line with Conventions Nos 17 and 18 before submitting it first to the Tripartite Social Committee and then to the Government. The subsequent discussions convened by the Government were, however, based on a version of the paper which did not take into account the views expressed by the RUEA, which was unacceptable. The RUEA therefore suggested that a duly amended version of the concept paper needed to be communicated to the Tripartite Social Committee for examination and approval before being sent to the Government.

The Committee recalls that, as a party to the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144), Armenia assumes the obligation to organize consultations on questions arising from reports to be submitted to the International Labour Office on the implementation of ratified Conventions under article 22 of the ILO Constitution. It therefore hopes that, in designing the new scheme, the Government will duly consult the social partners as regards the reform and fully take into consideration the requirements of Conventions Nos 17 and 18.

[The Government is asked to reply in detail to the present comments in 2014.]

Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

Article 11 of the Convention. Functioning of the mechanism for compensation of industrial accidents in the event of the insolvency of the employer or insurer. In a communication dated 14 June 2013, the Confederation of Trade Unions of Armenia (CTUA) indicates that, since the adoption of a 2004 Governmental Decision (No. 1094-N), payments out of the state budget to victims of occupational diseases were suspended without another source of financing being envisaged. Furthermore, the capitalization and other mechanisms foreseen by section 1086(2) of the Civil Code have not yet been defined and the body responsible for paying compensation in case of non capitalization and lack of legal successor of the employer has also not been designated. It is estimated that around 800 workers employed by companies liquidated after 2004 have yet to be reimbursed. In its report, the Government indicates in this respect that, as of 1 January 2013, the total number of persons receiving compensation from the state budget for damages, occupational diseases and other health problems caused by the performance of occupational duties was 586. In case of bankruptcy of the legal persons recognized as responsible for the damage caused to health or life, Governmental Decision No. 914 of July 2009 established the rules for the capitalization of payments to victims based on the principle of lump-sum payments with a possibility to convert the latter into periodical payments upon a request made by the beneficiary. The Committee notes that the Government does not respond to these serious allegations made by the CTUA regarding the lack of compensation for victims of occupational accidents which occurred between 2004 and 2009, following the adoption of Governmental Decision No. 1094-N of 2004, and invites the Government to communicate its response in this respect.

The Committee is raising other points in a request addressed directly to the Government.

[The Government is asked to reply in detail to the present comments in 2014.]

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Compensation in case of occupational accidents and occupational diseases. The Committee takes note of the ongoing elaboration by the Ministry of Labour and Social Affairs together with the Central Bank of a draft concept paper for introducing a system of mandatory social insurance against occupational accidents and diseases, which has been discussed with the social partners. In this respect, the Republican Union of Employers of Armenia (RUEA) states that, in the absence of the mandatory insurance scheme, in case of an occupational injury or disease, the material liability is fully borne by the employer in accordance with article 234(1) of the Labour Code. The Government’s report under Convention No. 17 further indicates that in case of temporary disability caused by an occupational accident or disease, a benefit is granted in accordance with the law on temporary disability benefits. Finally, the Committee understands that there are other cases, such as permanent incapacity or death, where the victims of occupational accidents and diseases or their families would receive some benefits from the social security system. In order to better give effect to Conventions Nos 17 and 18, the Committee hopes that the Government would be able to introduce the mandatory insurance against occupational injuries and diseases as soon as possible. In the meantime, it once again asks the Government to supply in its next report comprehensive information on the manner in which the existing branches of the social security system give effect to each of the provisions of Conventions Nos 17 and 18. With respect to the existing list of occupational diseases, please explain how it is used in practice to dispense the victims of the need to prove that their disease is occupational in origin.

[The Government is asked to reply in detail to the present comments in 2013.]

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

The Committee notes the first report sent by the Government mainly referring to the provisions of the 1998 Civil Code relating to civil liability. However, the Committee understands that there is a compulsory social insurance system in the country including a section on industrial accidents which establishes specific legislative provisions in this field. The Committee would therefore be grateful if the Government would supply details in its next report on the manner in which the social security legislation gives effect to each of the provisions of the Convention, providing, as far as possible, a translation of all the relevant provisions in this regard. The Committee will undertake a detailed examination of the application of the Convention in Armenia on the basis of any further information sent by the Government.