Ministry of Labour and Social International Organization for Issues of Armenia Migration LLAABBOOUURR MMIIGGRRAATTIIOONN IINN AARRMMEENNIIAA:: EEXXIISSTTIINNGG TTRREENNDDSS AANNDD PPOOLLIICCYY OOPPTTIIOONNSS R E P O R T O N N E E D S A S S E S S M E N T O F L A B O U R M I G R A T I O N M A N A G E M E N T I N A R M E N I A The Labour Migration Management Needs Assessment was conducted within the framework of the “Technical assistance to the Armenian Government to initiate labour migration arrangements” project funded by the IOM Development Fund Alexandre Devillard International Organization for Migration Yerevan 2012 International Organization for Migration Mission in Armenia: UN House, 14 Petros Adamian Street, 1st floor, Yerevan o010, Armenia Tel.: (+374 10) 58 56 92; 58 37 86 Fax: (+374 10) 54 33 65 http://www.iom.int/armenia; http://www.iom.am UDC 331.556 (479.25) The needs assessment was conducted within the framework of the IOM Project “Technical assistance to the Armenian Government to initiate labour migration arrangements” funded by the IOM Development Fund Prepared for publication by IOM Project Development and Implementation Unit in Armenia While IOM endeavours to ensure the accuracy and completeness of the content of this report, the views, findings, interpretations and conclusions expressed herein are those of the author and do not necessarily reflect the official position of the IOM and its Member States. IOM does not accept any liability for any loss which may arise from the reliance on information contained in this paper. © Copyright: All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means of electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the publisher. Publisher: International Organization for Migration (IOM) ISBN 978-9939-51-433-8 2 LABOUR MIGRATION IN ARMENIA: EXISTING TRENDS AND POLICY OPTIONS Foreword 5 List of acronyms 7 Introduction 8 I. Labour immigration in Armenia: existing trends and policy options 8 A. Labour market trends and the question of shortages in the national labour market: 9 the need for reliable data 1. Labour immigration flows and stocks 9 1.1. National Statistical Service of the Republic of Armenia 9 1.2. Visas and invitations 11 1.3. Border Management Information System 11 1.4. Population registers 12 2. Assessing labour shortages 13 B. Labour migration policy: towards the regulation of labour immigration in Armenia 15 1. Entry, stay and residence of migrant workers 15 1.1. The current situation: a de facto laissez-faire policy 15 1.2. The Law on aliens from a comparative perspective: experiences from 17 EU Member States 1.2.1 Labour market test and quota system 17 1.2.2 Admission, stay and residence of migrant workers: the EU acquis and the practice of 18 EU Member States 1.3. Proposal for a detailed admission, stay and residence regime for migrant 19 workers in Armenia 1.3.1. Work authorization 19 1.3.1.1. Conditions of delivery of a work authorization 20 1.3.1.2. Procedure of delivery of a work authorization 22 1.3.1.3. Content of the work authorization 22 1.3.1.4. Renewal of the work authorization 23 1.3.1.5. Rejection of a work authorization and appeal of the decision 23 1.3.2 Residence card 24 1.3.2.1. Temporary residence card 24 1.3.2.2. Permanent residence card 25 2. Employment and other economic and social rights of migrant workers in Armenia 26 2.1. Protection in employment 26 2.2. Family reunification 27 II. Emigration of Armenian workers: existing trends and policy options 29 A. Emigration trends and human rights of Armenian migrant workers 29 1. Typology of labour migration flows 29 1.1. Sources of labour migration data 29 1.2. Labour migration rates and destinations 29 1.3. Socio-demographic profile of migrant workers 30 1.4. Organisation of departure and stay in countries of destination 31 2. The rights of Armenian workers in countries of destination: the Russian example 32 2.1. Overview of Russia’s labour immigration legislation 32 2.2. Assessment of migrant workers’ rights violations in Russia 33 2.2.1. Appreciation of the stay abroad in Armenian household surveys 33 3 2.2.2. The role of intermediaries 34 2.2.3. Absence of employment contracts 35 2.2.4. Unpaid wages, delayed wages, deductions in wages 35 2.2.5. Work and life conditions 36 B. Emigration policy: the need for a comprehensive approach to the emigration of Armenian 37 workers 1. Protection activities 37 1.1. Management of the recruitment of Armenian workers: the regulation of private 37 employment agencies 1.1.1. The need for regulation 37 1.1.2. Licensing standards 38 1.1.2.1. Defining private employment agencies 38 1.1.2.2. Conditions for issuing a licence 39 1.1.2.3. Content of licence 42 1.1.2.4. Services of private employment agencies and collection of fees 43 1.1.3. Monitoring activities of private employment agencies and enforcing 47 sanctions 1.1.4. Cooperation between private employment agencies and public 49 employment services 1.2. Information dissemination strategies 49 1.3. Protection activities in countries of destination: consular assistance and 50 related activities 1.3.1. Current activities 51 1.3.2. Towards improved protection activities abroad 51 1.3.2.1. Traditional consular assistance activities 51 1.3.2.2. A more modern conception of consular assistance 53 2. Labour market strategies: diversifying countries of destination and promoting employment 54 abroad 2.1. Why promoting foreign employment 54 2.2. Assessment of the national labour market 55 2.3. Target market identification 56 2.4 Activities to be undertaken after market research 59 3. Concluding bilateral arrangements 62 3.1. Bilateral labour arrangements 63 3.1.1. Expectations from countries of origin 63 3.1.2. Typology of bilateral labour arrangements 63 3.1.3. Difficulties in negotiation, conclusion and implementation 64 3.1.4. Content of a comprehensive bilateral agreement 66 3.2. Social security arrangements 81 3.2.1. Migrant workers and social security 81 3.2.2. Social security arrangements 82 3.2.3. Unilateral measures adopted by countries of origin 87 Conclusion and Recommendations 88 Bibliography 90 Annexes 92 Annex 1: Law on Aliens, 2006 93 Annex 2: Draft Law on Regulation of Overseas Employment 111 Annex 3: Agenda of the Needs Assessment Mission 117 Annex 4: Comments and questions from the State Migration Service and compiled answers 120 4 FOREWORD Mobility is an essential feature of today’s world, and migrant workers are now an increasingly vital part of the global workforce. IOM believes that organized and well-managed labour migration has enormous potential for Governments, communities, migrants, employers and other stakeholders in countries of origin and destination. While job creation at home is the first, best option, an increasing number of countries see international labour migration as an integral part of national development and employment strategies by taking advantage of global employment opportunities and bringing in foreign exchange. In countries of origin, labour migration can relieve pressure on unemployment and can contribute to development through the channelling of remittances, transfer of know-how, and the creation of business and trade networks. In countries of destination which face labour shortages, orderly and well-managed labour migration can lighten labour scarcity, facilitate mobility, and add to human capital. To protect migrant workers and to optimize the benefits of labour migration for both the country of origin and destination, as well as for migrants themselves, clearly formulated labour migration policies, legislation and effective strategies are required. International labour migration is a transnational phenomenon and cannot, therefore, be effectively managed or addressed only at the national level. It needs to also be addressed the bilateral, regional and international level. Besides the global nature of labour migration and the increasing tendency of labour mobility worldwide, there are other factors that shape labour migration trends in Armenia. Armenians generally migrate due to economic reasons. This ongoing labour migration is not properly managed; as a result, the positive impact that migration can have is not being realised. This report studies the management of labour migration (both immigration and emigration) in Armenia and suggests solutions for regulating various aspects of labour migration, such as protection of migrant worker's rights and interests, labour market trends and strategies, facilitated arrangements for labour migration, the development impact of migration, among others. The Report's recommendations suggest solutions for the implementation of Armenia's newly-adopted national strategy on migration management. This Needs Assessment was initiated at the request of the Armenian Government and conducted by the International Organization for Migration (IOM) in close coordination with Armenian bodies involved in migration management. It is expected to be followed by the development of detailed policies and regulations on the management of labour migration. 5 The report was funded by the IOM Development Fund, which provides special support to IOM’s Developing Member States and Member States with Economy in Transition for the development and implementation of joint government-IOM projects to address particular areas of migration management. Arayik Petrosyan Irena Vojackova Sollorano First Deputy Minister of Labour and Social