Internship vs Probation Period: Similarities and Differences

Let's talk about two terms that are often treated as the same thing: internship vs probation period. What do the rights and obligations of an intern and of a person on probation have in common, and how do they differ?

Similarities⁠

Gaining Work Experience⁠

Both in an internship and during a probation period, the person gains work experience.

Tax Reporting⁠

A notification is submitted to the tax authority.

Benefits for Minors⁠

Persons under eighteen have the same benefits in both cases.

Restrictions on Work⁠

Persons under eighteen may only be engaged in the same types of work as people on probation.

Employers' Rights⁠

Any entity carrying out economic activity, regardless of its legal form and form of ownership, can take on an intern as well as hire an employee with a probation period.

Internship vs Probation Period: Key Differences⁠

Nature of the Contract⁠

Both an internship and a probation period involve signing a contract, but in one case it is a civil-law contract and in the other an employment contract.

Pay⁠

• Intern: pay is by agreement of the parties
• Probation period: pay is mandatory

Working Schedule⁠

• Intern: working time is limited to a five-day week
• Probation period: a six-day week is also possible

Daily Working Hours⁠

• Intern: working time is limited to four hours a day, with breaks for rest and meals
• Probation period: a schedule of up to twelve hours is possible when combined with another job, with breaks for rest and meals

Duration⁠

• Intern: an internship contract is signed for a term of up to two months
• Probation period: the maximum probation period is up to twelve months

Right to Extend⁠

• Intern: an internship contract is signed no more than once, with no right to extend it
• Probation period: there is no maximum period requirement

Limit on Numbers⁠

• Intern: the number of interns at an employer cannot exceed ten percent of its headcount at that time
• Probation period: there is no limit on the number of people on probation

Length of Service⁠

• Intern: the time an intern spends gaining work experience with the employer does not count toward their length of service
• Probation period: it counts toward the length of service of a person on probation

Documents⁠

• Intern: the intern receives a certificate confirming the work experience gained
• Probation period: a person on probation does not receive a certificate

Tax Burden⁠

• Intern: since an intern's pay is treated as income but not as employment, only income tax is paid on the amount received
• Probation period: for a person on probation, all the other taxes established by Armenian law are paid as well

Employee Rights⁠

A person on probation is entitled to:

• Annual paid and unpaid leave
• Bonuses
• Temporary disability benefit
• Final settlement pay
• Severance pay

An intern does not have these rights.

Supervision⁠

• Intern: one of the employees (with their consent) is assigned to supervise the intern's on-the-job training and is paid a supplement for this work
• Probation period: no similar mandatory role is provided for

Definitions⁠

Intern⁠

An intern is a citizen who, while studying at an educational institution offering initial vocational (craft), secondary vocational or higher professional education programs, or within one year of graduating, is engaged by an employer to gain work experience in a specific profession, qualification or job title.

It is important to note that an intern is not considered an employee and cannot enjoy all the rights established for employees.

Probation Period⁠

The terms of a probation period (also called a probationary period) are set in the employment contract, so the rights and obligations established by the Labor Code of the Republic of Armenia (ՀՀ աշխատանքային օրենսգիրք) are binding for a person on probation.

Purposes:

• At the employer's request: a probation period is set to check whether the employee is suitable for the intended job (position)
• At the request of the person being hired: to determine whether they are suitable for the job (position) offered

Historical Context⁠

The probation period in Armenia has been in use since the very first day the Labor Code applied: since June 21, 2005.

The internship system, meanwhile, was introduced on July 31, 2023 with the adoption of Law HO-160-N (ՀՕ-160-Ն օրենք), which supplemented and amended the Labor Code of the Republic of Armenia with two new but wide-ranging articles (Articles 201.3 and 201.4).

Goals of the Internship System⁠

The internship system was introduced to help:

• Make the link between education and the labor market more effective
• Build a qualified workforce and increase competitiveness in the labor market
• Help young people or first-time labor market entrants learn about labor market trends and integrate into the labor market easily
• Make the transition from volunteer work to real work experience

Conclusion⁠

Although both systems aim to provide work experience, they differ significantly in actual rights, obligations and conditions. Understanding these differences correctly matters for making the best choice, for employers and employees alike.

Probation and internship are different legal statuses, but both require clear agreements and clearly defined responsibilities.

Read also about probation period pay and unfair dismissal. And if you are looking for new opportunities, see the jobs in Armenia page.

This article was published by HR Drone to raise awareness of employment law, to support the lawful conduct of probation periods and internships, and to help maintain fair employment relationships.