Employment law in Mongolia
Employment Law in Mongolia is governed primarily by the Labor Law of Mongolia (2007, with amendments), along with other regulations and international labor conventions that Mongolia has ratified. The Labor Law aims to regulate the relationship between employers and employees, providing clear rights, obligations, and protections for both parties. In addition to the Labor Law, there are other important regulations related to employment, such as those concerning social security, wages, and collective agreements.
Here is an overview of key aspects of employment law in Mongolia:
1. Employment Contracts
Written and Oral Contracts: While employment contracts in Mongolia can be oral, it is highly recommended to have a written contract to avoid disputes. A written contract is especially important for fixed-term employment.
Types of Contracts:
Indefinite-Term Contracts (Permanent Contracts): Most common, these contracts do not specify an end date and typically govern the ongoing relationship between employer and employee.
Fixed-Term Contracts: These contracts specify a set period or for the completion of a specific project. They must be clearly defined and cannot be used as a substitute for permanent employment.
Part-Time and Temporary Contracts: These contracts can be used for short-term employment or on an as-needed basis.
Key Details: Employment contracts should include:
Job title and description.
Salary, compensation, and benefits.
Working hours and leave entitlements.
Termination clauses (notice periods, reasons for dismissal, etc.).
2. Wages and Salary
Minimum Wage: Mongolia has a national minimum wage set by the government. As of 2025, the minimum wage is approximately 420,000 MNT (around USD 145) per month.
Payment of Wages: Wages are typically paid monthly, and employers are required to provide employees with a pay slip showing the breakdown of their earnings and deductions (tax, social security contributions, etc.).
Bonuses and Incentives: Employers are allowed to pay additional bonuses, performance-based incentives, or allowances, which must be stated clearly in the employment contract.
3. Working Hours and Overtime
Standard Working Hours: The standard workweek in Mongolia is 40 hours (typically 8 hours per day, 5 days a week). This may vary in certain industries, such as agriculture or manufacturing, where flexible hours may be necessary.
Overtime: Overtime is allowed, but it is subject to strict regulations:
Overtime work is generally paid at 1.5 times the regular hourly wage.
Work exceeding 12 hours per day or 48 hours per week is considered overtime and must be compensated at higher rates.
Employees are limited to working a maximum of 4 hours of overtime per day and 120 hours of overtime per year.
Rest Breaks: Employees are entitled to at least one 30-minute break after working 6 continuous hours.
4. Annual Leave and Public Holidays
Annual Leave: Employees are entitled to 15 working days of paid annual leave after one year of continuous employment. This can increase with length of service or through collective bargaining agreements.
Public Holidays: Mongolia has several national holidays that employees are entitled to as paid leave. Key public holidays include:
New Year's Day (January 1)
International Women’s Day (March 8)
Naadam Festival (mid-July)
Labor Day (May 1)
Independence Day (November 26)
Tsagaan Sar (Lunar New Year, typically in February or March).
If employees are required to work on public holidays, they are generally entitled to additional compensation (often double their normal wage).
5. Sick Leave
Sick Leave: Employees are entitled to paid sick leave if they provide a medical certificate from a registered healthcare provider. Employees are entitled to 60% of their regular salary during the first 14 days of illness. After 14 days, the rate may decrease, depending on the employer's policy and any collective agreements.
Long-Term Illness: If an employee is sick for an extended period, they may be eligible for disability benefits under the Social Insurance Law.
6. Maternity and Paternity Leave
Maternity Leave: Female employees are entitled to 120 days of maternity leave, with 60 days before the expected date of delivery and 60 days after the birth. Maternity leave is paid at 100% of the employee’s salary, and benefits are provided through the Social Insurance Fund.
Paternity Leave: Fathers are entitled to 3 days of paternity leave after the birth of a child.
Parental Leave: Additional leave for the care of a child may be available, though it depends on the employer's policies.
7. Termination of Employment
Notice Period: Either the employee or employer must provide advance notice of termination:
For indefinite-term contracts, the notice period is typically 30 days for employees who have worked for less than 3 years. This period increases with the length of service (e.g., 60 days for employees with 3-5 years of service, and 90 days for employees with more than 5 years of service).
Dismissal: Employers may terminate employees for reasons such as misconduct, poor performance, redundancy, or economic necessity (downsizing). However, the dismissal must follow due process and cannot be arbitrary.
For unfair dismissal, employees can seek compensation or reinstatement through the courts or the Labour Dispute Resolution Commission.
Severance Pay: Employees terminated without cause (e.g., due to redundancy or dismissal for economic reasons) are entitled to severance pay, typically based on the length of service and the terms of the employment contract.
8. Social Security and Benefits
Social Insurance Contributions: Both employers and employees are required to make contributions to the Social Insurance Fund, which provides benefits for:
Retirement pensions.
Unemployment benefits.
Sick leave benefits.
Disability benefits.
The total contribution rate is shared between the employer (the majority of the contribution) and the employee. The amount is calculated based on the employee’s salary.
Unemployment Benefits: Employees who lose their job due to reasons other than misconduct may be entitled to unemployment benefits for a certain period, provided they meet the eligibility criteria and have paid into the Social Insurance Fund.
9. Discrimination and Harassment
Non-Discrimination: The Labor Law prohibits discrimination on the basis of gender, race, religion, disability, age, political affiliation, and other personal characteristics. Discriminatory practices are subject to legal consequences.
Sexual Harassment: Sexual harassment in the workplace is prohibited by law, and employees have the right to report incidents of harassment to their employer or relevant authorities. Employers must take appropriate action to address harassment and prevent it from occurring.
Equal Pay: The principle of equal pay for equal work is mandated under Mongolian labor law, ensuring that employees performing the same work receive equal compensation, regardless of gender or other protected characteristics.
10. Health and Safety
Workplace Safety: Employers are required to provide a safe working environment. This includes proper safety equipment, training, and preventive measures to avoid workplace accidents or health risks.
Occupational Health: Employees working in hazardous conditions (e.g., in construction, mining, or chemicals) must be provided with appropriate protective equipment and must undergo regular health checks to ensure they are not exposed to dangerous substances or conditions.
Reporting of Accidents: Workplace accidents and injuries must be reported to the relevant authorities, and injured employees may be entitled to compensation for medical treatment and lost wages.
11. Labor Disputes and Resolution
Labor Disputes: In case of disputes between employers and employees (e.g., over wages, dismissal, or working conditions), the Labor Dispute Resolution Commission (LDRC) can intervene. Employees or employers can bring complaints or claims to the commission for resolution.
Labor Court: If disputes are not resolved at the commission level, they may be taken to the labor court for judicial resolution.
12. Labor Unions and Collective Bargaining
Labor Unions: Employees have the right to form and join trade unions, which represent workers’ interests in negotiating better wages, benefits, and working conditions.
Collective Bargaining: Labor unions engage in collective bargaining with employers or employer organizations to agree on terms of employment, wages, working hours, and other matters. Collective agreements can provide additional protections beyond the statutory requirements.
Conclusion
Mongolia's labor laws provide a solid framework for the protection of employee rights, including regulations around wages, working hours, leave entitlements, termination, and social security. While the system is broadly in line with international labor standards, it is important for both employers and employees to be aware of their rights and obligations under the law to avoid disputes and ensure fair treatment.
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