Mongolia Labor Law and Employment Policy Overview

Employment Law Overview

• Key Laws and Regulations:
  • Labor Law
  • Social Insurance Law
  • Health Insurance Law
• Legal Characteristics:
  • Protects employee rights, including paid leave, sick leave, and maternity leave.
  • Outlines obligations and responsibilities of employers and employees.
  • Promotes health and safety in the workplace.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts (maximum 5 years)
  • Indefinite-term contracts
• Contract Terms:
  • Job title or position
  • Duties and responsibilities
  • Salary
  • Working hours
  • Vacation leave
  • Termination conditions
• Language and Currency:
  • Contracts must be written in Mongolian.
  • Salary and monetary amounts must be in Mongolian Tugrik (MNT).

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day.
• Rest Days and Breaks: Two consecutive rest days per week, typically Saturday and Sunday.

Leave Policies

• Annual Leave:
  • First 6 years of service: 15 days per year
  • 6-10 years of service: 18 days per year
  • 11-15 years of service: 20 days per year
  • 16-20 years of service: 22 days per year
  • 21-25 years of service: 24 days per year
  • 25-31 years of service: 26 days per year
  • 32 years of service and above: 28 days per year
• Public Holidays: 15
• Special Leave:
  • Sick leave: Unlimited
  • Maternity leave: 120 days (60 days prenatal, 60 days postnatal)
  • Paternity leave: 10 days
  • Childcare leave: Available to mothers and single fathers with children under 3 years old

Employee Severance and Contract Termination

• Notice Period:
  • Employee: 30 days
  • Employer: 30 days (except in cases of business liquidation or employee's failure to meet job requirements)
• Severance Pay:
  • Less than 1 year of service: 1 month's salary
  • 1-5 years of service: 2 months' salary
  • 5 years of service and above: 3 months' salary
• Protection Against Unfair Dismissal: Employees have the right to seek remedies if dismissed due to discrimination, retaliation, or other unlawful reasons.

Tax Laws

• Personal Income Tax:

  • Salary Range (MNT)	Tax Rate
    0 - 120,000,000	10%
    120,000,000 - 180,000,000	15%
    180,000,000 and above	20%

• Social Insurance Contributions:

  • Pension insurance: 8.5%
  • Welfare insurance: 1%
  • Health insurance: 2%
  • Work injury and occupational disease insurance: 0.8% - 2.8%
  • Unemployment insurance: 0.2%

Health Insurance

• Insurance Policy: All employees must participate in the national health insurance scheme.
• Coverage: Basic medical services, including hospitalization, outpatient care, and prescription drugs.

Compensation and Benefits

• Minimum Wage: MNT 550,000 per month
• Salary Structure: Typically includes base salary, bonuses, and allowances.

Work Permits and Visas

• Permit Requirements: Foreign employees require a work permit and visa.
• Application Process: Apply through Mongolian embassies or consulates abroad.

Confidentiality and Non-Compete Clauses

• Enforceability: Confidentiality and non-compete clauses are enforceable in Mongolia.
• Common Provisions: Restrict disclosure of confidential information and working for competitors for a specified period.

Training and Development

• Legal Requirements: Employers must provide safety training and opportunities for skill enhancement to employees.
• Government Support: Government provides training subsidies and programs.

Workplace Diversity and Inclusion

• Legal Requirements: Discrimination based on race, gender, religion, or other protected characteristics is prohibited.
• Enforcement Measures: Employers must develop and implement anti-discrimination policies.

Remote Work Policies

• Legal Framework: Mongolia does not have specific remote work laws.
• Tax and Insurance Implications: Remote work may impact tax and social insurance obligations.

Authoritative Website Addresses

• Ministry of Labor and Social Protection of Mongolia: https://www.mlsp.gov.mn/