Hire in Mongolia

Unless stipulated otherwise by law, an employee retains the right to depart from their workplace after 30 days following the submission of their resignation request with written notice to the employer. In such instances, the employment agreement is deemed terminated. Alternatively, the employer may terminate the employment agreement with 30 days’ notice in accordance with Article 80 of the Mongolian Labor Standards Act.

Employees are not permitted to work more than 40 hours per week. Furthermore, the duration of a standard workday should not exceed eight hours.

The probationary period can last for up to three months, with an option to extend it once for an additional three months.

Severance pay for termination under the following circumstances is contingent upon the employee’s tenure:

• – Termination due to ownership transfer of the business
• – Downsizing of the organization or its business unit
• – Inability of the employee to fulfill job requirements, whether professionally or due to medical reasons

The severance payout is structured accordingly:

Duration of Employment:

• – 6 months to 2 years: 1 month of severance pay
• – 2 to 5 years: 2 months of severance pay
• – 5 to 10 years: 3 months of severance pay
• – More than 10 years: 4 months of severance pay

Additionally, severance pay applies in the following scenarios:
– Termination due to military service call-up or upon reaching 60 years of age and becoming eligible for a pension.
– In cases of mass employee layoffs, the employer will negotiate the severance pay amount with employee representatives.

The standard annual leave entitlement is 15 days, with an exception for employees under 18 years old, who are entitled to 20 days. Additional leave days may be granted based on the length of employment, ranging from three to 14 days.

Employers are required to provide written notice with a duration of 30 days.

Non-compete clauses can be established as a distinct agreement from the employment contract, delineating the reasons for restricting competition, the covered activities, geographical scope, duration, and compensation amount. The compensation must be a minimum of 50% of the employee’s last monthly salary.

Such covenants are enforceable for a maximum of one year post-termination and do not apply if the employee works abroad. They are prohibited for minor workers, employees on probationary contracts, or apprentices.

Non-compete clauses solely pertain to executive-level employees, excluding entry-level or mid-level staff, and may not apply to overseas employment.

The Social Health Insurance (SHI) contribution comprises 12.5% to 14.5% from the employer and 11.5% from the employee. The employee’s contribution is capped at MNT 420,000.

Employers are mandated to furnish social and health insurance coverage for employees contracted for employment. Additionally, they are responsible for deducting premium payments monthly in adherence to legal requirements. Upon the establishment of an employment contract, the employer is obligated to initiate social and health insurance record books for each employee and uphold records of monthly withholding for social and health insurance premiums and associated fees, ensuring compliance with all relevant regulations.

Participation in the insurance system is obligatory for all individuals, including Mongolian citizens, foreigners, and stateless persons, who are employed within Mongolia’s territory.

• The weekly maximum of working hours must not surpass 56 hours, while daily overtime work is limited to 4 hours. Employers are required to maintain a record of employees’ working hours.
• If an employee works on a public holiday without being provided with an alternative day off, they are entitled to compensation equivalent to twice their average pay for that day.
• If an employee works overtime on both workdays and weekends without being provided an additional rest day for each, they shall receive compensation equal to at least 1.5 times their average pay.
• For employees working during night hours without equivalent rest periods during normal business hours, they are entitled to receive an additional compensation of 1.2 times their regular pay, as specified in the relevant collective agreement or employment contract.

• If, due to circumstances beyond their control, an employee cannot be reassigned to another job during a period of idle time related to the employer’s operations, they shall receive compensation as outlined in the relevant collective agreement.
• The compensation for idle time, as determined by the collective agreement, must amount to at least 60% of the employee’s basic compensation, ensuring it does not fall below the minimum compensation stipulated for the job description.
• However, if the idle time is a result of the employee’s actions, they will not be entitled to any compensation for the idle period.
• During idle time, if the employee engages in alternative work assigned by the employer, they will be remunerated according to the tasks performed. Under no circumstances shall this payment be less than their previous average compensation.

Monthly payslips must be accessible through the website, in PDF format, or in hard copy.

After six months of service, employees are entitled to 15 days of paid annual leave. There are no limitations on the number of days of partial leave, but at least one portion must be taken continuously for a minimum of 10 working days.

In cases where employees cannot take their annual leave due to urgent business needs, they should receive a bonus equivalent to 1.5 times their base pay.

Employees under the age of 18 are entitled to a regular holiday lasting 20 working days.

Upon request, employees may split their regular holiday into parts throughout the year.

Additionally, employees working under standard conditions shall receive additional leave days based on their length of service and working conditions, as outlined below:

• 6 to 10 years of employment: 3 working days
• 11 to 15 years of employment: 5 working days
• 16 to 20 years of employment: 7 working days
• 21 to 25 years of employment: 9 working days
• 26 to 31 years of employment: 11 working days
• 32 or more years of employment: 14 working days

Furthermore, employees engaged in abnormal working conditions as defined by the collective contract shall receive additional leave days based on their tenure and the nature of their work, as outlined below:

• For employees with 6 to 10 years of service: 5 or more working days
• For employees with 11 to 15 years of service: 7 or more working days
• For employees with 16 to 20 years of service: 9 or more working days
• For employees with 21 to 25 years of service: 12 or more working days
• For employees with 26 to 31 years of service: 15 or more working days
• For employees with 32 or more years of service: 18 or more working days

The additional duration of regular holidays for civil servants may be determined by relevant legislation.

If an employee falls ill with a common illness or sustains an injury at home, which renders them incapable of performing their duties as assessed by a qualified medical professional, they are eligible for paid sick leave for the duration of their temporary incapacity.

Maternity Leave

• Mothers are entitled to 120 days of maternity leave, with an extended leave of 140 days for mothers of twins. In cases of stillbirth or pregnancy interruption through medical procedures before the 196th day of pregnancy, standard sick leave regulations shall apply.
• An adopting father is granted leave equal to that of a birth mother until the child reaches 60 days old. This provision applies similarly to single fathers with newborn children.

Upon request, an employer must grant leave for childcare to the mother or father of a child under three years of age. The provision of an allowance during this leave period will be governed by relevant legislation, collective contracts, agreements, individual employment contracts, and internal labor regulations.

Additionally, the employer is obliged to reinstate the employee to their former position at the conclusion of the childcare leave, or earlier if requested by the employee. If the original position is no longer available, the employer must provide a job of similar nature to the employee.

There are no designated regulations for resignations or stipulations regarding end-of-service payments.

A labor contract can be terminated at the initiation of either the employee or the employer. Unless otherwise specified in the contract, employees can resign from their position after providing 30 days’ notice. Employers can terminate employment contracts with valid reasons.

Valid grounds for terminating employment include:

• – Mutual agreement between the parties
• – Death of either the employer or employee
• – Expiration of the labor contract without mutual extension
• – Mandate from a legal authority
• – Reinstatement of an unjustifiably dismissed employee
• – Enrollment of an employee in military service
• – Court ruling prohibiting an employee from fulfilling work duties due to a criminal offense

When terminating a labor contract, employers must establish a timeline for transferring duties to a new employee and provide this information to the dismissed employee. They are also obligated to furnish the dismissed employee with the termination decision and any legally mandated severance pay. Upon request, employers must issue a letter of reference detailing the employee’s occupation, profession, specialization, position, and remuneration.