Once the center of an empire stretching from Asia to Europe under Genghis Khan, Mongolia is a landlocked country in Central Asia dominated by sparsely populated steppe and semi-desert. A third of the population lives in the capital, Ulaanbaatar, while another 40% are nomadic, herding livestock in the extensive grasslands. In the late 12th century, a chieftain named Temüjin succeeded in uniting the Mongol tribes between Manchuria and the Altai Mountains and took the title Genghis Khan. He waged a series of brutal and fierce military campaigns conquering much of Asia and forming the Mongol Empire, the largest contiguous land empire in world history. The majority of the population are Buddhists, and horse culture is still an integral part of their society. Mongolian cuisine is rooted in their nomadic history, with dairy and meat featuring prominently, with few vegetables. Two of the most popular dishes are Buuz (a meat-filled steamed dumpling) and Khuushuur (a deep-fried meat pie).
Permanent employment contracts are those that are for indefinite term. They are the default form of employment. Indefinite contracts can be formed for employees who are engaged in seasonal work on a regular basis.
Employees and employers in Mongolia can conclude an employment contract with a mutual agreement. The contract must be in writing and signed by the relevant parties. If the employment contract is not concluded in writing for valid reasons, the employer shall be obliged to renew the employment contract within 10 working days after the employee starts performing his/her duties.
The contract must contain information on location of job, working conditions, nature of job, salary, working hours, grounds for termination, procedures for labor discipline and complaints, etc.
Employers can include a non-compete clause in employment agreements to protect their production and business secrets. The grounds for prohibiting competition, the type of activity, the territory covered by the restriction, the period of validity, and the compensation to be paid by the employer during that period shall be specified in the employment agreement or non-competition agreement. Non-competitive conditions in the employment agreement or the term of the accompanying agreement shall not exceed 1 year after the termination of the employee's employment relationship. Employers must pay at least 50% of the employee's last salary as compensation during the duration of the application of the non-compete clause.
Employers in Mongolia are allowed to hire employees for temporary duties through a labor supply service. The total number of temporary employees must not exceed 30% of the total workforce. Such contracts can be formed for a maximum duration of 6 months to work in the absence of a permanent employee and to perform works and services that are of ancillary nature to the main activities of the business entity or organization.
It is prohibited to agree to and include in the labor supply contract the rights and obligations of the receiving party that are worse than the rights and obligations of the employees of the client. The employment conditions of an employee working under a supply contract shall be the same as those of the recipient's full-time employee. An employee working under a labor supply contract shall have the same right to be included in the recipient's collective agreement as a full-time employee.
In Mongolia, an employer may enter into a probationary employment contract in order to verify that the employee meets the requirements of the job. Probationary period cannot exceed 3 months and can be extended once by mutual agreement for a period not exceeding 3 months. The basic salary of a probationary employee shall be set not less than the basic salary of the job.
In case of seasonal work to be performed once, in place of an employee whose job is retained, or in a temporary job, a probationary agreement shall not be concluded with the employee.
In Mongolia, the standard working hours are 40 per week or 8 hours per day. For part-time employees, the working hours are 32 hours per week. The working hours of a minor employee must not exceed 30 hours per week. The maximum working hours per week shall not exceed 56 hours. The additional working hours per day shall not exceed 4 hours. Employers must keep a record of employees' working hours. All employees must get 2 consecutive days' weekly rest.
An employee's working hours can be reduced under certain circumstances, and employees are paid by the hour.
Employees in Mongolia are entitled to paid annual leave after they have worked for at least 6 months. The minimum duration of leave is 15 days. Employees under 18 years of age or with disabilities get 5 additional days of annual leave. Annual leave pay shall be calculated based on the employee's average annual salary for the given work year. Employees can break up their leave and take 10 days of their annual leave at a time.
The duration of annual leave increases with the length of service. Employees working in difficult working conditions are granted additional leave days. Part-time employees shall be provided with basic and additional annual leave based on the total number of hours worked during the working year.
Employees whose employment is terminated before the year ends are entitled to remuneration for their annual leave. If for some reason, an employee is unable to take his/her annual leave, they are paid a premium of 2% of their annual leave salary for unused leave.
There are no provisions regarding sick leave in Mongolia's Labor Code. Employees who have paid social security contributions for 3 or more months are entitled to temporary disability benefits due to non-occupational injuries or sickness on submission of a medical certificate. The benefit is paid as a percentage of 3 months' average salary of the employee, depending on the number of years of contributions.
Temporary disability benefits for the first 5 days of temporary disability shall be paid by the employer, and benefits for the period from the 6th day until the disability is restored or the right to receive a disability pension shall be paid from the benefit insurance fund. The maximum duration is 66 days or 132 days in case of cancer or tuberculosis.
The Labor Code of Mongolia grants 120 days' maternity leave to new mothers. It is increased to 140 days for twins. Maternity benefit is paid as 100% of the average salary of the employee by the Social Insurance Fund. Employees must have paid insurance contributions for at least 12 months, including immediate 6 months before taking maternity leave to be eligible for benefits. Adoptive parents of a newborn child get paid leave up to 60 days.
Maternity leave is also granted to a mother who gave birth to a child 196 or more days prematurely, had a medical abortion, terminated the pregnancy by medical means, or gave birth to a viable child without 196 days of pregnancy.
Employers must not dismiss an employee for being pregnant or on maternity leave. Pregnant employees can agree with the employer to perform their duties from home or from a distance. It is prohibited to engage a pregnant woman or an employee with a child under 3 years of age on a business trip, except with their consent.
In Mongolia, employers shall provide fathers with at least 10 working days off to take care of their newborn child and pay them an amount equal to the average salary for that period.
In Mongolia, employees must give their employers written notice at least 30 days before terminating their employment. Employers are required to give a written notice of at least 30 days for mass dismissals.
Employees who are dismissed are entitled to receive severance benefits regardless of whether they are entitled to unemployment benefits from the social insurance fund, except when they are dismissed for gross misconduct. The amount of severance benefit is calculated as follows:
If they have worked for the business entity or organization for 6 months to 2 years, it shall be equal to at least 1 month's basic salary
If they have worked for the business entity or organization for 2 to 5 years, it shall be equal to at least 2 months' basic salary
If they have worked for the business entity or organization for 5 to 10 years, it shall be equal to at least 3 months' basic salary
If they have worked for the business entity or organization for 10 or more years, it shall be equal to at least 4 months' basic salary
In case of mass dismissal of an employee, the employer shall determine the amount of termination benefit in negotiations with the employee's representatives not less than that specified above. Part-time employees are also entitled to severance benefits.
