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Written Agreements

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.

Oral Agreements

It is mandatory to conclude employment contracts in writing in Mongolia. If the employment contract is not concluded in writing due to valid reasons, the employer shall be obliged to renew the employment contract within 10 working days after the employee starts performing his/her duties. An employment relationship shall be deemed to have been established when an employee starts performing his/her duties even if the employment contract has not been concluded in writing.

Implied Agreements

In Mongolia, an employment relationship is deemed to have been established when an employee starts performing his/her duties even if the employment contract has not been concluded in writing.

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 working on public holidays are compensated with a day off or twice their wages. It is prohibited to perform continuous production, public services, transportation, communication and necessary work, to work on public holidays and weekends at the initiative of the employer, except in case of emergencies. Pregnant employees, employees with a child under three years of age or a child with a disability under 16 years of age in need of permanent care cannot be employed to work on public holidays.

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.

Notice 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.

Severance Benefits

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.

Minimum Wage

No employee can be paid less than the statutory minimum wage. The minimum wage is set by the tripartite National Committee on Labor and Social Consent every 2 years. Minimum wage was set at MNT 792,000 (Mongolian tugrik) per month as of April 1, 2025.

Salary must be paid at least twice a month on a fixed day, and the day of payment shall be reflected in the internal labor norms or in the labor contract. If the payment day falls on a weekly holiday or public holiday, it must be paid on the previous working day. Based on the agreement of the parties, the employee's salary can be paid by the hour, day, or week.

Overtime, Holiday & Vacation Pay

Employees working in excess of the standard daily, weekly working hours limit are eligible for overtime pay in Mongolia. Overtime can be performed only in urgent situations. Pregnant women, employees with children less than 3 years of age, and minors cannot be employed in overtime work.

Overtime work or work done on weekends is compensated with time off or at a premium of 50% above the normal wages of the employee. Overtime done at night is paid with an additional premium over and above the nighttime wages. Overtime work cannot exceed 4 hours per day. For work done on public holidays, employees are paid twice their normal wages.

Annual leave pay shall be calculated based on the employee's average annual salary for the given work year.

Visas

Visas are classified as entry, transit, single-entry, double-entry, and multiple-entry visas. The following types of visas are issued to foreign nationals according to the purpose of the visit :

• For official purposes (type A) - granted to foreign nationals with official passports, or those arriving through foreign diplomatic missions, staff and officials of the United Nations, and its specialized agencies, etc.
• For investors (type B) - granted to foreign nationals who are investors in enterprises in Mongolia or representatives of an investor in a foreign-invested enterprise
• For employment (type C) - granted to foreign nationals coming to work in Mongolia and their dependents
• For education (Type E) - granted to foreign nationals coming to Mongolia to study at a higher education institution, at a vocational education and training institution, or in research and development
• For family purposes (type F) - granted to foreign nationals registered as married to a Mongolian citizen, family members, or relatives of Mongolian citizens
• For immigration (type G) - issued to foreign nationals and their dependents who wish to settle permanently in Mongolia
• For personal reasons (type H) - issued to foreign nationals who have made outstanding contributions to Mongolia or those who become a foreign citizen without relinquishing Mongolian citizenship
• For religious purposes (type J) - issued to foreign nationals who come to engage in religious activities
• For temporary visit (type K) - issued to foreign nationals coming for tourism, business, transit, medical treatment, etc. for stays of up to 30 days (10 days in case of transit visa).

Work Permits

Foreign nationals must submit an application for a residence permit in Mongolia for private purposes to the state administrative body in charge of foreign citizenship within 21 days from the date of entering the country. The application for a residence permit must be submitted in hard copy and in original by the foreign national. A foreigner applying for a residence permit for official or private purposes is required to undergo a medical examination if necessary.

The following types of visas and corresponding residence permits are issued to those who wish to work in Mongolia:

• C1 - work in construction
• C2 - work in science, education and technology
• C3 - work in geology, mining, oil and energy
• C4 - work in financial, economic and legal fields
• C5 - work in culture and sports
• C6 - work in production and service sector
• C7 - work in agriculture sector
• C8 - work in health sector
• C9 - work in humanitarian field
• C10 - work in the field of care and services for household needs
• C11 - work in transport sector