Country Information

Mongolia is a landlocked country located in Eastern Asia. It is bordered by Russia to the North and China to the south. The official language spoken is Mongolian, although there are a multitude of local languages spoken regionally throughout the country. Mongolia has a rich history that lives on to this day, specifically a reverence for horses and horseback riding. Agriculture and herding have long been the staples of Mongolia’s economy however the country has made strides recently to develop a more diversified economy.

Employment Contracts

In Mongolia, there is a distinction between employment agreements and employment contracts. Different requirements and restrictions apply to each, so the two are not interchangeable. An employee agreement is used to define an employment relationship for general purposes. The agreement can be for an indefinite term or for a specified period. The employment agreement must be in writing and a copy must be provided to the employee. The employment agreement must identify the job title or position, the duties to be performed, salary and labor conditions.

An employment contract is executed when hiring an employee with unique or specialized skills. A list of positions requiring an employment contract is put out by the Mongolian government and include leadership positions such as chief executive officer, director, general manager, and other department heads. The duration of an employment contract is limited to five years but can be extended after evaluating the employee’s performance. An employment contract must be in writing.

Working Hours

The standard work period is generally 40 hours a week with an eight-hour workday. Employees are entitled to two consecutive days of rest, which are commonly Saturday and Sunday. Overtime on a regular day is paid at 150% of the basic rate and is 200% of the basic salary if an employee works on a public holiday and is not given another day off. Employees who work at night are entitled to additional pay, which is determined by a collective agreement.

Sick Leave

Employees receive sick leave for as long as is necessary.

Maternity/Paternity Leave

Female employees receive 120 days of maternity leave. It begins 60 days prior to the birth of the child and the remaining 60 days are taken after the birth. Eligible employees receive payments through Mongolia’s social insurance program. Employees are eligible for benefits if they have made at least 12 contributions and continuous contributions in the six months immediately before taking maternity leave. Eligible employees receive 70% of the average salary and income over the last 12 months. Male employees do not receive paternity leave. Childcare leave is granted to mothers and single fathers with children under three years old. During this leave, the employer is responsible for making social insurance payments on the employee’s behalf.

Compensation

Bonuses are not required but are common.

Vacation Leave

Employees start at 15 days of paid annual leave per year, which increases with years of service.

Public Holidays
  • New Year’s Day
  • Lunar New Year
  • International Women’s Day
  • Mother and Child Day
  • Naadam
  • Day of the Proclamation of the People’s Republic
  • Mongolian People’s Revolution
Health Insurance Benefits

Healthcare is generally funded by the government, but individuals may be responsible for co-payments depending on the service.

Employment / Termination / Severance

Mongolia makes a distinction between employment agreements and employment contracts. The conditions and requirements for terminating an agreement or a contract vary. An employment agreement can be terminated under the following circumstances:

  • By mutual agreement of the employer and employee
  • Upon the death of either the employer or employee
  • Expiration of the employment agreement without extension
  • If required by law
  • An improperly dismissed employee is reinstated to the position (the displaced employee must be provided with another job if possible)
  • The employee is called to active military service
  • A court sentences the employee to a punishment that prevents the employee from working
  • At the initiative of either the employer or employee

An employee generally must provide 30 days of notice to an employer, unless otherwise agreed.

An employer can terminate an employment agreement for the following reasons:

  • The business is liquidated
  • The employee does not meet the requirements of the job because of lack of professional qualifications or skill, or health reasons
  • The employee has reached retirement age and is eligible for a pension
  • The employee has repeatedly violated the employer’s disciplinary rules or has committed a serious violation
  • The employee breaches fiduciary responsibility
  • The employee gets another job
  • Other grounds established in the agreement

Employers must provide 30 days of notice to employees dismissed because of liquidation of the business or for inability to meet job requirements. Employers must provide 24 days of notice to an employee’s representative, such as a trade union, if dismissing an employee due to dissolution of the business. Severance pay is one month’s wages if the termination is due to the employee’s military duty, liquidation of the business, or an employee reaches retirement age.

Local Laws & Regulations

We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

Learn more

Partner with Atlas

Partnering with Atlas when expanding into Mongolia, can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.
Contact us

Global Resources

View All

Get in touch

Our team of regional experts are here to support you with your global expansion plans. If you have any questions, just get in touch and we will be delighted to help.

Valid number
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.