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

Mongolia distinguishes between employment agreements and employment contracts. Different requirements and restrictions apply to each. 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. The Mongolian government issues a list of positions requiring an employment contract, including 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.

The standard work period in Mongolia is 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 rate if an employee works on a public holiday and is not given another day off. Employees who work at night are entitled to time off the next working day or 120% of their basic rate for the overtime hours.

Employees receive sick leave in Mongolia for as long as is necessary.

Female employees receive 120 days of maternity leave in Mongolia. 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 to social security, including continuous contributions in the six months immediately before taking maternity leave. Eligible employees receive 70% of their average salary 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.

Mongolia has a minimum wage. Bonuses are not required but are common.

Employees start at 15 days of paid annual leave for each of their first six years of service. Annual leave increases as the years of service increase.

In Mongolia, the public holidays are:

  • New Year's Day

  • Lunar New Year's Day

  • Second Day of Lunar New Year

  • Third Day of Lunar New Year

  • International Women's Day

  • Great Buddha Day

  • Children's Day

  • Naadam Holiday (National Day)

  • Republic's Day

  • Independence Day

Mongolia offers universal healthcare but individuals may be responsible for co-payments depending on the service.

Mongolia distinguishes between employment agreements and employment contracts. The conditions and requirements for terminating an agreement and a contract vary. An employment agreement can terminate:

  • by mutual agreement of the employer and employee,

  • upon the death of either the employer or employee,

  • at expiration without extension,

  • if required by law,

  • when an improperly dismissed employee is reinstated to the position,

  • if the employee is called to active military service,

  • if a court sentences the employee to a punishment that prevents the employee from working, or

  • 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 when:

  • The business is liquidated,

  • The employee does not meet the requirements of the job because of lack of professional qualifications or skills or health reasons,

  • The employee has repeatedly violated the employer’s disciplinary rules or has committed a serious violation,

  • The employee breaches fiduciary responsibility, or

  • The employee gets another job.

Employers must provide 30 days of notice to employees dismissed because of liquidation of the business or for inability to meet job requirements. Severance pay is one to four months of wages, depending on length of service.

  • 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.

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    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.

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