References
Labour Code, dated 14 May 1999, as last amended by the Law of 21 April 2017
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Scope
Size of enterprises excluded (≤): none
▶ Labour Code
→ Section 4 of the LC indicates that:
▻ 4.1. This law shall regulate employment contracts and other employment relationships arising from them between the following parties:
▻ 4.1.1. Between domestic and foreign business entities and organizations operating in the territory of Mongolia and citizens of Mongolia;
▻ 4.1.2. Between a citizen of Mongolia, a foreign citizen, a stateless person and a citizen of Mongolia;
▻ 4.1.3. between domestic business entities and organizations and foreign citizens and stateless persons;
▻ 4.1.4. Unless otherwise provided for in an international treaty of Mongolia, between foreign business entities, organizations, citizens, and stateless persons operating in the territory of Mongolia.
▻ 4.2. If the parties who pool their assets and labour have not established regulations regarding labour relations or have agreed to comply with this law, the relevant provisions of this law shall apply. (...).
Workers' categories excluded: civil/public servants
▶ Labour Code
→ The Labour Code defines an employee as "a citizen employed by an employer on the basis of an employment contract" (Section 3.1.2).
▷ The Law on Government Service of 1995 regulates employment relationships in the public service (including disciplinary dismissal).
Reforms under process:
▷ Note: A new project for the revision of the Labour Law is under consideration.
FTC regulated: No
▶ Labour Code (as amended in 2017)
→ The 2017 amendment significantly restructured section 23 of the LC. The previous provisions regulating fixed-term contracts were removed or heavily simplified. The current section 23 only explicitly addresses the probationary period (Section 23¹), length of trial period (Section 23²), and lack of specification on trial period (Section 23³). There is no clear provision regulating fixed-term contracts as a distinct category.
Valid reasons for FTC use: objective and material reasons
▶ Labour Code (as amended in 2017)
→ The 2017 amendment restructured section 23 of the LC. The previous provisions regulating fixed-term contracts appear to have been removed.
Maximum number of successive FTCs: no limitation
No statutory provisions were found in the labour legislation, as amended in 2017.
Maximum cumulative duration of successive FTCs: no limitation
▷ No statutory provisions were found in the labour legislation, as amended in 2017, in this respect.
However, note should be taken of section 25 of the LC, which provides that contracts concluded under that section shall be for a period of up to five years.
Maximum probationary (trial) period (in months): 3 month(s)
▶ Labour Code (LC)
→ Section 23 LC indicates that:
▻ 23.1.1. When hiring an employee, a probationary period may be established to verify whether the employee's professional skills, work experience, and experience are suitable for performing the job.
▻ 23 1.2. provides that: the trial period in the employment contract shall be mutually agreed upon by the parties and shall be up to three months.
▻ 23.1.3. states that: If the employment contract does not specify a probationary period, the employee shall be considered hired without a probationary period.
Excluded from protection against dismissal:
No statutory provisions were found in the examined legislation in this respect.
Valid grounds (justified dismissal):
Prohibited grounds: pregnancy, maternity leave, race, sex, religion, political opinion, social origin, nationality/national origin, trade union membership and activities, parental leave, HIV status
▶ Labour Code
▷ Discrimination
→ Section 7.2. LC prohibits discrimination in labour relations, indicating that: Discrimination, restriction, or preference based on race, ethnicity, colour, age, gender, social origin, status, wealth, occupation, position, education, religion, or ideology in labour relations is prohibited.
▷ HIV
→ Section 7.6. LC states that: A person infected with the human immunodeficiency virus or diagnosed with acquired immunodeficiency shall not be refused employment or dismissed from their current job for this reason, unless their physical health condition prevents them from working or the working conditions are incompatible with it.
▷ Pregnancy, maternity and paternity
→ Section 100 LC provides for the prohibition of dismissal of pregnant women and mothers with children under the age of three (single fathers), indicating that:
▻ 100.1. LC: An employer is prohibited from dismissing pregnant women and mothers with children under the age of three, except in cases where the business entity or organization is liquidated or as specified in sections 40.1.4 and 40.1.5 of this law.
▻ 100.2. LC: Section 100.1 of this law shall apply equally to single fathers with children under the age of three.
▷ Representatives
→ Under section 12.8. LC, it is prohibited to impose disciplinary sanctions on trade union employees and elected representatives who are participating in negotiations and who have not been released from their main job in connection with their elected positions without prior approval from the appropriate higher-level organization, to transfer them to another job for participating in negotiations, or to dismiss them from their jobs at the initiative of the employer during the negotiations and within one year after the end of the negotiations.
→ Section 124.2. LC stipulates that it is prohibited to impose disciplinary sanctions, transfer employees to another job, or dismiss employee representatives who participate in the resolution of collective labour disputes.
Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with family responsibilities
▶ Labour Code
→ Section 7.6 provides protection for persons with HIV: A person infected with the human immunodeficiency virus or diagnosed with immunodeficiency shall not be dismissed solely for this reason, unless their health condition prevents them from performing the job.
→ Section 100 protects pregnant women, women in maternity leave, as well as single fathers (on paternity leave) with children under three years of age from dismissal, except in cases of liquidation of the business or serious misconduct (§ 40.1.4 and 40.1.5).
→ Section 12.8 and section 124.2 protect trade union representatives and employee representatives. It is prohibited to dismiss representatives participating in negotiations without prior approval during negotiations and for one year thereafter. It is also prohibited to impose disciplinary sanctions, transfer or dismiss representatives who participate in the resolution of collective labour disputes.
Notification to the worker to be dismissed: written
▶ Labour Code
→ Section 40.5 of the LC on "Termination of an employment contract at the initiative of the employer" indicates that: The employer shall notify the employee one month in advance of the termination of the employment contract on the grounds specified in sections 40.1.1 and 40.1.2 of this law. In the event of a mass dismissal of employees due to the liquidation of the business entity, organization, or its branch or unit, the employee representatives shall be notified 45 days in advance and negotiations shall be held in accordance with this law.
▷Exception
→ Under section 41.2. of the LC, when termination of the contract of employment is caused by the employer's permanent transfer of ownership rights to another person (§41.1.3), the employer shall notify the employee of this at least two months in advance (...).
→ Section 43.3. of the LC states that the employer is obliged to provide the employee with a decision on the termination of the employment contract, a social and health insurance book, and, if provided for by law, severance pay on the day of dismissal.
Notice period:
▶ Labour Code
→ Under section 40 of the LC on "Termination of an employment contract at the initiative of the employer", where an employment contract is terminated at the initiative of the employer on the following grounds :
▻ 40.1.1. the business entity, organization and its branches or units have been liquidated, positions have been eliminated, or the number of employees has been reduced;
▻ 40.1.2. It has been determined that the employee is no longer qualified for the job or position they are performing in terms of their profession, skills, or health;
The employer shall notify the employee one month in advance of the termination of the employment contract on the grounds specified in sections 40.1.1 and 40.1.2 of this law. (...).
Pay in lieu of notice: No
No statutory provisions were found in the examined legislation in this respect.
Notification to the public administration: No
No statutory provisions were found in the examined legislation in this respect.
Notification to workers' representatives: No
No statutory provisions were found in the examined legislation in this respect.
Approval by public administration or judicial bodies: No
No statutory provisions were found in the examined legislation in this respect.
Approval by workers' representatives: No
No statutory provisions were found in the examined legislation in this respect.
Definition of collective dismissal (number of employees concerned)
▷ No statutory definition of collective dismissals.
→ Section 42.2 LC regulating severance pay refers to "mass layoffs".
→ Section 40.1.1. LC provides for cases of dismissal where the business entity, organization and its branches or units have been liquidated, positions have been eliminated, or the number of employees has been reduced.
▷ References are made to mass layoffs and mass dismissals under sections 40.5 and 42.2. LC.
Notification to the public administration Yes
- There is a statutory obligation to undertake prior consultations with the employee's representatives in the event of mass layoffs (§ 42.2 LC) or mass dismissal of employees due to the liquidation of the business entity, organization, or its branch or unit (§ 40.5 LC).
▶ Labour Code
→ Section 40.5. LC indicates that: The employer shall notify the employee one month in advance of the termination of the employment contract on the grounds specified in sections 40.1.1 and 40.1.2 of this law. In the event of a mass dismissal of employees due to the liquidation of the business entity, organization, or its branch or unit, the employee representatives shall be notified 45 days in advance, and negotiations shall be held in accordance with this law.
→ Section 42.2. LC provides that: In the event of mass layoffs, the employer shall determine the amount of severance pay through negotiations with employee representatives.
Notification to trade union (workers' representatives) No
No statutory provisions were found in the examined legislation in this respect.
Notification to workers' representatives: Yes
▷ Consultation with the employee's representatives is mandatory in the event of the dissolution of a business entity resulting in the termination of all employees. The workers' representatives must be informed 45 days prior to the dissolution (§ 40.5 LC).
▶ Labour Code
→ Section 40.5. LC indicates that: The employer shall notify the employee one month in advance of the termination of the employment contract on the grounds specified in sections 40.1.1 and 40.1.2 of this law. In the event of a mass dismissal of employees due to the liquidation of the business entity, organization, or its branch or unit, the employee representatives shall be notified 45 days in advance and negotiations shall be held in accordance with this law.
Approval by trade union (workers' representatives) No
No statutory provisions were found in the examined legislation in this respect.
Approval by workers' representatives No
No statutory provisions were found in the examined legislation in this respect.
Priority rules for collective dismissals (social considerations, age, job tenure) No
No statutory provisions were found in the examined legislation in this respect.
Employer's obligation to consider alternatives to dismissal (transfers, retraining...) No
No statutory provisions were found in the examined legislation in this respect.
Priority rules for re-employment No
No statutory provisions were found in the examined legislation in this respect.
Severance pay:
▶ Labour Code
→ Section 42 LC on "severance pay" provides that:
▻ 42.1. LC: The employer shall provide an employee dismissed on the grounds specified in sections 37.1.6, 40.1.1, 40.1.2, and 40.1.3 of this law with a benefit equal to the average salary for one month or more.
▻ 42.2. LC: In the event of mass layoffs, the employer shall determine the amount of severance pay through negotiations with employee representatives.
▻ 42.3. LC: The Government shall approve general regulations governing relations related to the provision of one-time benefits specified in section 42.1 of this Law by budgetary organizations.
→ In addition, under section 41.2. LC, in the event of termination of the contract on the grounds that the employer has permanently transferred ownership rights to another person, the employer shall notify the employee of this two months or more in advance and shall provide a benefit equal to the average salary for three months or more.
tenure ≥ 6 months: 1 month(s).
tenure ≥ 9 months: 1 month(s).
tenure ≥ 1 year: 1 month(s).
tenure ≥ 2 years: 1 month(s).
tenure ≥ 4 years: 1 month(s).
tenure ≥ 5 years: 1 month(s).
tenure ≥ 10 years: 1 month(s).
tenure ≥ 20 years: 1 month(s).
Redundancy payment:
▶ Labour Code
▷ There are no separate rules for redundancy. The same statutory benefits as severance pay above (see sections 40.5 and 42.2 LC ) apply.
tenure ≥ 6 months: 1 month(s).
tenure ≥ 9 months: 1 month(s).
tenure ≥ 1 year: 1 month(s).
tenure ≥ 2 years: 1 month(s).
tenure ≥ 4 years: 1 month(s).
tenure ≥ 5 years: 1 month(s).
tenure ≥ 10 years: 1 month(s).
tenure ≥ 20 years: 1 month(s).
mine workers: No
No statutory provisions were found in the examined legislation in this respect.
: Yes
▶ Labour Code
→ Section 69.1 provides for reinstatement of employees who have been wrongfully dismissed and compensation equal to the average wage they previously received for the entire period of unemployment. If the employee worked in a lower-paid job during that period, they are entitled to compensation equal to the difference in wages.
Yes
▶ Labour Code
→ Section 69.1 provides for reinstatement of employees who have been wrongfully dismissed and compensation equal to the average wage they previously received for the entire period of unemployment. If the employee worked in a lower-paid job during that period, they are entitled to compensation equal to the difference in wages.
Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method): ▷ No statutory compensation following unlawful dismissal: reinstatement is the only remedy provided in the LC. Any reinstated employee will be entitled to back pay
▶ Labour Code
→ Section 69 on "Compensation for wrongful dismissal or transfer" indicates that:
▻ 69.1. If an employee is reinstated to his/her job or position in accordance with section 36.1.2 of this Law, he/she shall be paid a benefit equal to the average wage he/she previously received during the entire period of unemployment, or, if he/she was working at a lower-paid job, a benefit equal to the difference.
managerial / executive positions: Yes
▶ Labour Code
→ Section 36 LC indicates that:
▻ 36.1. LC: The employer is obliged to reinstate the employee to his/her previous job or position in the following cases:
▻ 36.1.1. LC: An employee whose employment contract was terminated due to disability, due to an industrial accident, acute poisoning, or occupational disease, returns to work within one month after recovery;
▻ 36.1.2. LC: A court decision to reinstate an employee who was unjustly dismissed from work to their previous job or position has become effective;
▻ 36.1.3. LC: Other cases specified by law.
▻ 36.2. LC: If the employee's previous job or position is reduced, the employer is obliged to provide the employee with another job or position of equal quality, based on an agreement with the employee.
▻ 36.3. LC: If a position is deemed to have been eliminated pursuant to section 40.1.1 of this Law, but it is re-created within three months, and it is determined that the elimination of the position was unjustified, the employee shall be reinstated.
→ Under section 37.1.5. LC, an employee who was wrongfully dismissed, shall be reinstated to his/her previous job or position; (...).
police: No
The Labour Code does not make preliminary conciliation mandatory in cases of individual dismissal. Conciliation and mediation are available as options for individual labour disputes, whereas they are required for collective labour disputes in general. The law does not specifically indicate whether this requirement applies to dismissal cases.
▶ Labour Code
▷ Individual Labour Disputes
The Labour Code provides for the conciliation and mediation of individual labour disputes.
→ Section 125 LC indicates that:
▻ 125.1. LC: Individual labour disputes between employers and employees shall be resolved by the labour dispute settlement commission and the court within their respective jurisdiction.
▻ 125.2. LC: Individual labour disputes may be resolved through conciliation and mediation.
▷ Collective Labour Disputes
The Labour Code requires that collective labour disputes be resolved through conciliation and settlement. However, the requirement does not explicitly refer to cases of dismissal.
→ Section 116 LC indicates that:
▻ 16.1. LC: Collective labour disputes shall be resolved through conciliation and settlement through the following measures:
▻ 116.1.1. LC: Invite a mediator to participate.
▻ 116.1.2. LC: to be discussed through labour arbitration.
▻ 116.2. LC: The parties shall not have the right to refuse to participate in the conciliation proceedings specified in section 116.1 of this Law.
▻ 116.3. LC: During conciliation proceedings, employee representatives have the right, in accordance with the law, to hold demonstrations and meetings to support their demands.
▻ 116.4. LC: Representatives of the parties, mediators, and labour arbitrators shall be obliged to use all opportunities provided by law to resolve collective labour disputes.
▷ Individual labour disputes are resolved either by the Labour Dispute Resolution Commission or by the ordinary courts. The Labour Code grants ordinary courts exclusive jurisdiction over complaints concerning wrongful dismissal.
▶ Labour Code
→ Section 125.1 provides that individual labour disputes between employers and employees shall be resolved by the Labour Dispute Resolution Commission and the court within their respective jurisdiction.
▷ Disputes to be resolved by the Labour Dispute Resolution Commission
→ Section 126 provides that:
▻ 126.1 LC: Disputes other than those referred to the court shall be initially reviewed and resolved by the Labour Dispute Resolution Commission.
▻ 126.2. LC: The Government shall approve the rules of the Labour ▷Dispute Resolution Commission.
→ Section 127 states that:
▻ 127.1 LC: if an employer or employee disagrees with the decision of the Labour Dispute Resolution Commission, they have the right to appeal to the competent soum or district court within 10 days of receiving it.
▻ 127.2. LC: The fact that a labour dispute has been resolved by a labour dispute settlement commission specified in section 126.1 of this law shall not prevent the use of mediation in the resolution of the dispute by the court.
▷ Disputes to be resolved by the court
→ Section 128.1. stipulates that the following disputes shall be resolved by the court: The following disputes shall be resolved by the court:
▻ 128.1.1. Appeals against decisions of the Labour Dispute Resolution Commission in accordance with section 127 of this Law;
▻ 128.1.2. Employee's complaint about wrongful dismissal or wrongful transfer to another job at the initiative of the employer;
▻ 128.1.3. An employer's claim for compensation for damage caused to a business entity or organization by an employee while performing his or her work duties;
▻ 128.1.4. Claims by employees for compensation for damage caused by health damage while performing their work duties;
▻ 128.1.5. Disputes arising from issues specified in section 69 of this law;
▻ 128.1.6. Disputes arising from employment contracts between citizens;
▻ 128.1.7. employee's complaint about the incorrect imposition of disciplinary punishment;
▻ 128.1.8. Employees' claim that the terms of the employment contract are worse than those specified in the legislation or collective agreement;
▻ 128.1.9. Claims by employees that internal labour regulations, other orders and decisions of the organization established to regulate labour relations in accordance with its specific characteristics do not comply with the law;
▻ 128.1.10. labour disputes between workers who pool their property and labour, unless otherwise provided by law or contract;
▻ 128.1.11. other disputes that are subject to the jurisdiction of the court by law.
Existing arbitration: Yes
▷ The Labour Code provides for labour arbitration as a mechanism to resolve collective labour disputes that are not settled through mediation. However, recourse to arbitration is not mandatory in individual dismissals, nor is it automatically required in collective dismissals unless the dispute qualifies as a collective labour dispute under the law.
▶ Labour Code
→ Under section 116 LC, collective labour disputes are to be resolved through conciliation and settlement, including through labour arbitration.
→ Section 118 indicates that:
▻ 118.1. If a collective labour dispute is not resolved through mediation, the Governor of the relevant level shall, within three working days, establish a labour arbitration panel to discuss the collective labour dispute and appoint arbitrators.
(...)
▻ 118.4. Representatives of the parties involved in a collective labour dispute shall not be included in the labour arbitration panel.
▻ 118.5. The labour arbitration shall review and discuss collective labour disputes with the participation of representatives of the parties and issue recommendations within five working days from the date of its establishment. (...).
Length of procedure:
No statutory provisions were found in the examined legislation in this respect.
No statutory provisions were found in the examined legislation in this respect.
No information was available in this respect.