- Overview: Mongolia
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Mongolia
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in mongolia Guide below will help you understand the nuances of labor legislation in the country.
When the company is planning to enter a new foreign market of Mongolia and has a need to employ a local national there, the first question to answer is how it is going to make local hires.
We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.
This solution helps you employ your global sales force in Mongolia as well as in other 180+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.
Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.
So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Mongolia instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.
Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.
Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Mongolia .
We are experts in global workforce employment in Mongolia, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Mongolia.
See Hiring and Firing Workforce in Mongolia Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Mongolia or would like to get more details.
Hiring and Firing Workforce in Mongolia Guide
# Employment contracts
An owner, or a person authorized by him or her, when exercising certain aspects of his or her right of ownership shall enter into a contract to engage another person’s labour activity, or an employer – to engage a citizen’s unique talents or high skills.
An employment agreement shall be concluded for the following terms:
- a permanent position – for an an indefinite term;
- an employment agreement for a specified term by the parties’ mutual agreement;
- when an employee is replacing an employee who’s position is being retained on the basis of law or another decision – until the absent employee returns to work, with respect to seasonal or temporary jobs – for the duration of the respective work, with the newly appointed employee or an apprentice – for the probation or training term set forth by employer in the internal labour regulation.
# Minimum (Statutory) Employment Rules and Regulations in Mongolia
# Hours of work:
The hours of work per week shall be up to 40 hours. The length of a regular working day shall be up to 8 hours. 70.3 The period of uninterrupted rest between two consecutive working days shall be at least 12 hours.
# Probation period:
Duration of probation or training may not exceed 6 months.
# Annual leave:
An employee shall personally enjoy a grant of a regular paid holiday every year. An employee’s basic period of regular holiday shall be 15 working days. The length of the regular holiday for an employee under 18 years of age shall be 20 working days. An employee due to his/her own request may enjoy their regular holiday in parts during the year concerned.
In addition to the basic period, employees working under normal working conditions shall be awarded additional leave days taking into account the length of their record of service and their working conditions as follows:
- 6-10 years of work, 3 working days;
- 11-15 years of work, 5 working days;
- 16-20 years of work 7, working days;
- 21-25 years of work 9, working days;
- 26-31 years of work 11, working days;
- 32 and more years of work 14, working days.
# Parental leave:
Maternity leave of 120 days shall be provided to a mother. The maternity leave specified in Subsection 104.1 of this law shall be granted to a woman who has delivered a stillborn child or has interrupted a pregnancy with hospital methodology or had abortion after the 196th day of pregnancy, or to a woman who has delivered a baby before 196th day which is capable of living premature child.
If a woman has a stillborn child or has interrupted a pregnancy with hospital methodology before the 196th day of pregnancy, the general regulation on granting sick leave shall be applied, and such leave shall be granted. An employer shall grant baby care leave to a mother with a child under three years of age, who had maternity leave or annual leave, if she so wishes.
# Sick leave:
If an employee contracts a normal disease of domestic injury and therefore rendered unable to perform their duties, as determined by a competent medical authority, then they are entitled to sick leave for the duration of such temporary inability.
Working at the initiative of the employer in excess of the working hours per day set forth in the internal labour regulations as provided for in the Labour Code shall be deemed overtime work. Unless otherwise agreed in the collective or employment agreement, assigning an employee to overtime work shall be prohibited, except for the following cases:
- to perform work necessary for the defence of the country, or to protect human life or health;
- to prevent from or taking immediate remedial actions with respect to the consequences of natural disaster, public disturbance or industrial accident;
- to remedy disruption of water, electricity or heating supply, transportation or communication facilities; or
- to perform unforeseen works which are needed to be performed urgently to prevent disruption of the normal functioning of a business entity or organisation, its branch or unit.
It shall be prohibited to compel an employee to work two consecutive work shifts.
# State minimum salary:
Mongolia’s minimum wage is nearly 192,000 Mongolian tögrög ($87) per month for public and private sector workers. Mongolia’s minimum wage was last changed in September 2013.
# Employee dismissal:
A labor contract can be terminated upon initiation by either the employee or the employer. Unless otherwise stated in the contract, employees are able to leave their position after 30 days of giving notice.
Grounds for terminating employment include:
- Mutual agreement by the parties to do so
- If the employer or employee has died
- If the labour contract has expired and both parties have decided not to extend the contract
- If a legal authority has so demanded
- If an unjustifiably dismissed employee has been reinstated o their previous position
- If an employee has been enlisted for army service
- If a court decision prevents an employee from performing their work duties as a result of a criminal offence
Employers who terminate a labour contract with an employee must establish a time for the transfer of duties to the new employee and provide this information when dismissing the original employee. Employers are obliged to provide the dismissed employee with the decision on the dismissal, any legally required dismissal allowances, as well as a letter of reference about the occupation, profession, specialisation, position and remuneration at the request of the employee.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Mongolia by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.