- Overview: Myanmar (Burma)
- Global HR Compliance
- Global PEO and payroll
- Contractor vs. employee: which is better?
Global HR Compliance in Myanmar (Burma)
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Myanmar (Burma) Guide below will help you understand the nuances of labor legislation in the country.
Companies hire international workforce for various reasons but in most cases they are:
- entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
- hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.
Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.
If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Myanmar (Burma), then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Myanmar (Burma) and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.
We are experts in global workforce employment in , 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 Myanmar (Burma).
See the guide below for a general overview of labor rules and regulations in Myanmar (Burma) or contact us if you need to employ workers in Myanmar (Burma) or would like to get more details.
Hiring and Firing Workforce in Myanmar (Burma) Guide
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Myanmar 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 Myanmar 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 Myanmar 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 Myanmar 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 Myanmar.
See Hiring and Firing Workforce in Myanmar Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Myanmar or would like to get more details.
# Employment contracts
As per Myanmar labour law, once an employee has been appointed, there is a compulsory obligation to have the employment agreement prepared.
The employment contract must be signed within 30 days from appointment, except where the employee is on probation or training as a pre-condition to appointment. The law designates a list of mandatory provisions that must be included in the contract. This may be subject to approval from the local Labourn Exchange Office, although this practice has not yet been enforced.
Agreements are to be in writing and are generally contractual in nature. They may be prepared for full-time work, part-time work or even for fixed-term work, if required.
# Minimum (Statutory) Employment Rules and Regulations in Myanmar (Burma)
# Hours of work:
The stipulated working hours for shops, companies, trading centres, service enterprises, and entertainment houses is 8 hours a day. For factories, the prescribed working hours are not more than 48 hours a week. For oil fields and mines, it is not more than 44 hours a week.
There are mandatory overtime payments that need to be paid for every hour/day worked beyond the prescribed limits.
# Probation period:
Employment on probation or as a trainee is not mandatory and depends on company policy. Further, employees who are on probation or are trainees are not eligible for severance pay or medical leave.
# Annual leave:
Every employee is to be granted any and all gazetted public holidays amounting to 24 days in a calendar year. This includes 10 days leave for Burmese New Year celebrations which have been declared as public holidays in accordance with Notification no. 1/2007, dated February 16, 2007, by the State Peace and Development Council. There is, however, no statutory obligation to provide an alternative holiday when a public holiday coincides with a weekly rest day. However, for purposes of wages, if an employee works on a public holiday coinciding with a weekly rest day, the employee must be paid for that day.
# Parental leave:
Every female employee is eligible for six weeks leave prior to delivery and a minimum of 8 weeks and up to a maximum of 14 weeks after delivery. In case of delivery of twins, an employee is eligible for an additional 4 weeks of maternity leave post-delivery. In case of miscarriage, an employee is entitled to 6 weeks of leave. A male employee is entitled to 15 days of leave for infant care after delivery. Every employee is eligible for leave for up to 8 weeks for child care in case of adoption of a child who has attained less than one year of age.
# Sick leave:
A number of benefits to employees and is applicable to any organization with more than five employees. Employees are entitled to medical treatment and cash benefit for sickness, maternity, confinement, retirement and for funeral benefit. Medical treatment can be taken for up to 26 weeks starting from the date of treatment. For purposes of medical leave, Myanmar law allows up to 30 days to every employee for sickness. An application for medical leave must be supported by a medical certificate from a certified medical officer, doctor or any other certified medical practitioner. For cash benefit, employees need to have worked for at least 6 months with the establishment.
A unique feature of this legislation is that it makes express mention of an unemployment benefit insurance scheme through which cash benefits would be given to unemployed persons. Under the Workmen’s Compensation Act, employers are liable to pay compensation for any injuries resulting from an accident arising during the course of employment, unless it has occurred due to negligence of the employee, such as due to intoxication or substance abuse.
For workers in shops and establishments, if there are special matters which require overtime work, such overtime work should not exceed 16 hours for any one week. Moreover, overtime work shall not extend beyond midnight.
Overtime hours for workers in factories are regulated under a directive: for workers who do not engage in continuous work, overtime hours shall not exceed 20 hour per week: i.e. 15 hours from Monday to Friday (3 hours x 5 days) and 5 hours for Saturday. Workers who work more than 8 hours per day or 44 hours per week must be paid at twice the ordinary wage rate (not including allowances) for overtime hours. Adult male workers in factories engaged in continuous work begin accruing overtime at twice the ordinary wage rate after working more than 48 hours in a week.
# State minimum salary:
Myanmar’s minimum wage rate is 3600 Myanmar kyat a day,450 Myanmar kyat per hour. Myanmar’s minimum wage was last changed in September 2015.
# Employee dismissal:
Termination provisions may be set by the employer or mutually agreed. In any case, an employee’s consent to all the terms is necessary to make the agreement valid and enforceable. However, though parties have freedom to contract, any terms which are considered excessively unfair may be scrutinized by the court. This is particularly so, given the unequal bargaining power of the employer and employee.
Generally, for fixed-term contracts, employment will terminate upon the end of the term unless it is to be renewed. Indefinite contracts require a clear notice period by either party to end the employment. Typical termination provisions will be accompanied with a notice-period requirement. If an employee has been employed for less than three months, then one month’s basic salary (i.e., one month for notice pay) is required upon termination; if employed for three months to one year, then an employee is entitled to two months’ basic salary. These amounts increase based upon length of service.
Instant dismissal, except for gross misconduct, is not allowed. An employer cannot terminate an employee without notice or severance pay for other reasons. For instant dismissal, the circumstances must be serious whereby an employee dishonestly performs his or her duty or intentionally commits a criminal act against the employer, intentionally causes the employer to suffer losses, performs an act of gross negligence which causes the employer to suffer severe losses or violates the lawful and just work rules or regulations or orders of an employer after having received written warnings.
There is no specific guidance available under Myanmar law on severance pay for employees who resign. This is generally subject to agreement between an employer and an employee. The parties are free to agree on the conditions for termination, provided such terms satisfy the minimum requirements under law.
In the absence of enabling notifications under the law, the recommended practice from labour authorities is to give an employment package which includes at least one-month notice and severance payment according to years of service:
- if the employee has worked at the company from three months to one year, he is entitled to two months’ salary;
- if he has worked for the company for one to three years, he is entitled to three months’ salary and if he has worked for the company for more than three years, the employer must pay five months’ salary.
However, this would not apply if the employee wilfully quits or is liable for misconduct. In such case, the employer would not be obligated to provide compensation.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Myanmar (Burma) 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.