The issue of Internal Labor Regulation of the Legal entity is regulated by the Labor law of Mongolia. According to the Article 130.1 of the Labor Law of Mongolia where it states that “After taking into account proposals or suggestions from the employees’ representatives, an employer shall establish and enforce internal labor regulations in accordance with the law”, the Internal Labor Regulation is one of the important document to establish and enforce internal labor regulations in accordance with the law and to regulate a relationship between Employer and Employee. The Employer and employee have an obligation/duty to fulfill the Internal Labor Regulation and it is drafted regulating a relationship which is not stated specifically in the related law to suit the organization’s feature. The Employee shall have rights to freely express his/her suggestion for fulfillment of Internal Labor Regulation and its amendments. Following matters may be regulated by the Internal Labor Regulation: 1. Employment management, arrangement; 2. Internal activity of legal entity and organization; 3. Plan and report and their inspection method; 4. Arrangement of internal work; 5. Using, keeping and protecting of official letter and stamp, coping document, official letter records and keeping, archive; 6. Two and three-way relationship, foreign relations and cooperation; 7. Hiring and firing; 8. Schedule of working hours and breaks; 9. Salary, awards, compensation, benefit, temporary leave of absence; 10. Labor discipline and material liability; 11. Safety; 12. Issue for health and employment; 13. Rights, duties and responsibilities of parties to a labor relationship; 14. Plan and report and their inspection method and other issues.