TYPES OF EMPLOYMENT AGREEMENT
a. An apprenticeship employment agreement means an employment agreement concluded between an employer and an employee for the purpose of providing the employee with work experience and skills by accompanying him/her by an experienced employee. The term of the agreement shall be up to 3 months. In the case of specialization, it shall be 2 years. In addition to essential terms and conditions of an employment agreement, the following shall be specifically defined.
- Accompanying employee;
- Work experience and skills to be acquired.
The basic salary of an apprentice shall not be less than 70 percent of the basic salary of a full-time employee performing the same type of work.
b. An internship employment agreement means a tripartite employment agreement concluded by (1) the employer, (2) the apprentice, and (3) the training institution. The agreement period shall be up to 3 years and the salary shall not be less than the minimum wage.
c. A probationary employment agreement means an employment agreement made between an employer and an employee on a probationary basis for the purpose of evaluating if the employee qualifies for the requirements for the job. The agreement shall be made for a period of up to 3 months. The probationary employment agreement shall not be made in the following cases:
- The execution of one-time seasonal work;
- Employment in place of retained employees; or
- Employment in a temporary job.
d. An employment agreement with special conditions means an agreement with special conditions concluded between an employer and an employee for the purpose of (1) exercising a certain part of ownership rights of the owner or his/her authorized person through the employee, or for (2) execution of a job at the executive level of a business entity and organization by the employee. In addition to the essential terms and conditions set out in the Labor Code, the following conditions may be additionally specified:
- Final results of the work done, responsibilities, and procedure for evaluation of the agreement;
- Bonuses, benefits, discounts, and profit sharing for the employee;
- In the case of an agreement for exercising a certain part of ownership rights of the employer through the employee, the amount of property to be transferred to the employee, right to possess, use, and dispose of the property, and property liability of the employee may be specified; and
- The employer, in order to protect its industrial and business secrets, may specify in the employment agreement or in an ancillary agreement an obligation of employee not to work for a business entity, organization, or an individual that directly competes with the employer or conduct activities directly competitive with the employer’s activities for a period of up to one year after termination of the employment relation. During the effective period of the non-compete clause or the ancillary agreement, the employer shall pay the employee an amount equal to at least 50% of the last month’s salary of the employee on a monthly basis.
Law on Labor of Mongolia