PARLIAMENT ADOPTS THE REVISED LAW ON LABOR
On July 2, 2021 Mongolian parliament adopted the revised Law on Labor /the revised Labor Law/. The Labor Law. The currently effective Labor Law was adopted in 1999 and the social and economic relationships have been developed and diversified much since then. Thus, the purpose of the revision in short, is to improve the legal framework concerning labor and make the law consistent to such new relationships.
Major changes of the revised Labor Law include:
• clarifies the terms of shift rotation of 14/14 and work hours for workers who work on mining and other exploration sectors;
• provides the requirement of severance payment related to the termination of the employment agreement; as the minimum length of employment shall be more than 6 months and the payment rate;
• prohibits the conclusion of other types of agreements with a specified term, if the aggregate length of the employment based on several specified term agreements exceeds 2 years;
• prohibits to require any personal assets or documents (money, ownership certificate and professional license, etc.) from an employee as a collateral during the employment;
• introduces a new section on anti-harassment policy in workplace;
• provides provisions regarding remote work.
According to the legislators several positive effects are expected from the revised law, such as establishing appropriate contractual relationship between employers and employee, growth of employment rate, and improvement of employee’s basic rights.
The revised Labor Law will come into effect from January 1, 2022.