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Mongolia
 


Source and scope of regulations - 2017    

References
NOTE: This information has changed since the previous period covered.
  • Labour Code, dated 14 May 1999, as last amended by the Law of 21 April 2017
    For an up to date Mongolian version with links to all amendments to the law up to now go to: http://legalinfo.mn/law/details/565
    Date: 21 Apr 2017; view website » (view in NATLEX »)
Scope
Size of enterprises excluded (≤): none
Workers' categories excluded: civil/public servants
Remarks:
  • The LC does not expressly exclude particular categories of workers from its scope of application and defines an employee as "a citizen employed by an employer on the basis of an employment contract" (art. 3.1.2 LC).
    The Law on Government Service of 1995 regulates the employment relationship in the public service (including disciplinary dismissal).

Types of employment contracts - 2017    

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Maximum probationary (trial) period: 3 month(s)

NOTE: This information has changed since the previous period covered.
Remarks:
  • The duration of the probationary period shall be set forth by the employer in the internal labour regulations. It shall however not exceed 3 months (art. 23.1 and 2 LC).

Fixed term contract (FTC):
  • FTC regulated: Yes
  • Valid reasons for FTC use: objective and material reasons
    Remarks:
    • Art. 23 provides that an employment contract shall be either for a specified or an indefinite term.
      According to art. 23.2 LC, an contract can be concluded
      - for a permanent position for an indefinite term,
      - for a specified term agreed upon by the parties;
      - in the following cases: temporary replacement of a worker, seasonal or temporary work and probationary or training period in the case of an apprentice.
  • Maximum number of successive FTCs: no limitation
    Remarks:
    • No statutory limitation on the number of renewals. The LC only provides that if the employee continues performing work after the expiry of the term specified in the FTC and if the parties do not want to terminate such contract, the contract will be deemed renewed for the term for the same period (art. 23.3 LC).
  • Maximum cumulative duration of successive FTCs: no limitation
    Remarks:
    • The LC provides for a maximum duration of 5 years for a single contract but does not place any limitation on the maximum cumulative duration of successive FTCs (art. 25.2 LC).

Substantive requirements for dismissals (justified and prohibited grounds) - 2017    

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Obligation to provide reasons to the employee: No
Remarks:
  • No express obligation to indicate the reasons for dismissals. However, this might be inferred from the fact that the law provides a limited list of valid reasons for dismissing an employee (art. 40 LC)


Valid grounds (justified dismissal): worker's conduct; worker's capacity; economic reasons
Remarks:
  • The LC provides for a list a valid reasons justifying termination at the initiative of the employer, as follows (art. 40.1 LC):
    - dissolution of a branch or a unit of the undertaking, reduction of the number of employees, elimination of a position within the company;
    - failure to meet the job requirements due to the lack of professional qualifications or skill, or health reasons;
    - the employee has reached the age of 60 and is eligible to receive pension;
    - repeated breaches of the disciplinary rules or serious breaches which automatically entail termination of employment according to the provisions of the labour contract;
    - an employee in charge of assets and money has wrongfully acted or failed to act and as a result of which he/she has lost the trust of the employer;
    - employee is elected or appointed to perform another salaried work;
    - occurrence of other grounds set forth in the individual contract.

    In addition, an employee can be dismissed for the following reasons (art. 41 LC):
    - the employer, after an evaluation, that the employee did not fulfil the results of the work to be performed under the contract without a valid reason, or did not do satisfactory work;
    - the employee has entered into a simultaneous employment agreement or contract with another employer;
    - the employer has transferred his or her right of ownership to another person permanently;
    - it is proven that the employee has spent inefficiently or wasted the assets which were transferred to the employee under the individual contract or that the employee has exceeded his/her authority granted by the employer.


Prohibited grounds: pregnancy; family responsibilities; race; sex; religion; political opinion; social origin; nationality/national origin; trade union membership and activities
Remarks:
  • Art. 7 LC prohibits discrimination in labour relations based nationality, race, sex, social origin or status, wealth, religion, or ideology.
    See also art. 100 LC which prohibits the dismissal of pregnant women and mothers with children under the age of 3 except in the event of liquidation of the business or in the event of serious misconduct (repeated breach of disciplinary rules or serious breach of the employment contract and loss of trust in an employee responsible for assets or money due to an act or omission). This protection also applies to a single father with a child under the age of 3.
    See also, art. 6 of the Law of Trade Union Rights.


Workers enjoying special protection: workers' representatives; pregnant women and/or women on maternity leave; workers with family responsibilities
Remarks:
  • - Art. 100 LC prohibits the dismissal of pregnant women and mothers with children under the age of 3 except in the event of liquidation of the business or in the event of serious misconduct (repeated breach of disciplinary rules or serious breach of the employment contract and loss of trust in an employee responsible for assets or money due to an act or omission). This protection also applies to a single father with a child under the age of 3.
    - In addition, the law prohibits the employer from dismissing or otherwise punish elected trade union representatives or elected non-union representatives who participate in a negotiation but who have not been relieved from their primary duties without obtaining the permission to do so from a competent authority. This protection applies to the entire negotiation process and until 1 year after negotiations have been completed (art. 12.8 LC).


Procedural requirements for individual dismissals - 2017    

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Notification to the worker to be dismissed: written

Remarks:
  • This can be inferred from art. 43.3 LC: the employer shall provide the dismissed employee with the dismissal decision.

Notice period:
Remarks:
  • The employer is required to give at least one month's notice to any employee who has been dismissed on the following grounds:
    - failure to meet the job requirements due to the lack of professional qualifications or skills or for health reasons; or
    - dissolution of a branch or a unit of the undertaking, reduction of the number of employees, elimination of a position within the company. (art. 40.5 LC)
    • tenure ≥ 6 months
      • economic dismissal - 1 month(s).
      • dismissal based on worker's capacity - 1 month(s).
    • tenure ≥ 9 months
      • economic dismissal - 1 month(s).
      • dismissal based on worker's capacity - 1 month(s).
    • tenure ≥ 2 years
      • economic dismissal - 1 month(s).
      • dismissal based on worker's capacity - 1 month(s).
    • tenure ≥ 4 years
      • economic dismissal - 1 month(s).
      • dismissal based on worker's capacity - 1 month(s).
    • tenure ≥ 5 years
      • economic dismissal - 1 month(s).
      • dismissal based on worker's capacity - 1 month(s).
    • tenure ≥ 10 years
      • economic dismissal - 1 month(s).
      • dismissal based on worker's capacity - 1 month(s).
    • tenure ≥ 20 years
      • economic dismissal - 1 month(s).
      • dismissal based on worker's capacity - 1 month(s).

    Pay in lieu of notice: No

    Notification to the public administration: No

    Notification to workers' representatives: No

    Approval by public administration or judicial bodies: No

    Approval by workers' representatives: No

    Procedural requirements for collective dismissals for economic reasons (redundancy, retrenchment) - 2017    

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    Definition of collective dismissal (number of employees concerned):
    No statutory definition of collective dismissals.
    Art. 42.2 regulating severance pay refers to "a general termination of a large number of employees".
    The LC allows an employer to dismiss an employee on the grounds of dissolution of a branch or a unit of the undertaking, reduction of the number of employees, elimination of a position within the company.

    Remarks:
    • Art. 40.1.1 LC.

    Prior consultations with trade unions (workers' representatives): No

    Remarks:
    • - There is no general statutory obligation to undertake prior consultations with the employee's representatives before carrying out collective dismissals.
      - However, the law provides that in case of mass redundancies, the employer and the employees representatives shall agree on redundancy payment trough negotiations (art. 42.2 LC).
      - Consultation with the employee's representatives is mandatory in the event of the dissolution of a business entity resulting in the termination of all employees. The workers' representatives must be informed 45 days prior to the dissolution (art. 40.5 LC)

    Notification to the public administration: No

    Notification to workers' representatives: No

    Remarks:
    • - Consultation with the employee's representatives is mandatory in the event of the dissolution of a business entity resulting in the termination of all employees. The workers' representatives must be informed 45 days prior to the dissolution (art. 40.5 LC)

    Approval by public administration or judicial bodies: No

    Approval by workers' representatives: No

    Priority rules for collective dismissals (social considerations, age, job tenure): No

    Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

    Priority rules for re-employment: No

    Notes / Remarks
    There is no general regulation of collective dismissals. The only provision of the LC which refers to collective dismissal is art. 42.2 on severance pay, according to which "in the case of a general termination of a large number of employees, additional compensation to be paid by an employer to the employees shall be agreed to by the employer and representatives of the employees".

    Severance pay and redundancy payment - 2017    

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    Severance pay:
    Remarks:
    • The employer must pay severance in an amount equal to at least 1 month's average salary in the event the employee was terminated on the following grounds (art. 42 LC):
      - the employee has been called to active duty in the army;
      - the employer's business entity or organisation, or a branch or unit has been dissolved, or the job or position within it has been discontinued or the number of employees has been reduced;
      - the employee fails to meet the job's requirements due to the lack of professional qualifications or skill, or health reason.
      - the employee reached 60 years of age and is eligible to receive a pension.
      An employee dismissed for conduct-related reasons is not entitled to severance pay.
    • tenure ≥ 6 months: 1 month(s)
    • tenure ≥ 9 months: 1 month(s)
    • tenure ≥ 1 year: 1 month(s)
    • tenure ≥ 2 years: 1 month(s)
    • tenure ≥ 4 years: 1 month(s)
    • tenure ≥ 5 years: 1 month(s)
    • tenure ≥ 10 years: 1 month(s)
    • tenure ≥ 20 years: 1 month(s)
    Redundancy payment:
    Remarks:
    • See severance pay (art. 42 LC). Severance pay of 1 month's average salary is payable in the event of termination for economic reasons (the employer's business entity or organisation, or a branch or unit has been dissolved, or the job or position within it has been discontinued, or the number of employees has been reduced).
      Art. 42.2 LC also provides that in the event of termination of a large number of employees, additional compensation to be paid by an employer to the employees shall be agreed to by the employer and the employees' representatives.
    • tenure ≥ 6 months: 1 month(s)
    • tenure ≥ 9 months: 1 month(s)
    • tenure ≥ 1 year: 1 month(s)
    • tenure ≥ 2 years: 1 month(s)
    • tenure ≥ 4 years: 1 month(s)
    • tenure ≥ 5 years: 1 month(s)
    • tenure ≥ 10 years: 1 month(s)
    • tenure ≥ 20 years: 1 month(s)

    Avenues for redress (penalties, remedies) and litigation procedure for individual complaints - 2017    

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    Compensation for unfair dismissal - free determination by court: No

    Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):
    No statutory compensation following unlawful dismissal: reinstatement is the only remedy provided in the LC.
    Any reinstated employee will be entitled to back pay

    Remarks:
    • Art. 69 LC on back pay.

    Reinstatement available: Yes

    Remarks:
    • Art. 36.1.2 LC.

    Preliminary mandatory conciliation: No

    Remarks:
    • No statutory preliminary mandatory conciliation for individual labour disputes.
      (However, collective labour disputes shall be first submitted to "intermediaries" for conciliation: see art. 117 LC).

    Competent court(s) / tribunal(s): ordinary courts

    Remarks:
    • Individual labour disputes are either settled by the Labour Dispute Settlement Commission or by ordinary courts. According to art. 128.1.2 LC, ordinary courts have exclusive jurisdiction over wrongful dismissal complaints (art. 128 LC). Any such dispute shall be referred to the court within 1 month from the receipt of the employer's dismissal decision.

    Existing arbitration: No

    Remarks:
    • Arbitration is only available for the settlement of collective labour disputes (see: art. 118 LC and The Labour Administration Rules of 2001)

    Source of additional information - 2017    

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