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MONGOLIA. LABOUR CODE, 1999
NATLEX database

MONGOLIA

LABOUR CODE, 1999

(Unofficial translation)


CHAPTER ONE- GENERAL PROVISIONS

CHAPTER TWO- COLLECTIVE CONTRACTS AND AGREEMENTS

CHAPTER THREE- LABOUR CONTRACT

CHAPTER FOUR- REMUNERATION, PAYMENT

CHAPTER FIVE- HOURS OF WORK AND REST

CHAPTER SIX- WORKING CONDITIONS, LABOUR SAFETY AND SANITATION STANDARDS

CHAPTER SEVEN- EMPLOYMENT OF WOMEN

CHAPTER EIGHT- EMPLOYMENT OF MINORS, DISABLED PERSONS, DWARFS AND ELDERLY PEOPLE

CHAPTER NINE- EMPLOYMENT OF FOREIGN CITIZENS AND CITIZENS WORKING IN FOREIGN BUSINESS ENTITIES OR ORGANISATIONS

CHAPTER TEN- REGULATION OF COLLECTIVE LABOUR DISPUTES

CHAPTER ELEVEN- SETTLEMENT OF AN INDIVIDUAL LABOUR DISPUTE

CHAPTER TWELVE- INTERNAL LABOUR REGULATIONS, LABOUR DISCIPLINE AND MATERIAL LIABILITY

CHAPTER THIRTEEN- MANAGEMENT AND ORGANIZATION OF LABOUR

CHAPTER FOURTEEN- LABOUR MONITORING

CHAPTER FIFTEEN- OTHER PROVISIONS


CHAPTER ONE- GENERAL PROVISIONS

Section 1. Purpose of the labour law

The purpose of this law is to define the general rights and duties of the employer and employees, who are parties to a labour relationship based on a labour contract, collective contract or collective agreement, collective or single labour disputes, working conditions, management, monitoring/supervision, and liabilities to be imposed for violation of this law, and to ensure mutual equality of the parties.

Section 2. Labour legislation

2.1. The labour legislation is comprised of the Constitution of Mongolia, this law and other legislation consistent with such laws.

2.2. If an international treaty to which Mongolia is a party provides otherwise than in this law, the international treaty shall be followed.

Section 3. Terminology of the law

3.1. The terms of this law listed here below shall be interpreted as follows:

Section 4. Relations regulated by the labour law

4.1. This law regulates the labour contract and, following such a contract, other labour relations between the following parties:

4.2. If individuals, working by combining their property and labour, have not established a regulation on labour relations or have agreed to follow this law, the relevant sections of this law shall be pursued.

Section 5. Rights and obligations of an employer

5.1. An employer shall have the right to adopt and enforce internal labour regulations in conformity with the law of Mongolia, require an employee to fulfil his obligations under a labour contract, and impose liabilities in accordance with this law.

5.2. An employer is obligated to provide an employee with work, comfortable working conditions; to remunerate employees according to the results of their labour; and to fulfil his or her obligations specified in the law, collective labour contracts and agreements, and internal labour regulations.

Section 6. Rights and obligations of an employee

6.1. An employee shall have the right to be provided with working conditions that are in compliance with safety and sanitation requirements; to receive remuneration; to take annual leave, to come together for the purpose of protecting his or her rights and legal interests through a representative organisation and himself; and to receive a pension, social insurance, and other benefits as provided in collective labour contracts and agreements.

6.2. An employee is obligated to work honestly, keep confidential those matters related to his work and duties established as secret by law, and strictly follow and fulfil collective labour contracts, internal labour regulations, and safety and sanitation regulations.

Section 7. Prohibiting the establishment of discrimination, limitations or privileges in labour relations

7.1. No one shall be illegally forced to work.

7.2. The establishment of discrimination, limitation, or privilege based on nationality, race, sex, social origin or status, wealth, religion, or point of view is prohibited.

7.3. When hiring a citizen, in the course of the labour relationship, due to the peculiarities and requirements of the work or duty, an employer has limited an employee's rights and freedom, and then he shall be obligated to prove the basis for doing so.

7.4. When hiring a citizen, if it is not related to a peculiarity of the work or duty to be performed, asking questions related to private life, personal opinion, marital status, political party membership, religious beliefs, or pregnancy shall be prohibited.

7.5. If section 7.4 has been violated, and a prohibited question has been asked, an employee shall not be obligated to respond.

CHAPTER TWO- COLLECTIVE CONTRACTS AND AGREEMENTS

Section 8. Basic principles in establishing collective contracts and agreements

8.1. When establishing a collective contract or agreement, the following principles shall be followed:

Section 9. Provision of information

9.1. During the negotiation and development of the draft of a collective contract or agreement, the relevant state organisation or employer shall be obligated to provide the required information to the employee's representatives.

9.2. The parties are obligated to exchange all information in their possession on monitoring the progress and implementation of a collective contract or agreement.

Section 10. Prohibition of third party involvement

10.1. During the establishment and implementation of collective contracts and agreements, third party involvement or illegal obstruction of the exercise of the rights of the parties, or limiting the legal interests of the parties by the government, a non-government or religious organisation, a citizen, or an official shall be prohibited.

Section 11. Initiation of the collective contracts and agreements

11.1. Any party may initiate an issue to amend, edit, or establish a collective contract or agreement.

11.2. The party, which proposes to negotiate and establish a collective contract or agreement, shall inform the other party in writing.

11.3. The right to negotiate on behalf of an employer shall be exercised by the employer's representatives specified in section 3.1.6 of this law.

11.4. The representatives of an employee specified in section 3.1.7 of this law have the right to negotiate and establish a collective contract or agreement on behalf of the employee.

11.5. If there are several trade unions at the national, regional or administrative territorial unit level, or in a specified economic sector or profession, or in the business entity or organisation, they shall participate in the negotiations and establishment of a collective contract or agreement by appointing common representatives in proportion to members' numbers.

Section 12. Conducting negotiations

12.1. Collective contracts and agreements shall be established by way of conducting a negotiation.

12.2. The party which initiates the negotiation shall draft a statement of the composition of the negotiation and draft a collective contract or agreement, or an amendment or addition to such a contract or agreement, and attach notice on conducting the negotiation and deliver it to the other party.

12.3. The party who has received notice shall reply in writing within 5 working days after receiving the notice.

12.4. The party receiving the notice about conducting a negotiation shall be obligated to start the negotiation within the following periods of time:

12.5. If the party receiving notice has not replied or started negotiations within the period of time specified in sections 12.3 and 12.4 of this law, or there is a disagreement that has not been resolved during negotiation, the issues shall be regulated in accordance with the regulation of the settlement of a collective labour dispute specified in Chapter 10 of this law.

12.6. The parties participating in a negotiation are obligated not to give away information obtained during the negotiation referred to as official or trade secrets.

12.7. The expenses incurred during a negotiation, remuneration for an expert participating in the negotiation as agreed by the parties in advance, and other expenses shall be funded in accordance with regulations specified in the collective contracts and agreements.

12.8. In relation to the work of an elected trade union worker or an elected person participating in a negotiation, but not relieved from their primary work, imposing a disciplinary liability on such persons without receiving a permission in advance from an appropriate higher level authority of such persons, or transferring such persons to another job or firing such persons by the initiative of an employer during the negotiation or within 1 year after completion of the negotiation shall be prohibited.

12.8. As a collective contract or agreement is signed by all representatives of the parties, a negotiation shall be deemed to be finished.

Section 13. Scope of the collective contracts and agreements.

13.1. A collective contract or agreement shall apply to all employers and employees of the parties participating in the collective contract or agreement and representing and protecting rights and legal interests of such employers and employees.

Section 14. Establishing collective contracts and agreements.

14.1. In establishing collective contracts and agreements the regulations specified in Section 12 of this law shall be followed.

14.2. In a business entity or organisation a single collective contract shall be established covering units and divisions of such a business entity or organisation.

14.3. Aside from the number of people who have initiated the agreement, one agreement shall be established for a given level.

14.4. The employer shall be obligated during the establishment of collective contracts and agreements to provide information, stationery, equipment, room for meeting and discussion during non-working hours and provide assistance to help in organising of propaganda, agitation and advertisement.

14.5. The collective contract shall be established for one year or longer and agreement for two years or longer.

Section 15. Registration of collective contracts and agreements

15.1. Within 10 days after a collective contract or agreement is signed, an employer shall deliver such collective contract or agreement for registration to the Governor of the sum or district of the territory where an employer resides.

15.2. An agreement with respect to employees in a specified economic sector, region, image, capital city or profession shall be delivered for registration to the central state administrative organisation in charge of labour matter within 10 days after such an agreement is signed.

15.3. An agreement with respect to employees in a specified sum or district shall be delivered by the Governor of such sum or district for registration to the administration of the Governor of the image or Capital City, within 15 days after such agreement is signed.

15.4. A person, specified in this section as an authorised person to register, shall review collective contracts and agreements within 10 working days after he or she receives such collective contracts and agreements, and, if they are in compliance with legislation, register them, or if not, refuse to register.

15.5. A collective contract or agreement which has not been registered, or is not in compliance with legislation, or in which the status of the rights of an employee has been impaired other than provided in legislation, such collective contract or agreement shall be considered invalid and shall not be fulfilled.

Section 16. Fulfilment of collective contracts and agreements

16.1. The collective contracts or agreements shall be valid after registration as specified in Section 15 of this law.

16.2. Changes in the location, or management structure and composition in a business entity or organisation shall not be the basis for annulling a collective agreement.

16.3. In case of reorganisation of a business entity or organisation, or change of owner, matters related to renewal of, making amendments to or leaving the collective contract the same, shall be resolved by way of negotiation between the representatives of the employer and the employee.

16.4. During the dissolution of a business entity or organisation, in accordance with circumstances and regulations specified in the law, the collective contract shall be followed.

16.5. Matters related to amendments to a collective contract or agreement shall be resolved by an agreement between the parties in a accordance with circumstances and regulations provided in such contracts and agreements, and if there are no specific provisions on such matters in the collective contracts or agreements, the regulation which was used in the initial establishment of such collective contract or agreement shall be followed.

Section 17. Monitoring of implementation of collective contracts and agreements by the parties

17.1. The implementation of a collective contract shall be monitored by the parties and the representatives of the parties.

17.2. The implementation of agreements established at all levels shall be monitored by the parties and the representatives of the parties, as well as by the central state administrative organisation in charge of labour issues, and by the Governor of the image, capital city, sum, or district.

17.3. During implementation of monitoring, the parties shall be obligated to exchange all information in their possession, which is related to the collective contract or agreement.

17.4. The parties individually or jointly shall evaluate the implementation and progress of the collective contract or agreement bi-annually, or at the time specified in the collective contract or agreement, and inform all employees about the evaluation.

Section 18. Relations regulated by collective contracts

18.1. The following relations, which are not directly regulated in this law, shall be regulated by collective contract:

Section 19. Relations regulated by collective agreement

19.1. The following relations shall be regulated by collective agreement:

Section 20. Parties participating in a collective agreement

20.1. In addition to the representatives of the employer and employee specified in 3.1.6. and 3.1.7 of this law, representatives of the state administrative organisation may participate in a collective agreement.

20.2. Depending on the parties participating, a collective agreement shall be bilateral or trilateral.

20.3. Depending on the scope of the agenda and participating parties, a collective agreement shall have the following types: at the national level - a national agreement or sector agreement, at administrative or territorial unit level - a collective agreement of the region, image, capital city, or sum or district, at the level of a specific profession - a collective agreement of a professional tariff.

20.4. Depending on its type, the following parties shall participate in such a collective agreement:

CHAPTER THREE- LABOUR CONTRACT

Section 21. Labour contract21.1. The following basic conditions shall be agreed on in the labour contract:

21.2. None of the parties shall independently change the provisions of a labour contract.

21.3. During the establishment of a labour contract, if one of the basic conditions specified in Subsection 21.1 of this law have not been agreed upon, the labour contract shall not be considered as established.

21.4. A labour contract shall be in conformity with the legislation, collective contracts and agreements.

21.5. A labour contract in which the conditions are less favourable than in the legislation, collective contracts, or agreements shall be invalid.

21.6. The parties may agree to conditions other than the basic conditions specified in section 21.1 of this law.

21.7. A labour contract shall come into force on the date it is signed.

Section 22. Individual contract

22.1. For the purpose of hiring the labour of others, an owner or a person authorised by the owner, shall establish an individual contract with such a citizen, when exercising a certain part of his ownership rights; further, an employer, for the purpose of hiring a citizen with a highly-developed and rare talent or high skills, shall establish an individual contract with such a citizen.

22.2. A schedule of the jobs or positions for a citizen, with whom an individual contract may be established as specified in section 22.1 of this law, shall be approved by the member of the Government in charge of labour issues.

Section 23. Term of a labour contract

23.1. A labour contract shall be of fixed term or open-ended.

23.2. Term of a labour contract shall determined by the parties based on the features of the work and duties to be performed.

23.3. If the term of a labour contract is expired, and the parties do not propose to terminate it and an employee continues to perform his work, such a labour contract shall be considered as to have been extended for the initial term specified in the labour contract.

Section 24. Establishment of a labour contract

24.1. An employer shall establish a labour contract with an employee in written form and submit one copy of such a labour contract to the employee.

24.2. If an employer employs several employees in one work place, an employer shall enter into a labour contract with each employee.

24.3. If a labour contract has not been established in written form, an employer shall not require an employee to perform work or duties.

Section 25. Establishment of an individual contract and its content

25.1. A contract shall be in written form.

25.2. The term of an individual contract shall not be more than 5 years.

25.3. In an individual contract the parties shall accurately specify the term, final result of work to be performed by an employee, obligations of an employee to an employer, regulations for evaluation of a contract, the extent of asset to be placed under an employee's authority, regulations on ownership, utilisation and disposition of such capital, remuneration, perquisites and benefits to be assigned to an employee, an amount or percent from the operating results or profits to be assigned to an employee, and liabilities to be imposed on an employee.

25.4. If, during the evaluation of an individual contract, it is considered that an employee has performed his work or duties properly, an individual contract may be prolonged.

Section 26. Performance of several jobs or duties at the same time

26.1. If, within the limits of working hours an employee may simultaneously perform other work or duties at his organisation or other organisation by the labour contract, or combine his work or duties with other work or duties at his organisation, or, by an agreement with the employer, substitute an absent employee, then the work load of an employee may be increased.

26.2. In situations other than specified in Section 28 of this law, an employee may enter into several parallel labour contracts with several employers.

Section 27. Prohibiting to work together on a work or position

27.1. Members of one family or relatives shall be prohibited from working in the administration or supervision of one and another within a state-owned or partially state-owned legal entity.

Section 28. Prohibiting to work for several employers at the same time

27.1. An employee, who works at the job or position exercising a right to dispose of property at a state owned legal entity, shall be prohibited at the same time from entering into an agreement /or contract/ to work at a job or position of a managing or supervising nature or a job or position similar to his current job or position at the organisation, of all other types of ownership and operations similar to his organisation's operations.

27.2. Subsection 28.1 of this law shall also apply to simultaneous employment.

27.3. An employee shall be obligated for the loss or damage inflicted on an employer as a result of the breach of this Section.

Section 29. Time for consideration of the labour contract as ineffective.

29.1. Labour contract entered with a legally incapable person or person with a limited capability shall be considered as invalid from the date such a person stops performing his work duties.

Section 30. Invalidation of some provisions of the labour law.

30.1. The invalidation of some provisions of the labour law shall not be the basis for considering the whole labour law as invalid.

Section 31. Prohibition of work not specified in labour contract.

31.1. An employer shall be prohibited from demanding an employee to perform work not specified in the labour contract, unless it is otherwise provided in this law.

Section 32. Temporary transfer of an employee to another job in case of unavoidable work demand.

32.1. If an unavoidable need to prevent a natural disaster, industrial accident, or the consequences of such events occurs, or an unpredictable and actual circumstance, causing the destruction of the normal operations of an organisation, takes place, an employer may transfer an employee to another job unforeseen in the labour contract for up to 45 days.

Section 33. Temporary transfer of an employee to other job during idle time.

33.1. During idle time an employer may transfer an employee to a job not specified in the labour contract within the organisation or to another organisation, on the basis of an agreement with the employee.

Section 34. Transfer of an employee to another job not harmful to his health.

34.1. On the basis of the medical-labour expertise commission an employee shall be transferred to another job not harmful to his health and agreed with to the employee.

Section 35. Retaining the job or position of an employee at the time when an employee is not fulfilling his working duties.

35.1. An employee shall retain his job or position in the following occasions when an employee is not fulfilling his working duties:

Section 36. Reinstating an employee to his previous job or position.

36.1. An employer shall reinstate an employee to his previous job or position in the following occasions:

36.2. If a job or position previously performed by an employee has been abolished, on the basis of an agreement between an employer and employee an employer shall be obligated to employ an employee in another position similar to the previous job or position.

36.3. If, in accordance with Subsection 40.1.1 of this law, the position has been abolished, but 3 months later it has been reinstated, and has been determined that the abolishment of the position has been unreasonable, the given employee shall be reinstated to his job or position.

Section 37. Grounds for labour contract discharge.

37.1. The labour contract shall be discharged upon the following grounds:

Section 38. Grounds for labour contract termination.

38.1. The labour contract shall be terminated upon the following grounds:

Section 39. Termination of a labour contract at the initiative of an employee.

39.1 If it is not provided otherwise in law or in the labour contract, the employee have a right to leave his/her job 30 days after the submission of his/her request to terminate the labour contract. In this case, the labour contract shall be considered terminated.

39.2 The labour contract may be terminated prior to the terms set forth in this Section if there are valid grounds for such termination or if the employee has agreed to the terms of departure with the employer.

Section 40. Termination of a labour contract at the initiative of the employer

40.1. A labour contract may be terminated at the initiative of the employer on any of the following grounds:

40.2 If a court issues a judgement to reinstate the employee whose dismissal was unjustified, the employer shall terminate the labour contract with the new employee doing the work of the dismissed employee and, if reasonably possible, shall provide the new employee with other work.

40.3 It is forbidden to terminate a labour contract of an employee, whose position or job has not changed, at the initiative of the employer except for cases of liquidation of a business entity or organisation;

40.4 A change of ownership or transfer of supervision of a business entity or organisation will not be grounds for termination of a labour contract.

40.5 Notice of termination of a labour contract on the basis of subsections 40.1.1 and 40.1.2 of this Section shall be served by an employer a month prior to such termination. Notice of dismissal of all employees because of the dissolution of a business entity or organisation shall be served by an employer to the relevant organisation representing the rights and legal interests of employees 45 days prior to such dissolution and conduct negotiations as provided for in this law.

Section 41. Grounds for termination of an individual contract regulation.

41.1 In addition to the reasons set forth in this law, a contract may be terminated at the initiative of an employer on the following grounds:

41.2 In case of termination of an individual contract on the basis specified in Subsection 41.1.3 of this law, the employer shall notify the employee 2 months prior to such termination and provide with an allowance equal to an average remuneration of not less than 3 months.

Section 42. Dismissal allowances

42.1 The employer shall pay the employee who has been dismissed on the basis specified in Subsections 37.1.7; 40.1.1; 40.1.2 and 40.1.3 an allowance equal to an average wage of one month or more.

42.2 Allowances to be paid by an employer to employees during massive dismissals shall be determined by an agreement reached between an employer and representatives of the employees.

Section 43. Dismissal and transfer of work

43.1 When terminating a labour contract with an employee, the employer shall establish a time for the transfer of duties to the new employee and include that time in the decision on dismissal of the employee.

43.2 An employee shall be considered dismissed on the last day when he/she transfers his/her duties.

43.3 The employer shall be obligated to provide the employee dismissed with the decision on the dismissal, social insurance book and, if it is provided by law, with dismissal allowances on the date of dismissal.

43.4 The employer shall be obligated to issue a letter of reference about the occupation, profession, specialisation, position and remuneration at the request of the employee.

Section 44. Temporary suspension of holding a job or position.

44.1 If an authorised authority requires, in conformity with the law, an employee shall be temporarily suspended from holding the job or position and payment of remuneration to that employee shall be halted.

Section 45. Practical training at the place of production

45.1 The employer shall provide the employee with conditions to obtain profession skills, and organise retraining courses.

45.2 During the period of training at the place of production, theoretical and practical courses may be held during work hours.

Section 46. Social insurance coverage.

46.1 Unless it is otherwise specified in the law, it is mandatory that the employer and the employee working under a labour contract shall be insured with social and health insurance and shall be obligated to pay each month social insurance withholdings in the amount specified by law.

46.2 The employer shall be obligated to open a social insurance book for an employee starting at the date when labour contract is established, and make records of each monthly social insurance withholding and fees in accordance with the relevant regulations.

46.3 Social insurance and health insurance withholdings and fees of a basic employee, who works in a business entity or organisation which conducts seasonal work, production or services, for the period when he/she did not work shall be paid by the employer in an amount calculated from the minimum labour remuneration.

46.4 Calculation of social insurance and health insurance withholdings and fees of an employee working under a labour contract in a foreign business entity or organisation shall be made as specified in the law.

CHAPTER FOUR- REMUNERATION, PAYMENT

Section 47. Remuneration

47.1 Remuneration shall consist of the basic salary, additional pay, extra pay, awards and bonuses.

Section 48. Remuneration regulation

48.1 The minimum amount of remuneration shall be determined by law.

48.2 The methodology to draft a reference book for a professional or position tariff, a general list of professions and positions' names and labour norms and quotas shall be approved by the state central administrative authority in charge of labour issues on the basis of a proposal made by a national organisation representing and protecting the rights and legal interests of employers or employees.

48.3 An employer shall adopt and follow in accordance with the legislation, collective contracts or agreements the following regulations:

Section 49. The forms of basic remuneration and principles of payment of remuneration

49.1 Remuneration shall be paid according to the labour results, in the form of an hourly wage, by the results of work performed, or by other forms.

49.2 Remuneration of the same amount shall be established for male and female employees performing the same work.

49.3 The value of labour under special conditions or requiring intense specialisation, knowledge or a profession shall be greater.

Section 50. Additional pay

50.1 In addition to the basic salary, additional pay may be paid to an employee with regard to performance results.

50.2 In addition to the basic salary, additional pay shall be calculated from the main salary and provided to an employee if the employee, in addition to his basic duties, has been simultaneously or jointly performing other another job or position, or substituted for another absent employee, or performed duties not specified in the job description, or has worked during the night or overtime,

50.3 Additional pay shall be established in an amount determined by the collective contract and agreed to by the employee.

Section 51. Extra pay

51.1 Extra pay for a specialisation degree or working conditions and other extra pay shall be established by the collective contract and paid, based on the job description of the employee.

Section 52. Additional pay for working on public holidays

52.1 If an employee has worked on public holidays and was not compensated with another rest day, he shall be paid double his average remuneration.

Section 53. Additional pay for working overtime and on the weekly rest days

53.1 If a employee who has worked overtime or on the weekly rest days has not been compensated with other rest days, he shall be paid one and half times or more of his average remuneration.

53.2 Additional pay specified in Subsection 53.1 shall be regulated by collective and labour contracts.

Section 54. Additional pay for working during night hours

54.1. If an employee who has worked during night hours and who has not been compensated with rest, the additional pay paid to him shall be regulated by the collective and labour contracts.

Section 55. Regular vacation payment

55.1. During the regular annual paid leave of the employee, he shall be granted a regular vacation payment.

55.2. A regular holiday payment shall be established by the average remuneration of that working year.

Section 56. Payment during down time

56.1. Within a down period, where an employee cannot be transferred to another job during a period of idle time, through no fault of his/her own, he/she shall be granted the payment in the amount specified in the collective contract.

56.2. The amount of the payment during down time, determined by the collective contract, shall be 60 percent or more of the employee's basic salary and shall not be less than the minimum labour remuneration.

56.3. If the down time is an employee's fault, he/she shall not be provided with the payment.

56.4. If, during down time, the employee has performed an another job, he shall be paid according to the job performed, but such payment shall not be less than the previous average remuneration amount.

56.5. If, during down time, an employee refuses to perform another job without a valid reason, he shall not be granted the payment.

Section 57. Remuneration during a time when an employee is temporarily transferred to other work due to an inevitable need

57.1 If an employee has been transferred to another job on the basis specified in Section 33 of this law, he shall be remunerated according to the work he has performed; if this remuneration is less than his previous average remuneration, he shall be granted the difference.

Section 58. Remuneration of an employee under 18 years of age.

58.1 Remuneration of an employee under the age of eighteen shall be calculated by a piecework or hourly rate, and, additionally, he shall be paid a basic salary corresponding with a reduced hour or working day.

Section 59. Payment during transfer of duties

59.1 The payment during transfer of duties of employee shall be paid by the business entity or institution where the employee has been working.

59.2 If the time allotted for performance of transfer of duties expires through the fault of the employer, payments due to the extended period shall be paid to the employee.

59.3 If the time allotted for performance of the transfer of duties expires through the fault of the employee, payments due to the extended period shall not be paid to the employee.

Section 60. Time for the payment of remuneration

60.1 Remuneration of an employee shall be paid twice a month, or more, at fixed dates.

60.2 Remuneration can be paid on an hourly, daily or weekly calculation basis.

60.3 Advances may be paid to at the request of an employee.

Section 61. Forms of the payment of remuneration

61.1 Basic salary, additional pay, extra pay, and payments shall be paid in cash.

Section 62. Notification of changes in remuneration

62.1 The decision of an employer of a change in all employees' form or amount of remuneration according to a collective contract shall be notified ten or more days prior to enacting the change, and the change shall also be made in the labour contract.

Section 63. Deductions to be made in remuneration, limitations on the amount of remuneration

63.1 Deductions from an employee's remuneration may only be made in the following cases:

63.1.1 If an employer issues a decision demanding an employee to pay for loss or damages not exceeding the average monthly remuneration of an employee.

63.1.2 Other cases provided by the legislation

63.2 The total amount of a deduction levied on employee's one month remuneration (without including income tax) shall not exceed 20 % of the remuneration, but in case of levying child alimony or where more than one deduction is made at the same time the total sum of deductions shall not exceed 50 % of the total remuneration.

63.3 If the employee does not agree with the decision of the employer to make a deduction from the employee's remuneration or does not agree with the sum of the deduction he or she may issue a complaint to the labour dispute settlement committee.

63.4 Complaints for repayment for loss or damages exceeding an employee's one-month average remuneration shall be submitted to the court.

63.5 If an employer illegally has made deductions from an employee's remuneration, complaints for repayment of such deducted money shall be submitted to the labour dispute settlement committee.

Section 64. Allowances and payments to be paid to an employee whose job or position is being retained

63.1 During the time when an employee is going through medical analysis or fulfilling the duties of a blood donor, as specified in Subsection 35.1. 3 of this law; during the negotiation and establishment of collective contracts and agreements, as specified in Subsection 35.1.5; or in the cases specified in Subsections 35.1.1 and 35.1.6. of this law, payment equal to the employee's average remuneration shall be paid.

64.2 Allowances and payments to paid in the cases specified in Section 35, other than in Subsection 64.1 of this law, shall be regulated by this law, other related laws, collective contracts and agreements, and labour contracts.

Section 65. Compensations to be paid in the case of a transfer to another territory

65.1 The expenses with respect to transportation, per diem allowances of an employee, and his/her family's transportation who is elected or appointed from one city or image to another city or image, or within one image or city from one sum or khoroo to another sum or khoroo shall be compensated by the organisation which is receiving him.

Section 66. Payments during an absence due to a valid reason

65.1 Payment equal to 50 % of the basic salary shall be paid to an employee who could not attend work because of a natural or public disaster or another valid reasons.

66.2 If the employee has taken part in the removal of the aftermath of such disaster or disruption, he/she shall be paid the basic salary.

Section 67. Remuneration during reduced hours of work

67.1 Reduced hours of work of an employee, specified in Subsections 71.1, 71.2, and 71.4 of this law, shall be considered as worked hours and an average remuneration shall be paid.

67.2 An employee, whose hours of work have been reduced as specified in Subsections 71.3 and 71.5 of this law, shall be paid an average of the previous 6 months remuneration.

Section 68. Difference in remuneration of an employee transferred to another job not contrary to his health

68.1 If remuneration of a pregnant or breast-feeding woman, during the transfer of that woman to other work not contrary to her health as specified under Subsection 107.1 of this law, has been reduced, payment equal to the difference between the previous remuneration and the current remuneration shall be paid to such woman.

68.2. If the remuneration of an employee during the transfer to that employee to other work not harmful to his health, as specified under Section 34 of this law, payment shall be equal to the difference between the average remuneration of the previous 6 months and current average remuneration.

Section 69. Payment in connection with wrongful dismissal or transfer

69.1 If an employee has been reinstated to his/her previous job or position as provided in Section 32.1.2 of this law, he/she, for a period during which he/she was out of work, shall be paid the remuneration which he/she previously received; or during which he/she was transferred to a job or a position with a lower remuneration, shall be paid the difference.

CHAPTER FIVE- HOURS OF WORK AND REST

Section 70. Work hours

70.1 The hours of work per week shall not exceed 40 hours.

70.2 The length of a normal work day shall not exceed 8 hours.

70.3 The length of the uninterrupted rest period between two consecutive working days shall not be less than 12 hours.

Section 71. Reduction of work hours

70.1 The hours of work per week for employees 14-15 years of age shall not exceed 30 hours, and for employees 16-18 years of age shall not exceed 36 hours.

71.2 If, following the evaluation of a labour standards organisation or a professional organisation, an authorised organisation has determined the normal conditions of a workplace, an employer shall be obligated to reduce the work hours of an employee based on such a determination.

71.3 The hours of work of an employee shall be reduced in accordance with an decision of the medical and labour expert committee.

71.4 The employer shall reduce the work hours for employees who are attending a production industry professional training or retraining course.

71.5 The work hours may be reduced for disabled or dwarf employees depending on the nature of work they are performing, with consideration of the employee's opinion.

Section 72. Night hours

72.1 The period from 10 p.m. until 6 a.m., local time, shall be considered night hours.

Section 73. Aggregation of hours of work

73.1 If, depending on the nature of the work or production, it is not possible to follow the daily or weekly working hours, a regulation on calculating aggregate work hours may be applied.

73.2 Aggregated hours computed as specified in Subsection 73.1 of this law shall not exceed the sum of the working hours corresponding to computed time.

73.3 A regulation on the calculation of aggregate hours of work shall be approved by the government.

73.4 Calculating aggregate working hours shall not be a limit in applying the conditions specified in law giving the employee a regular vacation or calculating the period of time of the social insurance withholdings payment.

Section 74. Prohibitions on overtime work

74.1 If, at the initiative of the employer, the hours of work per day exceed the hours per day established in the internal labour regulations, such an employer shall be deemed as introducing overtime work.

74.2 Unless it is otherwise agreed in the collective or labour contract, compelling an employee perform overtime work is prohibited except in the following cases:

74.3 It shall be prohibited to compel an employee to work two consecutive shifts.

Section 75. Breaks for rest and meals

75.1 An employee shall be given a break for eating and rest.

75.2. The time for starting and finishing the break shall be established by the internal labour regulations.

75.3. An employee who cannot have a break due to a feature or the nature of the work or duties, shall be provided by an employer with an opportunity to have a meal.

Section 76. Public holidays

76.1 The following dates are designated as public holidays:

76.1.1 New Year - 1st of January

76.1.2 White Moon days (2 days) - the beginning of the first spring month by the Lunar Calendar;

76.1.3 Mothers' and children's day - 1st of June;

76.1.4 National Naadam holiday. Anniversary of the Mongolian People's Revolution - 11th, 12th, 13th of July;

76.1.5 Day of the Proclamation of the People's Republic-26th of November

Section 77. Weekly days of rest

77.1 Saturday and Sunday are public days of rest.

77.2 Where an employee is not able to rest on Saturday and Sunday due to the specific nature of the work and production, he/she shall be granted two consecutive rest days on other days of the week.

Section 78. Work restrictions on public holidays and rest days

78.1 It shall be prohibited to compel an employee to perform work on public holidays or rest days at the initiative of the employer, except in the following cases:

78.2 An employer can compel the employee to work, if it is agreed thereby, during public holidays and weekly days of rest.

78.3 In cases specified in Subsection 78.2, a rest day may be granted in compensation for another day or added to the regular vacation.

Section 79. Regular vacation and its duration

79.1 An employee shall personally enjoy a grant of a regular paid holiday every year.

79.2 An employee's basic period of regular holiday shall be 15 working days.

79.3 The length of the regular holiday for an employee under 18 years of age shall be 20 working days.

79.4 An employee due to his/her own request may enjoy their regular holiday in parts during the year concerned.

79.5 In addition to the basic period, employees working under normal working conditions shall be awarded additional leave days taking into account the length of their record of service and their working conditions as follows:

79.6 In addition to the basic period, employees working under abnormal working conditions in accordance with the collective contract shall be awarded additional leave days taking into account the length of their record of service and their working conditions as follows:

79.7 The additional regular holiday term for civil servants may be established by the appropriate law.

Section 80. Assigning relief

80.1 An employer may grant to an employee a short term relief at his/her request.

80.2. The question of whether or not to grant to an employee allowances during such relief shall be regulated by the internal labour regulations and the collective and labour contracts.

CHAPTER SIX- WORKING CONDITIONS, LABOUR SAFETY AND SANITATION STANDARDS

Section 81. Classification of working conditions

81.1 The working conditions shall be classified as normal working conditions and abnormal working conditions.

81.2 A professional organisation shall be asked by an employer to perform an evaluation of the conditions of the work place.

81.3 Regulations on the establishment of a pension with concessions to employees who are working under abnormal working conditions shall be adopted by law.

Section 82. Determination of labour safety and sanitation standards

82.1 The organisation in charge of standards, in consent with the state central administrative organisation in charge of labour issues, shall approve, in accordance with the relevant law, the labour safety and sanitation standards.

82.2 Common regulation on labour safety and sanitation shall be approved by the State central administrative organisation in charge of labour issues.

Section 83. General requirements for the work place

83.1 The organisation of work shall comply with the production technology requirements and meet the safety and sanitation requirements.

83.2 Negative chemical, physical, or biological factors that might originate in the course of production at a workplace shall not exceed the permitted labour and sanitation standards approved by the organisation specified in Subsection 82.1 of this law.

83.3 The work place of the employee shall be equipped in accordance with the sanitation norm standards.

Section 84. Requirements for production buildings and facilities

84.1 When drafting an architectural project of production buildings and facilities, an evaluation, for its construction, renovation, expansion and hand over for use, shall be obtained from the professional organisation in charge of labour safety and sanitation and licensed from such authority.

Section 85. Requirements for joint ownership of production buildings and facilities

85.1. If a production buildings and facilities are owned by two or more employers, the owner shall ensure the following requirements:

85.1.1 owner shall jointly establish and follow a regulation;

Section 86. The requirements for machinery and equipment

86.1 Machinery and equipment shall be used in accordance with the rules and regulation on safe use performance, and technical passports shall be fully maintained.

86.2 Permission for the installation of machinery and equipment, and approval of the machinery and equipment for use after capital repair, shall be obtained from the professional monitoring organisation, which will perform the verification.

86.3 In machinery for lifting and transportation, pressurised containers, or pipes and channels, tests, adjustments, and approval shall be made in accordance with the relevant regulations.

86.4 Electrical equipment shall be installed in accordance with the project drawings, and shall comply with the requirements of the rule on use of electricity and safety.

Section 87. Requirements for special work garments, protective equipment

87.1 The employer shall provide the employee with special work garments and protective equipment, which shall comply with the safety and sanitation requirements, conforming with the work features for that employee.

87.2 The employer shall clean, disinfect, and repair the special work garments and protective equipment.

Section 88. Requirements in dealing with chemical, poisonous, explosive, radioactive, and biologically active substances

88.1 An employer shall, in accordance with relevant regulations, inform the labour monitoring and other relevant professional organisation on use of chemical, poisonous, explosive, radioactive, and biologically active substances in their production and shall follow the regulations adopted by authorised organisations.

Section 89. Fire safety requirements

89.1 An employer shall adopt and follow internal fire safety rules.

89.2 Business entities and organisation with fire alarms system and equipped with special fire extinguishers shall keep such equipment in constant working form and train the employees to use such equipment.

89.3 During production, an employer shall take all measures necessary to prevent fire.

Section 90. Requirements for work under unfavourable weather conditions

90.1 In accordance with labour standards, the employer shall establish, equip and make comfortable a special place for the purpose of rest and warming up during the break time, for employees who perform work outdoors in extremely hot, cold, windy, snowing, or rainy or other similar unfavourable conditions.

Section 91. Provision of favourable working conditions

91.1 An employer shall provide an employee a work place with favourable work conditions and stipulate the conditions under which the chemical, physical, or biological factors created in the course of the production process will not have a negative impact on the labour, sanitation, and natural environment.

91.2. An employer shall provide to an employee working under normal working conditions with protective equipment, special working garments, and poison-neutralising substances and food products.

91.3 An employer shall include in annual plans and collective contracts the funds, to be spent which will be required for labour safety and sanitation measures.

Section 92. Health examinations

92.1 An employer shall send an employee to prophylactic and regular health examinations necessarily required for and related to the performance of work, production and service in accordance to the regulations adopted by the authorised organisation.

92.2 Expenses required for the implementation of health examinations as provided in Subsection 92.1 of this Section shall be borne by the employer.

Section 93. Offices and councils in charge of labour safety and sanitation issues.

93.1 A business entity or organisation shall have an office (employee) or a council consisting of representatives of the employer and employees in charge of labour safety and sanitation matters.

93.2 The regulation to be followed on organisation of labour safety and sanitation arrangements shall be adopted by the state administrative central organisation in charge of labour issues.

Section 94. Suspension of work in case of conditions with a negative influence on life and body

94.1 An employee, who in the course of performance of his/her work has breached production safety regulations or is faced with any situation, which has an extremely negative influence on life, body, or health, shall stop work and shall inform the employer.

94.2 An employer shall be obligated to correct such breaches and conditions immediately.

Section 95. Registration of industrial accidents, occupational diseases, and acute poisons

95.1. The employer shall immediately and at his own expense deliver the employee who has been affected by the accident to the hospital, and take measures to correct the accident's causes and its results.

95.2. The employer shall, in accordance with the regulations adopted by the government, investigate and register every industrial accident and appoint a Steering Committee (supernumerary) which will determine the industrial accident.

95.3. The assessment of the committee on an industrial accident shall be approved by the state labour inspectors.

95.4 If an employer did not fulfil his/her duties provided in subsections 95.2 and 95.3 of this law, or if employee does not agree with the conclusion on the conditions that caused the industrial accident, the employee has a right to submit his/her complaints to the state labour supervisory authority.

95.5 An employer shall be obligated to implement the decision made upon the consideration of such complaint in accordance with Subsection 95.4 of this law.

95.6 The business entity or organisation where the accident happened shall bear the expenses connected with the investigation and registration of the industrial accident.

95.7. Labour supervisory authority or officer, in accordance in the regulations, shall investigate and register occupational diseases and acute poisons, considering as equivalent to industrial accidents, and take the measures provided by this Section and other appropriate measures.

95.8. An employer shall inform, in accordance with the regulations, about the industrial accident, occupational disease, and acute poison.

95.9. Concealing occupational diseases, acute poisons and industrial accidents shall be prohibited.

95.10. Rule on the investigation and registration of the industrial accident, occupational disease or acute poison shall be approved by the Government.

Section 96. Occupational diseases

96.1 The state central administrative organisation in charge of health issues shall adopt a list of occupational diseases.

96.2 The existence of an occupational disease shall be determined by the relevant professional organisation.

Section 97. Compensation for damages caused by industrial accident, acute poison or occupational diseases

97.1 The employer shall, without considering whether the employee was covered by insurance for the industrial accident or occupational diseases, compensate the employee who was injured by industrial accident, acute poison or occupational disease, or the employee's family who has died as a result of industrial accident, acute poison or occupational disease, in the following manner:

97.2 Subsection of compensations as provided in Subsection 97.1 of this law shall not affect the pensions and allowances to be received by a person injured, in accordance to the social insurance law and other legislation.

97.3 The issue of indexing the amount of compensations to be made, in connection with the changes in the minimum standard of living, shall be set and implemented in the collective contract.

Section 98. Hospital and labour determination commission

98.1 Issues of the determination of fact of an employee being crippled, of the reasons of a loss of labour capability, and determination of extent of the loss labour capability shall be decided by the hospital and labour determination commission.

98.2. The charter of the hospital and labour determination commission shall be adopted by the Government.

Section 99. Suspension of activities of business entities and institutions which failed to meet labour safety and sanitation standards

99.1 If it is proven that the activities of a business entity, organisation, its branches and units negatively affect an employee's health and life, the labour supervisory authority or an authorised officer (state inspector) shall take measures to make the employer correct the contravention.

99.2 If the correction of the contravention, specified in Subsection 99.1 of this law, is not made, the labour supervisory authority or an authorised officer (state inspector) may partially or in full temporarily suspend the organisation's activity until it fulfils the labour safety and sanitation requirements, or close it.

CHAPTER SEVEN- EMPLOYMENT OF WOMEN

Section 100. Prohibition of dismissal of a pregnant woman or a woman with child under 3 years of age (single father)

100.1 An employer is prohibited from dismissing a pregnant women, mother who has a child under three years of age, except for cases of dissolution of the organisation and cases provided for in Subsections 40.1.4 and 40.1.5 of this law.

100.2 Subsection 100.1 of this law shall equally apply to a single father with a child under three years of age.

Section 101. Jobs prohibited to women

101.1 A list of jobs prohibited to women shall be adopted by the member of the Government in charge of labour issues.

Section 102. Restriction on night and overtime work and assigned trips

102.1 It is prohibited to make a pregnant woman, mother of a child under 8 years of age, or a single mother of a child under 16 years of age without her consent, work at night, overtime or send her on assigned trips.

102.2 Subsection 102.1 of this Section shall equally apply to a single father with a child under 16 years of age.

Section 103. Additional provision of a break for breast-feeding and care of a child

103.1 Besides the rest, food and regular break, an additional break of two hours to feed and take care of a child shall be provided to a woman with a child under six months of age or to a woman with twins under one year of age; and a break of one hour to a woman with a child between the ages of six months and one year or to a woman with a child who has reached one year of age, but needs special care according to a medical conclusion.

103.2 Subsection 103.1 of this law shall equally apply to single fathers.

103.3 The break time for the feeding and caring for infants shall be incorporated into the hours of work.

Section 104. Maternity leave

103.1 Maternity leave of 120 days shall be provided to a mother.

104.2 The maternity leave specified in Subsection 104.1 of this law shall be granted to a woman who has delivered a stillborn child or has interrupted a pregnancy with hospital methodology or had abortion after the 196th day of pregnancy, or to a woman who has delivered a baby before 196th day which is capable of living premature child.

104.3 If a woman has a stillborn child or has interrupted a pregnancy with hospital methodology before the 196th day of pregnancy, the general regulation on granting sick leave shall be applied, and such leave shall be granted.

Section 105. Leave for an employee who has adopted a new-born child

105.1 An adopting mother shall be entitled to equal leave as a mother who gives birth to a child, until the child reaches 60 days old.

105.2 Subsection 105.1 of this law shall equally apply to single fathers with a new-born child.

Section 106. Grant of baby care leave

106.1 An employer shall grant baby care leave to a mother with a child under three years of age, who had maternity leave or annual leave, if she so wishes.



106.2 The employer shall be obligated to allow a mother to take up her previous job or post upon the expiry of her baby care leave or before the expiry, if the mother so wishes, and shall provide another job or post, if the previous one has been eliminated because of reduction in staff or the number of jobs.

106.3 Subsections 106.1 and 106.2 of this law shall equally apply to single fathers with a child under three years of age or a single person who adopted a child of such age.

Section 107. Reduction of hours of work or transfer to another job of pregnant woman and woman with a breast-feeding child

107.1 If a medical conclusion is made relating to the easing of working conditions of a pregnant woman or a woman with a breast-feeding child, the working hours of that woman shall be reduced or she shall be transferred to other work not hazardous to her health.

Section 108. Limitations on the load handled by woman

108.1 It is prohibited to require a woman to lift or carry heavier loads than the load prescribed by the member of Government in charge of labour issues.

CHAPTER EIGHT- EMPLOYMENT OF MINORS, DISABLED PERSONS, DWARFS AND ELDERLY PEOPLE

Section 109. Employment of minors

108.1 A person who reaches 16 years of age has a right to enter into a labour contract.

108.2 If it does not contradict with Subsection 109.5 of this law, person who reaches 15 years of age may enter into a labour contract, with the permission of parents or guardians.

109.3 A person who reaches 14 years of age may enter into a labour contract for the purpose of imparting vocational guidance and work experience, but only with the consent of his/her parents or guardians and the state administrative organisation in charge of labour issues.

109.4 It is prohibited to employ a minor in a job which would negatively affect intellectual development and health.

109.5 A list of jobs which are prohibited for a minor shall be approved by the member of government in charge of labour issues.

Section 110. Protection of the health of a minor employee

110.1 An employee 14 -18 of years of age may be employed after he has undergone medical examinations, and further biannual medical examination shall be compulsory until he reaches 18 years of age.

110.2 It is prohibited to require a minor employee to perform overtime work or to work on public holidays or weekends.

110.3 Employment of a minor in a job under abnormal or special conditions shall be prohibited.

110.4 It is prohibited to require a minor to lift or carry heavier loads than the load prescribed by the member of Government in charge of labour issues.

Section 111. Labour of a disabled or dwarf person

111.1 Disabled or dwarf persons shall be employed at a level of not less than 3 percent of its total staff by a business entity or organisation having more than 50 employees, unless it is contrary to the job or production feature.

111.2 If business entities and organisations do not employ disabled or dwarf persons at the level specified in Subsection 111.1 of this law, they shall pay a monthly payment for each vacancy they should have employed.

111.3 The amount of the payment shall be set up by the Government.

111.4 The payment specified in 111.2. of this law shall be deposited in the State general budget and expended on financing social protection activities devoted to disabled persons.

111.5 If the physical condition of a disabled or dwarf person does not impede such a person from performing work or is not contrary to the working conditions, refusal to admit such person to the job due to such reason shall be prohibited.

Section 112. Labour of elderly person

112.1 An elderly person who receives a pension can perform labour.

112.2 Receipt of a pension by an elderly person shall not be the grounds for limiting his salary.

112.3 Upon the request of an elderly person, an employer may reduce his working hours or transfer such person to work not harmful to his health.

CHAPTER NINE- EMPLOYMENT OF FOREIGN CITIZENS AND CITIZENS WORKING IN FOREIGN BUSINESS ENTITIES OR ORGANISATIONS

Section 113. Employment of foreign citizens

113.1 On the basis of a labour contract, an employer may employ a foreign citizen.

113.2 The regulation on regulating issues related to the employment of foreign citizens in Mongolia in accordance with this law and other laws shall be approved by the Government.

113.3 Subsections 113.1 and 113.2 of this law shall equally apply to stateless persons.

Section 114. Employment of citizens working in foreign business entities and organisations

114.1 Foreign business entities and organisations conducting activity within the territory of Mongolia may employ Mongolian citizens.

114.2 In the case specified in 114.1 of this law, the employer shall enter into a labour contract with an employee, in accordance with this law.

114.3 A foreign business entity or organisation which employs, by a contract, an employee, shall be obligated to accurately inform, in accordance with the relevant regulations, the authorised organisation's officials about an employee's remuneration and other similar incomes.

CHAPTER TEN- REGULATION OF COLLECTIVE LABOUR DISPUTES

Section 115. Initiating collective labour disputes, submitting demands and responding to the demands

115.1 Representatives of the employees shall have the right to initiate collective labour disputes concerning the issues disagreed with during negotiations of the collective contracts and agreements, as it is specified in subsection 12.5 of this law, and to submit demands to fulfil the subsections of the collective contracts agreements.

115.2 The demands from one party participating in the contracts and agreements shall be delivered to the other party in writing.

115.3 One copy of the demands shall be delivered to the Governor of the appropriate level.

115.4 The party receiving the demands shall deliver a reply to the other party within 3 working days in writing.

Section 116. Forms of reconciliation of collective labour disputes.

116.1 The collective labour disputes shall be reconciled and settled by the following measures:

116.4 Representatives of the employees, intermediaries and labour arbitrators shall be obligated to pursue all legal possibilities to settle the collective labour disputes.

Section 117. Inviting intermediaries to the settlement of the collective labour dispute.

117.1 If an employer does not respond to the demand within the term specified in Section 115 of this law, or the representatives of the employees consider the employer's reply unacceptable, an intermediary shall be invited to settle the collective labour dispute.

117.2 The parties shall agree with each other on the appointment of an intermediary, and if they are not able to come to an agreement, the Governor of the given sum or district shall be requested to appoint one.

117.3 In such cases, the Governor of the sum or district shall appoint an intermediary within 3 working days.

117.4 The parties shall have no right to repudiate the intermediary appointed by the Governor.

117.5 The regulation on settlement of collective labour disputes with the participation of an intermediary shall be approved by the Government.

117.6 An intermediary is entitled to require and receive from the employer the relevant documents and information concerning the collective labour dispute.

117.7 Within 5 working days after the invitation of an intermediary, the parties with the participation of the intermediary shall consider the dispute and issue a written decision agreeing with each other or produce a note that the parties still have not come to an agreement, by which a such process shall finish.

Section 118. Consideration of collective labour disputes by an arbitration court.

118.1 If, at the end of the collective labour dispute discussion with the participation of an intermediary, the parties have not come to an agreement, within 3 working days, the Governor at the appropriate level shall establish a labour arbitration process and appoint arbitration judges to discuss the collective labour dispute.

118.2 The labour arbitration court shall consist of the 3 arbitration judges, proposed by the parties participating in the collective labour dispute and the Governor.

118.3 The parties shall have no right to repudiate the arbitration judges appointed by the Governor.

118.4 Representatives of the parties participating in the collective labour dispute shall not be included in the labour arbitration court.

118.5 Within 5 working days after its establishment, the labour arbitration court shall discuss the collective labour dispute with the participation of representatives of the parties and issue a recommendation.

118.6 If the parties participating in the collective labour dispute come to an agreement to accept and enact the recommendation of the arbitration court, they shall issue a decision on the matter.

118.7 The parties shall be obligated to implement the decision specified in Subsection 118.6 of this law.

118.8 On the basis of a 3 sided proposal submitted by the national committee on labour and social protection, the State Ikh Khural shall approve a charter of the labour arbitration court.

Section 119. Exercising the right to strike

119.1 Representatives of the employees are entitled to strike in the following occasions:

119.1.4. if, notwithstanding that the collective labour dispute was discussed by the labour arbitration court, its recommendation has not been accepted and the decision has not been produced.

119.2 An employee shall participate in the strike voluntarily.

119.3 It is prohibited to forcibly demand that employees participate in a strike or to continue a strike or to stop the strike, unless it is otherwise provided in law, or to not participate in a strike.

119.4 Representatives of an employer shall be prohibited from organising or participating in a strike.

Section 120. Announcing a strike or temporarily lock-out of the working place.

120.1 The decision to strike shall be issued from a meeting of the organisation representing and protecting employees' rights and legal interests, or a meeting of all employees.

120.2 A meeting of the members of the organisation representing and protecting employees' rights and legal interests or a meeting of all employees shall have a quorum if it is attended by an overwhelming majority (two thirds)of employees or members of the organisation representing and protecting employees' rights and legal interests.

120.3 A strike may be announced if the majority (more than half) of the members or the employees attending the meeting supports the proposal to strike.

120.4 The following matters shall be included in the decision to strike:

120.5 The person organising a strike shall be obligated to deliver notice of the decision to strike to the other party, five working days prior to the commencement of the strike.

120.6 If an employer considers it not possible to accept the employees' demands, as a measure against the strike, he may temporarily lock-out the working place of the employees participating in the strike (lock-out).

120.7 In order to prevent a business entity or organisation from temporarily employing other employees at the working place of the striking employees, representatives of the employees may temporarily close the business entity or organisation (picket).

120.8 An employer shall inform customers, suppliers or other related persons of a strike or temporary lock-out at least 3 working days prior to that event.

120.9 Participation of third parties shall be prohibited from participating in organising a strike, in a temporary lock-out of the work place, or in the exchange by the parties of their opinions on disagreements and [in affecting the making of free choice, unless it is otherwise provided in law.

120.10 During the duration of the strike, the parties shall be obligated to take measures to reconcile the collective labour dispute.

120.11 The party organising a strike or temporary lock-out of a work place, during the preparation and duration of these activities, shall take measures to ensure public order, health and safety of persons and protection of property, with the help of the relevant state organisation in charge of such matters.

Section 121. Person organising a strike, or the temporarily suspension, revival and end of a strike

121.1 The strike shall be organised by representatives of the employees.

121.2 The person organising the strike shall be entitled to organise employees' meeting, to be furnished by the employer with information related to employees' rights and legal interests, and to invite an expert when preparing an opinion on the matter under dispute.

121.3 The person organising the strike shall have a right to temporarily suspend the strike.

121.4 Revival of a temporarily suspended strike shall not be discussed by the labour arbitration court specified in Subsection 116.1 of this law.

121.5 If the strike is to be revived, an employer shall be notified 3 working days prior to the revival.

121.6 A strike shall be considered finished when the parties have signed an agreement on settlement of the collective labour dispute or by recognition of the strike as illegal.

Section 122. The prohibition, postponement, or temporarily suspension of a strike

122.1 It is prohibited to organise a strike at organisations in charge of state defence, security, or public order.

122.2 At the stage of negotiations of the matter under dispute or consideration of the collective dispute by an intermediary, labour arbitrators or courts, a strike shall be prohibited.

122.3 In those cases where a direct threat on human life and health has occurred, the court shall have the right to postpone the strike for up to 30 days or, if the strike has already commenced, to temporarily suspend it for the same term.

122.4 If a strike at institutions such as business entities or organisations responsible for the supply of electric and heating power, public water, city public transport, or international, inter-city or urban telecommunications and railway traffic is to damage the security of the country or human rights and freedom, the Government may postpone such a strike until the court passes decision, but not longer than for 14 days.

Section 123. Recognising the organisation of strike or lock-out of a work place as illegal

123.1 A strike organised as a result of the collective labour dispute shall be considered illegal in the following cases:

123.1.1 if the subsection specified in 119.1 of this law has been violated;

123.1.2 if the organisations specified in 122.1 of this law have gone on strike;

123.1.3 if there has been a strike organised with demands on a matter not related to relations to be regulated by the collective agreement specified in Section 18 of this law.

123.2 A party, which considers the organisation of a strike or temporary lock-out of the work place illegal, shall submit its request to the court.

123.3 A decision on whether the organising of the strike or temporary lock-out of the work place has been illegal shall be issued by the court.

123.4 If the court issues a decision that the organisation of a strike or temporary lock-out of the work place has been illegal, the parties shall immediately stop such activities.

Section 124. Guarantee of the rights of employees related to the settlement of a collective labour dispute

124.1 Intermediaries and labour arbitrators shall be granted a leave from their primary work and assigned an average remuneration during their participation in the settlement of the collective labour dispute.

124.2 During the settlement of the collective labour dispute, imposing disciplinary punishment on, or transferring to another job, or firing, at the initiative of administration, representatives of the employees who have participated in the settlement of the collective labour dispute, shall be prohibited.

124.3 An employee who has participated in a strike, not recognised as illegal, shall not be considered to have breached breached labour discipline, and labour disciplinary measures shall not be imposed on him.

124.4 During the settlement of a collective labour dispute, the parties may decide to provide payment to the employees who participated in the strike.

124.5 An employee who has not participated in a strike, but has not been able to perform his work due to the strike or whose temporary lock-out of the working place has been recognised by the court as illegal and who has been affected by that event shall be assigned his average remuneration.

CHAPTER ELEVEN- SETTLEMENT OF AN INDIVIDUAL LABOUR DISPUTE

Section 125. Examining and resolving an individual labour dispute

125.1 The individual labour dispute settlement commission or court, within their respective jurisdictions, shall resolve a labour dispute between an employer and an employee.

Section 126. Labour disputes to be resolved by the labour dispute settlement commission

126.1 The labour dispute settlement commission shall initially examine and resolve labour disputes, except those referred to the court pursuant to law.

126.2 The charter of the labour dispute settlement commission shall be approved by the Government.

Section 127. Appealing a decision of the labour dispute settlement commission

127.1 If an employer or an employee does not agree with the decision of the labour dispute settlement commission, the concerned employer or employee shall have the right to appeal to the relevant sum or district court within 10 days after the receipt of such decision.

Section 128. Labour disputes to be decided by the court

128.1 The Court shall examine and decide the following disputes:

128.1.1. an appeal made in accordance with Section 127 of this law;

Section 129. Term for submitting a complaint concerning a labour dispute

129.1 In all cases, except of those specified in Subsection 129.2 of this law, the parties to a labour contract shall submit their complaints to the labour dispute settlement commission within 3 months of the date on which the claimant became aware or should have been aware of the violation of their rights.

129.2 An employee shall submit his complaint concerning wrongful dismissal or wrongful transfer to other work to the court within 1 month of the date he received the decision of the employer.

129.3 If the limitation period specified in this Section expires for valid reasons, the court may restore the period and consider the case.

CHAPTER TWELVE- INTERNAL LABOUR REGULATIONS, LABOUR DISCIPLINE AND MATERIAL LIABILITY

Section 130. Internal labour regulations

130.1 Taking into account the proposal from the employees' representatives, an employer shall approve and enforce internal labour regulations in conformity with legislation.

130.2 The internal labour regulations shall describe organisation of labour and employers' and employees' rights, duties, and liabilities.

130.3 A special rule on discipline may be approved and enforced by the appropriate state organisation.

Section 131. Labour disciplinary punishment

131.1 An employer or his lawful representative or an authorised official shall by resolution or decree impose disciplinary punishment of the following forms on an employee who breached the labour contract or internal labour regulations:

131.2. Disciplinary punishment shall be imposed within 6 months after the disciplinary breach has occurred and 1 month after the disciplinary breach has been discovered.

131.3. Imposing multiple forms of disciplinary punishment for one disciplinary breach shall not be allowed.

131.4. One year after disciplinary punishment has been imposed, the matter shall be considered finished.

Section 132. Basis for imposing material liability

132.1 Material liability shall be imposed on an employee who, in the course of fulfilment of employment obligations, has caused material loss or damage to his organisation due to his own fault, regardless of whether disciplinary, administrative, or criminal liability has been imposed on that employee.

132.2 The amount of loss or damage shall be determined by the loss or damage itself, but shall not include the loss of potential profit.

132.3 Inevitable loss or damage occurred during a test or adjustment of machinery shall not be paid by an employee.

132.4 Loss or damage which has occurred as a result of non-stipulation of the required conditions to ensure safety of the property assigned under the responsibility of the employee shall not be paid by the employee.

Section 133. Limited material liability

133.1 In cases other than those specified in Section 135 of this law, limited material liability, which shall not exceed the average monthly remuneration of the employee, shall be imposed on the employee who, in the course of fulfilment of his labour obligations, has caused loss or damage to his organisation due to his own fault.

Section 134. Material liability imposed by contract

134.1 Unless otherwise specified in Section 135 of this law, an employee working under a contract, who has caused material loss or damage in the course of the fulfilment of his labour obligations, due to his own fault, shall be obligated to eliminate this loss or damage, but this shall not exceed his 6 month average remuneration.

Section 135. Full material liability

135.1 Full material liability shall be imposed on an employee in the following cases:

135.2 Regulation other than specified herein on enforcing repayment for loss or damage inflicted as a result of embezzlement or a showing of a shortfall of some assets and valuable things shall be approved exclusively by law.

135.3 A list of jobs or positions where full liability potentially may be imposed shall be approved by the employer, and the employer shall enter with an employee into an agreement concerning full material liability.

135.4 If an agreement on full material liability has not been established or the matter has not been covered in the labour contract, imposing full material liability on an employee shall be prohibited.

Section 136. Determining the amount of loss or damage inflicted on the organisation

136.1 The amount of loss or damage inflicted on the organisation shall be determined by the actual value of the loss, by deducting the accumulated depreciation, calculated by the relevant rate, from the book value of the damaged assets or valuable things.

136.2 If assets or valuable things have been embezzled, or deliberately destroyed, or damaged, the amount of the loss or damage shall be determined by the market value of such assets at the given time of the determination.

136.3 The loss or damage caused by several employees shall be determined for each employee, based on the type of the material liability and amount of fault of each employee.

CHAPTER THIRTEEN- MANAGEMENT AND ORGANIZATION OF LABOUR

Section 137. System of management of labour

137.1 The system of management of labour shall consist of the state central administrative organisation responsible for labour issues; the employment and supervising organisation, the employment offices of the image, capital city and district, and the labour inspector /officer/ of the sum.

137.2 The state central administrative, executive, and regulatory organisation responsible for labour issues shall work under the guidance of a Member of the Government and the local organisation of the state administrative organisation under the guidance of a Governor.

137.3 The state central administrative organisation responsible for labour issues shall provide its local organisation with professional and methodological guidance.

137.4 Governors at all levels shall, within their jurisdiction, enforce the system of management of labour.

Section 138. Tripartite National Committee of labour and social consent

138.1 A National Committee of labour and social consent composed of the representatives of three parties: Government, and the national organisations representing the rights and legal interests of the employees and employers, shall be established within the Government.

138.2 The number of the representatives from the three parties shall be equal.

138.3 The Charter of the National Committee shall be approved by the Government, with the consent with the national organisations representing the rights and legal interests of the employees and employers.

138.4 The chairman, vice chairman and personnel of the National Committee shall be approved by the Prime Minister for a term of 6 years, and vice chairman of the Committee shall be appointed from the representatives of one of the 3 parties agreed by such parties for the term of 2 years.

138.5 The National Committee shall exercise the following rights fully:

CHAPTER FOURTEEN- LABOUR MONITORING

Section 139. Monitoring the enforcement of the labour legislation

139.1 The following institutions shall monitor the enforcement of the labour law:

Section 140. Labour monitoring procedure

140.1 The state office on labour monitoring shall work under the guidance of the Member of Government responsible for labour issues, and the local labour monitoring offices and state inspectors shall work under guidance of the Governor of the relevant region.

140.2 The labour monitoring procedure shall be regulated by the rule of the state labour inspection. The rule of state labour inspection shall be approved by the Government.

140.3 The rule of the state labour inspection shall be approved by the Government.

CHAPTER FIFTEEN- OTHER PROVISIONS

Section 141. Liabilities to be imposed on law violators

141.1 If a breach of the labour law is not claimed to be a breach imposing criminal liability, the following punishments shall be imposed on the guilty person:

141.2 If, as a consequence of the action specified in Subsection 141.1.6 of this law, loss or damage has been inflicted on the health of an employee, the loss or damage shall be compensated for in accordance with a provision of the Civil Law concerning loss or damage.

141.3. If it has been proved that an official delayed or did not pay an employee's wages in due time, the judge shall imposed a penalty for late payment of 0.3 percent per each delayed day on such employer, and the penalty payment shall be granted to the employee.

Section 142. Effective date of the law.

142.2 This law shall come into force from 1 July 1999.


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