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Mongolia

LABOUR LAW OF MONGOLIA

Official Translation
                                    
Explanation of specific terms and names For the purpose of the
Labour Law of Mongolia
                                    
1. " Administration" means governing boards of different
institutions both governmental and non-governmental, public and
private which are entitled to enter into work relations with
employees on contract of employment. In its extended meaning the
term also covers individuals heading private undertakings.

2. " Collective Agreement"  means a contract concluded between
the administrations and Trade Unions or other organizations
representing the rights and interests of workers. Its main
objective is to ensure an effective function of a given entity
on the basis of the observance of the Labour Law.

3. " Medical and Labour Expert Commission"  means a body
consisting of assigned physicians and labour experts whose
objective resides in determining the fact of disablement, the
causes for and degree of incapacitation, special labour
conditions for partly disabled persons.

4. " Organization"  means governmental and non-governmental
institutions, public and private undertakings of different
trades, joint ventures and foreign enterprises and organizations
functioning in the territory of Mongolia.

Labour Law of the Mongolian People's Republic (MPR)

CHAPTER I:  GENERAL PROVISIONS
              

Article 1. Objective of Labour Law of MPR(Mongolian
People's Rebuplic)

The objective of the Labour Law of the MPR resides in governing
the relations connected with the exercising by citizens of their
right to work on the basis of employment agreement .

Article 2. Labour Legislation of MPR

The labour legislation of the MPR consists of the Constitution
of the MPR, the present Law, and other legal acts of the MPR
enacted in conformity with the former.

Article 3. Relations Regulated by Labour Law of MPR

The following relations are regulated by the Labour Law of the
MPR:
1. labour relations between the administration of governmental
, non-governmental, cooperative, private enterprises and / or
organizations and the citizens working on contract of employment;
2. labour relations between the administrations of joint ventures
or foreign enterprises and organizations functioning in this
country and the citizens on contract of employment with them
unless otherwise provided for in the international treaties of
the MPR;
3. relations arising from the contract of employment between the
citizens. Hereinafter the parties to the contract of employment
shall be referred to as    administration  and   worker ;

Article 4. Basic Rights and Obligations of Administration

1.  The administration is entitled:
     - to adopt and pursue the internal labour regulations in
     conformity with the legislation of the MPR;
     - to require of the workers the observance of their
     obligations under the contract of employment;
     - to impose liabilities as prescribed by this Law.
2. The administration undertakes:
     - to organize the work of the employees in an efficient
     manner;
     - to ensure healthy and safe working conditions;
     - to remunerate the workers according to their work results;
     - to negotiate and conclude the collective agreement;
     - to ensure conditions for the workers to exercise their
     rights envisaged in the legislation of the MPR.

Article 5. Basic Rights and Obligations of Worker

1. The worker is entitled:
     - to choose the occupation according to his specialization,
     endowment and interest;
     - to be ensured with healthy and safe working conditions;
     - to receive wages commensurate with the results of his
     work;
     - to defend his rights and interests through freely
     organized associations;
     - to enjoy the right to rest, pension, allowances and other
     benefits as prescribed in the
     legislation of the MPR.
2. The  worker shall strictly observe the internal labour
regulations and fulfill the obligations taken
under the contract of employment.

Article 6. Prohibition of Exclusion or Preference in Labour
Relations

It is prohibited to make any direct or indirect distinction,
exclusion or preference in labour relations on account of social
origin and status, race, color, national extraction, sex,
religion, property status or political opinion.

                            
CHAPTER  II:  COLLECTIVE AGREEMENT
                                              
Article 7. Conclusion of Collective Agreement

1. The purpose of the collective agreement is to protect and
guarantee the interests of the parties engaged in labour
relations.
2. The collective agreement shall be concluded between the
administration on the one hand, the organization which represents
and safeguards the interests of all the employees on the other
hand.
In case of the absence of such organization the representatives
of the collective ( hereinafter referred to as  Trade Union  )
shall negotiate and conclude the agreement.
3. The term of the collective agreement and the procedure of its
conclusion and implementation,
and the supervision of observance thereof shall be determined by
the parties concerned.
4. The collective agreement shall enter into force on the date
of its signing by the parties concerned unless otherwise
stipulated therein.
5. The collective agreement shall affect all the workers of the
given entity.
6. Stipulations of the collective agreement contradictory to the
labour legislation of the MPR shall be deemed null and void.

Article 8. Relations Regulated by Collective Agreement

1. The collective agreement shall regulate the relations
concerning:
     (1) the improvement of labour wage distribution and
determination of the size of funds to be spent for labour
payment;
     (2) the granting of social security;
     (3) the labour protection;
     (4) the determination of the regime of hours of work and  
         rest periods;
     (5) vocational training and improving the qualification of 
         workers;
     (6) other matters of labour relations not expressly       
         regulated by this Law.

Article 9. Amendments and Changes to Collective Agreement

Matters with regard to making amendments and changes to
collective agreements shall be agreed upon by the parties
concerned in accordance with the procedure followed in the
conclusion thereof.

Article 10. Responsibility for Non- observance of Collective
Agreements

The liability arising from non-observance of the collective
agreement shall be imposed in the way as mutually consented
therein and as prescribed by the legislation of the MPR.

CHAPTER III.:  CONTRACT OF EMPLOYMENT

Article 11. Contract of Employment
     
The contract of employment represents mutually accepted agreement
whereby on the one hand a worker undertakes to strictly observe
the internal labour regulations and to perform a work in
definite trade, specialty and position, on the other hand an
administration undertakes to pay labour wages and ensure working
conditions in accordance with the legislation of the MPR and the
Collective Agreement as well as the accord reached with the
worker himself.

Article 12. Conclusion of Contract of Employment

1. The contract of employment shall be concluded in writing on
the basis of mutual consent between the administration and the
worker. In case where the contract of employment is not done
in writing, work performance is forbidden.
2. The contract of employment may be concluded with or without
fixed term.
3.  The term of the contract of employment may be extended upon
mutual accord of the administration and the worker prior to
expiry of the term of the contract.
4. In case where neither of the administration and the worker
proposes to rescind the contract of employment at the time of its
expire, and where the worker continues to perform the agreed
work, the contract shall be deemed prolonged for the term fixed
therein.
5. The conditions of the contract of employment contrary to the
legislation of the MPR and the collective agreement shall be
considered null and void.

Article 13. Prohibition to Execute Work not Specified in
Contract of Employment

Except in the cases set forth in this Law, the administration is
forbidden to require of the worker to perform a work not
specified in the contract of employment.

Article 14. Retention of and Reinstatement in Job and Post

1. The job or post of a worker shall be retained in the following
cases:
     (1)  temporary discharge of elective duties in a government 
          body up-to 3 month;
     (2)  regular annual leave;
     (3)  short term leave on account of medical examination or 
          fulfilling donor duties or by
          medical award or at administration s permission;
     (4)  pre- and post- confinement leave;
     (5)  participation in a strike organized in accordance with 
          the legislation;
     (6)  other cases provided for in the legislation of the MPR.
2.  Other cases making possible the retention of the job or post
may be mutually agreed upon between the administration and the
worker.
3. The provision of Article 18, paragraph 1(4) shall not be
applicable in the period of the retention of job and post under
paragraph 1 and 2 of this Article.
4. When a worker, relieved because of incapacitation on account
of industrial accident or occupational disease, returns within
a month after recuperation he shall be reinstated to the former
job or post. If this proves to be not possible, the worker shall
be provided with another job or post of similar category on
mutual agreement.

Article 15. Combination of Job and Post, Temporary Filling
Duties of Absentee

1. A worker may hold another job or post under the contract of
employment at his or at another organization in the period
outside the time of his main work. The list of the jobs and posts
not subject to combination shall be adopted by the Government of
the MPR.
2. A worker may combine his main work stipulated in the contract
of employment with another occupation at his organization within
the hours of work.
3. The administration may assign temporarily the duties of an
absent worker to another worker in addition to his main work upon
agreement.

Article 16. Temporary Transfer of Worker to Another Job in
Case of Unavoidable Industrial Need

In case of unavoidable industrial needs such as the prevention
of natural calamity or industrial accidents or elimination of the
aftermaths thereof, the administration may transfer a worker to
another job unforeseen in his contract of employment for a period
of up-to 45 days. In such case the remuneration shall be
according to the amount of the work done, and it , however,
should not lead to decreasing his previous average wages.

Article 17. Temporary Transfer to Another Work in Case of
Idle Time

In case of an idle time the administration may transfer a worker
to a job not provided for in the contract of employment within
its own organization or to another locally situated organization
for a mutually agreed period.

Article 18. Bases for Termination of Contract of Employment

1. The contract of employment shall be terminated on the
following bases:
     (1)  the mutual consent of both parties;
     (2)  the initiative of the worker for termination or his  
          request for retirement;
     (3)  the initiative of the administration;
     (4)  the expiry of the term of the contract of employment 
          without further extension;
     (5)  the drafting of the worker for active military service;
     (6)  the entry into force a court decision indicting the  
          worker for criminal act which makes it impossible for 
          him to continue his work;
     (7)  the requirement for termination issued by competent  
          authorities in accordance with the procedure as      
          prescribed by the legislation of the MPR.
2. The changes in the affiliation of the organization or in its
administration shall not constitute basis for termination of the
contract of employment.

Article 19. Termination of Contract of Employment on
Initiative of Worker

1. The contract of employment shall be considered terminated on
the expiration of one months period after the submission by the
worker of a request to be discharged.
2. The employment contract may be canceled prior to the term set
forth in this Article, if there are valid grounds for it or an
agreement of the worker with the administration.

Article 20. Termination of Contract of Employment at
Initiative of Administration

1. The contract of employment may be terminated at the initiative
of the administration on the following bases:
     (1)  the dissolution of the organization or changes in its 
          structure or reduction in the number of personnel;
     (2)  the failure of the worker to meet the requirements of 
          the job or post on account of qualification, skill or 
          health reasons;
     (3)  sustained violation of the labour discipline or      
          commission of a serious offense leading to immediate 
          termination of work relations stipulated in contract 
          of employment;
     (4)  meeting the requirements set forth in article (,     
          paragraph 1 of the Pension Law of the MPR;
     (5)  the establishment of the guilt of offense of the worker 
          charged with pecuniary and material responsibilities 
          in breach of the trust reposed in him by the         
          administration.
2. In case of reinstatement by a court decision which found the
dismissal unjustifiable, the administration shall cancel the
contract of employment with the new worker doing the work of the
dismissed worker and shall provide him with another work within
the possibilities.
3. Notice on the termination of the employment contract on the
basis of paragraph 1(1) of this Article shall be served a month
prior to such termination.
4. In cases set forth in Article 14, paragraph 1 and 2 of this
law, the denunciation of the employment contract on the
initiative of the administration shall be prohibited.
5. In the case under paragraph 1(1 and 2) of this Article, the
administration is obliged to have the dismissed worker registered
in the Labour Exchanges and pay the appropriate fees in
accordance with the legislation of the MPR.
                                              
Article 21. Dismissal Benefits 

The administration shall pay to a dismissed worker a benefit
equal to his average wages of not less than one month excepting
the following cases;
     (1)  where the contract of employment is terminated on the
basis of Article 18, paragraph
          1(1) and Article 19, paragraph 2 of this Law         
               respectively if not otherwise stipulated in the 
               collective agreement or the contract of employment 
              concerned;
     (2)  where the worker is dismissed on the basis of Article
18, paragraph 1(6)  or paragraph 1(7)  ( excepting the dismissal
for unfitness on account of health or qualification reasons),
Article 19, paragraph 1 or Article 20, paragraph 3 and 5
respectively.

Article 22. Temporary Suspension of Holding Job or Post

If an authorized body requires in conformity with the legislation
of the MPR, the worker shall be temporarily suspended from
holding a job or post with the subsequent withholding of payment.

Article 23. Work-Book

1. The Work-Book shall constitute the basic document concerning
the worker s employment activities.
2. The administration shall start the work-book record of the
worker from the date he assumes his job or post.

Article 24. Dismissal and Transfer of Work

1. In cancellation of the contract of employment , the
administration shall determine the date of the
transfer of work and fix it in the dismissal decision.
2. The last day of the transfer of work shall be deemed as the
date of dismissal.
3 The administration is under obligation to give the worker the
dismissal benefit and his work-book on the day of dismissal. 
4. The administration has the obligation to provide at the
workers request a certificate on his work record, qualification,
official position and wage status.

CHAPTER IV:  HOURS OF WORK AND REST PERIODS

Article 25. Hours of work

1. Hours of work per week shall not exceed 46 hours.
2. The length of an ordinary work day shall be 8 hours.
3. Parties to the collective agreement on the basis of mutual
agreement may make a specific arrangement concerning the length
of different work days within the limits of the hours of work per
week.
4. The length of the period of rest between two consecutive
working days shall not be less than 12 hours.

Article 26. Reduction of Hours of Work
     
1. The hours of work per week shall not exceed 30 hours for
workers of 14-15 years of age, and 36 hours for workers of 16-18
years of age.
2. The administration, taking account of labour standards:
     - shall determine the conditions of arduous, hazardous,   
       noxious, hot and underground works, and
     - has the obligation to decide on the reduction of the hours 
      of work accordingly.
3. The hours of work of workers may be reduced on the award of
the Medical and Labour Expert Commission.

Article 27. Night Hours

1. The period from 22 o clock in the evening till 6 o clock in
the morning by local time shall be considered as night hours.
2. The length of the hours of work for the period referred to in
this Article shall not exceed 7 hours.

Article 28. Daily or Weekly part-time Work

1. The administration in agreement with workers may introduce
daily or weekly part-time works. In this case the remuneration
shall be commensurate with the amount of the time spent or the
work done.
2. The introduction of part-time work days or weeks shall not
affect the manner of the application of the norms of the labour
legislation concerning inter alia annual leave and the work
record calculation, etc.

Article 29. Aggregation of Hours of Work

Where the keeping of the usual daily or weekly arrangements of
the hours of work proves to be not practicable due to specific
nature of the work or undertaking in question, a procedure of
aggregate counting of the hours of work may be applied. In such
case the aggregate amount of hours shall not exceed the usual
amount of the hours of work for the given period.

Article 30. Restrictions on Overtime Work

1. The extension at the initiative of the administration of the
hours of work per day, established by the internal labour
regulations on the basis of this Law, shall be deemed as
introducing overtime work.
2. Making workers perform overtime work through the decision of
the administration shall be proscribed except in the following
cases:
     (1)  when there is a need to execute a work indispensable 
          for the country s defense and for protection of human 
          life, health and well-being;
     (2)  when there is a need to carry out a work to prevent  
          natural and other public disasters, industrial accident 
         or to urgently eliminate the aftermath s thereof;
     (3)  when there is a need to eliminate the damages        
          disrupting water supply, electric or heating systems 
          or transport or communication facilities;
     (4)  when there occurs unforeseen urgent work which, unless 
          carried out without delay, may cause interference with 
          the normal function of the organizations or its units.
3. It shall be prohibited to make a worker perform work in two
shifts running.
4. The overtime for each worker shall not exceed 4 fours for two
consecutive work days.

Article 31. Rest and Meal Breaks

1. A worker shall be granted a break for rest and meal.
2. The administration shall provide a worker with a possibility
for taking meal during the working hours in cases where it is not
possible for him to have a break because of the specific nature
of the work or undertaking.

Article 32. Public Holidays

1. The following dates are designated as public holidays:
     - New Year - 1st of January;
     - White Moon Days ( 2 days) - the beginning of the first  
       spring month by Lunar Calendar;
     - International Women s Day - 8th of March;
     - Anniversary of the Mongolian People s Revolution - 11th, 
       12th, and 13th of July;
     - Day of the Proclamation of the MPR - 26th of November.
2. The length of the work day on the eve of a holiday shall not
exceed 6 hours.

Article 33. Weekly Days of Rest

1. Sunday is a public day of rest.
2. In case where a worker has no possibility to have a rest on
Sunday on account of a specific nature of the work or post, he
shall be granted rest on another day of the week.
3. The period of a uninterrupted rest between two weeks shall not
be less than 42 hours.

Article 34. Restriction on Work on Holidays and Weekly Days
of Rest 

1. It shall be prohibited to compel a worker to perform work on
public holidays or weekly days of rest at the initiative of the
administration excepting the following cases:
     (1)  in cases envisaged in Article 30, paragraph 2 of this 
          Law;  
     (2)  in cases of non-stop operation of enterprises or work 
          connected with public services or urgent repair or   
          loading and unloading.
2. On the basis of mutual accord, the administration shall grant
the worker who performed work on a public holiday or a weekly day
of rest another day for rest or add it to his annual leave. If
this proves to be not possible, the administration shall make the
payment stipulated in Article 41 of this Law.

Article 35. Annual Leave and its Length

1. A worker shall be granted an annual leave every year to be
personally enjoyed.
2. The basic period of worker s annual leave shall be 21 work
days. 
3. In addition to the basic period workers shall be awarded leave
days taking into account the length of their record of service
and the working conditions as follows:
     1) under normal working conditions:
          6-10 years of service          3 days
          11-15 years of service        5 days
          16-20 years of service        7 days
          21-25 years of service        9 days
          26-31 years of service       11 days
          32 and more years of service    14 days
     2) under arduous, noxious, and hot conditions:
          1-4 years of service            5 days
          5-8 years of service            7 days
          9-12 years of service          9 days
     3) underground conditions:
          1-4 years of service           10 days
          5-6 years of service           14 days
          7-8 years of days              16 days
          9-10 years of service          18 days
4. Additional leave days shall be computed by working days.
5. The length of the annual leave for a worker under 18 years of
age shall be 30 work days.
6. For certain categories of workers the length of the additional
leave shall be determined by the Government of the MPR.

Article 36. Leave of Absence

1. The administration may grant to a worker a short-term leave
on request.
2. The question of whether or not to grant the worker benefits
connected with such leave shall be decided in accordance with the
relevant collective agreement.

CHAPTER V.:  REMUNERATION OF LABOUR, GUARANTEED PAYMENT AND
COMPENSATION

Article 37. Regulation of Labour Remuneration

1. The Government of the MPR shall fix the minimum wages.
2. The minimum wages shall be revised and fixed in connection
with changes in the cost of living of the population.
3. The administration shall establish the wage pattern and scheme
taking into account the results of the activities of the
organization and the possibilities of its funds.
4. A worker shall be granted wages according to his work results
which shall be calculated on the basis of piecework or hourly
rates, or by other manner.
5. In case where labour remuneration has to be reduced and if
this is not through the fault of the worker concerned, the wages
should not be lower than the minimum wages established by the
Government of the MPR for the given category of trade.

Article 38. Tariff and Occupation Reference

1. The central state administration organization dealing with the
labour relations  matters shall provide the guideline for
compiling the wage scale and occupation reference of the
professional jobs and office posts, and the aggregate register
of professional jobs and office posts.
2. The administration shall adopt and pursue the wage scale and
occupation table of the professional jobs and office posts of the
organization, basing on the guideline and the register
referred to in paragraph 1 of this Article and taking into
account the nature and complexity of given work.

Article 39. Additional Pay

1. The Government of the MPR shall establish the minimum of the
additional pay arising from different conditions of work.
2. The administration shall fix the size of the additional pay
connected with the degree of occupational status, rank, and
skill. The size of the pay for combining two occupations and for
temporarily executing the work of absentee shall be decided upon
by mutual accord with the worker concerned.

Article 40. Overtime Work Payment

Overtime work shall be remunerated with double-rate pay.

Article 41. Remuneration for Work on Public Holidays and
Weekly Days of Rest

1. Where it proves to be not possible to grant a day of leave in
compensation for performing work on a public holiday or on a
weekly rest day, the worker concerned shall be remunerated with
double-rate pay.
2. Where a day of leave is granted in lieu of a holiday or a
weekly rest day the worker shall be paid without the above
mentioned addition.

Article 42. Remuneration for Work Producing Under-Standard
Output Norm

1. If a worker fails, through no fault of his own, to fulfill the
standard output norm, he shall be paid remuneration for the work
done plus the difference from his previously received wages.
2. If a worker fails through his own fault to fulfill the
standard output norm, he shall be paid remuneration corresponding
to the work performed.

Article 43. Remuneration for Defective Output

1. Where a worker produces defective output, through no fault of
his own, he shall be paid 100 percent of the normal tariff wages.
2. Where a worker produces through his own fault partly defective
items, he shall be paid at a lower rate depending on the extent
to which the items could be of use.
3. Where a worker produces totally defective output through his
own fault, he shall not be paid for the work performed.

Article 44. Payment During Idle Time
     
1. Where a worker cannot be transferred to another job during an
idle time, through no fault of his own, he shall be paid 100
percent of the normal tariff wages.
2. Where a worker has been idle through his own fault, he shall
not be paid for the time involved.
3. A worker transferred to another work during an idle time shall
be remunerated according to the work performed and payment,
however, should not be less than his previous average wages.
4. A worker who refused for no valid reason to be transferred to
another job shall not be remunerated.

Article 45. Wages for Worker Under 18 Years of Age

Labour remuneration for a worker under 18 years of age shall be
paid on piecework or hourly rate with the compensation for the
pay of reduced hours.

Article 46. Labour Remuneration During Time of Work Transfer

1. The labour remuneration during the transfer of work shall be
paid by the organization where the worker was employed.
2. If the time allotted for the transfer of work expires through
the fault of the administration, the wages for the extended
period shall be paid to the worker concerned.
3. In case where the time for the transfer of work is extended
through the fault of the discharged worker no payment shall be
made.

Article 47. Payment Period

1. Wages shall be paid at least twice a month at fixed dates.
2. Advance may be given at the request of the worker concerned.

Article 48. Notification Concerning Payment

The administration is under obligation to notify all workers at
least one month in advance about the expected changes in wage
rates or in the manner of payment, or about the new introductions
thereof.

Article 49. Deductions from Wages and Restriction on
Deductions

1. Deductions from worker s wages may be made in the following
cases exclusively:
     (1)  when compensation is required to be made for the money 
          taken in advance under subsequent account;
     (2)  when the administration decides to get a compensation 
          for damage not exceeding monthly average wages of the 
          worker concerned;
     (3)  other cases provided for by the legislation of the MPR.
2. No deduction shall be allowed from a worker s wages for
overpayment caused by reasons other than wrong calculation.
3. The total amount of deduction levied on a worker s monthly
wages ( excluding income tax ) should not exceed 20 percent of
the wages. In the case of levying child alimony or several
deductions at a time the total sum of the deduction should not
exceed 50 percent of the wages.

Article 50. Wages and Benefits for Retained Job and Post

A worker shall be granted average wages in the cases laid down
in the Article 14, Paragraph 1 of this Law, and certain benefits
if a specific provisions is made in the legislation of the MPR.

Article 51. Compensation in Case of Transfer to Local
Assignment

Where are worker is transferred on the strength of election or
appointment from one aimag or town to another aimag or town, as
well as within an aimag or a town, from one soum or district to
another soum or district, the receiving organization shall pay
his traveling expenses, baggage transportation cots and per diem
as well as traveling expenses and baggage transportation costs
for the members of his family and other dependent persons.

Article 52. Compensation During Absence for Valid Reason

A worker, who failed to come to work because of natural or other
wide-spread  calamities or for other valid reasons and excuses,
shall be given a compensation equal to 50 percent of his normal
tariff rate wages. However, if the worker has taken part in the
removal aftermath s of such calamities or disruptions, he shall
be paid 100 percent of the tariff-rate wages.

Article 53. Payment During Reduced Hours Of Work

A worker, whose hours of work has been reduced under Article 26,
paragraph of this Law, shall be granted his previous average
wages for 6 months.

Article 54. Payment During the Time of Transfer to Another
Work with Benign Health Conditions

If the wages of a worker transferred to another work under
Article 73 of this Law is to become lower, he shall be given his
previous average wages for 6 months.

Article 55. Payment in Connection with Wrong Dismissal or
Transfer

1. If a worker is restored to his job or post after having been
dismissed or transferred to another job or post wrongfully, he
shall be compensated with his previous average wages, for the
period of his being out of work or with the difference of the
wages if he was transferred to a job or post with lower pay.   
2. If an incorrect record in a worker s work-book has caused
interference in finding employment or compelled him to take up
job with lower pay, the worker shall be compensated with the
previous average wages for the whole unemployed period or with
the difference in the wages where he had to get employed in a
work with lower pay.
3. If the administration s delay in the delivery of the worker
s work-book caused him to remain unemployed, the worker shall be
compensated with the previous average wages for the whole
period he was in wait.
4. The payment stipulated by this Article shall be made by the
administration of the organization which discharged the worker,
and the loss sustained in this respect shall be compensated by
the person liable. Such compensation, however, shall not exceed
3 month s wages of latter.
 
Article 56. Cost and Expense Compensation

In case where a worker s person tools and instruments were used
on the basis mutual consent due to an inescapable need to ensure
the normal function of the undertaking, the entailing costs and
expenses shall be compensated by the administration in accordance
with the legislation of the MPR or the relevant stipulations of
this Law.

CHAPTER VI:  LABOUR DISCIPLINE AND MATERIAL LIABILITY

Article 57. Internal Labour Regulations

1. The administration shall adopt and pursue the internal Labour
Regulations in accordance with the legislation of the MPR.
2. Internal labour regulations shall determine:
     - the work order of the organization;   
     - the rights and obligations of the administration and the 
       workers;
     - the conditions for encouragement of workers.
3. Certain branches may have special disciplinary rules adopted
by the competent high government body.

Article 58. Labour Discipline Liabilities

1. The administration shall impose on the worker who committed
acts in breach of labour discipline the following penalties (
through appropriate order, resolution or decision):
     (1) censure;
     (2) fine deducted from the wages by up-to 20 percent for a 
         period up-to three month;
     (3) dismissal.
2. No penalty shall be imposed after the expiry of one month
since the revealing of the offense and of over six months since
the commission thereof.
3. Imposing double penalty for one and the same offense is
prohibited.
4. Making a record of disciplinary penalties in the work-book is
forbidden.
5. Upon the expiry of one year after imposition of the
disciplinary penalty, the worker shall be deemed having no
disciplinary penalty.

Article 59. Basis for Material Liability

1. A worker, who in the course of work performance has caused
damage to the organization through his own fault, shall be
subject to material liability, irrespective whether or not other
penalties ( disciplinary , administrative, criminal ) are
imposed.
2. The scope of the damage shall be determined by the actual
damage immediately inflected and the expected profit shall not
be included.
3. The unavoidable damage arising from industrial experiment or
production adjustment shall not be compensated by the worker
concerned.
4. A worker shall not be required to compensate the damage caused
through the failure of the administration to provide conditions
for keeping the property entrusted to him secure and undamaged.

Article 60. Limited Material Liability

A worker, who in the course of work performance has caused damage
to the organization through his own fault, shall be subject to
limited material liability in the cases other than those
specified in Article 61 of this Law and the liability should not
exceed the average monthly wages of the worker.

Article 61. Full Material Liability

1 A worker shall be held subject to full material liability in
the following cases:
     (1)  when the worker s action, which inflicted damage to the 
          organization, is qualified as
          criminal through appropriate procedure;
     (2)  where the legislation of the MPR provides for full   
          material liability for the damage caused by the worker 
          during work performance;
     (3)  when a worker, who concluded a compact with the      
          administration under Article 62 of this Law to bear  
          full responsibility for the properly entrusted to him, 
          incurs losses in property or other assets;
     (4)  when properties or assets taken on warrant for       
          subsequent account are not returned or paid on time  
          specified;
     (5)  when a worker, though not eligible for property      
          responsibility, incurs losses in properties such as  
          special work clothing or other individual protective 
          facilities expressly entrusted to him under his full 
          responsibility or in his custody;
     (6)  when damage is inflicted to the organization under the 
          effect of alcohol or drug abuse, or outside the      
          performance of work duty.
2. Other procedures of imposition of penalty for misappropriation
of or causing shortage in certain categories of properties and
assets shall be prescribed exclusively by the legislation of the
MPR.

Article 62. Compact on Full Material Responsibility

1. The administration shall conclude in writing a compact on the
full material responsibility with the workers above 18 years of
age who are engaged in the storage, processing, delivery,
selling, transportation or in the work immediately connected with
the use of properties or assets in production.
2. A register of the occupations and posts eligible to full
material responsibility shall be approved by the central state
administrative body responsible for matters dealing with labour
relations.

Article 63. Determination of Scope of Damage

1. The scope of the damage sustained by the organization shall
be determined by the actual loss which is computed by way of
deducting the appropriately evaluated wear and tear costs of the
properties or assets from the account -book   or balance-sheet
prices.
2. In case of misappropriation or deliberate destruction or
breakage of properties or assets, the scope of damage shall be
fixed on the basis of their current prices.
3. In case when a damage is inflected through the fault of
several workers, the scope of the damage shall be fixed
individually taking into account the extent of the offense and
the category of material liability of each worker.

Article 64. Compensation of Damage Inflicted to Organization

1. A damage of the scope not exceeding the worker s average
monthly wages shall be compensated on the decision of the
administration through deduction from his wages.
2. In case when the scope of the damage exceeds the worker s
average monthly wages, litigation for compensation shall be
served on the court.
3. If the administration has made unlawful deduction from the
worker s wages, the complaint for compensation shall be settled
by an organization dealing with labour dispute.

CHAPTER VII:  LABOUR PROTECTION 

Article 65. Labour Protection Rules

The general rules of labour protection to be observed throughout
the country shall be adopted by the Government of the MPR, and
other rules and labour standards shall be adopted by the central
state administrative body responsible for matters of labour
relations.

Article 66. Insurance of Healthy and Safe Working Conditions

1. The administration has the obligations:
     - to guard workers against industrial accidents and       
       occupational diseases;
     - to ensure safe and healthy conditions of work.
2. The administration shall provide in its work program and in
the collective agreement resources needed for carrying out labour
protection measures.

Article 67. Non- Commission of Enterprises Failing to Meet
Labour Protection Requirements and Suspension of Production at
such Enterprises

1. It is prohibited to put into operation enterprises,
undertakings and establishments or their branches which fail to
meet job security and health requirements, and industrial
activity shall be suspended at the entities with similar
conditions.
2. The commissioning of newly built, reconstructed or overhauled
enterprises, constructions and civil engineering works without
the permission of the competent authorities shall be forbidden.
3. In case when the working conditions or the function of
machinery or equipment of enterprises, establishments or their
branches are likely to cause danger or injury to life, body or
health of workers, their work shall be suspended by the decision
of the competent body or officer until the requirements of labour
protection and job security are ensured.

Article 68. Provision of Special Work Clothing, Individual
Protective Equipment, Industrial Service Auxiliary

1. The administration shall provide free of charge special work
clothing, individual protective equipment, antipollutants or
cleansers to the workers who work under arduous, contaminated,
noxious, hot or underground conditions.
2. The administration shall be responsible for maintaining an
industrial amenity and service auxiliary for storage, repair,
washing and cleaning of special work clothing, individual
protective equipment and appliances for removal or dissipation
of toxic substances and noxious gas and effluvia.
3. The administration shall provide the workers who perform work
under noxious condition with milk and other special food for
prevention and removal of toxication, the workers who toil under
heated condition with gasified or salted water - all free of
charge.

Article 69. Breaks under Unfavorable Weather Conditions

1. In accordance with labour standards, the administration shall
grant the worker, who performs work outdoor or in unheated
premises temporary breaks during unfavorable weather ( extremely
hot or cold, etc. ) conditions.
2. The time of temporary breaks shall be included in the hours
of work.

Article 70. Registration of and Notification on Industrial
Accidents and Occupational Diseases

1. The administration shall be obliged to register and
investigate every industrial accident, make conclusion and take
required action in conformity with the procedure prescribed by
the Government of the MPR. Trade Union representatives shall be
invited in making conclusion and taking decision on required
action.
2. In case when the administration refuses to draw up statement
on the industrial accident or the worker does not agree with the
statement concerning the causes and conditions of the accident,
he has the right to submit complaint to the organization
responsible for the supervision of the implementation of the
labour legislation. The administration has the obligation to
fulfill the decision taken concerning the complaint.
3. The administration is obliged to take prompt measures:
     - to provide the worker affected by the accident with the 
       its own transport to medical aid or the expenses thereof;
     - to remove the causes and aftermaths of the accident.
4. The administration shall bear the expenses connected with the
investigation of the industrial accident and the determination
of the causes and conditions thereof.
5. The causes and conditions of occupational diseases shall be
investigated and determined by the competent authorities.
6. The administration shall inform of industrial accidents and
occupational diseases in accordance with the established
procedure.
7. Concealing industrial accident s and occupational diseases
shall be prohibited.

Article 71. Health Examinations

1. The administration shall:
     - organize a medical examination of the worker who is going 
       to work underground or under arduous, noxious or hot    
       conditions prior to his admission to work to be sure of 
       his fitness;
     - organize health checkups of workers every year to protect 
       against getting affected by occupational diseases.
2. Establishments of public service sector such as food industry,
commercial and public catering entities shall have their workers
undergone regular medical examination every year in accordance
with the established procedure.

Article 72. Suspension of Work in Case of Occurring
Conditions Extremely Prejudicial to Life, Body and Health

1. The worker, who in the course of work performance confront
situation extremely prejudicial to life, body and health, shall
stop the work and accordingly shall notify the administration.
2. The administration has the obligation to immediately take
measures to remove such situation.

Article 73. Transfer of Worker to Another Job not
Prejudicial to His Health

Under the decision of the Medical and Labour Expert Commission,
the administration has the obligation to transfer a worker with
his own agreement to another work with conditions not prejudicial
to his health or to alter the conditions of his present work.

Article 74. Employment of Disabled Person and Pigmies

1. It is prohibited to deny employment to disabled persons and
pygmies if their physical conditions enable them to be employed
in the industrial and service jobs.
2. The administration is required:
     - to provide industrial and /or service jobs to disabled and 
       defective persons according to their ability, and 
     - to introduce, on the basis of the award of the Medical and 
       Labour Expert Commission, the regime of reduced hours of 
       work, free days and weeks, homework for them.

Article 75. Administrative Responsibility for Damage
Inflicted to Worker

1. The administration shall compensate the loss suffered by a
worker from bodily or health injury inflicted during job
performance through the fault of the administration.
2. The administration shall:
     - make compensation according to the degree of the loss of 
       occupational capacity, determined by the Medical and    
       Labour Expert Commission , from the worker s average    
       previous wages:
     - bear fully the expenses incurred because of inflicted   
       bodily or health injury ( such as the price of rendered 
       useless property, the expenses connected with medical   
       treatment, nursing and rehabilitation, and the cost of  
       prosthetic appliances, etc.).

Article 76. Medical and Labour Expert Commission

1. The Medical and Labour Expert Commission shall make decisions
on the questions concerning determination of:
     - the fact of disablement;
     - degree of incapacitation;
     - special labour conditions for partly disabled persons.

CHAPTER VIII:  EMPLOYMENT OF WOMEN AND YOUNG PERSONS

Article 77. Jobs Prohibited for Women and Young Persons

The Government of the MPR shall adopt the register of the jobs
prohibited for women and young persons to perform.

Article 78. Prohibition of Dismissal of Pregnant Women and
Nursing Mothers

No dismissal of pregnant women and women having children under
two years ( in case of twin three years ) of age shall be allowed
at the initiative of the administration.

Article 79. Restriction on Night and Overtime Work and
Assigned Trips

1. Night or overtime work or assigned trips shall be prohibited
for women having children under one year of age. This stipulation
also applies to single fathers.
2. Pregnant women, mothers having children of 1-8 years of age,
and single mothers or fathers with children, under 16 shall
perform night or overtime work or make assigned trips only on
their own consent. This stipulation also applies to fathers
having newborn children.

Article 80. Breaks for Feeding and Nursing of Infants

1. Besides the general rest-and food breaks, additional breaks
during the hours of work shall be granted for the feeding and
nursing of infants. The duration of such breaks shall be two
hours for mothers having infants under 6 months of age or twins
under 12 months, and one hour for mothers with children of age
between 6 and 12 months or for mothers and single fathers having
children over one year of age, who, however, inevitably need
special care according to medical certificate.
2. Break time for the feeding and nursing of infants shall be
incorporated into the hours of work.

Article 81. Maternity Leave

1. Mothers shall be entitled to maternity leaves of 45 days
before and 56 days after delivery.
2. In case of complications during confinement, the post-delivery
leave shall be extended to 70 days, and in case of the birth of
twins, the length of the maternity leave before and after
delivery shall be extended to 70 days respectively.
3. Mothers who did not utilize fully their preconfinement leaves
shall be compensated by the addition of the unused part to the
post-confinement leave.
4. Post delivery leave shall also be granted :
     - when women after 196 days of carriage suffer miscarriages 
       or undergo abortion because of health reason;
     -when women give birth before 196 days of carriage to     
      children capable to live on.
In granting leaves to mothers who gave premature childbirth or
underwent abortion, the usual procedure of granting leaves for
sickness shall be followed.

Article 82. Leaves and Benefits for Adopter Mothers of
Newborn Children

1. A mother who has adopted a newborn child shall be entitled to
the same leaves and benefits, as mother who gave a childbirth,
until the adopted child reaches 56 days.
2. This stipulation applies to single fathers who adopted newborn
children.

Article 83. Granting Mothers Baby Care Leaves

1. Upon expiry of the post-delivery and annual leaves, mothers
shall be granted leaves until the babies reach 2 years of age (
in the cases of twins - 3 years) with the appropriate benefits
if they so wish. During such leaves their jobs or posts shall be
retained.
2. The administration shall have the obligation:
     - to allow mothers to take up their previous jobs or posts 
       upon the expiry of their leaves or before the expiry if 
       they so wish;
     - to grant other jobs or posts if the previous ones are   
       eliminated because of reduction of the staff or the     
       number of work places.
3. The stipulations of paragraph 1 and 2 of this Article shall
apply to single fathers having children of the same age and to
persons who adopted children of the same age.

Article 84. Reduction of Hours of Work of Pregnant Women and
Mothers, Their Transfer to Another Work

1. In case when medical awards are made in respect of easing the
working conditions of pregnant women, their working hours may be
reduced or they may be transferred to other works not hazardous
to their health. In such case their previous average wages shall
be retained.
2. If mothers, having children under one year of age, find
impossible to perform their assigned works, they may be
transferred to other works until the children reach one year, and
if their pays are to decrease during such period, their previous
average wages shall be retained.

Article 85. Age of Admission to Employment

1. Persons who reached 16 years of age may be admitted to
employment.
2. Persons, who reached 15 years of age, may be admitted to
employment with the permission of their parents or
representatives provided this will not affect  their health,
physical growth and moral status.
3. Persons reaching 14 years of age may be allowed to take up
employment for the purpose of imparting vocational guidance and
work experience with the consent and under the supervision of
their parents or representatives.

Article 86. Health Protection of Workers under 18 Years of
Age

1. The employment of persons under 18 years of age in the job
under arduous, noxious or hot conditions or in underground work
shall be prohibited.
2. Night or overtime work or work on public holidays or weekly
rest days shall be prohibited for workers under 18 years of age. 
3. A worker under 18 years of age shall be admitted to employment
after he has undergone medical examination and half-yearly
medical checkups shall be compulsory until he reaches 18 years
of age.
4. Where a worker under 18 years of age is given a medical
certificate testifying against the continuation of his assigned
job, the administration is obliged to provide the worker with
another job meeting his health requirement.
5. If a work performed by a worker under 18 years of age proves
to be prejudicial or is likely to be prejudicial to his health,
the contract of employment shall be terminated at the demand of
his parents, guardians or wards or the body responsible for the
supervision over the implementation of the labour legislation.

Article 87. Limitation on Load Handled by Women and Minors

It is forbidden to employ women and minors in jobs connected with
lifting or carriage of loads whose weight exceeds the limit
prescribed for this case by the central state administrative body
responsible for labour questions.

CHAPTER IX:  LABOUR DISPUTE

Article 88. Labour Dispute Settlement Organizations

1. Labour dispute settlement organizations and courts shall,
within the framework of their competence, examine and settle
labour disputes between administrations and workers.
2. The procedure of examination and settlement of labour disputes
is prescribed by this Law and other relevant legislative acts of
the MPR.

Article 89. Settlement of Collective Labour Disputes

The collective labour disputes between administration and Trade
Unions shall be examined and settled in accordance with the
procedure prescribed by the legislation of the MPR.

Article 90. Labour Disputes Dealt with by Labour Dispute
Settlement Commission

1. The Labour Dispute Settlement Commission shall examine and
settle the disputes except those referred to courts by the
legislation of the MPR.
2. The rules of the Labour Dispute Settlement Commission are
adopted by the Government of the MPR with the agreement of Trade
Union organizations.

Article 91. Appeal Against Labour Dispute Settlement
Commission s Decision

If the decision of the Labour Dispute Settlement Commission is
not acceptable, the administration or the worker concerned have
the right to appeal to court within 10 days since receipt of the
decision of the Commission.

Article 92. Labour Dispute Dealt with by Courts

The Courts shall examine and make decision on the following
disputes:
     (1)  appeal made in accordance with Article 91 of this Law;
     (2)  complaint concerning a wrongful dismissal or a wrongful 
          transfer to another job at the initiative of the     
          administration;
     (3)  administration s litigation concerning the compensation 
          of the damage inflicted to the organization by a     
          worker;
     (4)  dispute concerning the questions set forth in paragraph 
          2 and 3 of Article 55 of this Law;
     (5)  worker s litigation concerning the losses sustained on 
          account of the bodily or health injury inflicted in the 
         course of work performance;
     (6)  worker s litigation concerning an unfair disciplinary 
          penalty;
     (7)  worker s litigation against the downgrading of the   
          conditions of the legislation of the MPR or those of 
          the collective agreement in the contract of employment;
     (8)  disputes concerning the contracts of employment between 
          citizens;
     (9)  labour disputes between the administration of        
          cooperative or private enterprises or organizations and 
         the employees working therein on contracts of         
         employment;
     (10) other disputes referred to court s competence by the 
          legislation of the MPR. 

Article 93. Terms of Complaint Concerning Labour Disputes

1. In  all cases except that set forth in paragraph 2 of this
Article, parties to the contract of employment, shall submit
their complaints concerning the violation of their rights to the
labour dispute organizations within three month since the day the
violation was revealed or should have been revealed.
2. Complaints concerning wrongful dismissal or wrongful transfer
to another job should be delivered within one month from the day
the worker received the administration s decision ( order,
resolution, direction ).
3. In the cases when the terms set forth in this Article are
expired for valid reasons, the Court may reinstate them and take
up the matter.

Article 94. Reinstatement of Work

If the worker is wrongfully discharged or wrongfully transferred
to another work, the Court shall reinstate him in the previous
work.

CHAPTER X:  SUPERVISION OF IMPLEMENTATION OF LABOUR LEGISLATION

Article 95. Organizations of Supervision of Implementation
of Labour Legislation

The state supervision of the implementation of the labour
legislation shall be exercised by the Government, Governors of
all instances and other organizations empowered by the
legislation of the MPR within the purview of their respective
competence.

Article 96. Responsibility for Offense Against Labour Law

Those, who are found guilty of the offenses against the labour
legislation, shall be subject to disciplinary, administrative,
material or criminal liability in accordance with the legislation
of the MPR.

          Chairman of the Hural of the MPR        R. Gonchigdorj
          Secretary of the Hural of the MPR       B. Chimid

          24th of January 1991                                 
             Ulaanbaatar

The International Labour Organization is a United Nations specialized agency.

Updated by PAP/SUT/TRS. Approved by BKL. Last updated on 5 March 2001