Find your employer of record in Mongolia

The Mongolian Parliament passed the Labor Migration Law (known as “LML”) which came into force on July 1, 2022. Thus, the Law on Sending Labour Force Abroad and Receiving Labour Force and Specialists from Abroad is no longer in force.

In this case, contractor management services can apply for the work permits of a foreign employee. Thus, the said request must be made at the work address after you have consent to invite the foreign worker. Therefore, said authority issues the permit to the foreign employee for a period of up to 1 year.

However, this is subject to the job position and according to the duration of the employment contract. Besides, the entire process for getting a work permit must be agreed upon by the Ministry of Labor and Social Protection.

In this case, the permit details the full name and nationality of the worker, the name of the employer, the place of work, and its validity.

On the other hand, a PEO can manage the extension of a work permit according to valid rules. However, the period of work of a foreign employee in the country cannot exceed 5 years.

VAT in Mongolia is 10.00%.

Termination Process

With the Employer of record in Mongolia you can learn the difference between employment agreements and employment contracts. This is because the conditions for ending an agreement or a contract vary.

Employment agreements may be ended by the employer under the next conditions:

• Mutual agreement between both parties.
• Death of the employee or employer.
• Expiration of the contract without extension.
• By requirement of the law.
• An employee fired without valid reason was restored to his position. In this case, the employee should be given another job if possible.
• The employee must complete military service.
• A court sentences the worker to a penalty that prevents him from working.
• At the initiative of the worker or company.

In either case, the employer must provide 30 days notice from the employer unless otherwise agreed. Likewise, an employer may finish an employment contract for the next reasons:

• The business is liquidated.
• The worker does not meet the work requirements because he does not possess the professional qualifications, or skills, or for health reasons.
• The employee has reached retirement age and must receive a pension.
• For constant violation of the rules or a serious violation.
• The worker does not fulfill the fiduciary duty.
• The employee gets a new job.
• For other reasons established in the contract.

Notice Period

Employment laws provide a 30-day notice from the employer to the worker.

Severance Pay

International PEO services can make severance pay consisting of a salary of 1 month. In this case, it is because of the military duty of the employee, business liquidation, or employee retirement.

Probation Period

The trial period for employment in Mongolia is 3 months.

Paid Time Offs

The Employer of Record in Mongolia manages annual leave consisting of 15 paid days. However, workers under 18 years of age, have the right to receive 20 days per year. Nevertheless, employees may enjoy additional days according to the length of employment:

• 3 working days for employees with between 6 and 10 years of service.
• Likewise, 5 working days for workers with between 11 and 15 years of service.
• 7 working days for workers with 16-20 years of service.
• Also, 9 working days for employees between 21 and 25 years of service.
• 11 working days for employees with 25-31 years of service.
• 14 working days for employees with more than 32 years of work.

Public Holidays

There are 15 national holidays throughout the year.

Vacation Holidays

There are 15 vacation holidays throughout the year.

Sick Days

Mongolian employees are entitled to sick leave for the duration.