Employment Contract in Myanmar - MP&O

An employment contract is a written agreement that covers the working relationship between an employer and an employee, and it allows them to clearly understand their obligation and terms of employment. The purpose is to attribute rights and responsibilities and to give both parties security and protection. When thinking of entering Myanmar as an employer, we recommend that you learn the procedure and how an employment contract is processed in Myanmar. The process and procedure might be different from your country so I assume this will be beneficial to you.

First of all, I would like to share what must be included; type of employment, probation period (if any), wages/salary, location of the employment, terms of contract, working hours, days off/ public holidays and leave, working overtime, meal during working hours and accommodation and uniform, medical treatment, arrangement for transportation and travelling regulations followed by employees, training course, resignation and dismissal, termination, responsibilities of the employer and employees, dispute resolution, and obligations of the employer and employees. In Myanmar, there is a government template to prepare and register that must be used for all companies with more than 5 employees. Employers are able to add to the Appendix A & B as well as include the specific job description, however they are not able to make any changes to the core parts of the employment contract.

When preparing the employment contract, you must prepare 3 copies of the employment contract for each employee. One copy is for the government (Labour Office), another one copy is the company and the last one is for the employees to keep. Most township labour offices retained the practice of only allowing each employment contract to last for a maximum of two years and may continue by renewing the employment contract at the government office every two years.

After preparing the employment contract, the contract must be signed and registered at the government labour office which is located in the same township as the company, within 30 days starting from the day the employee joined.
As for the renewal and termination of the employment contract, if the employee does not violate any terms of the contract, the employer and the employee can discuss about the renewal one month before the contract ends especially when there are changes in the new contract. For all terminations of employment including when a contract is not going to be renewed (except for a dismissal for an act of gross misconduct), the employer must provide the employees with one month notice and a severance payment based on the total duration of employment not just the duration of the current contract.

This is one key general knowledge you should know before entering Myanmar as an employer and starting your operations in Myanmar.

References
https://www.ilo.org/wcmsp5/groups/public/—asia/—ro-bangkok/—ilo-yangon/documents/presentation/wcms_534636.pdf

Hay Soe

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MP&O® was founded by the leaders of Myanmar’s best recruitment and corporate secretarial service firms to minimize legal exposure and maximize operational success for their existing clients, who consist of some of the most prominent local and multinational companies.

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