This document summarizes the key details and history of Mongolia's draft Labour Law. It discusses the current 1999 labour law and outlines the process of drafting a new law since 2015, including consultations with a working group and study tour to Japan. The June 2015 draft provides greater protections for employees but also faces issues from additional costs and restrictions for businesses. It proposes increasing wages, leave time, and influence of unions while expanding dispute resolution processes and limiting flexible work arrangements. The working group continues revising the draft to pass a new labour law by end of 2015.

1. Draft Labour Law
Presenter name
Elisabeth Ellis
02 November 2015

2. History
 Current labour law:1999
 Draft Law: First proposed 5 years ago
 March 2015 draft
 June 2015 draft:
 publicly available
 Significant improvement – but issues remain
 September 2015: Working Group tour to Japan
 New draft being prepared

3. June draft Labour Law: Benefits
 More properly reflects current work arrangements
 Part time work
 Rostered work
 Labour Hire
 Codifies practice
 Removes uncertainty
 Greater protection for employees

4. June draft Labour Law: Issues
Issue Impact
Additional cost More hardship for business in an already
difficult economic environment
Additional influence of trade unions and
government in the employment relationship
Hinder employer’s ability to run their
business
Additional levels of dispute resolution Delay and cost increase
Additional restrictions Limits on flexibility may result in reduced
employment opportunity
Uncertainty Potential for abuse

5. Additional Cost
Issue Current Proposed
Travel Travel time not included in hours worked Transport time included in hours worked
Employer must provide free transport
Weekend work 1.5 times 2 times
Nighttime pay Agreed in collective agreement or internal
regulations
At least 15% applies to the whole shift if 2/3 of
the shift occurs between 10pm and 6am
Annual leave 15 days
Additional days prescribed for years of work
20 days
Additional days to be agreed with the Union
Mass redundancy Severance negotiated Severance negotiated but minimums
prescribed
Hours on call Not regulated Counted as hours worked
Witness Not regulated Paid by employer
Public holidays Not substituted if fall on a weekend Substituted for next work day

6. Additional influence of unions and Government
Issue Current Proposed
Internal rules Set by Employer Duration of rosters, work and rest time and allowance will be
set by internal rules in consultation with the Trade Union or
employee representatives
Collective agreements Between Employer and
representatives of employees
Between Employer, Trade Union and organisation at sector,
industry or occupation level
Collective bargains Entered into at national or
regional level
Concluded at the national level (involving Government and
national organisation) and the Aimag, Capital City, Soum or
District level (involving Governor and local organisation)
Committee to promote
Cooperation at the
workplace
Not required Includes union reps
Resolves individual labour disputes
 Involved in OHS, industrial accident, job assessment, gender
issues
National Tripartite
Consultative
Committee on Labour
and Society
Broader role:
 Ensuring equal base salary for all employees performing
duties with the same value
 Approve model statute for committees to promote
cooperation at the workplace

7. Dispute resolution
Individual disputes
[Not termination, transfer or rotation]
Committee for Promotion of
Co-operation in the Workplace
Tripartite Committee for Labour Dispute
Settlement [Soum or District]
Supreme Court
First Instance Court
Appeal Court
Equal # of
representatives of
employers and
employees (selected
by Trade Union)
Representatives of:
Government
Employees (Union)
Employer
Appeal
Enforcement
Appeal
Employee claim for
breach of internal
regulations.
Employer claim for
property liabilities.
Individual dispute
[Termination,
transfer or rotation]

8. Restrictions on labour relations
Issue Current Proposed
Fixed term
contracts
Available in any
circumstances
specified in the
Employment
Agreement
No limit on duration
Only available in limited circumstances:
apprentice/intern
seasonal work
temporary replacement
temporary job/duty
Maximum 2 years
Rosters No regulation Limited to mining
Maximum 12 hours per day and 72 hours per month
Prescribes 1 day off for every 14 worked
Labour Hire Not regulated Only possible in specified circumstances:
temporary jobs less than 6 months
temporary replacement
for duties which support the main activity of the employer; or
for a period of significant increase in work
Except for a period of significant increase in work, the number of labour hire
employees is capped at 30% of the employer’s employees

9. Uncertainty
Employees with ‘specific family responsibility’: an employee with
limited ability to perform jobs and duties and career opportunities due
to care of children or other members of the family.
 Employer must provide flexible work arrangements
 May not be dismissed in mass redundancy
Obligations to up grade skills of employees?

10. Additional protection for employees
Issue Current Proposed
Notice of termination 30 days 14 days
Carer's leave Available to mothers and single
fathers
Available to grandparents

11. Status
Participant Members Actions
Working Group MPs
Vice Ministry of Labour
Employer's Federation
Parliament Standing Committee on Social
Policy
Study tour to Japan in September
Subworking Group Ministry of Labour
Employer's Federation
Parliament Standing Committee on Social
Policy
2 meetings to revise draft since October
2015
Preparing draft to submit to Parliament
Working Group
Aim to pass the law by end 2015
Parliament Working Group Mr Tleikhan MP
Parliament Standing Committee on Social
Poicy, Education, Science and Culture
7 MPs

12. Elisabeth
Ellis
Partner
T +976 7700 7780
M +976 9999 7043
E
elisabeth.ellis@minterellison.com